Kazakh-British Technical University

Business School

"APPROVED"
Dean Business School
________Simpson E.
__ _________ 2015
Syllabus
Strategy and Competitiveness
Semester: Spring 2015
2014/2015 Academic Year
4 credits (2/0/2)
Lecturer Assistant- Professor - Kholjigitov Golib Ablakulovich
Personal information
about the lecturer
PhD

Time and place

Classes
Office hours
According to the
schedule

According to the
schedule

Contact Information
Tel.:
e-mail
272-31-03

golibbek@gmail.com

Length of course: 4 credits, 60 hours, 45 hours on coursework and 15 hours on project preparation
Prerequisites: Core MBA Courses
COURSE DESCRIPTION
The Strategy and Competitiveness is a distinctive course platform developed at KBTU BS in cooperation
with Harvard Business School. It is designed to be taught to graduate students in business, economics,
development, government, and related disciplines.
Purpose:
This course on strategy and competitiveness addresses the subject from a bottom-up, microeconomic
perspective missing in most traditional strategy courses. The course is not only an educational vehicle, but
also a tool to enable a university to influence and support economic development in its country and region.
The ultimate vision of the course is to make a meaningful impact on the economic competitiveness and
prosperity of the countries in which it is taught.
This course is intended to provide MBA students with their first exposure to strategic thinking, and to
provide them with a detailed overview of the concepts of strategic options for a firm, and overall
competitiveness. The term competitiveness is to be determined at the national level, the regional level
and the cluster level, accepting that firm is unlikely to be able to operate outside of its national and
regional environment, and the state of development of the cluster of associated firms within a particular
sector.
Course objectives:
This course will provide students with an overview of strategy and competiveness, which the students can
then use as a basis for their dissertations (i.e. the assignments done for this course can be extended to form
the basis for the students MBA dissertations).
This course is compiled on the following basis:
The course is divided into two parts, the first part being Firm level Strategy, and the second part
being Competitiveness
The course needs a framework to use as an anchor, so that students understand what
competitiveness is, and how they can apply it and compare countries, regions, sectors and clusters
(this is why I have included clear distinction between national, regional and cluster level
competitiveness, and have included the World Economic Forum Global Competitiveness Framework
at the start (in addition to the Diamond model) to give students a thorough understanding of what
competitiveness means)

The course uses Harvard Business School Case Studies, but presents them within the framework for
national /regional /cluster level competitiveness presents cluster analysis
A multi-media approach is used because the Harvard Business School case studies are long, we
provide a summary presentation of each case preferably on PowerPoint overheads, and ask
students to contribute and add to the data
Competitiveness at country level (using World Economic Forum: Global Competitiveness Index, and
EBRD Transition Report specifically for former centrally planned economies, we can also OECD,
WB frameworks if time permits); this presents the overall competitiveness framework, within which
the Diamond model can be placed; these components of competitiveness include:
o Institutional framework
o level of infrastructure
o macro-economy
o level of basic and higher education
o competitiveness of the goods and labour markets
o the strength of the financial sector
o technological readiness
o market size
o level of business sophistication
o overall level of innovative capacity
Competitiveness at regional level (present the specific competitive advantages of a region and the
barriers to entry, and the specific regional policy adopted by regional governments to promote their
region to domestic and foreign investors; path dependency (historical development of regional
advantages is important)
Competitiveness at sector / cluster level, to analyse how the diamond model helps us assess the
competitiveness of a cluster in a specific sector or geographical region.

Additional objectives of the Strategy / MoC Course:

To present the students with the accepted frameworks for assessing strategic positioning within an
industry sector, and to use these frameworks to assess and determine the competitive strategy for one
particular firm or sector
To present the students with a framework within which they can understand the concepts of
competiveness, and apply it to countries, regions and sectors, and to compare Kazakhstans
competitiveness as a country on the basis of all competitiveness factors
To assess what are the important components of a cluster within a country or region, and the factors
that will improve a clusters success / competitiveness
To identify the key relationships between government and the private sector that are going to be
important in improving the competitiveness of a country, region or cluster, and the role that the
competitiveness framework in assessing the future prospects for a country and/or a cluster
This course explores the determinants of national and regional competitiveness building from the perspective
of firms, clusters, subnational units, nations, and groups of neighboring countries. It focuses on the sources
of national or regional productivity, which are rooted in the strategies and operating practices of locally
based firms, the vitality of clusters, and the quality of the business environment in which competition takes
place.
This course examines both advanced and developing economies and addresses competitiveness at multiple
levels nations, subnational units such as states or provinces, particular clusters, and neighboring countries.
The course explores not only theory and policy but also the organizational structures, institutional structures,
and change processes required for sustained improvements in competitiveness.

Teaching Method
1. Present the theoretical framework to the students in class (e.g. Diamond model, EBRD transition
framework)
2. Examine examples using these frameworks (e.g. Kazakhstan, other CIS countries, emerging
economies)
3. Students to contribute to this assessment and to contribute with their own opinion of the case study
and their own knowledge on the country / region / sector in the written form to each of the cases
4. Assessment based on class contribution and written assessment based on one of the cases discussed
in class or their own example of country, region, and cluster within a country or region
Student Assignment
Group (maximum 3) assessment based on class contribution and written assessment based on one of the
cases discussed in class or their own example of country, region, and cluster within a country or region. The
structure of the assignment should be as follows:
1. Introduction (1 page): Describe your country, region, cluster, and what competitive aspect you plan
to assess (e.g. competitiveness of the country, the region, the cluster?)
2. Theoretical framework (2 pages with diagrams): describe the framework(s) that you will use to
assess competitiveness (e.g. Diamond-model), and demonstrate that you understand the
framework(s) and how you might apply it (them)
3. Country, region, cluster data (3 pages, with tables): Provide the data, information on your case (e.g.
Country data, regional data, industry structure, cluster composition)
4. Analysis (2 pages); analyse your case study (country, region, cluster) using the theoretical
framework you have chosen
5. Conclusion: Competitive Assessment (1 page): how competitive is your country, region, sector,
cluster in the light of the theoretical framework you have used? How can its competitiveness be
improved / sustained in the future? Which factors will be critical to its competitive success?
6. Interview for bonus points with industry members (suppliers, producers, business people and etc.).
Competitiveness by itself does not have a fully understandable meaning, therefore in order to have a
holistic picture of it, students are preferred to create a 10-15 question survey for deep interview to
discuss, indentify and analyze ongoing problems in the industry leaders and cluster as whole, rather
than relying on fixed frameworks. This should improve the quality of the analysis.
Should you decide to tudent Assignment 1: Firm Strategy
1. Students should choose one firm or industry sector and
2. They should assess the strategic positioning of the firm (or imaginary firm within the specified
industry sector) using the strategy frameworks referred to in the lectures (5-forces model and etc.)
Deadline for Submission: Friday 31st July 2015
The tasks of the discipline and learning outcomes:
Each session begins with a case discussion, followed by lectures and/or guest presentations. The course is
also designed to include a significant team project, which involves assessing the competitiveness of a
country and a cluster within that country under the supervision of a skilled instructor. Schedules and class
length can be modified by affiliates to conform to local circumstances.
The course can be taught exclusively with materials we have developed at Harvard Business School. The
material covers a wide array of countries, clusters, and issues and is designed to be applicable to any country
or region.
Basic knowledge: After studying the course graduate will be able to:

Strategy

Competitiveness

Skills:
Analytical skills to conduct industry and cluster analysis.

Literature
Recommended
1. On Competition / Porter, Michael, Harvard Business School Press; ISBN-10: 142212696X, 2008
576 p.
Calendar-subject plan

Day

Topic

Classroom work
Chapters (cases)
Lectures
Seminar
to be read

SIS

TSIS

Course
Introduction
1
1
1
1
Strategy
Five Forces
Competitive
Advantage
Clusters
Competing across
2
1
1
1
borders
From Competitive
Advantage to
Corporate Strategy
Competitiveness: Overall
Framework.
Cases/readings:
3
1) Finland and Nokia:
1
1
1
Creating the World's Most
Competitive Economy,
HBS Case Number: 9-702427
Questions (Individual written response on July 10 at 09.00, late submission is subject for grade
reduction):
1. How was Finland as a nation able to move from a sleepy economy to one of the most competitive
nations in the world by the end of the 1990s?
2. What allowed Finland to become a world-leading nation in the mobile communications cluster?
Why did this cluster develop in Finland rather than other fields?
3. How did the Finnish firm Nokia become the world leader in mobile handsets? How did its home
base in Finland influence Nokias success?
4. What are the most important challenges for Finland in the early 2000s? For participants in the
Finnish mobile communications cluster? For Nokia?
5. What economic policy priorities would you recommend to the government? What steps should
the private sector take?

The Diamond Model:

Advanced Economies.
Cases/readings:
1) The Japanese Facsimile
Industry in 1990, HBS
Case Number: 9-391-209;
2) From Book Can Japan
Compete?
Read Chapter 2, pages 1836 and Chapter 3, pages
69-82 (Skim the rest of
these chapters if time
permits).

Questions (Individual written response on July 12 at 09.00, late submission is subject for grade
reduction):
1. Why did companies based in Japan come to dominate the world facsimile machine industry, and
sustain their leadership?
2. Why did U.S. firms, where the key technology was invented, lose out in this industry?
3. Why did France fail to get out of the starting block in this Industry?
4. What threats lie ahead for Japans leadership in facsimile machines in the new century? Is Korea
going to take over this industry in the new century?
5. What should the Japanese government do to enhance Japans leadership in facsimile machines?
The Diamond Model:
Developing/Transition
Economies.
Cases/readings:
1) Estonia in Transition,
HBS Case Number: 9-702436;
2) Chile: The Latin
5
American Tiger?, HBS
1
1
1
Case Number: 9-798-092.
(Important Note: Prepare
the Estonia case for class
discussion. Read the first
10 pages of the Chile case
primarily for comparison
to Estonia, and skim the
exhibits)
Questions (Individual written response on July 14 at 09.00, late submission is subject for
grade reduction):
1. Analyze Estonias national diamond. How has Estonia been able to substantially improve
competitiveness versus other transition countries?
2. How has Estonia been able to make so many difficult choices and progress so rapidly?
3. Compare Estonias success with that of Chile. What are the similarities? What are the
differences? Which country faced greater challenges?
4. What are the competitiveness issues facing Estonia in 2002? What recommendations would you
make to Estonias leaders?
5. Which country (Estonia or Chile) do you believe will make the greatest progress over the next five
years? Why?

Economic Strategy for

States and Sub-National
Regions.
Cases/readings:
1) The Basque Country:
Strategy for Economic
Development, HBS Case
Number: 9-705-432;
2) Clusters of Innovation:
Regional Foundations of
U.S. Competitiveness.
Prepare the Executive
Summary, pages ix-xix.
The rest of the report is
OPTIONAL reading.

Questions (Individual written response on July 16 at 09.00, late submission is subject for grade
reduction):
1. Why was the Basque Country historically among the most prosperous regions in Spain? What
went wrong?
2. What was the Basque Countrys economic development strategy in the 1980s?
3. Evaluate the new economic strategy introduced in 1990?
4. How was President Ibarretxes strategy in the 2000s different? Why where the changes made?
5. Why has the Basque country achieved superior economic performance compared to Spain over
the last three decades? What role has the cluster approach played in this success?
6. What are the strategic issues facing the Basque Country in 2009? What should the Minister do?
Economic Strategy:
Developing Economies.
Case Study: Vietnam:
7
1
1
1
Sustaining the Growth of
an Asian Tiger.
Questions (Individual written response on July 18 at 09.00, late submission is subject for grade
reduction):
1. Why was Vietnam such a poor country twenty years ago? What has driven the growth of the
Vietnamese economy since?
2. How has Vietnam been able to attract so much foreign direct investment (FDI)? Compare this to
the Indonesia case. How has FDI contributed to the Vietnamese economy?
3. What are the limits of the current Vietnamese strategy? Should Government leaders be concerned?
4. What should Vietnamese leaders do now?
5. Looking at all the cases on economic strategy so far (New York City, Basque Country, Indonesia,
Vietnam), what are the lessons in terms of what leads to success? To lack of success?
Economic Strategy:
Cities. Cases/readings:
New York City:
Bloomberg's Strategy for
8
1
1
1
Economic Development,
HBS Case Number: 9-709427

Questions (Individual written response on July 20 at 09.00, late submission is subject for grade
reduction):
1. How did New York City become a leading metropolitan area in the U.S. and the world? What
were the key enabling public policies?
2. How did New Yorks leading clusters emerge? How has the mix of clusters changed over time?
Why?
3. Identify and evaluate the key elements of Mayor Bloombergs strategy to date.
4. Assess New York Citys competitive position in 2008.
5. What recommendations would you make to the Mayor about the Citys strategy?
The Dutch Flower
Cluster.
9
1
1
1
HBS Case.

Questions (Individual written response on July 22 at 09.00, late submission is subject for grade
reduction):
1. Why has the Netherlands built the most competitive cluster in the world in a country with a cold
and cloudy climate?
2. How has the Dutch cluster sustained its leadership position for so long?
3. Why has flower production internationalized over the last few decades? How are the flower
clusters in the various countries connected? How do they compete?
4. What are the challenges facing the Dutch cluster in 2011?
5. What recommendations would you make to Flora-Holland? To the Dutch government? To a
major grower?
6. Try drawing a cluster map of the Dutch flower cluster and identify the important firms and
institutions.

10

Colombia - Institutions
for Collaboration:
Overview (9-703436)

Questions (Individual written response on July 24 at 09.00, late submission is subject for grade
reduction):
1. What roles has the Asociacin Colombiana de Industrias Plsticas (Acoplasticos) played in the
competitiveness of the Colombian plastics and rubber cluster? How have the organizations roles changed
since the early 1980s?
2. How would you measure the effectiveness of Acoplasticos? How could the organization be more
effective?
3. What roles has the Centre Suisse d'Electronique et de Microtechnique (CSEM) played in the
competitiveness of the affected Swiss industries? How have CSEM's roles evolved? Is it effective?
4. What strategic recommendations would you make to CSEM leadership in early 2002?
5. Why do institutions for collaboration exist in market economies? Why are their activities not
performed by firms or government entities?
6. Why might the incidence and roles of institutions for collaboration differ in advanced economies versus
developing economies?

