.
?
S.87-58
1\5
SIMON FRASER UNIVERSITY b ea4
cIL4\1
MEMORANDUM
To:
?
Senate
?
From:
J.W.G. Ivany
Chair, SCAP
Subject:
?
Faculty of Business Administration
?
Date: ?
November 19, 1987
Reference SCUS 87-38, SOAP 87-22
Action undertaken by the Senate Committee on Academic Planning Senate
Committee on Undergraduate Studies gives rise to the following motions:
Motion 1: that Senate approve and recommend approval to the Board of
Governors as set out in S.87-58 the following new courses:
BUS. 416
?
Investment Analysis and Design
BUS. 452
?
Seminar in Strategic Analysis
• ?
Motion 2: ?
that Senate approve the revision in the requirements for the Policy
Analysis area of concentration (formerly Business, Government
and Society))
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Acting under delegated authority, SCUS has approved the changes in prerequisites
for BUS. 487 and 488, change in vector for BUS. 488 and the restructure of the
work/study semesters in the Co-op Program.
SENATE COMMITTEE ON UNDERGRADUATE STUDIES
?
-
3
NEW COURSE PROPOSAL FORM
Calendar Information ?
Department Bus Admin.
Abbreviation Code: BUS
?
Course Number: 416
?
Credit Hours: 3 Vector: 0/2/1
Title of Course: Investment Analysis and Design
Calendar Description of Course: Analysis and design of investment contracts in a
portfolio setting. Standard investment media and markets (stocks and bonds) will
be addressed, as will derivative securities such as options and futures contracts.
Nature of Course Seminar/lab
Prerequisites (or special instructions): BUS 315
What course (courses), if any, is being dropped from the calendar if this course is
approved:
None
2. Scheduling
Row frequently will the course be offered? 4-6 times, depending on demand and staffing
Semester in which the course will first be offered? 88-3
Which of your present faculty would be available to make the proposed offering
possible? Grauer, Heaney, Herzog
Objectives of the Course
See attached sheet
4.
Budgetary and Space Requirements (for information only)
What additional resources will be required in the following areas:
Faculty None
Staff ?
None
Library None. Library holdings on hand are adequate with routine updating
Audio Visual None
Space Will require use of the microcomputer lab and one seminar room with a
Equipme ating
capacity of up to 20.
None. Will use existing microcomputers, but may require additional software.
5. Approval
Date:________________________
Department Chairman
?
Dean
?
Chairman, SCUS
0
us 73-34b:- (When completing this form, for instructions see Memorandum SCUS 73-34a.
tach course outline).
ATTACHMENT TO BUS 41 COURSE PROPOSAL
?
a
Objectives of the Course
Finance, on both a theoretical and practical level, is in the throes of
revolution -- a revolution which has been under way for nearly thirty years
and which shows no signs of abating. Because of this and because of limited
staffing, we have been reluctant to institutionalize new courses until their
long term implications have been clearly thought through. As a result, our
undergraduate course offerings are far fewer than those at other Business
Schools in North America.. Currently, we offer only three courses, Business
Finance, Investments, and Financial Management. Most university offer from
six to eight courses in the discipline and some offer as many as twelve.
The proposed course would raise our undergraduate offerings to four and
it would provide students with advanced work in investments to match the
advanced work now available in financial management. In order to refine the
offering, we have given four selected topics courses since the Spring 1986
semester. Our most recent view of what ought to be covered is reflected in
the Course Outline for BUS 498-3 for the Fall 1987 semester. This outline,
together with the outlines from our previous offerings, is attached.
0
a.
SIMON FRASER UNIVERSITY?
Faculty of Business Administration
COURSE OUTLINE
COURSE: Business Administration 416-3
?
SEMESTER: Fall, 1988
TITLE: Advanced Investment Analysis
?
INSTRUCTOR: Faculty
Outline
This course provides an introduction to the theory of option valuation and
to the analysis of option strategies applicable to portfolio risk management.
The first half of the course, prior to the midterm, will be devoted to
theory, while the second half will stress applications with the aid of
micro computer programs.
Required Texts ?
