STRATEGIC MANAGEMENT: AN EVALUATION OF THE USE OF THREE LEARNING METHODS IN HONG KONG Developments in Business Simulation and Experiential Learning, Volume 30, 2003 STRATEGIC MANAGEMENT: AN EVALUATION OF THE USE OF THREE LEARNING METHODS IN HONG KONG Jimmy Chang The Hong Kong Polytechnic University tcchangj@inet.ployu.edu.hk ABSTRACT The paper examines the use of three learning methods in the teaching of a strategic management course for a Masters programme in Postgraduate Scheme in Business and Management at the Hong Kong Polytechnic University. The three methods are an in-company consultancy project; a new business venture simulation; and the case method. The results of a survey of postgraduate students' perceptions show that overall the new business venture simulation provides a more successful learning experience than in-company consultancy project and the case method. INTRODUCTION Courses in strategic management often use a variety of learning methods. Eldredge and Galloway (1983) find that strategic management courses typically make use of a number of methods based upon text, case, management games, field projects and guest speakers. Similarly, previous survey of strategic management courses in the UK (Jennings, 1996) and (Chang et al., 2001) Hong Kong found the majority of those courses to be using a combination of methods; lectures with discussion, guest speakers, tutorials based on current issues, a new business venture simulation, company-based research projects and consultancy projects. Various methods may complement each other. Teach and Govahi's (1993) study of business school graduates concludes that various teaching methods such as experiential exercises, simulations, the case method and lectures can develop different skills. The use of multiple learning methods can be undertaken in order to introduce variety to the overall teaching programme. In addition, using multiple learning methods can promote the development of a wider range of skills This paper intends to examine the use of three learning methods in the teaching of a strategic management course for a Masters programme in Postgraduate Scheme in Business and Management at the Hong Kong Polytechnic University. The three learning methods used were a consultancy project, a new business venture simulation and the case method. CONSULTANCY PROJECT A number of companies participated in the course by allowing students who are also their employees to act in a consultancy role for the company by developing a proposal for a product or process innovation of strategic importance to the company, with the proposal to include a consideration of the innovations implementation in the area of quality management. The management consultancy project is an example of action learning. Action learning was originated by Reg Revans as a result of his experience of working within the UK coal mining industry. Within an action learning approach learners work in teams to solve real problems in the workplace, with learning arising through problem solving and interaction with other members of the group (Lamond, 1995). Individuals learn from experience through reflection and action. Although a number of alternative action learning perspectives have developed (Marsick and O'Neil, 1999), the method has three main components: people who accept responsibility for taking action on a particular issue; problems; and a set of colleagues who support and challenge each other to make progress on problems (Marsick and O'Neil,1999). The projects have to be "real and alive... not manufactured simply for the set ... action learning is for enabling people to undertake action to further real issues or resolve real problems" (McGill and Beaty, 1996). A number of outcomes have been suggested as arising from an action learning approach. They include the following: increased awareness of organizational realities and the political and cultural dimensions of change; development of insight into the application or misapplication of concepts and theories to actions; promotion of critical reflection concerning the individual's assumptions and beliefs that shape practice; improved interpersonal skills and increased capacity to learn from experience (Marsick and O'Neil, 1997, Raelin, 1997). For a higher education provider the use of consultancy projects posts a number of challenges. Establishing the partner relationships for consultancy projects is a time consuming process. Projects may present a tension between meeting client needs and providing a valuable learning experience for the students involved, students may lapse into accepting workplace practice at the expense of developing critical thinking, leading to the development of 'quick-fix' solutions, high expectations and the critical examination of students' work may make the process a stressful and at times painful experience (Lamond, 1995). In addition, avoidance of the risk of projects failing to progress and meet the expectations of partner organizations' requires monitoring, and at times intervention, by academic staff. 