Template DevelopedBA 385 Business Environment .docx

Template Developed
BA 385: Business Environment
Case Study Analysis / Term Paper[footnoteRef:1] [1: The
concepts underlying this analytical methodology are in part
based upon the thought of the Czech philosopher Edmund
Husserl (1859 - 1938) and his philosophy of phenomenology,
which includes a methodology for rigorous analysis in the social
sciences. Husserl, one of the most eminent philosophers of the
20th Century, was a professor at the University of Freiburg, one
of Europe’s oldest and most prestigious universities.
To analyze means to examine methodically by separating what
is being examined into constituent parts, then searching for
essential meanings while also searching to understand the
relationships among the parts. An analysis puts forward
assertions supported by evidence (i.e. [id est], facts linked
together within a logically persuasive presentation of what the
facts demonstrate or prove). It avoids assertions made as if
self-evidently true. Logic alone is an inherently weak form of
evidence.
Not all of the answers are given in the text; some must be
ferreted out or dug out by analyzing the text—i.e., by asking
questions of the text. Questions, too, must be analyzed to
discover their intent and to maintain focus in your response.
Wherever appropriate, use the concepts and terminology
you are studying in this course. When using concepts and
course-specific terminology, define them. Using these concepts
and terminology is important in answering most questions, but
is especially important when writing Section V. To the extent
you do not use concepts and terminology from the course, your

grade will be correspondingly lower. The assigned cases
involve organizational sustainability, operations-quality
leadership, stakeholder management, moral leadership, and
environmental leadership, among many other concepts.
Use this template with the footnotes included. Type
answers following the paragraph sign ( ¶ ). Use bullets or
numbering, and employ other formatting such as graphs or
tables, if you wish. Single-space. You may double-space
between paragraphs or bulleted points. All questions require a
response, except for a few questions containing the words “if
any” in italics, when the answer may be “Not Applicable” or
“None.” Generally, you should write in complete sentences.
(5/03/16)]
Analyst’s Name: ¶
Date: ¶
(
I
Pledge.
I have read and understood PSU’s policy on Academic
misconduct
,
and
I herewith pledge that I will not engage in academic dishonesty
or even the appearance of academic dishonesty in the writing of
this Case Study Analysis/Term Paper, and I further pledge that I
will be the sole author of this Case Study Analysis/Term Paper.
__________________________________
Signature & Date
)
Case Study Name: ¶

I. The Pre-Analysis:
A. Perspective:
1. Author’s Perspective. Describe the
perspective[footnoteRef:2] of the author(s) of the case study
and possible biases of the author(s):[footnoteRef:3] [2: A
perspective, as used here, means to place oneself in someone
else’s position with that person’s beliefs, education, ethnicity,
gender, nationality, race, skills, and history, among other
possibilities. Imagine yourself “standing in their shoes”
looking out at the world. The question asks then that, prior to
reading the case study, (a) describe what may be relevant about
that person’s perspective to the case study and (b) describe in
what way the author’s perspective might turn out to shape or
bias the presentation of the case, understanding that we may
know too little to have confidence in our answers. As you then
read the case study after determining the author’s perspective,
try to be aware of possible biases in the material (see question
II(C)). Critical thinking requires critical reading.] [3: See
footnote 8 about bias.]
¶ [You are to begin typing after the preceding paragraph sign “
¶ ”. Now, delete these two sentences in red, change the font
color to black, and begin typing.]
2. Analyst’s Perspective. Describe your
perspective[footnoteRef:4] as the analyst: [4: Your perspective
as the analyst is very similar to that of the author(s): Ask of
yourself, prior to reading the case study, what is relevant about
myself that might cause me to be biased or to cause someone
else (i.e., your readers) to think that I am biased? Again, this
could include gender, education, ethnicity, beliefs, opinions, or
having worked for the company or conflicts of interest (e.g.