Ritchken, Peter Options: Theory, Strategy and
Applications. Scott, Foresman and Co., Glenview Illinois.
Turnbull, Stuart M. Option Valuation Holt, Rinehart and
Winston of Canada Ltd.
Exams
There will
be weekly assignments, a midterm and a
final exam.
Timetable (all chapter references are to Ritchker)
Week
Topic
Chapter
1
Nature and Uses of Option Contracts
12
2
Option Strategies
.3
3
Options and Arbitrage
4
4
Options and Complete Markets
5
5
Stock price processes
6
6
Binomial Option Pricing Model
9
7
Black Scholer Option Pricing Model
8
MID TERM
8
Application of Black Scholer Model & Index
Options
7,10
9
Forward and Futures Contracts & their
11
Options
•
10
11
Option & Hedging of Interest Rate Risk
12,13
15
Foreign Currency Options
12
Options & the Valuation of Corporate
14
Liabilities
13
Review
The FBAUCC has approved the following proposals from the Business,
Government, and Society Area:
?
.9
The existing business policy course (Bus 478, Seminar in
Administrative Policy) become a required core course for the
undergraduate Business degree.
Rationale: A business policy/strategic management. course serves as
a useful integrative capstone to an undergraduate business program
Typical university business programs in Canada and the United States
require one or more policy courses - one in business poi
i
cy and
frequently one in public policy - as core components
of
an
undergraduate business degree. Currently, the Faculty of Es'jsiness
Administration has no such requirements for the BBA degree. The
lack of a core business policy course is perceived by the Facu
l ty as a
maior weakness in the curriculum and there have been growing
pressures within the FBA over the past few years to correct this
deficiency.
A Business Policy course is used in Business and Management
curricula as mechanism to achieve the following objectives:
1.
to integrate the information students have gained in their prior
functionally-oriented course work into a comprehensive body of
knowledge.
2. to develop a broad systems perspective that is useful in dealing
with the strategic issues and decisions faced by organizations
operating within complex environments.
3. to develop an understanding of the role of a general manager
within an organization and how this role differs from that of a
functional specialist.
4.
to develop specific skills (including diagnostic, decision-making,
oral and written communication, and Interpersonal skills) of value to
managerial and professional employees in all kinds of organizations
It is perceived that Bus 478 ought to become part of the core
curriculum so that our Business program will meet commonly
accepted standards of disciplinary content in North American schools
of Business.
Revea Cenar entry:
CORE COURSES IN BUSINESS ADMINISTRATION
An Business Administration major, joint major, honors, or joint honors
students must
complete
the upper division core courses listed below:
Bus
307-3
Managerial Economics
(or ?
Econ
301-5
Intermediate Microeçonomic Theory)
Bus
31
2-4
Business Finance
Bus
328-3
Accounting for Management
(or both
Bus 252-3
Financial Accounting II
and
Bus
324-3
Managerial Accounting I)
Bus
336-4
Management Science
Bus
343-3
Introduction to Marketing
Bus
372-3
Micro Perspectives on Organizations
(or
Bus
374-3
Macro Perspectives on Organizations)
Bus
478-3
Seminar in Administrative Policy
Buec
333-3
Elementary Economic and Business Statistics II
01 ?
Administration
in joint major or joint honors programs in Business
Administration and Economics must take Econ 301-5, not Bus 307-3.
0
2 ?
An upgrading of our Business Policy offerings by the addition of a new
course in Strategic Analysis (Bus 452).
?
9
Rationale: Currently, we offer only one course in Business
Policy/Strategic Management (Bus 478, Seminar in Administrative
Policy), which is an introductory/ survey course in nature. A single
course in this area cannot do justice to the growing field of strategic
business planning. A second course will provide a vehicle for detailed
examination of some of the many analytical techniques now being
employed by scholars and practitioners in this discipline.
A
detailed
course proposal and outline is attached.
It should be noted that the proposed course (Bus 452) has been offered
as a Special Topics course by the 865 Area for the past four years.
It
has been well-received and the Area believes that it should now
become part of the regular curriculum.
3.
Change in name of the area from Business, Government, and Society
(865) to
Policy Analysis.