146 mailto:tcchangj@inet.ployu.edu.hk Developments in Business Simulation and Experiential Learning, Volume 30, 2003 NEW BUSINESS VENTURE SIMULATION The simulation took the form of a group-based exercise in which students, assuming modest personal wealth, identified, researched and planned a new business initiative. The scope of the exercise included identifying a business opportunity, researching markets, defining the product / service offering and a competitive strategy, defining the resources, systems and organisation required, developing a projected balance sheet and profit and loss statement, together with an identification of principle risks and contingencies. The simulation required a great deal of time to be spent in gaining information from secondary and primary sources including potential suppliers and customers. The exercise took place over a month period and resulted in the submission of a business plan and presentation to a panel that included the representative of a bank experienced in business lending. The formally taught parts of the strategy course were developed in parallel with the simulation. A simulation models some aspects of reality in a safe and time-compressed setting (Hequet, 1995) with the simulation aimed at capturing elements of the real situation that are important to the training objectives (Reid and Kleiner, 1996). The learning opportunities available through simulation have been summarized by Solomon (1993), simulation allows experience to be gained in handling new situations while avoiding unacceptable risk, simulation stimulates discussion of complicated topics, promotes decision making, heightens self-awareness and the examination of own behaviour, particularly in relation to the work group. However, simulated experience may not be immediately and readily transferred to a real working situation. In terms of teaching resources the business venture simulation was the least expensive of the learning methods to operate, only requiring the operation of briefing and feedback sessions. THE CASE METHOD The strategic management course made use of a number of case studies, including several short cases. Cases were generally used to develop understanding of situations, concepts and techniques. The course also included several decision orientated cases sessions in which students were asked to diagnose problems and propose options and recommendations. These exercises were group-based and included presentations. The use of the case method in management education was pioneered in 1910 by Harvard's newly formed school of business administration. Since then the use of case studies has assumed a major role in the teaching of strategic management (Alexander, O'Neill, Snyder and Townsend, 1986). The term "case method" has come to refer to a wide range of teaching styles and objectives that can be adopted within the use of case studies for teaching (Dooley and Skinner, 1977). It has been proposed that the case method can be used to gain illustration of particular points, issues or managerial principles, provide managers with a neutral situation in which they are free to explore problems (because they are not their own), relate theory to practice, confront the complexities of specific situations, develop analysis and synthesis, develop self-analysis, attitudes, confidence, responsibility, develop interpersonal skills, communication and listening, develop judgement and wisdom and enliven teaching The method may gain the student's intellectual and emotional involvement and assist the long term retention of understanding and bring realism into instructional settings. (Christensen and Hansen, 1987, Osigweh, 1989, Dooley and Skinner, 1977, Romm and Mahler, 1991). The case method is not without its limitations. Cases may be limited in the extent to which they present the realities of an organization, Yin (1989) comments that a case need not reflect a complete or accurate rendition of actual events, its purpose is to establish a framework for discussion among students. Similarly Towl (1969) describing case writing at Harvard Business School emphasises the need for a "plot structure" and not to be simply a "photographic slice of life", in order to develop sufficient interest for students to "take at face value the situation which the case presents, forgetting that it is artificial". The situation presented by the case method has been the subject of criticism. Mintzberg (1990) proposes that the case method may be counter productive in teaching strategic management, providing a misleading simplification of the realities of the strategy process, in which managers wait in their offices "waiting for pithy reports instead of getting outside where the real information for strategy making usually has to be dug out". Argyris' (1980) study of case teaching sessions during an executive programme, concluded that the intended joint exploration of open situations, where there were no answers, became structured to converge on the lecturer's own analysis and recommendations. THE SURVEY A survey was conducted for a cohort of 28 students studying strategic management in quality as part of an MSc in Postgraduate Scheme in Business and Management at the Hong Kong Polytechnic University, Hong Kong. All of the respondents are part-time students and work full time. A questionnaire was used to evaluate the three learning methods. Each questionnaire was administered before the students had received their grades for their assignment associated with the learning method. The questionnaire (please see the appendix) was based upon Miles, Biggs and Schuberts's (1986) skills acquisition questionnaire. The survey consists of twenty two questions and used six-point rating scales, addressing a range of learning outcomes and issues related to the Masters programme (Please see table 1). 147 Developments in Business Simulation and Experiential Learning, Volume 30, 2003 TABLE 1 THE QUESTIONNAIRE: LEARNING OUTCOMES / ITEMS Acquisition of new knowledge 1 Developing a management perspective 2-3 Problem solving and decision making 4-7 Planning and implementation 8-9 Working independently 10 Awareness of feelings and beliefs 11-12 Working with others 13-18 Changing own behaviour 19-20 Adding realism to the course 21 Career development 22 RESULTS Table 2 reveals the average scores for each of the three learning methods together with standard deviations and the results of a t-test. The higher scores indicate less favourable ratings while the lower scores mean more favourable ratings. 148 Developments in Business Simulation and Experiential Learning, Volume 30, 2003 TABLE 2 SURVEY RESULTS Mean Standard Deviation BS C CP BS C CP Item 1 2.12 2.65 3.9 1.22 1.28 1.65 2 2.78 2.70 4.2 1.20 1.28 1.37 3 1.76 2.78 4.8 0.89 1.59 1.21 4 2.58 2.46 4.1 1.19 1.33 1.04 5 2.67 2.37 4.0 0.98 1.24 1.23 6 1.98 2.29 3.9 0.68 0.67 1.43 7 2.10 2.55 4.0 1.31 1.00 1.28 8 2.12 3.29 4.0 1.19 0.75 0.97 9 2.33 3.20 4.0 1.22 0.95 1.08 10 2.47 3.09 3.9 1.14 1.38 1.43 11 2.50 2.84 2.84 1.36 1.18 1.18 12 1.8 2.19 3.8 0.90 0.89 0.97 13 2.27 2.76 3.8 0.95 1.00 1.21 14 2.93 3.50 3.5 0.91 1.35 1.31 15 2.93 3.50 3.5 1.36 1.35 1.35 16 2.27 2.27 3.2 0.85 0.75 0.87 17 2.57 2.36 3.2 1.36 1.25 1.08 18 2.22 2.84 3.8 1.13 1.35 1.30 19 2.47 3.57 3.6 1.16 1.00 1.38 20 2.67 3.38 3.28 1.00 1.50 1.47 21 1.83 1.84 2.75 0.87 1.00 0.80 22 3.37 4.29 4.50 .34 1.38 1.10 BS: New Business Venture Simulation C: Case Method CP: Consultancy Project When comparing the average scores for each item, it is noted that the business venture simulation has more favourable scores than the consultantcy project for all items with significance differences for 18 out of the 22 items in Hong Kong. This is also true with the results (18 of the 22 items) done in UK (Jennings, 2000). When compared to the case method, the business venture simulation is rated more favourably for 18 out of the 22 items in Hong Kong. In UK study, the result is also 18 out of the 22 items (Jennings, 2000). The business venture simulation is significantly more highly rated than both the case method and consultancy project with respect to 'planning and implementation" (items 8 and 9) in Hong Kong. In addition, both the simulation and the case method are significantly more highly rated than the consultancy project regarding the following areas, 'developing a management perspective' (items 2 and 3), 'problem solving and decision making' (items 4, 5, 6, and 7) and 'adding realism to the course' (item 21), as well as for items 11, 14, and 15. When compared with the result from UK study conducted by Jennings (2000), the results are similar except items 11, 14, and 15 (items 12, 13 and 16 in UK study). DISCUSSION The survey results do not support the view that multiple learning methods complement each other to develop a range of skills. Simulation, however, tend to be associated with higher ratings across a wide range of intended learning outcomes. Reasons may be suggested for the comparatively low weighting of the consultancy project. Lamond's (1995) study of an MBA consultancy project finds student evaluations to be bi-modal, strongly positive or negative, a dispersion of results that may reflect the potentially stressful nature of the project and the possibility of differential reactions by students, eg. to 149 Developments in Business Simulation and Experiential Learning, Volume 30, 2003 seek to avoid and minimize the effect of the learning situation by completing the project as directly as possible as opposed to more exploratory use of the situation (Lamond, 1995). While such variation in student response was not apparent in the Hong Kong study, the comparatively more stressful and uncertain nature of the situation presented by consultancy projects may be reflected in the lower ratings that were given. The higher ratings for the business simulation may also reflect the comparative intensity of the simulation, with numerous aspects that constitute a business being researched, defined, evaluated and coordinated in a shorter period of time than that available for the consultancy project, and also the autonomy of the student's decision making, free from the restraints and pressures of a real organization. Similar factors may be present in the use of the case method. For both simulation and the case method their context, away from the workplace, may provide an environment in which the student feels able to explore situations with a feeling of safety. This seems to be true as reflected in Jennings' study in 2000. CONCLUSIONS The use of multiple learning methods is a common feature of strategic management education in Hong Kong. It provides complementary learning situations, appears to be an attractive aspect of course design and provides student to learn in real life work situations. In addition, the evidence of the survey reported here in Hong Kong also implies that neither principle necessarily forms a basis for a successful course. In fact, redundancy can occur between learning methods with certain exercises providing an overall more successful learning experience. The time consuming process of developing and operating action learning situations may not be justified by the perceptions of the students involved as students in Hong Kong tend to be a bit passive. A business simulation, which use few educational resources, can provide a more highly rated learning experience than that available through the use of either the case method or consultancy projects. APPENDIX QUESTIONNAIRE ITEMS 1 Acquire new knowledge about business and management 2 Gain a top management perspective on the operation of an organization 3 Integrate learning from functional areas (Accounting, Finance, Strategy, Marketing, etc) 4 Increase ability to identify problems 5 