- Subject: Strategic Management. - Mandatory book for this week's assignment (file attached - please include in citations): Rothaermel, F. T. (2013). Strategic management: Concepts. New York: McGraw-

E ssay # 1: C ult u ra l n orm s a nd v a lu es p la y a s ig nif ic a n t r o le in a ll o rg aniz a tio ns, fr o m

busin esse s in th e e co nom ic s e cto r to r e lig io us, p olit ic a l, a nd s p o rts o rg aniz a tio ns.

H ow eve r, s o m etim es a s tr o ng o rg aniz a tio nal c u lt u re is le ss p osit iv e . V in ce L om bard i,

r e now ned c o ach o f th e G re en B ay P acke rs , is o fte n q uote d a s s a yin g, “ W in nin g is n ’t

e ve ry th in g; it ’s th e o nly th in g.” M an y s p o rts te am s fr o m ju nio r s p orts to p ro fe ssio nal

sp orts h ave e it h er e xp lic it ly o r im plic it ly to ute d th is a ttit u de a s e xe m pla ry . O th ers ,

h ow eve r, a rg ue th at th is a ttit u de is w hat’s w ro ng w it h s p o rts a nd le ads to in ju ry , m in or

m is b ehavio r, a nd c rim in al b ehavio r. It e nco u ra ges p la ye rs to d o w hate ve r it ta ke s to w in

– fr o m tr ip pin g a p la ye r o r o th er u n-s p o rts m anlik e c o n duct d urin g m id dle s ch ool s p orts

t o th ro w in g a g am e a s p art o f g a m blin g.

Wh en a p la ye r h ears th e m essa ge “ a ny a ctio n w ill b e to le ra te d a s lo ng a s y o u a re

w in nin g,” th ere c a n b e s e rio us c o nse q uence s o n a nd o ff th e fie ld . R ece nt e xa m ple s

in clu de h ig h-s ch ool fo otb all p la ye rs c o n vic te d o f r a pe, y e t J e n F lo yd E ngel o f F ox

S ports n otic e d “ a s h ockin g la ck o f o utr a ge” w it h in th e c o m munit y a s th ey c o ntin ued to

s u pport th eir fo otb all h ero es.

Q uestio ns

1. H ow c o uld le aders o f s p orts o rg a niz a tio ns c o m munic a te th e w ill to w in a nd

deve lo p th e n ece ssa ry s kills w hile m ain ta in in g e th ic a l b ehavio r?

2. Wh at is th e r o le o f te am le aders in e nco u ra gin g h ig h e th ic a l th e w ill to w in a nd

deve lo p th e n ece ssa ry s kills w hile m ain ta in in g e th ic a l b ehavio r? T hin k o f e xa m ple s

of c o ach es w ho c o axe d p la ye rs to p la y b y th e r u le s a nd m ain ta in h ig h p ers o nal

eth ic a l s ta ndard s. Wh at o th er s o cia liz a tio n e xp e rie nce s c o u ld a c o ach u se ? W hat

is th e r o le o f te am le aders in e nco u ra gin g h ig h e th ic a l s ta ndard s w hile b uild in g th e

desir e to w in ?

3. N am e s o m e o th er e xa m ple s o f o rg aniz a tio nal c u lt u re le adin g to b usin ess fa ilu re ,

crim in al b ehavio r, o r c iv il le gal a ctio ns. W hat m ake s s o m e s tr o ng c u lt u re s h elp fu l

in g ain in g a nd s u sta in in g a c o m petit iv e a dva n ta ge, w hile o th er s tr o ng c u lt u re s a re

a lia bilit y to a ch ie vin g th at g oal?

