The case assignment will be based on Case #13 in your textbooks (Thompson, Strickland, Gamble, Peteraf (23e) - Crafting and Executing Strategy: The Quest for Competitive Advantage Concepts and Cases, McGraw Hill - ISBN: 9781265028244) - Twitter, Inc. in 2018: Too Little Too Late?. Please do not use any information outside of the case to answer the question. I have provided a guide on how to answer the case questions. For this case you will be answer the question below, integrating all of the tools you have learned through out the course to date. Please limit the total submission to no more than 10 pages, double spaced.

1. What does a PESTEL analysis suggest for the macro-environmental impact on the social media industry? Which of the macro-environmental factors appear to have the greatest potential impact on Twitter? Why?

2. Identify the driving forces in the social media industry? What appears to be the impact of these driving forces on the industry?

3. Prepare a SWOT analysis for Twitter. What does the SWOT suggest for Twitters future?

4. Using the data in Case Exhibits 1 & 2, what is your assessment of Twitters financial position? Based on your analysis, what financial performance can reasonably be expected in the near-term future for Twitter? Support your answer.

5. From the data provided in the case (Exhibits 1, 2, 6 & 7), how does Twitters performance stack up with Facebook and Snap? Is there a clear winner based on your analysis?

A few videos to help with the case (do not use any content outside of these videos and the case):

Twitter Inc. in 2018: Too Little Too Late?	Twitter CEO Jack Dorsey: Timeline Changes Reflect Event-Focused Strategy | CNBC	Play NowLinks to an external site.	02:5	YT 2018
13 Twitter Inc. in 2018: Too Little Too Late?	Trump: Twitter Allows Me to Get My Message	Play NowLinks to an external site.	05:44	YT 2017
13 Twitter Inc. in 2018: Too Little Too Late?	Out CEO Jack Dorsey: Twitter Absolutely Does Not Censor Users | TODAY	Play NowLinks to an external site.	05:33	YT 2016

Guide to Case Analysis I keep six honest serving men (They taught me all I knew); Their names are What and Why and When; And How and Where and Who. Rudyard Kipling CA2 STRATEGY: Core Concepts and Analytical Approaches n most courses in strategic management, students exposure to a variety of industries, organizations, and use cases about actual companies to practice stra- strategic problems; (2) forcing you to assume a manategic analysis and to gain some experience in the gerial role (as opposed to that of just an onlooker); tasks of crafting and implementing strategy. A case (3) providing a test of how to apply the tools and techsets forth, in a factual manner, the events and orga- niques of strategic management; and (4) asking you to nizational circumstances surrounding a particular come up with pragmatic managerial action plans to managerial situation. It puts readers at the scene of the deal with the issues at hand. action and familiarizes them with all the relevant circumstances. A case on strategic management can con- Objectives of Case Analysis cern a whole industry, a single organization, or some Using cases to learn about the practice of strategic part of an organization; the organization involved can management is a powerful way for you to accomplish be either profit seeking or not-for-profit. The essence five things: 2 of the student's role in case analysis is to diagnose and size up the situation described in the case and then to 1. Increase your understanding of what managers recommend appropriate action steps. should and should not do in guiding a business to success. WHY USE CASES TO PRACTICE 2. Bulld your skills in sixing up company resource strengths and weaknesses and in conducting straSTRATEGIC MANAGEMENT? tegic analysis in a wariety of industries and competitive situations. A student of business with tact Absorbed many answers he lacked. 3. Get valuable practice in identifying strategic issues But acquiring a job, that need to be addressed, ewaluating strategic alterHe said with a sob, natives, and formulating workable plans of action. "How does one fit answer to fact?" 4. Enhance your sense of business judgment, as The foregoing limerick was used some years ago by opposed to uncritically accepting the authoritaProfessor Charles Gragg to characterize the plight of tive crutch of the professor or "back-of-the-book" business students who had no exposure to cases. . The answers. facts are that the mere act of listening to lectures and 5. Gaining in-depth exposure to different industries sound advice about managing does little for anyone's and companies, thereby acquiring something close management skills and that the accumulated manageto actual business experience. rial wisdom cannot effectively be passed on by lectures If you tunderstand that these are the objectives of and assigned readings alone. If anything had been case analysis, you are less likely to be consumed with learned about the practice of management, it is that a curiosity about the answer to the case. Students who storehouse of ready-made textbook answers does not have grown comfortable with and accustomed to textexist. Each managerial situation has unique aspects, book statements of fact and definitive lecture notes requiring its own diagnosis, judgment, and tailor- are often frustrated when discussions about a case made actions. Cases provide would-be managers with do not produce concrete answers. Usually, case disa valuable way to practice wrestling with the actual cussions produce good arguments for more than one problems of actual managers in actual companies. course of action. Differences of opinion nearly always The case approach to strategic analysis is, first and exist. Thus, should a class discussion conclude withforemost, an exercise in learning by doing. Because out a strong, unambiguous consensus on what to do, cases provide you with detailed information about con- don't grumble too much when you are not told what ditions and problems of different industries and com- the answer is or what the company actually did. Just panies, your task of analyzing company after company remember that in the business world answers don't and situation after situation has the twin benefit of come in conclusive black-and-white terms. There boosting your analytical skills and exposing you to the are nearly always several feasible courses of action ways companies and managers actually do things. Most