Rationale: Members of 863 desire to change the areass name to
something more descriptive of the areas purpose. The best rationale
for the existence of 805 - and the existence of analogous divisions
within most business faculties - is to provide courses in
integrative policy analysis.
Most of the areas course offerings
can be divided into one of the following categories: business policy
(the study of internal strategic decisions made by managers) and
public policy (the study of the external constraints on business
decisions imposed by the market, legal, and political environments).
Secondly, the Faculty of Business Administration is well aware of the
confusion generated by using the acronym BGS to describe two
different programs in two different faculties. BGS is used by the
Business, Government, and Society area in Business Administration
and the Bachelor of General Studies program in the Faculty of Arts.
We seek to eliminate this confusion.
4.
Revision of requirements for a concentration in Policy Analysis
Rationale: The area wishes to rationalize the current cumbersome
requirements for a student wishing to select a policy-related
concentration. The present requirements for obtaining a 865
.
?
Concentration have not been revised for at least nine years and they
do not reflect current course offerings, nor do they make sense
pedagogically.
The present requirements for a 805 concentration are as follows:
Reaulred cou
rses:
Bus 303-3 Business in
Society
BUCC 391-3
Law in the Economic Society
In
aadtion, at least 9 semester hours taKen from the following
courses:
Bus 374-3 Macro Perspectives on Organizations
Buec 396-3 The Structure of Industry
Buec 397-5 Government and Business
Bus 403-3 Seminar in Business and Society
Buec 495-3 Legal Aspects of Economic
Reiatonships
Buec 497-5 Public Policy Environment of Business
.
We
roose the following requirements for a concentration in Policy
Analysis:
ReaJlred Courses Buec 397-5 Government and Business
Bus 478-3 Seminar in Administrative Policy
Bus 452-3 Seminar in Strategic Analysis
r ?
dit.ion. any two of the following, at least one of which must be
400 level:
Bus 303-3 Business
i
n Society
Bus 346-3 International Business
Buec 391 -3 Law in the Economic Society
Buec 396-3 The Structure of Industry
Bus 403-3 Seminar in Business and Society
Buec 495-3 Legal Aspects
of
Economic
Relationships
Buec 497-5 Public Policy Environment of Busmess
0
SENATE COMMITTEE ON UNDERGRADUATE STUDIES
NEW COURSE PROPOSAL FORM
1. Calendar Information
?
Department
?
Business Administrat
Abbreviation Code:
?
BUS ?
Course Number: ?
452
?
Credit Hours: 3 Vector: Seminar 0-0-3
Title of Course: Seminar in Advanced Strategic Analysis
Calendar Description of Course:
This course is a sequel to BUS 478. It examines specific strategic analysis tools in
detail. The course requires students to engage in a major strategic analysis, as well
as case analyses.
Nature of Course
Prerequisites (or special instructions): BUS 478 or permission of the instructor.
What course (courses), if any, is being dropped from the calendar if this course is
approved:
?
none.
2. Scheduling
How frequently will the course be offered? once a year
Semester in which the course will first be offered?
?
1988-3
Which of your present faculty would be available to make the proposed offering
possible?
?
C. Smart, S. Globerman, A. Vining
3.
Objectives of the Course
-see attached
4.
Budgetary and Space Requirements (for information only)
What additional resources will be required in the following areas:
Faculty
Staff ?
(This course formalizes a special topics course that has
Library ?
been offered for several years. It entails no incremental
Audio Visual ?
resources.)
Space
Equipment
5. Approval
Date:
Department Chairman
?
Dean ?
Chairman, SCUS
.
SCUS 73-34b:- (When completing this form, for instructions see Memorandum SCUS 73-34a.
Attach course outline).
?
0
.
?
COURSE OBJECTIVES
The seminar presents advanced techniques for in-depth analysis of industries
an'.:i conipetitors. and for formulating : competitive strategy. It. builds on the
concepts of Business Policy developed in Bus. 476. The cou.re draws on
contEiiiporarv research in l)
I
JSltiCS:3
strategy and
111(1
ust.rial economics.