E ssay # 2: In 1 998, 2 4-y e ar-o ld S erg ey B rin a nd 2 5-y e a r-o ld L arry P age fo unded

G oogle . T hey m et a s g ra duate s tu dents in c o m pu te r s cie nce a t S ta nfo rd U niv e rs it y ,

w here th ey b egan w ork in g to geth er o n a w eb c ra w le r, w it h th e g oal o f im pro vin g o nlin e

se arc h es. Wh at th ey d eve lo ped w as th e P ageR ank a lg orit h m , w hic h r e tu rn s th e m ost

re le va nt w eb p ages m ore o r le ss in sta nta neously a nd r a nks th em b y h ow o fte n th ey a re

re fe re nce d o n o th er im porta nt w eb p ages. A c le ar im pro ve m en t o ve r e arly s e arc h

e ngin es s u ch a s A lt a V is ta , O ve rtu re , a nd Y ah oo, a ll o f w hic h in dexe d b y k e yw ord s, th e

P ageR ank a lg orit h m is a ble to c o n sid er 5 00 m illio n v a ria ble s a nd 3 b illio n te rm s. W hat

sta rte d a s a h om ew ork a ssig nm ent la unch e d th e tw o in to a n e ntr e pre neuria l v e ntu re

w hen th ey s e t u p s h op in a g ara ge in M en lo P ark , C alif o rn ia . To day, G oogle is th e w orld ’s le ad in g o nlin e s e a rc h a nd a dve rtis in g c o m pany, w it h s o m e

70 p erc e nt m ark e t s h are o f a n in dustr y e stim ate d to b e w orth m ore th an $ 50 b illio n a

y e ar, a nd g ro w in g q uic kly . T houg h Y ah oo is a d is ta nt s e co n d w it h le ss th an 2 0 p er-c e nt

sh are , in 2 008 M ic ro so ft’s C EO S te ve B allm er o ff e re d to b uy th e r u nner-u p fo r c lo se to

$ 50 b illio n to h elp h is c o m pany g a in a fo oth old in th e p aid -s e a rc h b usin ess w here

G oogle r u le s. Y ahoo tu rn ed d ow n th e o ff e r.

Wh at h aunts B allm er is th at M ic ro so ft a ctu ally h ad it s o w n w ork in g p ro to ty p e o f a

G oogle fo re ru nner, c a lle d K eyw ord s, m ore th an a d eca d e e arlie r. S co tt B anis te r, th en a

s tu dent a t th e U niv e rs it y o f Illin ois , h ad c o m e u p w it h th e id ea o f a ddin g p aid

a dve rtis e m ents to In te rn et s e arc h e s. H e q uit c o lle ge a nd d ro ve h is G eo h atc h back to

t h e S an F ra ncis co B ay A re a to s ta rt K eyw ord s, la te r jo in in g a n o nlin e a d c o m pany

ca lle d L in kE xch ange. In 1 998, M ic ro so ft b ought L in kE xch ange fo r s o m e $ 265 m illio n

(a bout o ne tw o-h undre dth th e p ric e it w ould la te r o ff e r fo r Y ah oo). L in kE xch ange’s

m anagers u rg ed M ic ro so ft to in ve st in K eyw ord s. In ste ad, M ic ro so ft e xe cu tiv e s s h ut

dow n L in kE xch ange in 2 000 b eca u se th ey d id n ot s e e a v ia ble b usin ess m odel in it .

O ne L in kE xch ange m anager a ctu ally a ppro ach e d B allm er h im se lf a nd e xp la in ed th at

he th ought M ic ro so ft w as m akin g a m is ta ke . B ut B allm er s a id h e w ante d to m anage

th ro ugh d ele gatio n a nd w ould n o t r e ve rs e a d ecis io n m ad e b y m anagers th re e le ve ls

b elo w h im , th us b rin gin g a n e nd to M ic ro so ft’s fir s t o nlin e a dve rtis in g v e ntu re .

