Decision-Making in Firms: Market Shaping 2400-EP3DWP
1st part (introduction)
1. Decision-making models: rational model and bounded rationality model (objective restrictions, subjective restrictions, waste basket model). The theory of rationality (H. A. Simon). Logic of the result and logic of the context. Bounded rationality – causes. Implausibility of the theory of rationality (Ch. E. Lindblom). Decisions under conditions of risk and uncertainty.
2. Market structure. What determines market structure? How does market structure determine the behaviour of the firms operating on the market? Market structure and firm development strategies. Capability of firms to influence the market – factors.
1st part (analytical, performed by the Students)
Selection of the companies for the analysis by the Students (out of the group of non-financial firms whose stocks are listed on the Warsaw Stock Exchange). Students work in teams of two.
Preparation and presentation of information about the selected company by the Students, e.g. a description (using charts) of the structure of the company’s market, its mission and strategic objectives, descriptions in terms of products and geography, market share, shareholding structure, structure of the group, most important legal regulations affecting the company’s business.
2nd part (decision-making, strategic analysis – discussion of tools)
1. Decision-making in a firm – stages.
2. Firm strategy – four schools: planning school (H. I. Ansoff, R. L. Ackoff, Harvard group), evolutionary school (E. Wrapp, J. Quinn), positioning school (M. E. Porter), resource- and skill-based school (in particular, C. K. Prahald, G. Hamel).
3. Analysis of the competitive advantage and strategic analysis (including, in particular, analysis of the macro environment, structural analysis of the industry, extrapolation of trends, strategic gap, analysis of the competition, value chain model, KPI analysis, portfolio methods, e.g. BCG matrix, McKinsey’s matrix, Hofer’s matrix, ADL model, SPACE analysis, SWOT analysis). Osterwalder’s business model.
2nd part (analytical, performed by the Students)
The Students prepare and present a strategic analysis of the companies using tools of their choosing. The analysis is concluded by a presentation of the business model and SWOT analysis of the selected company. The purpose of this part of the seminar will be to present the impact of decisions of companies made in the past on the company’s market.
3rd part (market shaping – strategies)
1. Strategic congruence – resources, environment (based on the SWOT analysis), values (vision, mission).
2. Firm development strategies – market shaping. Strategic alternatives. Ansoff’s firm growth strategy, firm strategies according to Handler, firm strategies according to Drucker, Andrews’ model, Porter’s competition strategies. Adaptation strategies, control strategies.
3rd part (analytical, performed by the Students)
The Students prepare and present their ideas of changes in the company’s business model (decisions) designed to enable it to successfully influence and shape the market. They present the resulting potential changes (using charts) of the structure of the company’s market. They select and discuss the strategies the company should use in order to implement the proposed change of the business model.
The purpose of this part is to demonstrate the impact of the company’s decisions (changes of the business model), supported by the strategies selected by the Students, on changes of the structure of the market on which these companies operate.
Type of course
The Student will become proficient in the following areas:
knowledge and comprehension of the restrictions on the firm’s business resulting from the structure of its market;
knowledge and comprehension of the significance of macroeconomic factors to decisions made at a firm;
knowledge of the impact of decisions made at a firm in the past on its ability to shape the market;
knowledge of different tools for analysis of the competition and strategic analysis and knowledge of firm business models and comprehension of the reasons to change them.
ability to assess the structure of the firm’s market;
ability to use analytical methods, including strategic analysis tools, to assess decisions made by the firm in the past and their impact on the market position of the firm;
ability to interpret the results of the analyses and propose changes (decision) of the company’s business model;
ability to adapt the strategy to the planned changes of the business model.
c) social skills
awareness and comprehension of the impact of decisions made at a firm on its market position and on the structure of the market;
ability to think and act like an entrepreneur.
S_W01, S_W02, S_W03, S_W04, S_U01, S_U02, S_U03, S_U04, S_K01
Students will be graded based on three analyses of the selected companies they prepare and present in class (analysis describing the selected company, analysis of the competition and strategic analysis, proposal of changes of the business model and implementation of new strategies) and based on a presentation of the results of such analyses.
Grading criteria will also include the Student’s activity in class.
Grading criteria – see below (grading method).
The grade will be based on the following elements:
1) preparation and presentation of an analysis of a selected company during classes – this will be graded by everyone (the Students and the teacher) on a scale of 1 to 6 points in two categories: (a) contents and (b) presentation delivery. An average will be calculated based on all points. The points will make up 50% of the final grade;
2) report summarising the three analyses of the selected company – 50% of the final grade (graded by the teacher);
3) activity during discussion – extra 0.5 to the final grade. Selecting up to 3 people who receive an extra 0.5 for their activity (together with the Students).
1. Podręcznik do mikroekonomii (do wyboru)
2. Allaire Y., Firsirotu M.E. (2000), Myślenie strategiczne, PWN
3. Analiza rynku (2003), Mruk H. (red.), PWE
4. Ansoff H.J. (1988), New Corporate Strategy, Wiley, New York
5. Berliński L. (2003), Projektowanie i ocena strategii innowayjnych, AJG
6. Brilman J. (2002), Nowoczesne koncepcje i metody zarządzania, PWE
7. Chwistecka H., Sroka W. (2000), Alianse strategiczne, WPSB
8. Cygler J. (2002), Alianse strategiczne, Difin
9. De Bono E. (1998), Myślenie równoległe, Wyd. Prima, Warszawa
10. De Wit B., Meyer R (2007), Synteza strategii, PWE
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12. Drążek Z., Niemczynowicz B. (2003), Zarządzanie strategiczne przedsiębiorstwem, PWE, Warszawa
13. Gierszewska G., Romanowska M. (2002), Analiza strategiczna przedsiębiorstwa, PWE, Warszawa
14. Gorynia M. (2007), Strategie zagranicznej ekspansji przedsiębiorstw, PWE
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16. Janasz W., Janasz K., Świadek A., Wiśniewska J. (2001), Strategie innowacyjne przedsiębiorstw, USzczeciński
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18. Konkurencyjność przedsiębiorstw – nowe podejście (2002), Skawińska E. (red.), PWN
19. Kotler Ph., Trias de Bes F. (2004), Marketing lateralny, PWE
20. Lisiński M. (2004), Metody planowania strategicznego, PWE
21. Obłój K. (1998), Strategia sukcesu firmy, PWE, Warszawa
22. Obłój K. (2001), Strategia organizacji. W poszukiwaniu trwałej przewagi konkurencyjnej, PWE
23. Obłój.K (2017), Praktyka strategii Irmy, Poltext
24. Peng M.W. (2001), The Resource-Based View and International Business, Journal of Management, 27
25. Pierścionek Z. (1996), Strategie rozwoju firmy, PWN
26. Podstawy nauki o przedsiębiorstwie (2001), Lichtarski J. (red.), WAE im. O.Langego we Wrocławiu, Wrocław
27. Porter M.E. (1980), Competitive Strategy: Techniques for Analyzing Industries and Competitors, The Free Press, New York
28. Rokita J. (2005), Zarządzanie strategiczne. Tworzenie i utrzymywanie przewagi konkurencyjne, PWE
29. Romanowska M. (2009), Planowanie strategiczne w przedsiębiorstwie, PWE
30. Root F.R. (1994), Entry Strategies for International Markets, Jossey-Bass, San Francisco
Information on level of this course, year of study and semester when the course unit is delivered, types and amount of class hours - can be found in course structure diagrams of apropriate study programmes. This course is related to the following study programmes:
Additional information (registration calendar, class conductors, localization and schedules of classes), might be available in the USOSweb system: