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study science or history. In the fi eld of genetics,
for example, students need to understand
that the same advances in biology that make
it possible to treat previously incurable genetic
diseases will also make possible “customized
offspring,” which in turn raise complex
ethical and social issues. The skills critical to
expert thinking and complex communication
are just as important to meeting these goals
as they are to earning a living in a work world
fi lled with computers.
Not so long ago, the economy exhibited
a comforting regularity. Unemployment
changed in recessions and expansions, but
the same jobs that were lost on downturns
were largely replaced on the upturns. Because
the job market was fairly stable, the policies
that interacted with the job market – the tax
system, education, training – could be stable
as well.
That world is now largely gone. Many of
the jobs lost in the post-2000 recession – clerical
and factory jobs lost to automation, callcenter
jobs lost to India, manufacturing jobs
lost to China – will not be coming back. This
dynamic environment requires new policies,
and the fi rst step in creating those policies is
to recognize the new realities. M
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PEPPERDINE UNIVERSITY
THE GEORGE L. GRAZIADIO
SCHOOL OF BUSINESS AND MANAGEMENT
KAREN SCHNIETZ
MBAM 619.14
BUSINESS STRATEGY
SPRING 2007
THURSDAYS, 8 a.m. – Noon
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BUSINESS STRATEGY
MBAM 619.14
SPRING 2007
Day/Class time: Thursdays, 8 am to noon.
Location: Malibu
Professor’s Name: Karen Schnietz (pronounced SchnEEtz – but please call me Karen)
Office address: 2929 Townsgate Rd., Suite 180, Westlake Village, CA 91361
Office Phone #: 805-497-3054
E-mail address: karen.schnietz@pepperdine.edu, kschnietz@sbcglobal.net
Fax #: 805-497-8786
Office Hours: Thursdays after class or by appointment
Course Description
This course focuses on formulating and implementing the major strategic goals of a firm under
conditions of changing industry competition, firm resources, technology, international competition,
and social and political conditions. The course places students in the position of top executives,
responsible for assessing firms’ internal and external environments for competitive threats and
opportunities, and for formulating and implementing the main strategic direction of the firm. Students
will apply numerous strategy models and frameworks, in addition to many of the skills acquired in
prior courses, to choose and defend a strategic action from alternative strategies. The course relies
heavily on experiential teaching methods – such as cases, games and a simulation – to replicate as
much as possible decision-making under conditions of incomplete information, uncertainty and time
constraint. In addition to the strategic management of the private competitive environment of business,
this course stresses the international, public policy and ethical environments of business, which are
increasingly impacting U.S. firms and industries. Finally, the instructor will not have done her job if
she and the students have not both learned a great deal and thoroughly enjoyed doing so.
Course Objectives
At the end of this class, students should be able to:
1. Think strategically (globally) about a firm, as well as functionally (narrowly);
2. Conduct an Industry & Competitor Analysis;
3. Define a firm’s main capabilities, competencies and competitive advantages;
4. Determine the main strengths and weaknesses of various strategic actions such as diversification,
internationalization, technological first-mover, and joint-venturing;
5. Understand many of the routinely-encountered difficulties in strategy implementation and have methods
at hand to address those difficulties;
6. Appreciate the impact of the non-market environment of business on firms, such as the strategic
constraints and opportunities presented by social and political developments;
7. Be sensitive to the moral and ethical dimensions of strategic decisions;
8. Be able to assess why one firm in an industry outperforms another firm in the same industry.
Course Materials
There is no text book for this course. I have not found one sufficiently current, interesting and
suited to my teaching emphases and style to be worth the purchase price. Instead, there is a reading
packet of cases and articles, available electronically or in hard-copy, and the simulation manual,
available both electronically and in hard copy.
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1. Simulation Manual (Richard V. Cotter and David J. Fritzsche, The Business Policy Game,
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