AOL Case Questions
This case involves thinking about and applying the concepts in Chapters 1 and 2. To be adequately prepared for class discussion of this case, you will need to develop supportable answers to the following questions. Take at least 2-3 pages of notes. You may use bullet points in your responses. But do think deeply and review the case at least twice to find the nuances.
Your responses must typed. This assignment is worth 25 points. I will pick up your responses at the end of class - this allows you to jot down additional notes from my presentation. A thorough response plus using the jargon from the chapters will demonstrate a high quality response. In other words, when asking about Steve Case's performance as chief strategist or implementer, go to our text to make sense of the qualities of a chief strategist or strategy implementer - then give your response, connecting it with the jargon from the text. We're trying to make "sense" of this stuff.
Finally,
be sure to type the question AND type your response
immediately following. For questions with several parts (sub-parts), be sure to answer
each part of the question under the sub-part. You are to answer the case questions using
the information available at the time of its publication.
P.S. Students must do their own work on this assignment.
Questions:
1. Did you read the above directions?
2. What is your assessment of Steve Case's performance as chief strategist and chief strategy implementer at AOL? What has he done well? What has he done poorly? What overall grade would you give Steve Case for the job he has done as CEO?
3. What statements or other evidence gives us a sense of Steve Case's strategic vision for AOL? What is the company's strategic intent and do you approve of it? Why does the merger with Time-Warner make sense?
4. Identify any financial and strategic objectives for AOL? Do they contain too much stretch or too little stretch?
5. What have the key elements of AOL's strategy been prior to the merger with Time Warner? (List them) What new and different strategy elements - perhaps synergies - do you see emerging now that the AOL Time Warner merger has taken place? (List them)
6. Based on the data provided in Exhibits 1, 5, 6, and 7, can you draw any conclusions or patterns that would indicate whether or not AOL's strategy has improved performance? (This question will stretch you a bit because it will ask you to do some financial analysis. You must make an attempt if you want credit)
7. Was bringing in Bob Pittman a good choice, and why or why not?
8. What did AOL do that has been considered by some to be unethical? Do questionable ethical standards have anything to do with the problems AOL has had?
9. What challenges does the merger with Time-Warner present to the new company's managers? Do you have any recommendations for the new company's leadership and managers?