What I Didn't Learn in Business School by Jay Barney Paper

4137 Words Apr 24th, 2013 17 Pages
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What I Didn’t Learn in Business School: How Strategy Works in the Real World
A Book Report
By: Kaitlin Bauer
What I Didn’t Learn in Business School: How Strategy Works in the Real World
A Book Report
By: Kaitlin Bauer
08
Fall
08
Fall

1. What lessons do you learn from Justin’s experience in terms of the limits of some of the core strategy frameworks you learned in theory (examine for example, Michael Porter’s Five Forces and the challenges Justice faced in applying it, value chain analysis, the Resource Based View)
Some of the concepts/models that are applied to strategic problems vary in meaning depending on the setting one is in whether it be in the actual real world or in the classroom. These
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Despite these limitations, both managers and consultants often use it in strategy development. Justin realized that HGS wouldn’t have many opportunities in any of its businesses given the highly competitive nature of the industries in which they compete. Although this is used in evaluating the competitive threats in an industry, it should be noted that it is not to be used to estimate the overall attractiveness of an industry which therefore doesn’t tell you very much about strategic choice. This put Justin in an “uncomfortable position” in regards to HGS’s situation because he was still thinking there was one clear solution waiting at the end; he just had to “crack the case”.
Second, Net Present Value analysis (NPV) is a popular calculation to find what the expected returns on a project in question would be using information on things like past product extensions or market entries. From that calculation, its gives an individual a feel for the riskiness of a new project which are then incorporated into casework which we have done repetitively throughout the MBA program. However, Justin experienced the limits of the NPV framework that we have learned in theory through his meeting with Shirley Rickert, CFO at HGS. Through this meeting, he learned that NPV calculations in the real world aren’t as cut and dry as they are when used in the classroom. Since these calculations are based

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