The Ours will offer students an opportunity to master more advanced
strategic: analytical te:hniques and to examine the !:r'.:'btems
C)i
competitive
strateg
y
in a rich array of industry settings. S-pecificall
y
, three conceptual
building blocks in inclustry and competitive analysis will l:* discussed:
general analytical techniques that. are applicable to any industry: generic
industry structural settings: and recurring types of st.rateic
(jE(::j.)flS
The seminar focusses on the particular problems
of
Competing in a number of
generic industry settings. The major Sections of the (:ourse will examine the
following types of industry enViroiiiiients: mature industries; fragmented
industries; emerging industries; declining industries; and global industries.
Iiulyti l
?
'
lm
' ?
''ill ?
discussed
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IppI
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i ?
Ii 41
. ?
Tht . hii
u h-i I'
ti' 5t1
uh- ii
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rf
t-'
i'
Ii in'
In'
h ' type will I
?
identified
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the strategies appropriate to ':::ompeting in them will be examined.
The course also will treat ea.::h major typo of strategic decision that occurs in
tile (:..
'
ntext of an industr
y
. t.rat.egic issues examined include: entr
y
through
acquisition or internal developn-tent.; exit; vertical and hori:ontal in t.egrationi;
arid jOint. ventures.
The
:ou.rse em plo
y
s cases di-awn from a variety of industries, selected to
illustrate the range of industry structural settin
S
and strategic de'.::isions
faced by managers.
The analysis of in ,
:Iusti -
ies and 's:('flipetifrrs is an important. part of strategy
formulation. This course will appeal to those students who wish to deepen
Skills in corripeUtive analysis. The course is particularly targeted to students
interested in general management., strategic planning, and marketing.
Business Administration
452 ?
Readings and Assignments
S
Instructor: C.F. Smart
?
Office Hours: Tuesday
Office: AQ 6181
?
10:00-11:30
Phone: 291-3710 ?
Thursday
10:00-11:30
Texts: M. Porter, Competitive Strategy, Free Press 1980
M. Porter, Cases in Competitive Strategy, Free Press 1983
Jan 09 ?
Introduction
Reading: Chapter l,PP. 3-33
Jan 16 ?
Industry Structural Analysis
Reading: Chapter 2, PP. 34-46
Case: Note on the Electronic Component
Distribution Industry, PP. 3-18
Raytheon Company, PP. 19-30
Jan 23
?
Industry Structural Analysis
Reading: Chapter 3, PP. 47-74
*Case: Cramer Electronics, Inc., PP. 31-48
Jan 30 ?
Industry Structural Analysis
Reading: Chapter 9, PP. 191-214
Case: The Oil Tanker Shipping Industry, PP. 49-72
Feb 06 ?
Competitor Analysis
Reading; Chapter 4, PP. 75-87
*Case: General Electric/Westinghouse, PP. 102-118
Feb 13
?
Competitor Analysis
Reading: Chapter 5, PP. 88-107
Case: General Electric/Westinghouse (cont.)
Feb 20 ?
Strategic Groups
Reading: Chapter 7, PP. 126-155
Case: The U.S. Bicycle Industry in 1974, PP. 121-140
Feb 27
?
Entry into New Business
Reading: Chapter 16, PP. 139-360
Case: The Disposable Diaper Industry in 1974, PP. 143-167
Mar 06 ?
Industry Evolution and Transition
•Reading: Chapter 8, PP. 156-188
Case: Hospital Affiliates International, and the
Hospital Management Industry, P. 247-274
Mar 13 ?
Industry Evolution and Transition
Reading: Chapter 11, PP. 237-253
*Case: Hospital Affiliates (cont.)
1
Ira
Mar 20
?
Competitive Strategy
in
Emerging Industries?
Reading: Chapter 10,
pp . 215-236
Case: Sierra Log Homes, PP. 373-394
Mar 27
?
Competitive Strategy in Declining Industries?
Reading: Chapter 12, PP. 254-274
*Case: The Baby Foods Industry
in
1965, PP. 408-418
Apr 03 ?
Competition
in
Global Industries
Reading: Chapter 13, P p
. 275-299
Case: The U.S. T.V. Set Market, Prewar to 1970, PP. 449-481
Evaluation
Final grades will be assigned on the following basis:
Marks
Written cases (5 cases, 25 marks each)
?