[exempli gratia], owning stock in the company in the case
study). What is it that I, the analyst, need to disclose in order
to protect my credibility? Critical thinking requires self-
analysis.]
¶
B. Bracketing. State what you are bracketing:[footnoteRef:5]
[5: Bracketing is an internal thought process used by the
analyst to set aside her/his personal opinions, information s/he
has acquired previously about the situation, beliefs, values, and
other attitudes that might prejudice the outcomes of the
analysis. You must name what it is that you are bracketing; you
cannot bracket what you cannot name. Therefore, state what it
is that you are bracketing and also that you are bracketing those
things. Bracketing must be maintained while completing the
analysis in Sections II through V. If you are successful in
bracketing, then what is bracketed will not influence your
analysis. Rigorous analysis requires bracketing.]
¶
II. The Situation:[footnoteRef:6] [6: The analytical approach
begins by answering the questions in the Pre-Analysis (see
Section I). Next, after reading the entire case, tentatively
identify the key issues (see Section IV). Then, return to Section
II and begin a critical reading of the case, answering questions
from Section II through Section III based upon the issues you
have identified. When you have worked through to Section IV,
re-evaluate the issues stated in Section IV and modify them if
necessary. Finally, answer Section V.]
A. Facts. List the facts[footnoteRef:7] relevant to the issue(s)

identified: [7: Facts are data or information stating what is true
and verifiable. They provide specific information, not vague
information. Facts should be distinguished from assumptions,
beliefs, conjecture, hearsay, hypotheses, judgments, notions,
opinions, speculation, and theories. Number the facts or use
bullet-points. Use complete sentences. Most commonly, it is
advisable to state the facts in chronological order, beginning
with a date where known. You may also put them into
categories to help clarify the situation. The facts stated in this
section and the next must be sufficient to provide a foundation
for the analysis of the issues you identify in Section IV and for
the position you write in Section Vin response to the issues
identified. It is not necessary to state all of the facts in the case
study, since many of the facts may be without relevance to the
issues identified. 61305]
¶
B. Historical Context. List the facts that comprise the historical
context[footnoteRef:8] relevant to the issue(s) identified: [8:
Historical Context Facts are those facts that do not directly
pertain to the key issues, but may help the reader understand the
context or setting of the case study. Historical context facts are
background facts. For instance, if the key issues in a case study
are about ethical issues, it may still be useful to list a small
number of facts that would help a reader of your analysis to
understand when the company was founded, who the founder(s)
was, how large the company is, etc. These facts place the
events of the case study within a broader context and create an
environment for the events of the case study.]
¶
C. Bias. (1)Provide quotations from the case study that may

indicate a bias[footnoteRef:9] of the author(s) and could
possibly influence the reader apart from the simple statement of
facts. (2) State why the quotations seem to indicate bias. Do
not provide more than three instances. [9: Bias refers to an
inclination deriving from a belief or experience that prevents an
individual from impartially considering a question or issue. If
you use the word bias, state whether it is a bias in favor of
something or against something. There are many reasons for
biases—some consciously held (ideologies, for instance) and
many unconsciously held (e.g., stereotypes). Hyperbole is
frequently an expression of bias, but truth may be a defense
against the charge of hyperbole.]
¶
III. The Analysis:
A. Situational Analysis
1. Key Parties.[footnoteRef:10] (1)Who are the principal
parties (i.e., the key parties) involved in the case study? List
and briefly identify them. (2) For the primary business in the
case study only, (a) identify the company’s stakeholders, (b) for
each stakeholder, identify their stakes and attributes, and (c)
define what is the meaning of the term mutual
interdependencies of stakeholders[footnoteRef:11] and discuss
in terms of this case. [10: This question is given greater
weight in grading.] [11: Other terms used to describe aspects
of the concept of stakeholder mutual interdependency are
stakeholder inclusiveness and stakeholder symbiosis. ]
(1) Key Parties. List key parties to the incident(s):
¶

