Chapter 1
Course Preparation
CONNECT INTEGRATION
Interactive Exercises, LearnSmart, Quizzes, and Exams: Introductory Remarks
CONNECT INTEGRATION
Course Preparation
Opening Discussion Topics and Exercises
ChapterCase: Does Twitter Have a Strategy?
1.1 What Strategy Is: Gaining and Sustaining Competitive Advantage (LO 1-1,
LO 1-2, LO 1-3)
CONNECT INTEGRATION
Case Analysis: Gaining Competitive Advantage at Nvidia
1.2 Stakeholders and Competitive Advantage (LO 1-4, LO 1-5)
CONNECT INTEGRATION
Interactive Sequencing: Internal and External Stakeholders
CONNECT INTEGRATION
Interactive Labeling: Identifying Social Responsibilities
1.3 The AFI Strategy Framework
1.4 Implications for the Strategist
Strategy Term Project
CONNECT INTEGRATION
Running Case: HP
myStrategy
What Is Strategy?
, This guide begins with a description of the Instructor Manual materials and ideas on
preparing yourself and your students for a successful course.
PowerPoint Slides 1–3: Chapter 1 begins to set the stage for the rest of the course. Here
we introduce the concepts of strategy and competitive advantage. The opening
ChapterCase on Twitter offers a fruitful field for exploring the challenges of gaining and
sustaining a competitive advantage. We elaborate on these concepts by defining the
elements of a good strategy and introducing the role of business-level strategy in
positioning a firm for competitive advantage in its industry. A Strategy Highlight
illustrates this point describing Threadless’ crowd-sourcing strategy to design cool t-
shirts. We then introduce industry-level concepts with a discussion of firm versus
industry effects on firm performance.
The next section introduces the concepts of firm ethical values, social responsibility, and
stakeholder analysis. We discuss how internal and external stakeholders can contribute to
(or take away from) a firm’s ability to gain and sustain a competitive advantage. A
Strategy Highlight illustrates this issue by describing the potential consequences to BP
for failure to develop a strong safety culture.
Finally, we describe the strategic management model around which the book is
organized, the Analyze, Formulate, and Implement (AFI) framework. Chapters 1 through
5 comprise the “Analysis” portion of the framework.
Each chapter in the text finishes with a section on implications, key take-aways, a module
in the Strategy Term Project, an exercise for students in applying strategic concepts to
their careers and self-development, and various end of chapter discussion questions,
exercises, and ethical issues.
Learning Objectives
LO 1-1 Explain the role of strategy in a firm’s quest for competitive advantage.
LO 1-2 Define competitive advantage, sustainable competitive advantage, competitive
disadvantage, and competitive parity.
LO 1-3 Differentiate the role of firm effects and industry effects in determining firm performance.
LO 1-4 Evaluate the relationship between stakeholder strategy and sustainable competitive
advantage.
LO 1-5 Conduct a stakeholder analysis.
,Course Preparation
Instructor Manual Content
This manual follows the order of the textbook outline for each chapter and is divided into a
section for each learning objective. Each section identifies the relevant PowerPoint slides. Within
each learning objective section you will find an assortment of examples, exercises, Connect
Integration assignments, updates on the latest research, Strategy Smart Video discussions, and/or
end of chapter discussion questions and exercises for you to choose among to enhance your
students learning and engagement. Some of the activities or examples are flagged as being
INTEGRATION
Interactive Exercises, LearnSmart, Quizzes, and Exams:
Introductory Remarks
Consider assigning one or two interactives per chapter. Interactives are based on chapter learning objectives, so the
instructor can choose based on his/her focus for the course. Assignments can be due before class as preparatory
materials (this is especially good for an interactive classroom style), or after class as a check on understanding of the
concepts.
To find the interactives in Connect, go to “Add Assignment” and then select “Question Bank.” Interactives are
organized by chapter and may include follow-on questions to be paired. Instructors may want to give students unlimited
or multiple attempts on the first few assignments so the students have a chance to learn and navigate the system before
selecting the option for one attempt only. (As the course progresses instructors may want to tighten up the time and
number of attempts). Generally, interactives will be homework or practice for the students.