and approaches, each of which may work out satiscollege students have limited managerial backgrounds factorily. Moreover, in the business world, when one and only fragmented knowledge about companies elects a particular course of action, there is no peekand real-life strategic situations. Cases help substitute ing at the back of a book to see if you have chosen the for on-the-job experience by (1) giving you broader best thing to do and no one to turn to for a provably A Guide to Case Analysis CA3 correct answer. The best test of whether management and indicate the kinds of issues and problems that action is right or wrong" is results. If the results of you will need to wrestle with. If your instructor an action turn out to be good, the decision to take it has provided you with study questions for the case, may be presumed "right. If not, then the action cho- now is the time to read them carefully. sen was " wrong " in the sense that it didn't work out 2. Read the case thoroughly to digest the facts and Hence, the important thing for you to understand circumstances. On this reading, try to gain full about analyzing cases is that the managerial exercise command of the situation presented in the case. of identifying, diagnosing, and recommending is Begin to develop some tentative answers to the aimed at building your skills of business judgment. study questions your instructor has provided. If Discovering what the company actually did is no more your instructor has elected not to give you assignthan frosting on the cake-the actions that company ment questions, then start forming your own picmanagers actually took may or may not be right "or ture of the overall situation being described. best (unless there is accompanying evidence that the results of their actions were highly positive. 3. Carefully review all the information presented in The point is this: The purpose of giving you a case the exhibits. Often, there is an important story in assignment is not to cause you to run to the library or surf information in the case exhibits to be crucial enough the Intermet to discover what the company actually did to materially affect your diagnosis of the situation. but, mather, to enhance your skills in sizing up situations and developing your managerial fudgment about what 4. Decide what the strategic issues are. Until you needs to be done and how to do it. The aim of case analyhave identified the strategic issues and problems sis is for you to become actively engaged in diagnosing in the case, you don't know what to analyze, which the business issues and managerial problems posed in tools and analytical techniques are called for, or the case, to propose workable solutions, and to explain otherwise how to proceed. At times the strategic and defend your assessments-this is how cases pro-__ issues are clear-either being stated in the case or vide you with meaningful practice at being a manager. else obvious from reading the case. At other times you will have to dig them out from all the informa- Preparing a Case tion given; if so, the study questions will guide you. for Class Discussion 5. Start your analysis of the issues with some numIf this is your first experience with the case method, ber crunching. A big majority of strategy cases call you may have to reorient your study habits. Unlike lec- assorted financial ratios to check out the company's ture courses where you can get by without preparing financial condition and recent performance, calcuintensively for each class and where you have latitude lating growthrates of sales or profits or unit volume, to work assigned readings and reviews oflecture notes checking out profit margins and the makeup of into your schedule, a case assignment requires consci- the cost structure, and understanding whatever entious preparation before class. You will not get much revenue-cost-profit relationships are present. See out of hearing the class discuss a case you haven't read, Table 1 for a stmmary of key financial ratios, how and you certainly won't be able to contribute anything they are calculated, and what they show. yourself to the discussion. What you have got to do to get ready for class discussion of a case is to study the case, reflect carefully on the situation presented, and develop some reasoned thoughts. Your goal in prepar- is not just a collection of opinions; rather, it entails 6. Apply the concepts and techniques of strategic ing the case should be to end up with what you think applying the concepts and analytical tools described is a sound, well-supported analysis of the situation in Chapters 1 through 13 to cut beneath the surand a sound, defensible set of recommendations about face and produce sharp insight and understanding. which managerial actions need to be taken. Every case assigned is strategy related and presents To prepare a case for dass discussion, we suggest_ you with an opportunity to usefully apply what you the following approach: have learned. Your instructor is looking for you to demonstrate that you know how and when to use 1. Skim the case rather quickly to get an overview the material presented in the text chapters. of the situation it presents. This quick overview 7. Check out conflicting opinions and make some should give you the general flavor of the situation fudgments about the validity of all the data and STRATEGY: Core Concepts and Analytical Approaches A Guide to Case Analysis CA5 TABLE 1 ( Continued) Leverage Ratios (Continued) by stockholders account for 75% or more of the comparry's total capital. The lower the ratio, the greater the capacity to borrow additional funds. Debt-to capital ratios above 50% and certainly above 75% indicate a heavy and perhaps excessive reliance on debt, lower creditworthiness, and weak balance sheet strength. CA6 STRATEGY: Core Concepts and Analytlcal Approaches information provided. Many times cases report than one good way to analyze a situation and more views and contradictory opinions (after all, people than one good plan of action. don't always agree on things, and different people see the same things in different ways). Forcing you Participating in Class Discussion to evaluate the data and information presented in of a Case ence and judgment. Asking you to resolve conflict- Classroom discussions of cases are sharply different ing information "comes with the territory because from attending a lecture class. In a case class, students a great many managerial situations