(2)(a & b) Stakeholders of Principal Corporation. Complete
the matrix below (each of the three columns has a tab stop):
Category of StakeholdersStakesAttributes
¶
(2)(c) Mutual Interdependencies.10 Define what is the
meaning of the term mutual interdependencies of stakeholders?
Discuss in terms of this case.
¶
2. Key Processes. (1)List the key processes used by the
principal corporation to resolve the conflict(s) described in the
case study. (2) How did each key process listed impact the
conflict?[footnoteRef:12] [12: The word process refers to how
something occurs. Conflict resolution refers to the process or
steps taken to find a solution to disagreements between/among
principal parties. (1) Ask yourself, what are the conflicts and
how did the principal parties try to resolve them? Then, (2)
categorize each process with a word or phrase. An example of
categorizing might be, “Litigation.” Then, (3) follow this with
a statement that begins, “A process used by [insert the key
corporation’s name] to resolve the conflict was . . . .” (4)
Follow this statement with an additional, explanatory comment
justifying each key process. ]
¶
3. Key Constraints. (1)List the key constraints[footnoteRef:13]
upon the leadership’s decision-making in the primary
corporation as discussed in the case study. (2) How does each
constraint listed impact the decisions made? [13: The word
constraint, in this context, means the freedom to take actions is

limited; decisions are confined by an established boundary (i.e.,
by the constraint). Constraints are barriers or limitations to
making decisions. There are commonly many constraints,
which typically might include ethical beliefs or problems,
lawsuits, survivability issues, etc. (1) Ask yourself, what
constraints might keep the primary corporation from making
major strategic decisions? (2) Then, categorize each constraint
using a word or phrase. An example of a category for a
constraint might be, “Lack of profit.” (3) Then, for each
constraint listed, begin by stating: “A constraint restricting
[insert the firm’s name] decision-making was . . . .” (4) Follow
this statement with additional, explanatory comments. ]
¶
4. Chance Events. What role, if any, did chance events beyond
the firm’s control (in the sense of fortune or fate)play (a) in the
decisions made by the primary corporation discussed in the case
study and (b) in the outcomes of those decisions?
¶
5. Differing Values. (a)Separately, name, categorize, and
contrast the differing values[footnoteRef:14] among the key
principal corporation and other parties, if appropriate, and (b)
discuss the impact upon the decision-making process.In your
discussion, state values explicitly and when possible categorize
them. [14: Values. Values are the conscious and unconscious
beliefs individuals hold that inform their behavior, both good
and bad, leading to moral and immoral actions. Values come
from our upbringing, the groups to which we belong, and our
culture, religion, and national ideals. Values are often
aspirational. Values may be found in mission statements, value
statements, or other writings (e.g., the Declaration of
Independence, the U.S. Constitution, and religious dogma), but

a firm’s actions are the fundamental test of what its values
actually are, regardless of anything that may be claimed. When
a firm’s actions contradict or may contradict its stated values,
explain that situation. This question is given greater weight in
grading. See the following two distinctions.
Morals. Think of morals as the basis for judging the
behavior of others and oneself. Actions are seen as moral or
immoral. They are usually widely shared within communities.
They are also prescriptive.
Ethics. Ethics refer to codified systems from which we can
determine right and wrong actions. They are non-prescriptive.
Also, the codified systems often claim to be universal (i.e.,
applicable to all people and times). ]
¶
6. Ethical Issues and Theories. (a)Identify the primary ethical
issue(s)[footnoteRef:15] in the case study. (b) Name, define,
and describe in the context of the case an ethical principle that
may have been used by the principal corporation. (c) Broaden
your analytical discussion to include one or more principle
ethical theories that might have produced better results. Again,
name, define, and discuss the ethical principles in the context of
the case. [15: Use only the ethical principles discussed in class
lectures. For an answer to be responsive, the ethical theories
discussed must include ethical principles (i.e., Normative
Ethical Theories) and definitions must be provided. This
question is given greater weight in grading.]
a. List the Primary Ethical Issue(s) in the Case Study.
¶
b. Discuss a Relevant Ethical Principle likely used by the

primary corporation.
¶
c. Discuss Relevant Ethical Principle(s) that might have
produced better results.
¶
7. Cognitive Biases. (a)What cognitive biases[footnoteRef:16]
may have influenced the decision-making by the leadership of
the principal firm? (b) Within your response name and define
the cognitive biases that you have identified and provide an
explanation that justifies having included those cognitive
biases. [16: Refer to your lecture outlines and notes about the
type of cognitive biases that scientific research has shown to
produce errors in decision-making. Use only cognitive biases
and similar concepts that have been discussed in class. See also
footnote 8.]
¶
8. Organizational Sustainability.[footnoteRef:17] (a)What
decisions were being made that predictably would lead to
organizational sustainability (as this term is defined in the
instructor’s lectures)? (b) Also, discuss whether the decisions
being made increased or decreased the achievement of long-
term objectives and (c) why and how the achievement of long-
term objectives relates to building a sustainable organization?
[17: This question is given greater weight in grading.]
¶
9. Unexamined Presuppositions. (a)Identify likely unexamined

