“Plans are Useless, Planning is Invaluable” -- Dwight D. Eisenhower
Course code [INTA-GB.2140] was co-taught with Professor Scott Galloway. It is not being offered now.
Objectives
--Buttress your valuation and critical-thinking skills in the pursuit of alpha: and
--Provide insight into the technologies and platforms reshaping business.
Overview
Time: 6 PM to 9 PM
Dates: Monday, Feb 6, Feb 13, Feb 27, March 6, March 20, and March 27. No class on Feb 20 (President’s day) and March 13 (Spring break),
This is a half-semester course with six three-hour class sessions. The first five sessions will be lectures co-taught by Scott Galloway and Dan Gode. The last class will be student presentations. Each class will be split into halves. Scott Galloway will lead the first half to discuss a strategic “narrative” that drives value, and Dan Gode will lead the second half to discuss the numbers behind the valuation and if the “narrative” (i.e., value) is already priced into the stock price.
Narratives
The five class sessions will explore the following themes:
- Digital IQ: How competent is the organization across 4 dimensions of digital: Site; Digital Marketing, Social Media; and Mobile.
- Amazon IQ: How effective is a company in leveraging the Amazon platform or similar marketplaces?
- Social platforms: Which platforms are gaining/losing tractions with consumers/advertisers and why?
- Death of advertising industrial complex: Traditional advertising is losing effectiveness as consumers shift away from linear ad supported formats to over the top services and platforms.
- Multi-channel retail: The consumer does not live in isolation of any one medium. The most successful retailers employ physical and digital distribution, with a mobile device serving as the connective tissue.
Professor Galloway will discuss each theme and present companies that have executed well or or poorly against the theme. Many companies will be discussed, however two companies will be discussed in detail in each class.
Numbers
Professor Gode will then follow-up with a detailed analysis of financial performance and discuss if the expected success or failure of the company, premise on the strategic narratives, is already priced in. The financial analysis will consider the following value drivers of the company:
- Size: Economies of scale and scope
- Growth: Market potential and market share
- Margins: Pricing power, operating efficiencies, sourcing advantages
- Net operating asset intensity: Business models, balance sheet optimization
- Business risk: Volatility and operating leverage
- Financial risk: Financial policy regarding financial leverage and liquidity
We view this course as a capstone (and fun) course that brings together many subjects you have learned at Stern with particular emphasis on strategy and marketing and their links to financial statements and valuation.
Specializations
The course counts towards Marketing and Digital Marketing (Strategy track) specializations.
Disclaimers
- You need to be in the following systems before the start of the first class:
- NYU Brightspace
- Stern AIS
- If you are a non-Stern student, you must know how to access Stern email and Stern wi-fi
- Google groups for the class
- If you are not in the above systems (which is quite likely if you registered late), you will not be able to access the class materials during the first class and will miss out on important announcements.
- Please do NOT contact us regarding access to any of the above systems. If it takes time for the systems to be updated, complain to the school administration, not me. If someone in IT or Student Affairs tells you that I can add students, they are wrong. We are professors, not administrators. It is their job to fix these issues.
- Only registered students will be allowed to sit in this class. We will not grant permissions to anyone to sit in
the course without being registered in it.
Prerequisites
- The course requires an understanding of strategy, marketing, operational execution, and financial statements. Be prepared to work across disciplines.
Help and Office
Scott Galloway
Dan Gode
Materials and Course Design
- I use my materials. Therefore, no textbook is required, and you need not purchase anything.
Assignments
- There are case submissions due each week. You will be working in teams of four students. Each team will be assigned one of the two companies listed below.
Exams and Grading
- If you have a qualified disability and require academic accommodation during this course, please contact me directly. I will arrange a separate room/time for you.
- Grades will be based upon the following factors:
- 25%: Attendance, professional conduct in class
- You will lose points for every missed class unless you have a medical emergency, family emergency, confirmed interview, or required work travel for Langone students. No other reasons will be accepted unless you have pre-cleared them with Alex Gleeson (TA).
- If you have a medical or family emergency, do not worry about the course. Take care of the emergency and email us later.
- If you are more than 10 minutes late, you will be marked absent.
- Please bring your name plates to each class and sit in the same seat.
- Teams should sit together.
- 25%: Case write-up each week
- 50%: Final presentation If you have a qualified disability and require academic accommodation during this course, please contact me directly. I will arrange a separate room/time for you.
1. Digital IQ
For class discussion
For homework
2. Amazon IQ
For class discussion
- Philip Van Heusen (PVH)
- Wal-Mart
For homework
3. Social Platforms
For class discussion
For homework
4. Death of advertising industrial complex
For class discussion
For homework
5. Multi-channel retail
For class discussion
For homework
- American Eagle
- The Limited