Strategic Management
Strategic Management
3rd Edition
ISBN: 9781259420474
Author: Frank T. Rothaermel The Nancy and Russell McDonough Chair; Professor of Strategy and Sloan Industry Studies Fellow
Publisher: McGraw-Hill Education
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Chapter 2.4, Problem 4CC
Summary Introduction

Case summary:

Company Y was the internet leader. It is the web portal for finance, sports, video sharing, social media, and email services. In 2000, the value of Company Y was more than $125 billion. However, in 2017, it was sold to Company V for $4.5 billion. The market capitalization of Company Y is $19 billion when Person M got the CEO Job. However, when Company Y was sold to Company V, the market capitalization of Company Y is $50 billion.

Person M developed a new mission for Company Y to strengthen the firm. She modified the organizational culture of Company Y and she took the necessary step to raise the cash. The strategic growth areas identified by Person M are “mobile advertising, video, native advertising, and social media.” However, after five years, she realized that the firm cannot have the capability to compete with Company G and Company F. She failed to turn around Company Y.

To determine: Whether Person X thinks that Person M can be able to turn around Company Y with her efforts.

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