Chapter quizzes and a full chapter test bank are available for quizzes and/or exams online. The value of each question
should probably be relatively low, since multiple questions are usually assigned for each chapter. A good rule of thumb
would be to make “Quiz Questions” worth 1 or 2 points each and “Interactives” worth 5 to 10 points each since these
require more time and thought. The feedback given to students is time-flexible. Selecting feedback to be displayed after
the assignment due date helps keep students from giving the correct answers to other students while the interactive is
still available. For this reason, quizzes and exams are suggested to have no feedback available until after the due date
for the entire class assignment.
LearnSmart is an adaptive study tool designed for students. It can also show you where students are struggling to
understand specific concepts. The student’s LearnSmart score in the Connect reports is based on their mastery of the
material at the time the assignment is due. Mastery is an evaluation of the number of learning objectives they completed
via their performance in answering questions.
To find LearnSmart in Connect, go to “Add Assignment” and then select “LearnSmart.” Instructors might want to
assign less than an entire chapter segment of LearnSmart in Connect. The expected average time changes based on
which sections are selected and deselected for the chapter. The system also allows instructors to adjust the expected
completion time by dragging the toggle lever left or right to increase or decrease the depth of coverage of the activity.
The entire LearnSmart module is available to your student at all times; however, assigning 30 minutes or so will prompt
students to try it. You are required to select a due date for LearnSmart. However, this will not prevent the student from
LearnSmart access. It is designed to show instructors that the student has completed the LearnSmart assignment.
Students may, and are encouraged to, continue to use LearnSmart throughout the semester. After the assignment due
date, they can continue to access LearnSmart. Continued use of LearnSmart will not affect their LearnSmart assignment
results in the Connect reports, but it has shown to improve test scores by as much as a full letter grade.
, particularly easy for newer faculty to integrate into their courses, while others are identified as
being most effectively used by faculty who have more experience leading and directing class
discussions and case analyses. Where the activities are related to program-level learning
objectives established by AACSB 2015 Standard 9, the learning objective has been identified for
you.
INTEGRATION
Course Preparation
Helpful Suggestions Regarding Assignment Policies: Connect gives instructors a wide array of flexibility in making
assignments and creating grading policies. Instructors may choose to:
• assign as many assignments as appropriate given the level and time commitment expected for the class,
• determine point values for each question/interactive that works within the total course percentages,
• make available multiple attempts per assignment with options of accepting the highest score or averaging all the
attempts together (several attempts are particularly good for homework assignments),
• deduct points for late assignment submissions (percentage deduction per hour/day/week/etc.) or create hard
deadlines thus accepting no late submissions,
• show feedback on interactives/questions immediately upon submission or at the time the assignment is due for the
whole class, create new assignments or questions from scratch, or edited versions from a variety of provided
resources.
OPENING DISCUSSION TOPICS AND EXERCISES
What enables some firms to gain and then sustain their competitive advantage over time? Why do
once-great firms fail? How can a firm’s managers influence performance? Strategic management
is the integrative management field that combines analysis, formulation, and implementation in
the quest for competitive advantage. Many students will relate to strategy through sports
analogies. You may want to start the course by discussing the contrast between a powerful sports
dynasty and its weaker competitors. In the U.S., compare the Yankees to the Cubs. Why does U-
Conn appear in the NCAA Men’s and Women’s Basketball Final Four so frequently? In other
countries, you might compare Man U or Real Madrid to your local football club or discuss the
ability of Mercedes to overwhelm the traditional strength of Ferrari in Formula 1. How have these
teams built and implemented strategies? What successes have they seen? What resources do they
have that their weaker rivals lack?