11

Clusters in Developing
Countries.
Cases/readings:
Building a Cluster:
Electronics and
Information Technology in
Costa Rica, HBS Case
Number: 9-703-422

Questions (Individual written response on July 26 at 09.00, late submission is subject for grade
reduction):
1. Why has President Figueres embarked on a new economic development strategy upon taking
office? How does his thinking differ from past approaches? Evaluate this new approach.
2. Does electronics/information technology represent a realistic potential cluster for Costa Rica?
What conditions are necessary for a viable cluster?
3. Why is Intel interested in a Latin American plant as part of its global strategy?
4. Why would Intel choose Costa Rica?
5. Given Intels decision, what steps should the Costa Rican government take to further develop the
cluster?
6. What should Intel do to improve Costa Rica as a business location now that it has chosen the
country?
Attracting Foreign
Investment.
Cases/readings:
12
1
1
1
Indonesia: Attracting
Foreign Investment, HBS
Case Number: 9-708-420
Questions (Individual written response on July 28 at 09.00, late submission is subject for grade
reduction):
1. Why did Indonesia lag other Asian countries in attracting FDI under Sukarno and Suharto?
2. Why have the reforms of the democratic governments since 1998 not solved the problem?
3. What are the competitiveness challenges facing Indonesia in 2007?
4. What should the Indonesian government do to attract more FDI? Will the new investment law
work?
5. What are the most important factors affecting the ability of a country to attract FDI?
The Process of Economic
Development/Course
Summary.
13 Cases/readings:
1
1
1
Ghana: National Economic
Strategy, HBS Case
Number: 9-706-497
Questions (Individual written response on July 30 at 09.00, late submission is subject for grade
reduction):
1. Why was Ghana one of the most prosperous countries in Africa at the time of independence?
2. How can we explain Ghanas poor performance in the 1960s, 1970s, and 1980s?
3. Why did the World Bank intervention fail to turn Ghana around?
4. Is President Kufuors approach different? What recommendations would you make to the
president in 2000?
Group analysis and
14-20 presentation due by
e-mail by 31/07/2015.

10

11

Cluster analysis

GROUP (3 STUDENTS) PROJECT SAMPLE TOPICS BREAK-DOWN

CLUSTERS IN KAZAKHSTAN:
1. PETROCHEMICALS
2. TRANSPORTATION AND LOGISTISCS
3. PROCESSED FOOD
4. FINANCIAL SERVICES (ALMATY)
5. AGRICULTURAL PRODUCTS
6. JEWELRY, PRECIOUS METALS AND COLLECTIBLES
7. LEATHER PRODUCTS
8. APPAREL
9. PHARMACEUTICALS
10. REGION (ALMATY CITY AND REGION)

COURSE GRADING CRITERIA

Grading
percentages
50%
50%
100%

Grading activities
Written participation
Group project with presentation file
Total

1.
2.

The evaluation
criteria
course
Class participation

Grading
allocation

Days
1
*

2
*

3
*

4
*

5
*

6
*

7
*

Group project

8
*

9 10 12 13 14 15 16
* * * * * *

50%

50%
100%

Total

Lectures are held in the form of checks SIS for understanding the theory traversed topics. Therefore students
are provided with material on the intranet. Class participation or activity of a student in class is mandatory
and substantial part of the final grade. A requirement for graduate students is to prepare for each class.
Practical classes are carried in the form of problem solving in the classroom. Preparation for practical
training is the solution of similar problems in accordance with the theme of lectures.
Policy evaluation of knowledge
Final Exam or Project covers and summarizes all course material and will be analysis of the real case. The
exam or paper is conducted in writing, and is a combination of tasks that will include tests, tasks, work with

the terms, etc. throughout the courses. Retake is also not available. Final project is estimated at 50 % of the
total grade. The final grade is in accordance with the adopted KBTU rating scale.
ACADEMIC POLICIES OF CONDUCT AND ETHICS
Students should:
be respectful to teachers and other undergraduates;
turn off cell phones in time employment;
do not cheat. Plagiarism and other forms of cheating are not allowed;
comply with deadlines for assignments;
to prepare for each class. Retake tests is not available without a valid reason;
comply with the policy on estimates W, AW, I, F.
Welcomes the following:
discussion of a student with a teacher of any problems regarding this subject;
retake the job undone in time for a good reason for a week without undervaluation;
to make any suggestions to improve the academic process;
track their progress throughout the semester.
Lecturer

G. Kholjigitov

10