entail oppos- do most of the talking. The instructor's role is to solicit ing points of view, conflicting trends, and sketchy student participation, keep the discussion on track, ask information. Why? ? often, offer alternative views, play the devil's 8. Support your diagnosis and opinions with reasons advocate (if no students jump in to offer opposing and evidence. The most important things to pre- views), and otherwise lead the discussion. The students pare for are your answers to the question Why? in the class carry the burden for analyzing the situaFor instance, if after studying the case you are of tion and for being prepared to present and defend their the opinion that the company's managers are doing diagnoses and recommendations. Expect a classroom a poor job, then it is your answer to Why? that environment, therefore, that calls for your size-up of establishes just how good your analysis of the situ- the situation, your analysis, what actions you would ation is. If your instructor has provided you with take, and why you would take them. Do not be disspecific study questions for the case, by all means mayed if, as the class discussion tunfolds, some insightprepare answers that include all the reasons and ful things are said by your fellow classmates that you number-crunching evidence you can muster to did not think of It is normal for views and analyses to support your diagnosis. If you are using study differ and for the comments of others in the class to questions provided by the instructor, generate at expand your own thinking about the case. As the old least two pages of notes! adage goes, Two heads are better than one." So it is to 9. Develop an appropriate action plan and set of be expected that the classas a whole will do a more penrecommendations. Diagnosis divorced from correc- etrating and searching job of case analysis than will any tive action is sterile. The test of a manager is always one person working alone. This is the power of group to convert sound analysis into sound actions- effort, and its virtues are that it will help you see more actions that will produce the desired results. Hence, analytical applications, let you test your analyses and the final and most telling step in preparing a case is judgments against those of your peers, and force you to develop an action agenda for management that to wrestle with differences of opinion and approaches. lays out a set of specific recommendations on what To orient you to the classroom environment on to do. Bear in mind that proposing realistic, work- the days a case discussion is scheduled, we compiled able solutions is far preferable to casually tossing out the following list of things to expect off-the-top-of-your-head suggestions. Be prepared 1. Expect the instructor to assume the role of extento argue why your recommendations are more sive questioner and listener. attractive than other courses of action that are open. 2. Expect students to do most of the talking. The case As long as you are conscientious in preparing method enlists a maximum of individual participayour analysis and recommendations, and have ample tion in class discussion. It is not enough to be presreasons, evidence, and arguments to support your ent as a silent observer; if every student took this views, you shouldn't fret unduly about whether what approach, there would be no discussion. (Thus, you've prepared is the right answer x to the case. In expect a portion of your grade to be based on your case analysis, there is rarely just one right approach participation in case discussions.) or set of recommendations. Managing companies and 3. Be prepared for the instructor to probe for reasons crafting and executing strategies are not such exact and supporting analysis. sciences that there exists a single provably correct 4. Expect and tolerate challenges to the views analysis and action plan for each strategic situation. expressed. All students have to be willing to subOf course, some analyses and action plans are better mit their conclusions for scrutiny and rebuttal. than others; but, in truth, there's nearly always more Each student needs to learn to state his or her views A Guide to Case Analysis CA7 without fear of disapproval and to overcome the extensively when you speak. There's no way you can hesitation of speaking out. Learning respect for the remember everything off the top of your headviews and approaches of others is an integral part especially the results of your number crunching. of case analysis exercises. But there are times when To reel off the numbers or to present all five reait is OK to swim against the tide of majority opin- sons why, instead of one, you will need good notes. ion. In the practice of management, there is always When you have prepared thoughtful answers to the room for originality and unorthodox approaches. study questions and use them as the basis for your So while discussion of a case is a group process, comments, everybody in the room will know you there is no compulsion for you or anyone else to are well prepared, and your contribution to the case cave in and conform to group opinions and group discussion will stand out. consenstis. 5. Don't be surprised if you change your mind about Preparing a Written Case Analysis some things as the discussion unfolds. Be alert to Preparing a written case analysis is much like prehow these changes affect your analysis and recom- paring a case for class discusion, except that your mendations (in the event you get called on). analysis must be more complete and put in report 6. Expect to learn a lot in class as the discussion of a form. Unfortunately, though, there is no ironclad case progresses; furthermore, you will find that the procedure for doing a written case analysis. All we cases build on one another-what you learn in one can offer are some general guidelines and words of case helps prepare you for the next case discussion. wisdom-this is because company situations and There are several things you can do on your own management problems are so diverse that no one to be good and look good as a participant in class mechanical way to approach a written case assigndiscussions: ment always works. Although you should do your own indepen- Your instructor may assign you a specific topic dent work and independent thinking, don't hesitate around which to prepare your written report. Or, before (and after) class to discuss the case with other alternatively, you may