NEWER FACULTY: Another option could be a brief discussion of the game of chess. In chess, the
best position is relative to the placement of your opponent’s pieces. You also need to think about
where your opponent may be moving the pieces in the future. In the firm, strategy will entail
allocating resources in a manner that positions your firm well compared to competitors both today
Course Preparation
CONNECT INTEGRATION
Interactive Exercises, LearnSmart, Quizzes, and Exams: Introductory Remarks
CONNECT INTEGRATION
Course Preparation
Opening Discussion Topics and Exercises
ChapterCase: Does Twitter Have a Strategy?
1.1 What Strategy Is: Gaining and Sustaining Competitive Advantage (LO 1-1,
LO 1-2, LO 1-3)
CONNECT INTEGRATION
Case Analysis: Gaining Competitive Advantage at Nvidia
1.2 Stakeholders and Competitive Advantage (LO 1-4, LO 1-5)
CONNECT INTEGRATION
Interactive Sequencing: Internal and External Stakeholders
CONNECT INTEGRATION
Interactive Labeling: Identifying Social Responsibilities
1.3 The AFI Strategy Framework
1.4 Implications for the Strategist
Strategy Term Project
CONNECT INTEGRATION
Running Case: HP
myStrategy
What Is Strategy?
, This guide begins with a description of the Instructor Manual materials and ideas on
preparing yourself and your students for a successful course.
PowerPoint Slides 1–3: Chapter 1 begins to set the stage for the rest of the course. Here
we introduce the concepts of strategy and competitive advantage. The opening
ChapterCase on Twitter offers a fruitful field for exploring the challenges of gaining and
sustaining a competitive advantage. We elaborate on these concepts by defining the
elements of a good strategy and introducing the role of business-level strategy in
positioning a firm for competitive advantage in its industry. A Strategy Highlight
illustrates this point describing Threadless’ crowd-sourcing strategy to design cool t-
shirts. We then introduce industry-level concepts with a discussion of firm versus
industry effects on firm performance.
The next section introduces the concepts of firm ethical values, social responsibility, and
stakeholder analysis. We discuss how internal and external stakeholders can contribute to
(or take away from) a firm’s ability to gain and sustain a competitive advantage. A
Strategy Highlight illustrates this issue by describing the potential consequences to BP
for failure to develop a strong safety culture.
Finally, we describe the strategic management model around which the book is
organized, the Analyze, Formulate, and Implement (AFI) framework. Chapters 1 through
5 comprise the “Analysis” portion of the framework.
Each chapter in the text finishes with a section on implications, key take-aways, a module
in the Strategy Term Project, an exercise for students in applying strategic concepts to
their careers and self-development, and various end of chapter discussion questions,
exercises, and ethical issues.
Learning Objectives
LO 1-1 Explain the role of strategy in a firm’s quest for competitive advantage.
LO 1-2 Define competitive advantage, sustainable competitive advantage, competitive
disadvantage, and competitive parity.
LO 1-3 Differentiate the role of firm effects and industry effects in determining firm performance.
LO 1-4 Evaluate the relationship between stakeholder strategy and sustainable competitive
advantage.
LO 1-5 Conduct a stakeholder analysis.
,Course Preparation
Instructor Manual Content
This manual follows the order of the textbook outline for each chapter and is divided into a
section for each learning objective. Each section identifies the relevant PowerPoint slides. Within
each learning objective section you will find an assortment of examples, exercises, Connect
Integration assignments, updates on the latest research, Strategy Smart Video discussions, and/or
end of chapter discussion questions and exercises for you to choose among to enhance your
students learning and engagement. Some of the activities or examples are flagged as being
INTEGRATION
Interactive Exercises, LearnSmart, Quizzes, and Exams:
Introductory Remarks
Consider assigning one or two interactives per chapter. Interactives are based on chapter learning objectives, so the
instructor can choose based on his/her focus for the course. Assignments can be due before class as preparatory
materials (this is especially good for an interactive classroom style), or after class as a check on understanding of the
concepts.
To find the interactives in Connect, go to “Add Assignment” and then select “Question Bank.” Interactives are
organized by chapter and may include follow-on questions to be paired. Instructors may want to give students unlimited
or multiple attempts on the first few assignments so the students have a chance to learn and navigate the system before
selecting the option for one attempt only. (As the course progresses instructors may want to tighten up the time and
number of attempts). Generally, interactives will be homework or practice for the students.
