Case Study Assignment

There are three essential components to this assignment that need to be answered.

1. Key concepts

2. Application to the case

3. Application to your work/company (use a university or college setting as the work/company)

ASSIGNMENT: After you have read over the Teacher Notes - “TN” attachment and then have read over this entire document, complete the following three components for the case study on Facebook.

1. Key concepts. Summarize the key concepts or frameworks from the assignment. For the Facebook case study, it is competitive advantage and business models. Use the Teachers Notes (TN) to help answer this.

2. Application to the case. Apply the concept/framework to the case. Do this by answering the following questions (use the Teachers Notes – “TN” to help answer these):

· Does Facebook have a competitive advantage? What evidence supports your answer?

· What industry does Facebook compete in? Who are its closest competitors? What do your answers say about industry convergence?

· What are Facebooks’ Core Competencies?

· What is Facebooks’ business model?

· Is Facebooks’ business model sustainable? What changes do you foresee?

Notes to help you answer the bullet questions above:

• Note, question #1 has a specific meaning. The text defines competitive advantage as “superior performance relative to industry competitors.” To answer this question the performance of the focal firm must be compared to the industry competitors. There are numerous ways to measure performance, so the answer could be yes or no, depending on the performance measures chosen for the analysis. For example, McDonald’s return to shareholders may be leading the industry, but sales growth is lagging. The important point is that competitive advantage or disadvantage must be based on performance metrics, not intuition or popular opinion (unless of course popular opinion is an important performance metric – media industry for example).

• Question #2. You may like add a strategic group map (SGM) to your answer. There could be different variations of the SGM depending on how you view the industry and competitors.

• In answering question #3 consider the diagram (Exhibit 4.4) on page 3 of the attachment labeled “Exhibit”. Core Competencies are built on the Resources (VRIO) and Capabilities of the Firm. The Core Competencies are then Leveraged and implemented through specific firm Activities. The combination and interplay of all of these elements are the basis for Competitive Advantage and Superior Performance for the firm. Note that resources, core competencies and differentiation are all different things. Watch that you don’t get these mixed up when you identify the core competencies. For example, a cool product (think i-phone) is a point of difference, but it is not a core competence. However, the capability to create and market cool products consistently is a core competence – innovation (think Apple). Innovation is also built on valuable resources in the form of superior engineering and design talent, and access to capital needed to finance product introductions (Apple again). To bring it full circle, the differentiated product is a manifestation of core competencies, but it is not the competency itself.

• Questions #4 and# 5 have to do with Business Models. A business model is essentially the design for how the firm makes money. Be as descriptive as you can in question #4. For question #5, think about where Facebook is now, where it needs to go, and the paths that some of its competitors, both successful and unsuccessful, have taken.

3. Application to your work/company . Apply the key concepts/framework to a situation at a higher education college or university (you will have to make up a situation that would apply to a university or college setting). First, pose the issue or situation. Make sure the situation you describe is relevant to the key concepts so you can successfully apply it in the next step. Second, apply the concept/framework to this situation. Please be thorough in your analysis. Finally, draw a conclusion and make recommendations. Make sure your conclusions and recommendations follow from the analysis you applied in the previous step.

TIPS for completing this assignment

· Do not assume the discussion lead presentations represented the best answers to the case questions, or necessarily applied the concepts thoroughly or correctly to the case. Do your own analysis.

· The first question in most of the case assignments is “Does name of company have a competitive advantage? What evidence supports your answer?”

· Note this question has a specific meaning and requires a specific answer. The text defines competitive advantage as “superior performance relative to industry competitors.” To answer this question, the performance of the focal firm must be compared to the industry competitors. There are numerous ways to measure performance, so the answer could be yes or no, depending on the performance measures chosen for the analysis. Frame your answer to this question according to (at least one) of the performance measures discussed in Chapter 5. The important point is that competitive advantage or disadvantage must be based on performance metrics, not intuition or popular opinion (unless of course popular opinion is an important performance metric – media industry for example).

· Likewise for question 3 (in most case assignments), “performance” is a specific term. Please specify which performance metric you are using as a reference point when you answer this question.

· Credibility of outside sources. Although you are not required to use external sources of information to update the case or answer the questions, you may choose to use these sources, with proper citations and references, in your analysis. If you do use outside sources it is up to you to verify the credibility of the sources. Students have recently referenced sources that appear credible, but are nothing more than student papers posted online. These include citations to …academia.edu, and …Harvard.edu. I’ve also seen several citations to papers posted on individual LinkedIn profiles. These are no no’s. Student papers are not a credible source. Student presentations are widely available on the internet, and they appear to be just the information you are looking for. After all, students who take strategic management at the Undergraduate or Graduate level across the country and the world are likely to have similar assignments. It is up to you to check the real source of these papers, or anything else you find on the internet. If this issue did not occur frequently, I would not make a big deal out of it. Note, there is a heavy grade penalty associated with using these sources.

· How long should the assignment be? Complete the assignment, nothing more – nothing less. Clear and concise is a blessing. Be thorough and complete all of the requirements outlined in the directions. At the same time stay focused on the key issues.

· When applying the framework to the case or situation take care to include all components of the concept/framework in your analysis. This is the place for detail, avoid the temptation to apply the framework at too high a level. On the other hand, not all elements of the framework are equally relevant to a particular case or situation. For example, if threat of substitutes (5 forces) is not particularly relevant, briefly describe why and move on. Do not try to contrive a detailed analysis for a component that doesn’t really apply. This generally distracts from the quality of your assignment.

· Check that your conclusions follow from your analysis. Too often you can present a sound analysis, and then offer a conclusion based on an opinion that is not connected to the informed analysis.