be asked to do a comprehensive students. In real life, managers often discuss the com- written case analysis, where the expectation is that you pany's problems and situation with other people to will (1) identify all the pertinent issues that managerefine their own thinking. ment needs to address, (2) perform whatever analyrefine their own thinking. sis and evaluation is appropriate, and (3) propose an - In participating in the discussion, make a conscious action plan and set of recommendations addressing the effort to contribute, rather than just talk. There issues you have identified. In going through the exeris a big difference between saying something that cise of identify, evaluate, and recommend, keep the builds the discussion and offering a long-winded, following pointers in mind. 3 off-the-cuff remark that leaves the class wondering Identification It is essential early on in your what the point was. - Avoid the use of I think, I believe, and I feel ; paper that you provide a sharply focused diagnosis of instead, say, My analysis shows _ and The com-_ strategic issues and key problems and that you dempany should do because_ onstrate a good grasp of the company's present situsupporting reasons and evidence for your views; ation. Make sure you can identify the firm's strategy then your instructor won't have to ask you Why? (use the concepts and tools in Chapters 1-8 as diagthen your instr uctor won't have to ask you "Why?" nostic aids) and that you can pinpoint whatever stratevery time you make a comment. egy implementation issues may exist (again, consult - In making your points, assume that everyone has the material in Chapters 9-11 for diagnostic help). read the case and knows what it says. Avoid reciting Consult the key points we have provided at the end and rehashing information in the case-instead, of each chapter for further diagnostic suggestions. use the data and information to explain your Consider beginning your paper with an overview of assessment of the situation and to support your the company's situation, its strategy, and the signifiposition. cant problems and issues that confront management. - Bring the printouts of the work you've done on State problems/issues as clearly and precisely as you Case-Tutor or the notes you've prepared (usually can. Unless it is necessary to do so for emphasis, two or three pages' worth) to dass and rely on them avoid recounting facts and history about the company CA8 STRATEGY: Core Concepts and Analytical Approaches (assume your professor has read the case and is famil- rhetoric. Strike phrases such as I think, Ifeel, and iar with the organization). I believe x when you edit your first draft and write Analysis and Evaluation This is usually the in My analysis shows, instead. hardest part of the report. Analysis is hard work! Check Recommendations The final section of the out the firm's financial ratios, its profit margins and written case analysis should consist of a set of definite rates of return, and its capital structure, and decide recommendations and a plan of action. Your set of how strong the firm is financially. Table 1 contains a recommendations should address all of the problems/ summary of various financial ratios and how they are issues you identified and analyzed. If the recommendacalculated. Use it to assist in your financial diagnosis. tions come as a surprise or do not follow logically from Similarly, look at marketing, production, managerial the analysis, the effect is to weaken greatly your sugcompetence, and other factors underlying the organi- gestions of what to do. Obviously, your recommendazation's strategic successes and failures. Decide whether tions for actions should offer a reasonable prospect of the firm has valuable resource strengths and compe- success. High-risk, bet-the-company recommendations tencies and, if so, whether it is capitalizing on them. should be made with caution. State how your recomCheck to see if the firm's strategy is producing mendations will solve the problems you identified. Be satisfactory results and determine the reasons why sure the company is financially able to carry out what or why not. Probe the nature and strength of the you recommend; also check to see if your recommencompetitive forces confronting the company. Decide dations are workable in terms of acceptance by the whether and why the firm's competitive position is persons inwolved, the organization's competence to getting stronger or weaker. Use the tools and concepts implement them, and prevailing market and environyou have learned about to perform whatever analysis mental constraints. Try not to hedge or weasel on the and evaluation is appropriate. Work through the case actions you believe should be taken. preparation exercise on Case-Tutor if one is available By all means state your recommendations in suffor the case you've been assigned. ficient detail to be meaningful-get down to some In writing your analysis and evaluation, bear in definite nitty-gritty specifics. Avoid such unhelpful mind four things: statements as the organization should do more plan- 1. You are obliged to offer analysis and evidence to ning or the company should be more aggressive in back up your conclusions. Do not rely on unsup- marketing its product. For instance, if you determine ported opinions, over-generalizations, and plati- that the firm should improve its market position, tudes as a substitute for tight, logical argument then you need to set forth exactly how you think this backed up with facts and figures. should be done. Offer a definite agenda for action, 2. If your analysis involves some important quantita- stipulating a timetable and sequence for initiating tive calculations, actions, indicating priorities, and suggesting who tive calculations, use tables and charts to present should be responsible for doing what. the calculations clearly and efficiently. Don't just In proposing an action plan, remember there is tack the exhibits on at the end of your report and a great deal of difference between, on the one hand, let the reader figure out what they mean and why being responsible for a decision that may be costly if it they were included. Instead, in the body of your proves in error and, on the other hand, casually sugreport cite some of the key numbers, highlight the gesting courses of action that might be taken when conclusions to be drawn from the exhibits, and you do not have to bear the responsibility for any of