In 2 003, M ic ro so ft g ot a s e co nd c h a nce to e nte r th e o nlin e a dve rtis in g b usin ess w hen

so m e m id -le ve l m anagers p ro pose d b uyin g O ve rtu re S erv ic e s, a n in nova to r in

c o m bin in g In te rn et s e arc h es w it h a dve rtis e m en ts . T his tim e, B allm er, jo in ed b y

M ic ro so ft’s c o -fo under B ill G ate s, d ecid ed n ot to p urs u e th e id ea b eca use th ey th ought

O ve rtu re w as o ve rp ric e d. S hortly th ere afte r, Y ah oo b ought O ve rtu re fo r $ 1.6 b illio n.

H avin g m is se d tw o h uge o pportu nit ie s to p urs u e p ro m is in g s tr a te gic in it ia tiv e s th at

em erg ed fr o m lo w er le ve ls w it h in th e fir m , M ic ro so ft h as b een p la yin g c a tc h u p in th e

paid s e arc h b usin ess e ve r s in ce . In th e s u m mer o f 2 009, it la unch ed it s o w n s e arc h

e ngin e, B in g ( a n a cro nym fo r “ B eca u se It’s N ot G oogle ”). M ic ro so ft a nd Y ahoo

su bse quently fo rm ed a s tr a te gic a llia nce , a nd M ic ro so ft’s n ew s e arc h e ngin e w ill a ls o

p ow er Y ahoo s e arc h es. T hese tw o s tr a te gic m ove s h elp ed M ic ro so ft in cre ase it s s h are

in th e lu cra tiv e o nlin e s e arc h b u sin ess to r o ughly 2 5 p erc e n t, u p fr o m ju st o ve r 8

p erc e nt. It r e m ain s a n o pen q uestio n w heth er th is is s u ff ic ie nt, h ow eve r, to c h alle nge

G oogle ’s d om in ance . In p artic u la r, B in g’s in cre ase in m ark e t s h a re o f o nlin e s e arc h es is

o bta in ed a t th e e xp ense o f Y ah oo’s , a nd n ot G oogle ’s , m ark e t s h are . M ic ro so ft’s C EO

B allm er a dm it s p ro ble m s in M ic ro so ft’s s tr a te gic m an agem en t p ro ce ss: “ T he b ig gest

m is ta ke s I c la im I’v e b een in vo lv e d w it h a re w here I w as im pa tie nt – b eca use w e d id n’t

h ave a b usin ess y e t in s o m eth in g, w e s h o uld h ave s ta ye d p atie nt. If w e’d k e pt

co nsis te nt w it h s o m e o f th e id eas, w e m ig ht h ave b een in p aid s e arc h . W e a re le ttin g

m ore flo w ers b lo om .” [1 ] In th e s u m mer o f 2 013, S te ve B allm er a nnounce d h e w ould

r e tir e a s M ic ro so ft’s C EO b y m id -2 014.

Q uestio ns 1. Describ e th e s tr a te gic m anagem ent p ro ce ss a t M ic ro so ft. H ow a re s tr a te gic

d ecis io ns m ade? Wh at a re th e s tr e ngth s a nd w eakn e sse s o f th is a ppro ach ?

2. E xp la in th e r o le o f o rg aniz a tio na l in ertia in M ic ro so ft’s d if f ic u lt y in e sta blis h in g a

p re se nce in th e o nlin e p aid -s e arc h b usin ess. W hat c o u ld M ic ro so ft h ave d one

dif f e re ntly ? Wh at r e co m mendatio ns p erta in in g to th e s tr a te gic m anagem ent

pro ce ss w ould y o u g iv e ?

3. H ow d id tw o c o lle ge s tu dents s u cce ssfu lly la unch a b usin ess in o nlin e s e arc h a nd

adve rtis in g th at o ut- p erfo rm s M ic ro so ft, o ne o f th e w orld ’s le adin g te ch nolo gy

co m panie s? A m ong o th er is su es, c o n sid er th e r o le o f d if f e re nce s in o rg aniz a tio nal

cu lt u re .

4. Wh y is G oogle s u cce ssfu l in th e o nlin e s e a rc h b usin ess w hile Y ahoo a nd M ic ro so ft

a re s tr u gglin g?