presuppositions[footnoteRef:18] regarding the decisions made
by thekey firm. (b) Justify why this is an unexamined
presupposition and (c) state how the unexamined
presuppositions could have or may have compromised the
company’s sustainability. [18: A presupposition is a reality or
fact that underlies an action or decision. If the presupposition
was not considered by the decision-makers, only then is the
presupposition an unexamined presupposition. An unexamined
presupposition is one that was overlooked. Unexamined
presuppositions are a major cause of poor outcomes from
decisions. Rarely are unexamined presuppositions presented in
the case study; it is the task of the analyst to ferret them out.
For each unexamined presupposition listed, begin by stating:
“An unexamined presupposition for [insert name of key firm] is
that . . . .” This question is given greater weight.]
¶
B. Organizational Analysis: The questions in this section are
about the effects of the decisions made by the primary business
organization discussed in the case study.[footnoteRef:19] [19:
Organizations sometimes rationalize why they make particular
decisions. For instance, a corporation may claim to make
decisions in order to increase the efficiency or profitability of
the organization, when in reality the firm has made decisions
that will predictably decrease the long-term efficiency or
profitability of the organization. The questions in this section
attempt to draw out these types of distinctions that may become
problems. More so than in previous questions, the questions in
this section call for speculative conclusions, but still ones based
upon the evidence (i.e., facts within a logical framework) in the
case. All of your responses to the questions in this section
must, using evidence, justify or explain why you have reached
your conclusions. ]

1. Effectiveness, Efficiency, and Efficacy:[footnoteRef:20] [20:
Efficacy is a word used here to mean the balance between
effectiveness and efficiency (efficiency being used here in the
sense of low costs). What that balance should be varies
depending on the needs of the corporation and the strategy
chosen by that firm. Organizations should strive for an optimal
balance between effectiveness and efficiency, meaning the best
balance for the needs of the organization given the strategy
chosen.]
a. Necessary Actions. Were the actions under analysis
necessary to the effectiveness, efficiency, and/or efficacy of the
primary corporation discussed? Discuss why the actions were
or were not necessary.
¶
b. Outcomes of Actions. Did the outcomes of the actions taken
increase or decrease the effectiveness, efficiency, and/or the
efficacy of the primary business organization discussed? Was
the result achieved the one intended? Explain.
¶
2. Risk:[footnoteRef:21] [21: In the questions in this section,
the first question asks you to assess the level of risk "at the time
of the actions under analysis." For instance, what was the level
of risk at the beginning of the case study prior to whatever
event takes place? The second question refers to the level of
risk after the event has occurred.
These two questions concerning risk ask the analyst to think
about whether the decisions made by the firm in the case study
increased or decreased their risk for being in business. All
businesses are at risk all of the time; risk is the very essence of

business. The optimal level of risk is the level that (a) is no
higher than what is necessary to create competitiveness, but (b)
no lower than what will permit the company to be sustainable,
which includes being competitive, but much more too. Risk
involves more than profit.]
a. Initial Optimal Risk. Was risk at an optimal level for the
primary business organization discussed at the time of the
actions under analysis?
¶
b. Subsequent Optimal Risk. Was risk at an optimal level for
the primary business organization discussed following the
actions under analysis?
¶
C. Operations-Quality Leadership, Stakeholder Management,
Moral Leadership, and Environmental
Leadership:[footnoteRef:22] At the time of the event(s) related
in the case study, was the primary business discussed
effectively practicing operations-quality leadership, stakeholder
management, moral leadership, and environmental leadership?
Include within your argument the evidence that supports the
position you have taken. [22: This question cannot be well
answered without discussing the implementation of concepts
and the use of systematic processes. This question is given
greater weight in grading.]
¶
D. Societal Analysis. What were the effects of the decisions
made by the principal parties upon differing parts of society (or