refer the reader to your charts and exhibits for the consequences. more details. A good rule to follow in making your recommen- 3. Demonstrate that you have command of the strate- dations is: Avoid recommending anything you would gic concepts and analytical tools to which you have not yourself be willing to do if you were in managebeen exposed. Use them in your report. ment's shoes. The importance of learning to develop 4. Your interpretation of the evidence should be good managerial judgment is indicated by the fact reasonable and objective. Be wary of preparing that, even though the same information and operating a one-sided argument that omits all aspects not data may be available to every manager or executive favorable to your conclusions. Likewise, try not to in an organization, the quality of the judgments about exaggerate or overdramatize. Endeavor to inject what the information means and which actions need balance into your analysis and to avoid emotional to be taken does vary from person to person. 4 A Guide to Case Analysis CA9 It goes without saying that your report should be you the latitude to structure your presentation howwell organized and well written. Great ideas amount to ever you and your group members see fit. little unless others can be convinced of their merit- Regardless of the style preferred by your instructor, this takes tight logic, the presentation of convincing you should take great care in preparing for the preevidence, and persuasively written arguments. sentation. A good set of slides with good content and Preparing an Oral Presentation good visual appeal is essential to a first-rate presenta- tion. Take some care to choose a nice slide design, font During the course of your business career it is very size and style, and color scheme. We suggest including likely that you will be called upon to prepare and give a slides covering each of the following areas: number of oral presentations. For this reason, it is common in courses of this nature to assign cases for oral - An opening slide covering the title of the presenpresentation to the whole class. Such assignments give you an opportunity to hone your presentation skills. tation and names of the presenters. The preparation of an oral presentation has much in common with that of a written case analysis. Both - A slide showing an outline of the presentation (perhaps with presenters' names by each topic). require identification of the strategic issues and prob- - One or more slides showing the key problems and lems confronting the company, analysis of industry - A series of slides covering your analysis of the comconditions and the company's situation, and the develpany's situation. opment of a thorough, well-thought out action plan. - A series of slides containing your recommendaThe substance of your analysis and quality of your tions and the supporting arguments and reasonrecommendations in an oral presentation should be ing for each recommendation-one slide for each no different than in a written report. As with a writ- recommendation and the associated reasoning will ten assignment, you'll need to demonstrate command give it a lot of merit. of the relevant strategic concepts and tools of analysis and your recommendations should contain sufficient detail to provide dear direction for management. The and rehearse your slide show to maximize impact and You and your team members should carefully plan main difference between an oral presentation and a minimize distractions. The slide show should include written case is in the delivery format. Oral presenta- all of the pizzazz necessary to garner the attention of tions rely principally on verbalizing your diagnosis, the audience, but not so much that it distracts from analysis, and recommendations and visually enhanc- the content of what group members are saying to the ing and supporting your oral discussion with colorful, class. You should remember that the role of slides is snappy slides (usually created on Microsoft's Power- to help you communicate your points to the audience. Point software). Too many graphics, images, colors, and transitions Typically, oral presentations involve group assign- may divert the audience's attention from what is being ments. Your instructor will provide the details of the said or disr upt the flow of the presentation. Keep in assignment-how work should be delegated among mind that vistally dazzling slides rarely hide a shallow the group members and how the presentation should or superficial or otherwise flawed case analysis from a be conducted. Some instructors prefer that presen- perceptive audience. Most instructors will tell you that tations begin with issue identification, followed by first-rate slides will definitely enhance a well-delivered analysis of the industry and company situation anal- presentation, but that impressive visual aids, if accomysis, and conclude with a recommended action plan panied by weak analysis and poor oral delivery, still to improve company performance. Other instructors add up to a substandard presentation. prefer that the presenters assume that the class has a good understanding of the external industry envi- Researching Companies and ronment and the company's competitive position and Industries via the Internet and expect the presentation to be strongly foctised on the group's recommended action plan and supporting Online Data Services analysis and arguments. The latter approach requires Very likely, there will be occasions when you need to cutting straight to the heart of the case and support- get additional information about some of the assignee ing each recommendation with detailed analysis and cases, perhaps because your instructor has asked you persuasive reasoning. Still other instructors may give to do further research on the industry or company CA10 STRATEGY: Core Concepts and Analytical Approaches or because you are simply curious about what has Public and Subscription Websites with happened to the company since the case was writ- Good Information Plainly, you can use a search ten. These days, it is relatively easy to run down recent engine such as Google or Yahool or MSN to find the industry developments and to find out whether a com- latest news on a company or articles written by reportpany's strategic and financial situation has improved, ers that have appeared in the business media. These can deteriorated, or changed little since the conclusion of the be very valuable