E ssay # 3: A pple ’s m ark e t c a pit a liz a tio n in 2 0 01 w as $ 7 b illio n, w hile S ony’s w as $ 55

billio n. A pple in tr o duce d th e iP od, a p orta ble d ig it a l m usic p la ye r, in O cto ber 2 001 a nd

th e iT unes m usic s to re 1 8 m onth s la te r. T hro ugh th ese tw o s tr a te gic m ove s A pple

r e defin ed th e m usic in dustr y , r e in ve n tin g it s e lf a s n ot o nly a m ob ile -d evic e b ut a ls o a

c o nte nt- d eliv e ry c o m pany. S ig n alin g it s r e nais sa nce , A pple c h a nged it s n am e fr o m

A pple C om pute r, In c., to s im ply A pple , In c. B ut w hat h appened to S ony – th e c o m pany

th at c re ate d th e p orta ble m usic in dustr y b y in tr o ducin g th e W alk m an in 1 979?

S ony’s s tr a te gy w as to d if f e re ntia te it s e lf th ro ugh th e v e rtic a l in te gra tio n o f c o nte nt a nd

hard w are , d riv e n b y it s 1 988 a cq uis it io n o f C BS R eco rd s ( la te r p art o f S ony

E nte rta in m ent) . T his v e rtic a l in te gra tio n s tr a te gy c o n tr a ste d w it h S ony M usic d iv is io n’s

d esir e to p ro te ct it s lu cra tiv e r e ve nue-g enera tin g, c o p yrig hte d c o m pact d is cs ( C Ds).

S ony M usic ’s e ngin eers w ere a g gre ssiv e ly c o m ba tin g r a m pa nt m usic p ir a cy b y

in hib it in g th e M ic ro so ft Wi ndow s M ed ia P la ye r’s a bilit y to r ip C Ds a nd b y s e ria liz in g

dis cs ( a ssig nin g u niq ue ID n um bers to d is cs). M ea nw hile , A pple ’s e ngin eers w ere

d eve lo pin g a D ig it a l R ig hts M ana gem en t ( D RM ) s yste m to c o n tr o l a nd r e str ic t th e

tr a nsfe r o f c o pyrig hte d d ig it a l m usic . A pple ’s D RM s u cce eded, p ro te ctin g th e m usic

s tu dio ’s in te re sts w hile c re atin g v a lu e th at e nable d c o n su m ers to e njo y p orta ble d ig it a l

m usic .

S ony h ad a lo ng h is to ry o f c re a tin g e le ctr o nic s d evic e s o f s u p erio r q ualit y a nd d esig n. It

h ad a ll th e r ig ht c o m pete ncie s to la unch a s u cce ssfu l c o u nte ra tta ck to c o m pete w it h

A pple : e le ctr o nic s, s o ftw are , m usic , a nd c o m pu te r d iv is io ns. S ony e ve n s u pplie d th e

batte rie s fo r A pple ’s iP od. C oope ra tio n a m on g s tr a te gic b usin ess u nit s h ad s e rv e d

S ony w ell in th e p ast, le adin g to b re akth ro ugh in nova tio ns s u ch a s th e W alk m an,

P la yS ta tio n, th e C D, a nd th e V A IO c o m pu te r lin e. In th is c a se , h ow eve r, th e h ard w are

a nd c o nte nt d iv is io ns e ach s e em ed to h ave th eir o w n id ea o f w hat n eeded to b e d one.

