Examine the web sites of two companies mentioned in Chapter 8, Sears and General Electric. (On the Sears home page, click on About Sears to access corporate information.) Then answer these questions:

1. What is each organization’s strategy?
2. Does the organization’s strategy fit one of Porter’s generic strategies? Where would it fit in the Miles and Snow typology of strategies?

Internet Exercise

The opening case in Chapter 8 discusses the 2000 merger of America Online and Time Warner. This merger signaled a shift in the strategic goals of the two firms. Access the AOL Time Warner web site, and explore the impact this strategic change has had in the years since it was implemented. Then answer the following questions:

1. What information is available at AOL Time Warner’s web site to explain the reasons for undertaking the merger? (A useful page gives a transcript of speeches delivered at Investor’s Day, 2001.)
2. What type of corporate-level strategy is this merger?
3. Based on your answers to questions 1 and 2, do you believe this strategic shift is likely to lead to higher performance? Why or why not?

Explore Further

Examine the web site of Citigroup, a bank corporation that merged with Traveler’s Insurance in 1999,. Compare its strategy with that of AOL Time Warner. What similarities do you find between the two companies?