in running down information about case. The amount of information about companies and recent company developments. However, keep in mind industries available on the Internet and through online that the information retrieved by a search engine is data services is formidable and expanding rapidly. unfiltered and may include sources that are not reli- It is a fairly simple matter to go to company able or that contain inaccurate or misleading informawebsites, click on the investor information offer- tion. Be wary of information provided by authors who ings and press release files, and get quickly to use- are unaffiliated with reputable organizations or publicaful information. Most company websites allow you tions and articles that were published in off-beat sources to view or print the company's quarterly and annual or on websites with an agenda. Be especially careful in reports, its 10K and 10Q filings with the Securities relying on the accuracy of information you find posted and Exchange Commission, and various company on various bulletin boards. Articles covering a compress releases of interest. Frequently, a company's pany or issue should be copyrighted or published by a website will also provide information about its mis- reputable source. If you are turning in a paper containsion and vision statements, values statements, codes ing information gathered from the Internet, you should of ethics, and strategy information, as well as charts cite your sources (providing the Internet address and of the company's stock price. The company's recent date visited); it is also wise to print web pages for your press releases typically contain reliable information research file (some web pages are updated frequently). about what of interest has been going on-new prod- The Wall Street Jourmal, Bloomberg Businessweek, uct introductions, recent alliances and partnership Forbes, Barron's, and Fortune are all good sources of agreements, recent acquisitions, summaries of the articles on companies. The online edition of The Wall latest financial results, tidbits about the company's Street Journal contains the same information that is strategy, guidance about future revenues and earn- available daily in its print version of the paper, but the ings, and other late-breaking company develop- WSJ website also maintains a searchable database of all ments. Some company web pages also include links The Wall Street Journal articles published during the to the home pages of industry trade associations past few years. Fortune and Bloomberg Businessweek where you can find information about industry size, also make the content of the most current issue availgrowth, recent industry news, statistical trends, and able online to subscribers as well as provide archives future outlook. Thus, an early step in researching a sections that allow you to search for articles published company on the Internet is always to go to its website during the past few years that may be related to a parand see what's available. ticular keyword. The following publications and websites are Online Data Services Lexis-Nexis, Bloom- particularly good sources of company and industry berg Financial News Services, and other online information: subscription services available in many university libraries provide access to a wide array of business Securities and Exchange Commission EDGAR reference material. For example, the web-based Lexis- database (contains compary 10-Ks, 10-Qs, etc.) Nexis Academic Universe contains business news httpu//www. sec.gov/edgar/searchedgar/ articles from general news sources, business publi- companysearch cations, and industry trade publications. Broadcast Google Finance transcripts from financial news programs are also httpi//finance.google.com available through Lexis-Nexis, as are full-text 10 -Ks, CNN Money 10 -Qs, annual reports, and company profiles for more than 11,000 U.S. and international companies. Your business librarian should be able to direct you to the httpi//money.cnn_com resources available through your library that will aid Hoover's Online you in your research. httpi//hoovers.com The Wall Street Joumal Interactive Edition wrww.wsj_com Bloomberg Businessweek wrw.businessweekcom and www.bloomberg.com A Guide to Case Analysis CA11 Fortune use a search engine, you will know where to go to look MSN Money Central for the particular information that you want. Search httpi//moneycentral.msn.com engines nearly always turn up too many information Yahool Finance sources that match your request rather than too few. httpi//finance.yahoo.com/ The trick is to learn to zero in on those most relevant to what you are looking for. Like most things, once you get Some of these Internet sources require subscrip- a little experience under your belt on how to do comtions in order to access their entire databases. pany and industry research on the Internet, you will You should/always explore the investor relations find that you can readily find the information you need. section of every public company's website. In today's world, these websites typically have a wealth of infor- The Ten Commandments mation concerning a company's mission, core values, of Case Analysis performance targets, strategy, recent financial perfor- As a way of summarizing our suggestions about how mance, and latest developments (as described in com- As a way of summarizing our suggestions about how pany press releases). call The Ten Commandments of Case Analysis." They Learning Comes Quickly With a modest are shown in Table 2 . If you observe all or even most of investment of time, you will learn how to use Internet these commandments faithfully as you prepare a case sources and search engines to run down information either for class discussion or for a written report, your on companies and industries quickly and efficiently. chances of doing a good job on the assigned cases will And it is a skill that will serve you well into the future. be much improved. Hang in there, give it your best Once you become familiar with the data available at the shot, and have some fun exploring what the real world different websites mentioned above and learn how to of strategic management is all about. TABLE 2 The Ten Commandments of Case Analysis To be observed in written reports and oral presentations, and while participating in class discussions. 1. Go through the case twice, once for a quick overview and once to gain full command of the facts. Then take care to explore the information in every one of the case exhibits. 