C oopera tio n a m ong th e S ony d iv is io ns w as a ls o h in dere d b y th e fa ct th at th eir c e nte rs

o f o pera tio ns w ere s p re ad a cro ss th e g lo be: M usic o pera tio ns w ere lo ca te d in N ew

Y ork C it y a nd e le ctr o nic s d esig n w as in J a p an, in hib it in g fa ce -to -fa ce c o m munic a tio ns

and m akin g r e al- tim e in te ra ctio ns m ore d if f ic u lt . Sony’s th en-C EO N obuyu ki Id e i le arn ed th e h ard w ay th at th e M usic d iv is io n m anagers

w ere fo cu se d o n th e im media te n eeds o f th eir r e co rd in gs c o m pe tin g a gain st c o nsu m er-

d riv e n m ark e t fo rc e s. In 2 002, M r. Id ei s h a re d h is fr u str a tio ns a bout th e c u lt u ra l

dif f e re nce s b etw een th e h ard w are a nd c o n te nt d iv is io ns: T he o pposit e o f s o ft a llia nce s

is h ard a llia nce s, w hic h in clu de m erg ers a nd a cq u is it io ns. S in ce p urc h asin g th e M usic

a nd P ic tu re s b usin esse s, m ore th an 1 0 y e a rs h ave p asse d, a nd w e h ave e xp erie nce d

m any c u lt u ra l d if f e re nce s b etw een h ard w are m an ufa ctu rin g a nd c o nte nt b usin esse s… .

T his e xp erie nce h as ta ught u s th a t in c e rta in a re as w here h ard a llia nce s w ould h ave

ta ke n 1 0 y e ars to s u cce ed, s o ft a llia nce s c a n b e c re ate d m ore e asily . A noth er

adva nta ge o f s o ft a llia nce s is th e a bilit y to fo rm p artn ers h ip s w it h m any d if f e re nt

co m panie s. W e a im to p ro vid e a n o pen a nd e asy-to -a cce ss e nvir o nm ent w here

a nyb ody c a n p artic ip ate a nd w e a re w illin g to c o o pera te w it h c o m panie s th at s h are o ur

vis io n. S oft a llia nce s o ff e r m any p ossib ilit ie s.[2 ]

In c o ntr a st, A pple o rg aniz e d a s m all, e m po w ere d, c ro ss-fu nctio nal te am to p ro duce th e

iP od in ju st a fe w m onth s. A pple s u cce ssfu lly o uts o u rc e d a nd in te gra te d m any o f it s

c o m ponents a nd c o lla bora te d a cro ss b usin ess u nit s . T he p henom enal s p eed a nd

su cce ss o f th e iP od, a s w ell a s iT unes’ d eve lo pm en t a nd s e a m le ss in te gra tio n, b eca m e

a s tr u ctu ra l a ppro ach th at A pple a pplie d to it s s u cce ssfu l d eve lo pm ent a nd la unch es o f

oth er c a te gory -d efin in g p ro ducts s u ch a s th e iP hone a nd iP ad. B y A ugust 2 012, A pple ’s

s to ck m ark e t v a lu atio n h ad in cre a se d b y a fa cto r o f 8 9 tim es, fr o m $ 7 b illio n in 2 001 to

$ 623 b illio n, m akin g it th e m ost v a lu able p ublic c o m pa ny o f a ll tim e.[3 ] In c o ntr a st,

S ony’s m ark e t v a lu e h ad d eclin ed b y a lm ost 8 0 p erc e n t, fr o m $ 55 b illio n to $ 12 b illio n.

To im pro ve S ony’s p erfo rm ance , th e c o m pa ny is u nderg oin g a m ajo r c o rp ora te

r e str u ctu rin g. In 2 012, S ony’s r e ve n ues w ere $ 72.4 b illio n, w it h S ony’s M obile P ro ducts

a nd C om munic a tio ns d iv is io n ( $ 13.0 b illio n), E nte rta in m en t ( $ 12.4 b illio n), F in ancia l

S erv ic e s ( $ 10.7 b illio n), a nd H om e E nte rta in m en t & S ound ( $ 10.6 b illio n) b ein g th e

la rg est d iv is io ns. In te rm s o f p ro fit a bilit y , h ow eve r, S ony’s c o re b usin esse s a re

u nderp erfo rm in g. S ony’s m ost p ro fit a ble d iv is io ns a re n on-c o re b usin esse s s u ch a s

F in ancia l S erv ic e s ( $ 1.5 5 b illio n ) a nd “ O th er” b usin ess a ctiv it ie s ( $ 970 m illio n). T he

E nte rta in m ent u nit m ade o nly $ 910 m illio n in n et in co m e o n o ve r $ 12 b illio n in

r e ve nues, w hic h r e pre se nts a m eager 0 .0 07 p erc e n t r e tu rn o n in ve stm ent.

