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 12, Problem 2DQ
Summary Introduction
Situation: CEO should not serve as chairman of the board.
To discuss: The drawback of building a sustainable competitive advantage if two positions are held by one person and drawbacks to stakeholder and determine the situation where it would be advantageous to have one person in both positions.
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Polaris Industries manufactures all-terrain vehicles (ATVs). Since 1998, the company has turned out innovative products that have pushed it to the Number 2 spot in the industry against such tough competitors as No. 1 Honda Motor and Yamaha Motor. What caused the growth of the company was its new CEO Tom Tiller, who left a promising career at GE to take the reins at Polaris. Despite a growing national movement to highlight the environmental and safety problems posed by ATVs, the company is thriving. Under Tiller's leadership, the company's net profits have grown from $31 million in 1997 to an estimated $135 million in 2005. Supporting this program has been a series of innovations including the Ranger utility, which is a cross between a Jeep and a golf cart, and the Predator, an ATV aimed at both the sports and the recreation markets.The direct competition between Polaris, Honda, and Yamaha means the three companies have:
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Polaris Industries manufactures all-terrain vehicles (ATVs). Since 1998, the company has turned out innovative products that have pushed it to the Number 2 spot in the industry against such tough competitors as No. 1 Honda Motor and Yamaha Motor. What caused the growth of the company was its new CEO Tom Tiller, who left a promising career at GE to take the reins at Polaris. Despite a growing national movement to highlight the environmental and safety problems posed by ATVs, the company is thriving. Under Tiller's leadership, the company's net profits have grown from $31 million in 1997 to an estimated $135 million in 2005. Supporting this program has been a series of innovations including the Ranger utility, which is a cross between a Jeep and a golf cart, and the Predator, an ATV aimed at both the sports and the recreation markets.Its ability to develop new products that its customers want with greater success than its competition is an example of its:
A.
relative…
Polaris Industries manufactures all-terrain vehicles (ATVs). Since 1998, the company has turned out innovative products that have pushed it to the Number 2 spot in the industry against such tough competitors as No. 1 Honda Motor and Yamaha Motor. What caused the growth of the company was its new CEO Tom Tiller, who left a promising career at GE to take the reins at Polaris. Despite a growing national movement to highlight the environmental and safety problems posed by ATVs, the company is thriving. Under Tiller's leadership, the company's net profits have grown from $31 million in 1997 to an estimated $135 million in 2005. Supporting this program has been a series of innovations including the Ranger utility, which is a cross between a Jeep and a golf cart, and the Predator, an ATV aimed at both the sports and the recreation markets.Polaris would have used a(n) _____ to determine how environmental and safety concerns were affecting the company’s sales.
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competitive audit…
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