2. Make a complete list of the problems and issues that the company's management needs to address. 3. Be thorough in your analysis of the company's situation (make a minimum of one to two pages of notes detailing your diagnosis). 4. Look for opportunities to apply the concepts and analytical tools in the text chapters-all of the cases in the book have very definite ties to the material in one or more of the text chapters!!! 5. Do enough number crunching to discover the story told by the data presented in the case. (To help you comply with this commandment, consult Table 1 in this section to guide your probing of a company's financial condition and financial performance.) 6. Support any and all off-the-cuff opinions with well-reasoned arguments and numerical evidence. Don't stop until you can purge "I think" and "I feel" from your assessment and, instead, are able to rely completely on "My analysis shows." 7. Prioritize your recommendations and make sure they can be carried out in an acceptable time frame with the available resources. 8. Support each recommendation with persuasive argument and reasons as to why it makes sense and should result in improved company performance. 9. Review your recommended action plan to see if it addresses all of the problems and issues you identified. Any set of recommendations that does not address all of the issues and problems you identified is incomplete and insufficient 10. Avoid recommending any course of action that could have disastrous consequences if it doesn't work out as planned. Therefore be as alert to the downside risks of your recommendations as you are to their upside potential and appeal. CA12 STRATEGY: Core Concepts and Analytical Approaches 'Charlas I. Gragg. "Because Wlsdom Cant The Case Method at the Havard Bushess M. P. McNair, pp. 139-63. Raymond's article Be Told," n The case Method at the Havard School, ed. M. P. McNair, pp. 79-79. Includes an actual case, a sample analysis of Business School, ed. M. P. McNair (Now York: 'For scme additionel ldass and viewpolnts, the cese, and a sample of a student's wilten McGraw-Hill, 1954), p. 11. "Ibld., pp. 12-14; and D. R. Schoen and Phillp "Willten Anslysis of Cases," In The Case _ "Gragg, Because Wisdom Can't Be Told," A. Sprague, 'What is the Case Method?' in Method at me Harvard Business School, ed. p. 10. ack Dorsey, CEO of Twitter Inc., breathed a slight Reddit and Quora. Many of these competitors weres Francis, Katy Perry, and Turkish President Recep to 0.8 percent in 2018 (compared to dropped Erdogan. However, despite the number of users and 18.4 percent and Instagrames (compared to Facebook's financial gains until the foud failed to provide any Although Twitter had 3.0 percent). this profit had come as a resth quarter of 2017, and too little and too late? growing the busincss. Reusearch of cutting coste, not wcre faced with two Twitter's CEO and its Board sales and marketing expenses and development, and could they do to daunting questions: 1) whet 25 percent, respectively, and the been cut by 24 and mic growth, do assure Twitter's survival with its ano revenue for fiscal 2017 was down ovany's annual net profitability, marginal revenue increases, unreliable from 2016. Twitter discovered over three percent take-over candida) was the company an attractive 2017 that it had been miscalculating monthly user numbers since the fourth quarter of 2014, and con- HISTORY OF TWITTER sequently was forced to lower the previously reported Founded in 2006 by Jack Dorsey, Noan Glass, deficit of over $2.6 billion, officer, whose leadership llad been vital in Twitter status updates up to 40 characters long. Jack Dorsey, a for 2013 through 2017 are presented in Exhibit 1. The 2006: "just setting up my twttr"-Jack(@jack) 21 March, company's consolidated balance sheets for 2016 . The 2006. By the first of January 2018, Twitter had more 2017 are presented in Exhibit 2. it faced serious competition from industry; however, The history of Twitter began with an entrepreneur as Facebook, WhatsApp, from companies such named Noah Glass who started a company named Odeo LinkedIn, and Pinterest, pils shapChat, Instagram, in 2005. Odeo hadd a product that would turn a phone .aal 1 Consolidated Statement of Operations: Fiscal Yaars 2013-2017 message into an MP3 hosted on the Internet. One of As Odeo grew, more employees were hired including Odeo's early investors was a former Google employee, a Web designer, Jack Dorsey, and Christopher "Biz" Evan Williams, who got very involved with the company. Stone, a friend of Odeo's new CEO, Evan Williams. EXHIBIT 2 Twitter Inc.'s Consolidated Balance Sheets, 2016-2017 (in thousands, except par value) CASE 13 Twitter Inc. in 2018: Too Little Too Late? Williarns decided that Odeo's future was not in Twitter was quite simple: tweets were limited to polcasting, and directed the company's employees to 140 characters until late 2017 when the limit was de elop ideas for a new direction. Jack Dorsey, who raised to 280. The character constraint made it easy a doen doing cleanup work on Odeo, proposed a for users to create, distribute, and discover content poduct that was based on people's present status, that was consistent across the Twitter platform as well of what they were doing at a given time. In February as optimized for mobile devices. Consequently, the 2006 , Glass, Dorsey, and a German contract devel- large volume of Tweets drove high velocity informaoper proposed Dorsey's idea to others in Odeo, and tion exchange. Twitter's aim was to become an indisover time, a group of employees gravitated to Twitter pensable daily companion to live human experiences. while others focused on Odeo. At one point, the The company did not have restrictions on whom entire Twitter service was run from Glass' laptop. a user could follow, which greatly enhanced the Noah Glass presented the Twitter idea to breadth and depth of available content and allowed odeo's Board in summer of 2006; the Board was not users to find the content they cared about most. Also, enthused. Williams proposed to repurchase the Odeo users could be followed by hundreds of thousands, or stock held by investors to prevent them from taking millions of other users without requiring a reciprocal a loss, and they agreed. Five years later, the assets relationship, enhancing the ability of users to reach of Odeo that the original investors sold for about a broad