A s th e J a panese e co nom y is u nd erg oin g a m ajo r tr a nsfo rm atio n u nder P rim e M in is te r

S hin zo A be, c o rp ora te g ove rn an ce a t le adin g J a p anese e nte rp ris e s fr o m T o yo ta to

S ony is a ls o b ein g s h ake n u p. C om pa nie s m ust n ow r e ly m ore o n e quit y fin ancin g

ra th er th an b ein g a ble to c o ntin ually fin ance o pera tio ns th ro ugh d ebt b ase d o n th eir

c o zy r e la tio nsh ip s w it h b anks. T his is th e r e su lt o f m ore th an a d eca de-lo ng c o m petit iv e

d is a dva nta ge b y o nce w orld -le ad in g J a p anese c o m pa nie s, e sp e cia lly in th e e le ctr o nic s

in dustr y ( in clu din g S ony a nd S harp ).

A ctiv is t in ve sto rs s u ch a s h edge fu nds a re b eco m in g m ore p ow erfu l p la ye rs in S ony’s

c o rp ora te g ove rn ance . A nd w it h m ore p ow er, th ey a re b eco m in g m ore v o ca l. In

p artic u la r, th ey a rg ue th at S ony C orp . is s p re ad to o th in o ve r to o m any b usin esse s a nd

th at it s c o rp ora te s tr a te gy n eeds a m ajo r r e fo cu s. T hese a ctiv is t in ve sto rs a re a dvis in g Sony to c o m bin e it s m usic a nd m ovie b usin esse s in to o ne e nte rta in m ent u nit , a nd th en

sp in it o ff a s a s ta ndalo ne c o m pany. A m on g it s a sse ts , S ony E nte rta in m ent h as m usic

a rtis ts s u ch a s J u stin T im berla ke a nd P in k u nder c o n tr a ct, a nd th e m ovie S kyfa ll,

S ony’s la te st in sta llm ent in th e J a m es B ond s a g a, w hic h to pped th e r a nkin gs a nd

gro sse d o ve r o ne b illio n d olla rs s in ce it s r e le ase in 2 012. T his c o rp ora te r e str u ctu rin g

sh ould a llo w S ony to fo cu s o n it s c o re b usin ess in e le ctr o nic s, w hile u nlo ckin g h id den

va lu e-c re atin g p ote ntia l in it s e n te rta in m en t u nit .

Q uestio ns

1. Wh y h ad S ony b een s u cce ssfu l in th e p ast ( e . g ., w it h th e in tr o ductio n o f th e

W alk m an, P la yS ta tio n, th e C D, a nd th e V A IO c o m pu te r lin e)?

2. Wh at w as M r. Id ei’s a sse ssm en t o f s tr a te gic a llia nce s v e rs u s M &As? D o y o u a gre e

or d is a gre e w it h h is c o nclu sio n? S upport y o u r a sse ssm en t.

3. E xp la in h ow S ony’s o rg aniz a tio nal d esig n ( s tr u ctu re , c u lt u re , a nd c o ntr o l) in hib it e d

S ony’s a bilit y to r e sp ond to th e c o m pe tit iv e c h a lle nge o f A pple in th e d ig it a l

porta ble m usic in dustr y .

4. Wh at c o uld S ony h ave d one d if f e re ntly to a vo id fa ilu re ? W hat le sso ns c o uld b e

le arn ed?