125
Class participation ?
25
Total ?
150
Case Analyses and Class Participation
Students are required to prepare a series of focus questions for each case discus-
sed in
.
class. ?
Five of these cases will be marked and they comprise the basis
of evaluation in the course. Written cases should be concise, incisive, and
literate and may not exceed five pages in length.
Case Assignments:
Jan 16 ?
Electronic Component Distribution Industry
Should Raytheon enter the industry? What would be its best entry
strategy? (Prepare for discussion).
Jan 23 ?
Electronic Component Distribution Industry
Identify the elements of Cramer's strategy for competing in its industry.
What assumptions are implicit in Cramer's strategy? (Written case).
Jan 30
?
Oil Tanker Shipping Industry
Provide a structural analysis of the oil tanker shipping industry.
(Discussion).
Feb 06 ?
General Electric/Westinghouse in Large Turbine Generators
Conduct structural analysis of the large turbine generator industry
as it existed in 1963. (Written case).
Feb 13
?
General Electric/Westinghouse
?
.
In class case (no preparation required)
-3-
.
?
Feb 20
?
U.S. Bicycle Industry
What are the relevant strategic groups in the bicycle industry? What
position on the strategic group map would you expect to be most profit-
able? (Written).
Feb. 27
?
Disposable Diaper Industry
What are the entry barriers into the disposable diaper industry? (Dis-
cussion).
Mar 06
The Hospital Management Industry
Analyze the
?
structure of the
?
hospital ?
management ?
industry
with ?
parti-
cular ?
emphasis
?
on ?
the ?
management ?
contract ?
portion ?
of ?
the ?
business.
(Discussion).
Mar 13
The Hospital Management Industry
Now ?
should ?
Hospital ?
Affiliates ?
International ?
(HAT) ?
react ?
to
structural
changes in the industry?
?
Recommend a strategy for the firm.
(Written).
Mar 20
The Log Home Industry
What are the characteristics/problems that are impeding the
development
of the log home industry?
?
(Discussion).
Mar 28
Baby Foods
Industry
Conduct an industry and competitor analysis for the baby food industry.
(Written case).
0
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?
99
FOR
The FBAUCC has approved the following proposals from the Organizational
Behaviour Area regarding prerequisite changes to Bus 487 and Bus
488:
Bus 487 Prerequisites:
from
Bus
372;
60 credit hours
to
permission of
the Faculty; 75 credit hours
Bus 488 Prerequisites:
from
Bus 371, Bus 372, Bus 374, or Bus 387
to
Permission of the Faculty; 75 credit hours
Rationale:
At a recent meeting the OB group discussed the necessity for
300 level prerequisities for their 400 level courses. A consensus emerged
that the specific 300 level course prerequisites for Bus 487 and Bus 488
could easily be dropped. While one would normally expect a 400 level
course
to
build upon prior courses, it must be remembered that we operate
what is essentially a two year program. As such, some of our 400 level
courses, while very specialized, do not necessarily build on prior course
work. This is the case with Bus 487 and Bus 488, two courses in the
Organizational Development stream.
The FBAUc.0 also approved a correction to the Calendar concerning a change
in
Vector
for Bus 488:
Bus 488 Change in vector:
from
2-0-1
to
0-0-3
Rationale: The OB Area points out that the current Calendar description of
Bus 8lecture/t.utoria1 is incorrect. This course has always been taught
as a seminar. Since Bus 488 (and the companion course Bus 487) is
primarily experiental in nature, a lecture format is inappropriate to
achieve course objectives.
0
Lf- ?
114
?
EEurr
SENATE COMMITTEE ON UNDERGRADUATE STUDIES
?
cL1OfL
FOR INFORMABON
?
NEW COURSE PROPOSAL FORM
1. Calendar Information
?
Department
fusiress
Adv-hri4oi
Abbreviation Code:
1U.S ?
Course Number: *
?
Credit Hours:
_3
Vector:
o-O-3
Title of Course:
?
4uiv ?