audience. Twitter's public platform allowed $5 million were worth $5 billion. both the company and others to extend the reach of After Williams repurchased Odeo, he changed Twitter content: media outlets distributed Tweets to the name to Obvious Corp. and fired Odeo's founder complement their content by making it more timely, and the biggest supporter of Twitter, Noah Glass. relevant, and comprehensive. Tweets had appeared Christopher "Biz" Stone left Twitter in 2011 and pur- on over one million third-party websites, and in the sued an entrepreneurial venture with Obvious Corp. second quarter of 2013 there were approximately for six years. In mid-2017, he returned to Twitter full 30 billion online impressions of Tweets. time. As of the second quarter, 2018, only three of the original Twitter founders remained active in the THE TWITTER BRAND IMAGE company: Biz Stone, Jack Dorsey as the company's CEO, and Evan Williams who was on the Board. Twitter had a powerful brand image. Its mascot bird Twitter provided an almost-immediate access was not chosen because birds make tweeting sounds, channel to global celebrities. The majority of the top but rather because "whether soaring high above the 10 most-followed Twitter accounts were entertainers earth to take in a broad view, or flocking with other who used the service to communicate with their fans, birds to achieve a common purpose, a bird in flight spread news, or build a public image. The near-instant is the ultimate representation of freedom, hope and gratification from direct updates from celebrities such limitless possibility." 1 as Rihanna, Jimmy Fallon, Lady Gaga, and Taylor Twitter was initially named "Jitter" and "Twitch," Swift and the feeling of inclusion in a specific group because that is what a phone would do when it of fans was a major reason for social media users received a tweet. However, neither name evoked the to use Twitter. The accounts of high-interest people image that the founders wanted. Noah Glass got a such as entertainers, politicians, or others at risk of dictionary and went to "Twitch," then to subseimpersonation were verified by Twitter to authenti- quent words starting with "Tw" he found the word cate their identity. A badge of verification was placed "Twitter," which in the Oxford English dictionary on confirmed accounts to indicate legitimacy. Major means a short inconsequential burst of information, sporting events and industry award shows such as the and chirps from birds. Dorsey and Glass thought that Super Bowl or Academy Asterest described exactly what they were doing, so online action or Academy Awards generated significant "they decided on that name. The name was already to participation. The online discussion enabled users owned, but not being used, and the company was posted behinde in the success of celebrities who often able to buy it very cheaply. posted behind-the-scenes photo tweets or commen- In 2012, the old Twitter bird was redesigned, taries. On-set or in-concert tweets were other meth- slightly resized, changed from red to blue, and named ods utilized by celebrities to enhance their appeal, Larry the Bird (named after NBA star Larry Bird). and fan interaction. The lower case " t " icon and the text "twitter" were removed; the company name was no longer on the followers, others have far more. As of millions of oune 2018 , logo. The blue bird alone communicated the Twitter Katy Perry had over 108,000,000 followers, Justing \begin{aligned} According to a Twitter survey conducted to help \( & \) The miraculous plane crash on New York's understand the company's brand legacy, 90 percent of \( & \) Hudson River in 2009 was broken on Twitter, and on \hline \end{aligned} Twitter users worldwide recognized the Twitter brand. May 1, 2011, an IT consultant in Pakistan unknow. Twitter's 2018 ad campaign "What's happening" used ingly live-tweeted the U.S. Navy Seal raid that killee only the Twitter logo and hashtag symbol. The Twitter Osama Bin Laden over nine hours before the raid wes brand was called "minimalization at its finest" 33 an on the news. Prince William announced his engage advertising campaign that did not have one word, but ment to Catherine Middleton in 2010 on Twitter, yet delivered a powerful message from the brand. President Obama used Twitter to declare victory in the 2012 U.S. presidential election, with a Tweet thy Twitter's Global High Profile was viewed about 25 million times on the Twitter Twitter had become very well-known because of sev- broadcast media. eral high-profile users and high profile use. Several of the world's leaders had millions of followers, TWITTER SERVICES, as shown in Exhibit 3. From May 2017 to June 2018, U.S. President Donald Trump's follow count PRODUCTS, AND REVENUE increased to 53.1 million. President Trump regularly used Twitter to break news, praise his friends, campaign for supporters, and feud with his enemies; Twitter's primary service was the Twitter global consequently Twitter was in the daily news almost platform for real-time public selfexpression ard constantly in 2017. conversation, which allowed people to create, consume, discover, and distribute content. Some of the EXHIBIT 3 World Leaders with the most trusted media outlets in the world, such y Most Twitter Followers as CNN, Bloomberg, the Associated Press, and BBC of May 2017 used Twitter to distribute content. Periscope uas 1 mobile app launched by Twitter in 2015 that enabled people to broadcast and watch live video with others. Periscope broadcasts could be viewed through Twitter and mobile or desktop web browsers. Twitter Inc. generated advertising and dial licensing revenue as shown in Exhibit 4 by proiling mobile advertising exchange services through the Twitter MoPub exchange, and offering data products and data licenses that allowed their data partner to search and analyze historical and real-time data on the Twitter platform, which consisted of public twets and their content. Also, Twitter's data partners uss ally purchased licenses to access all or a portion of the company's data for a fixed period. The comparfi operated a mobile ad exchange and received serice fees from transactions completed on the excharg? The Twitter mobile ad exchange allowed buyers and sellers to purchase and sell advertising inventory, add Source: Statista, 2018. it matched buyers and sellers. (e(BT4 Twitter Inc. Advertising and Data Licensing Revenue, 2015-2016 (in thousands) \$yt compared 10