5. E xp la in h ow r e str u ctu rin g ( a s a ctiv is t in ve sto rs a re r e co m mendin g) w ould p ro duce

b enefit s fo r S ony. Wh at w ould b e th e b enefit s o f s p lit tin g u p S ony a s p ro pose d?

Wh at w ould b e it s d ra w backs?

E ssay # 4: Y our c la ssm ate s a re a g ro up o f fr ie nds w ho h ave d ecid ed to o pen a s m all

r e ta il s h op. T he te am is to rn b etw een tw o s to re fr o nt id eas. T he fir s t id ea is to o pen a

h ig h-e nd a ntiq ue s to re , s e llin g h o use h old it e m s u se d fo r d eco ra tio ns in u psca le h om es.

M em bers o f th e te am h ave fo und a lo ca tio n in a h eavily p edestr ia n a re a n ear a lo ca l

co ff e e s h op. T he s to re w ould h a ve m an y it e m s a uth entic a te d b y a te am m em ber’s

u ncle , w ho is a c e rtif ie d a ppra is e r. In d is cu ssin g th e p la n, h ow eve r, tw o g ro up m em bers

s u ggest s h if tin g to a d ro p-o ff s to re fo r o nlin e a uctio ns s u ch a s e B ay. In th is b usin ess

m odel, c u sto m ers d ro p o ff it e m s th ey w ant to s e ll, a nd th e r e ta il s to re d oes a ll th e

lo gis tic s in vo lv e d – lis tin g a nd s e llin g th e it e m s o n e B ay, a nd th en s h ip pin g th em to

b uye rs – fo r a p erc e nta ge o f th e s a le s p ric e . T hey s u g gest th at a q uic k w ay to g et

sta rte d is to b eco m e a fr a nch is e e fo r a g ro up s u ch a s “ I S old It” ( w ww.8 77is o ld it .c o m ).

Q uestio ns

1. Wh at is th e b usin ess s tr a te gy fo r e ach s to re c o n ce p t?

2. H ow w ould th e o rg aniz a tio nal s tr u ctu re b e d if f e re nt fo r th e c o n ce pts ?

3. Wh at w ould lik e ly b e th e c u lt u ra l d if f e re nce s in th e tw o s to re c o n ce pts ?

4. H ow w ould th e c o ntr o l- a nd-re w ard s yste m s b e d if f e re nt?

E ssay # 5: S ele ct a ny o rg aniz a tio n a nd a n sw er th e fo llo w in g q uestio ns fo r y o ur

se le cte d o rg aniz a tio n.

Q uestio ns 1. Fro m y o ur k n ow le dge o f th e fir m , id entif y a m ajo r s tr a te gic c h a nge th e fir m s h ould

s e rio usly c o nsid er. B rie fly d escrib e w hat th e g oal o f th e in it ia tiv e is fo r th e

org aniz a tio n.

2. W ork y o ur w ay th ro ugh th e s ix s ta ges in F ig -2 9, a nsw erin g a s m any o f th e

questio ns a s y o u c a n fo r th e p ro pose d s tr a te gic c h a nge. A s y o u d eve lo p th e

pro je ct p la ns w it h s p ecif ic s fo r e a ch o f th e s ta ges, th e p la n s h o uld p ro vid e

fle xib ilit y , a llo w in g fo r u nexp ecte d c o n tin gencie s to e m erg e.

F ig ure 2 9

[1 ] M ic ro so ft C EO S te ve B allm er’s q uote d ra w n fr o m “ M ic ro so ft b id to b eat G oogle

b uild s o n a h is to ry o f m is se s,” T he W all S tr e et J o u rn al, J a n uary 1 6, 2 009.

[2 ] S ony A nnual R eport 2 002, y e ar e nded M arc h 3 1, 2 002, S ony C orp ora tio n, p . 9 .

[3 ] B y s u m mer 2 013, A pple ’s s to ck m ark e t v a lu atio n h ad d ecre ase d c o nsid era bly .