44c ?
ui
Calendar Description of Course:
Nature of Course S€vwix
Prerequisites (or special instructions):
Pec
y x^
ss
*
-C.A
of
-fke
oLuj;
*.f
c-reci+
hou.V
What course çurses), if any, is being dropped from the calendar if this course is
approved:
Scheduling
How frequently will the
'curse be offered?
Semester In which the cour..
q
i1l first be offered?
Which of your present faculty u14 be available to make the proposed offering
possible?
Objectives of the Course
?
'N.
0
Budgetary and Space Requirements (for information on
What additional resources will be required in the fo
Faculty
Staff
Library
Audio Visual
Space
Equipment
Approval
Date:
areas:
Department Chairman
?
Dean
?
Chairman, SCIJS
S
CUS 73-34b:- (When completing this form, for instructions see Memorandum SCUS 73-34a.
ttach course outline).
..jrIrJr
'
Jt ?
ir
-
FOR INFORMA101
SENATE COMMITTEE ON UNDERGRADUATE STUDIES
NEW COURSE PROPOSAL FORM
Calendar Information ?
Department
6ureSS a-fra-iai
Abbreviation Code: 605
?
Course Number:
L
S
?
Credit Hours:
3
Vector: 0-0-3
Title of Course:
Calendar Description of Course:
Nature of Course
?
5eiL.v'o.'I
Prerequisites (or special instructions):
-j ?
ej..i--
hc,ic
Wh'a.t course (courses), if any, is being dropped from the calendar if this course is
apprved:
Scheduling
How frequently 'will the course be offered?
Semester in which the course will first be offered?
Which of your present faculty would be available to make the proposed offering
possible?
2.
Objectives of the Course
4.
Budgetary and Space Requirements
What additional resources will b
Faculty
Staff
Library
Audio Visual
Space
Equipment
5. Approval
Date:
Department Chairman
?
Dean ?
Chairman, SE—
US
S 73-34b:- (When completing this form, for instructions see Memorandum SCUS 73-34a.
Attach course outline).
OR 1AFORMATIOIT
loultq of Oubinewo Adminjtrotjon Cop Program
Currently the University Calendar describes in detail only the
Accounting Co-op Education option within the Faculty of Business
Administration. The Co-op Program requests the following change-O.-
When planning for the 1986/69 Calendar update we would like to have
a statement that all areas of concentration in the Faculty of Business
Administration are available on the Co-op Education Model. The
program should be called
Business Administration Co-op
Education Program
with options available in Chartered
Accountancy, General Accountancy, Marketing, Finance, Human
Resource Management, Management Science/Management Information
Systems, and Policy Analysis.
2.
The Co-op students in the Business Administration program currently
have to complete 5 precticurns before they can receive a
Co-operative Education designation on their transcript and degrees.
We propose that the Chartered Accounting option, due to the unique
employment opportunities (one employer throughout the program) and
the profession's specific training requirements, will maintain its
requirements of five practicums.
For all other options avilable in the Business Administration Co-op
Education program, we recommend that
four
practicums be required
of students rather than five. The rationale for this change is as
follows:
a)
Work experience in the Co-op Program usually is short term and
project oriented. Students are most likely to change employer from
one practicum to another. While the placement process for each
practicum is very educational and useful to the students, it is a very
time consuming process. We would .like to reduce some of these
administrative "costs".
b)
Employers, in general, are less committed to long term training of
the co-op students than are the C.A. Firm employers. Students'
immediate productivity is very much a concern of the co-op
employers. We perceive that market demand can be served equally
well if Non-Accounting Co-op students complete only four work
semesters.
FOR CFORMAT1O!4
When a student starts the program with already 60 -
75
credit hours,
it is awkward to insist that he or she must have at least five
practicums and still be able to complete the co-op program with a
study semester rather than a work semester. With four practicums1
the
Co-op student co-op work experience will still constitute 50 of
the time spent enrolled the academic program. This is important
since we intend to have a fully eccreditab!e Co-op Education program.
The change in practicum requirements from five semesters to four
semesters for all Co-op students in Business Administration other
than those in the C.A. option is consistent with requirements in other
departments.
r
0
