Assignment 1: WorldCom Case (Accounting Fraud).
Submitted by: Ameer Khatri (ES-1)
On July 21, 2002, WorldCom group, a telecommunications company filed for bankruptcy
protection. The prime reason for the downfall was a deep-rooted accounti
Patagonias Social Responsibility
The employee and employer relationship has always been an
important part to a companys success. Today companies like Patagonia,
Google, and Microsoft, are using socially responsible business practices to
take full advantag
PATAGONIA: SOCIAL GOOD AND PROFIT
Patagonia's bright blues, reds, and purples are often spotted on adventurers shooting
white water rapids, climbing mountains, whizzing down ski slopes, or occasionally just lying
aroundanywhere in the world.
Evaluate Patagonias business model. How important to Patagonias
business model is its environmental position?
Achieving growth, being profitable, and minimizing ecological expenses are the current goals
of Patagonia. Its business model is bas
Internal analysis tells the strategist what is inside the
organizationhelps answer the
period of time.Hafeez, K., Zhang, Y. B., & Malak, N. (2002).
Core competence for sustainable competitive advantage: A
structured methodology for identifying core compet
performance.Administrative Science Quarterly, 25, 317
336.suggesting the need to develop capabilities at both levels.
Given that almost anything a firm possesses can be considered a
resource or capability, how should you attempt to narrow do
The likelihood of new entry is a function of the extent to which
barriers to entry exist. Evidence suggests that companies often
find it difficult to identify new competitors.Geroski, P. A.
(1999). Early warning of new rivals.Sloan Management Review,
1. What is strategic focus and why is it important? 2. What are
Porters three generic strategies? 3. Can a firm simultaneously
pursue a low-cost and a differentiation strategy? 4. What are the
three value disciplines? 5. What four rules underlie the three
for customers.McEvily, S. K., & Chakravarthy, B. (2002). The
persistence of knowledge-based advantage: An empirical test for
product performance and technological knowledge.Strategic
Management Journal, 23, 285305; Buckley, P. J., & Carter, M.
Journal of Economic Behavior & Organization, 38, 365
383.The four types of tangible resources are financial,
organizational, physical, and technological. The three types of
intangible resources are human, innovation, and reputational.
As a manager or entr
differentiation, focus). However, there is at least one major
difference. According to the value disciplines model, no
discipline may be neglected: threshold levels on the two
disciplines that are not selected must be maintained. According
to Porter, comp
beyond product differentiation to establish product leadership.
To these managers we say that if you decide to play an average
game, to dabble in all areas, dont expect to become a market
leader.Treacy, M., & Wiersema, F. (1997).The discipline of
Resources and Capabilities Resources
Broad in scope,resourcescover a spectrum of individual, social,
and organizational phenomena.Eisenhardt, K., & Martin, J.
(2000). Dynamic capabilities: What are they? Strategic
Management Journal, 21, 11051121; Michali
What are local employment levels per capita and how are they
What are the foreign trade regulations?
What are the long-term prospects for the economy gross
domestic product (GDP) per capita, and so on?
What are the social welfare policies?
Chapter 5 Strategizing
5.4 Developing Strategy Through Internal Analysis 231
Management Journal, 21, 961979.The glue that holds an
organization together, capabilities emerge over time through
complex interactions among tangible and intangible resources.
strategy is effective or ineffective, and whether the elements of
the strategy are chosen by managers, luck, or by default. You
have probably heard the saying, luck is a matter of being in the
right place at the right timewell, the key to making sure you
affected differently, none could control the U.S. economy.
Instead, companies around the globe were challenged to
understand the effects of this economys decline on their current
and future strategies. A similar set of events and relationships
was seen ar
managers for adopting these new innovations but rather
rewarded current profits over longterm success. Thus, Xerox
was never able exploit the innovative resources and
Chapter 5 Strategizing
5.4 Developing Strategy Through Internal Analysis 238
establish an effective online presence. These difficulties led
them to develop partnerships with Amazon. Through these
arrangements, Amazon now handles online presence and the
shipping of goods for several firms, including Toys R Us and
Borders, which now
continuous innovation. Novells decline during the mid- to late
1990s led many to speculate that Novell was unable to innovate
in the face of changing markets and technology. However,
shortly after new CEO Eric Schmidt arrived from Sun
Microsystems to atte
depend on competencies that traditionally have not been actively
managed or measuredincluding creativity and the speed with
which new ideas are learned and shared.Baldwin, T. T., &
Danielson, C. C. (2000). Building a learning strategy at the top:
in light of those characteristics, determining how the firm should
position itself relative to competitors. This emphasis on industry
characteristics and competitive strategy may have understated
the role of the firms resources and capabilities in develop
superior returns on its invested capital. In general, the stronger
competitive forces are, the lower the profit potential for an
industrys firms. An unattractive industry has low entry barriers,
suppliers and buyers with strong bargaining positions, stron
as other firms do not gain subsequently possession of the
resource or a close substitute. If a resource is valuable and rare
and responsible for a market leaders competitive advantage, it
is likely that competitors lacking the resource or capability will
(1999).New managerial mindsets. New York: Wiley.In addition
to focusing on customers rather than specific industry
boundaries to define markets, geographic boundaries are also
relevant. Research suggests that different geographic markets for
the same prod
1. What is the objective of internal analysis? 2. What is the
difference between a resource and a capability? 3. What is the
difference between a tangible and an intangible resource or
capability? 4. What is a core competency? 5. What framework
(shown by its differentiators) to yield positive performance
(economic logic). While performance is typically viewed in
financial terms, it can have social or environmental components
Lets start witharenas. Answers to strategy questions about
(2001). Are you sure you have a strategy?Academy of
Management Executive, 19(4), 5162, esp. p. 53.
Figure 5.17 The Strategy Diamond
Adapted from Hambrick, D. C., & Fredrickson, J. W. (2001).
Are you sure you have a strategy?Academy of Management
peoples capabilities seem to accept the adage that the person
who knows how will always have a job. The person who knows
why will always be his boss.Thoughts on the business of life.
(1999, May 17).Forbes, p. 352.
Global business leaders increasingly supp
strategy framework and the resource-based perspective.Strategic
Management Journal, 22, 907934.Upstreammarkets are the
industries that provide the raw material or inputs for the focal
industry, whiledownstreammarkets are the industries (sometimes