Increase ability to solve practical problems 6 Learn how to make decisions on the basis of incomplete information 7 Add to understanding of how to seek and use information for problem solving 8 Increase competence for planning business operations 9 Increase ability to implement your decisions 10 Increase confidence in ability to work independently 11 Become more aware of own feelings and beliefs 12 Become more aware of the feelings and beliefs of others 13 Add to ability to provide meaningful feedback to team members 14 Motivate people who work with you 15 Learn to help people resolve conflicts 16 Increase ability to communicate clearly and effectively with peers 17 Increase effectiveness as a participant in group problem solving 18 Learn something important about yourself as a manager 19 Experiment with new behaviour 20 Learn new behaviour 21 The exercise added a lot of realism to the strategic management course 22 Clarified your career interests 150 Developments in Business Simulation and Experiential Learning, Volume 30, 2003 REFERENCES Alexander, L. D., O'Neill, H.M., Snyder, N.H & Townsend, J.B. (1986). How academy members teach the business policy / strategic management case course. Journal of Management Case Studies 2:3, 333-344. Argyris, C. (1980). Some limitations of the case method: Experience in a management development programme. Academy of Management Review, 5, 2, 291-98. Chang, J., Lee, M & Ma, K.L. (1990) The Use of Case Method as a Teaching Tool, Developments in Business Simulation and Experiential Learning, Vol. 26, 176- 177. Chang, J., Lee, M & Ma, K.L. & Jennings, D.R. (2001). Strategic Management and the Case Study Method: Survey and Evaluation in Hong Kong, Developments in Business Simulation and Experiential Learning, Vol. 27, 32-36. Christensen, C. R., with Hansen, A.J. (1987). Teaching and the case method, Boston Massachusetts: Harvard Business School. Dooley, A. R., & Skinner W. (1977). Casing casemethod methods. Academy of Management Review, 12, 2, 277-89. Eldredge, D.L. & Galloway, R.F. (1983). 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The role of classroom techniques in teaching management skills. Simulation and Gaming, 24, 429-45. Towl, A.R. (1969). To study administration by cases. Harvard University Graduate School of Business. Yin, R.K. (1989). Case study research, design and method. Sage Publications. 151 Table of Contents Volume 30, 2003 The Optimal Timing For Introducing Business Simulations Can Handicapped Students Access Your Class Web Site? The Competition Game: Decision Making In A Dynamic Environment Pan-Pacific Enterprises: Strategic Decision Making Simulation Study Of Stochastic Channel Redistribution The Impact Of Business War Games: Quantifying Training Effectiveness Experiential Learning: Introducing Faculty And Staff To A University Leadership Development Program The Feasibility Of The Balanced Scorecard For Business Games A Misuse Of Pims For The Validation Of Marketing Management Simulation Games Incorporating Technology Into The 21st Century Classroom: Are We Facilitating Academic Dishonesty? Improving The Effectiveness Of Peer Evaluations The Use Of A Simulation In An Integrated Mba Curriculum Student Portfolios In Business Education Student Portfolios In Business Education At Ashland University Using SAP ERP Technology To Integrate The Undergraduate Business Curriculum Board Games And Teaching Textile Marketing And Finance Blogging: A New Threat To Student Research? The Way We Talk! Take II Strategic Management: An Evaluation Of The Use Of Three Learning Methods In Hong Kong Adoption Of Discussion-Based Teaching And Assessment In Teaching Strategic Management In Hong Kong The Tobin Q As A Company Performance Indicator Using Representative Nominal Group Technique For Course Review And An Interactive Solicitation Of Ways To Enhance Absel's Image Making Teaching Matter: The Art And Science Of Teaching Business Communication Beyond Sex, Age, And Race: Exploring The Deeper Contents Of Diversity Teaching & Learning The Facilitation Process A Brief On Debriefing: What It Is And What It Isn't Changing Perceptions Of The Importance Of Leadership: The Contribution Of Individual Spirit Harmonics In Leadership Knowledge, Skills And Sustainable Values In Learning Organizations: Some Implications From The Multicultural Virtual Classroom Challenges Of Teaching Undergraduate Organizational Behavior In A Nontraditional Time Format Interactive Online Positioning With The Web-Based Product Positioning Map Graphics Package The Longitudinal Effects Of Entrepreneurship Training On Risk Tolerance: A Look At Similarities And Differences Between Male And Female Undergraduate Students Revisiting Strategy Learning In A Total Enterprise Simulation What Are Simulations For?: Learning Objectives As A Simulation Selection Device Gaming Agency Markets Cooperate For Profits Or Compete For Market? Study Of Oligopolistic Pricing With A Business Game The Design Of A Business Simulation Using A System-Dynamics-Based Approach Modeling The Product Development Function For An Entrepreneurial Firm Simulation Performance And Forecast Accuracy? Is That All? Business Manager Identification Of Competitors In Real World And Simulation Settings Monte Carlo Simulation Analysis On The Costs Reduction Argument Of Interest Rate Swaps Ebiz Game: A Scalable Online Business Simulation Game For Entrepreneurship Training A Model For Online Education Delivery And A Look At Online Delivery Effectiveness Incorporating "Company Reputation" into Total Enterprise Simulations The Genesis And Future Of The Absel "Classicos" Initiative