Chapter quizzes and a full chapter test bank are available for quizzes and/or exams online. The value of each question
should probably be relatively low, since multiple questions are usually assigned for each chapter. A good rule of thumb
would be to make “Quiz Questions” worth 1 or 2 points each and “Interactives” worth 5 to 10 points each since these
require more time and thought. The feedback given to students is time-flexible. Selecting feedback to be displayed after
the assignment due date helps keep students from giving the correct answers to other students while the interactive is
still available. For this reason, quizzes and exams are suggested to have no feedback available until after the due date
for the entire class assignment.
LearnSmart is an adaptive study tool designed for students. It can also show you where students are struggling to
understand specific concepts. The student’s LearnSmart score in the Connect reports is based on their mastery of the
material at the time the assignment is due. Mastery is an evaluation of the number of learning objectives they completed
via their performance in answering questions.
To find LearnSmart in Connect, go to “Add Assignment” and then select “LearnSmart.” Instructors might want to
assign less than an entire chapter segment of LearnSmart in Connect. The expected average time changes based on
which sections are selected and deselected for the chapter. The system also allows instructors to adjust the expected
completion time by dragging the toggle lever left or right to increase or decrease the depth of coverage of the activity.
The entire LearnSmart module is available to your student at all times; however, assigning 30 minutes or so will prompt
students to try it. You are required to select a due date for LearnSmart. However, this will not prevent the student from
LearnSmart access. It is designed to show instructors that the student has completed the LearnSmart assignment.
Students may, and are encouraged to, continue to use LearnSmart throughout the semester. After the assignment due
date, they can continue to access LearnSmart. Continued use of LearnSmart will not affect their LearnSmart assignment
results in the Connect reports, but it has shown to improve test scores by as much as a full letter grade.
, particularly easy for newer faculty to integrate into their courses, while others are identified as
being most effectively used by faculty who have more experience leading and directing class
discussions and case analyses. Where the activities are related to program-level learning
objectives established by AACSB 2015 Standard 9, the learning objective has been identified for
you.
INTEGRATION
Course Preparation
Helpful Suggestions Regarding Assignment Policies: Connect gives instructors a wide array of flexibility in making
assignments and creating grading policies. Instructors may choose to:
• assign as many assignments as appropriate given the level and time commitment expected for the class,
• determine point values for each question/interactive that works within the total course percentages,
• make available multiple attempts per assignment with options of accepting the highest score or averaging all the
attempts together (several attempts are particularly good for homework assignments),
• deduct points for late assignment submissions (percentage deduction per hour/day/week/etc.) or create hard
deadlines thus accepting no late submissions,
• show feedback on interactives/questions immediately upon submission or at the time the assignment is due for the
whole class, create new assignments or questions from scratch, or edited versions from a variety of provided
resources.
OPENING DISCUSSION TOPICS AND EXERCISES
What enables some firms to gain and then sustain their competitive advantage over time? Why do
once-great firms fail? How can a firm’s managers influence performance? Strategic management
is the integrative management field that combines analysis, formulation, and implementation in
the quest for competitive advantage. Many students will relate to strategy through sports
analogies. You may want to start the course by discussing the contrast between a powerful sports
dynasty and its weaker competitors. In the U.S., compare the Yankees to the Cubs. Why does U-
Conn appear in the NCAA Men’s and Women’s Basketball Final Four so frequently? In other
countries, you might compare Man U or Real Madrid to your local football club or discuss the
ability of Mercedes to overwhelm the traditional strength of Ferrari in Formula 1. How have these
teams built and implemented strategies? What successes have they seen? What resources do they
have that their weaker rivals lack?
NEWER FACULTY: Another option could be a brief discussion of the game of chess. In chess, the
best position is relative to the placement of your opponent’s pieces. You also need to think about
where your opponent may be moving the pieces in the future. In the firm, strategy will entail
allocating resources in a manner that positions your firm well compared to competitors both today