societies)?[footnoteRef:23] [23: This question asks that you
determine in what ways and to what extent the decisions and
outcomes from the events described in the case study affected
the larger society beyond the primary business organization and
other key parties. Write from the perspective of a society
looking at the actions of the principal parties.]
¶
IV. Key Issues. List the questions expressing the key
issues[footnoteRef:24] in this case study that are relevant to
this class in Business Environment? [24: State one to four key
issues in the form of a question. A key issue is one that reflects
central issues in the case study that are at the same time major
issues in the course. These issue-based questions, then, are
what you should respond to in section V. Do not ask a question
that cannot be answered from the facts within the case study.]
¶
V. The Analyst’s Position: As the analyst, state and argue for
your own viewpoint regarding the issue(s) you have identified.
Include within your response, the evidence[footnoteRef:25] that
supports the viewpoint you have taken. [25: Section V—“The
Analyst’s Position”—is the conclusion or culmination of the
analysis and should be focused on answering the questions (or
hypotheses) in Section IV (see footnote 23.) Evidence, for the
purposes of this analysis, is a set of facts within a logically
persuasive presentation of what the facts demonstrate or prove.
Avoid assertions made as if self-evidently true (i.e., not
supported by evidence). Your analyst’s position should be fully
developed, comprehensive, and include alternative approaches,
solutions, strategies or ways of thinking that the primary firm
could possibly have used, if appropriate. Your answer to this

question will constitute approximately 25% of the grade for the
term paper.
A helpful simile: The Issues (Section IV) identify the
“hypotheses.” The Situation (Section II) is the selection of
information that occurs during the first part of the “research”
stage. The Analysis (Section III) is the analysis of the selected
information (Section II) that occurs during the second stage of
“research.” The analysis must be used to support your Position
Statement as you write Section V, which is what we normally
think of as a “term paper.” ]
¶
(
I
Certify.
Having now finished writing th
is
case study analysis term paper,
I certify that I have not e
n
gaged in academic misconduct in the development and writing
of this Case Study Analysis/Term Paper, and I certify that this
Case Study Analysis/Term Paper is based solely on my own
work.
__________________________________
Signature & Date
)
1

Developed and Written by Darryl Mleynek ©
1
Note: This analysis of a case study is provided
as an example of how to use the template.
given are the only appropriate answers. These
are good responses among many possibilities.
long (of which the template is 6 pages), the re-
sponses in many instances might be longer for
a case study with much greater content (e.g.,
the case study that will be assigned for the
term paper).
-
minology that you as a student have not yet
learned and, therefore, are not expected to in-
clude at this time.
especially regarding approach and formatting.
Do not copy or closely paraphrase from it. If you
have questions about what is plagiarism, dis-
cuss your questions with me.
An Example of a Case Study Analysis1

Analyst’s Name: ¶ Darryl Mleynek
Date: ¶ 4/12/16
Case Study Name: ¶ Wal-Mart: The Main Street
Merchant of Doom
I. The Pre-Analysis:
A. Perspective:
1. Author’s Perspective. Describe the perspec-
tive2 of the author(s) of the case study and pos-
sible biases of the author(s):3
¶ The case study was originally written by Wil-
liam Rupp from the University of Montevallo in
Montevallo, Alabama, where he is Dean of the
College of Business. The case was revised and
updated by Archie Carroll, a University of
1 The concepts underlying this analytical methodology are in
part based upon the thought of the Czech philosopher Ed-
mund Husserl (1859 - 1938) and his philosophy of
phenomenology, which includes a methodology for rigorous
analysis in
the social sciences. Husserl, one of the most eminent
philosophers of the 20th Century, was a professor at the
University of

Freiburg, one of Europe’s oldest and most prestigious
universities.
To analyze means to examine methodically by separating what
is being examined into constituent parts, then searching
for essential meanings while also searching to understand the
relationships among the parts. An analysis puts forward asser-
tions supported by evidence (i.e. [id est], facts linked together
within a logically persuasive presentation of what the facts
demonstrate or prove). It avoids assertions made as if self-
evidently true. Logic alone is an inherently weak form of
evidence.
Not all of the answers are given in the text; some must be
ferreted out or dug out by analyzing the text—i.e. by asking
questions of the text. Questions, too, must be analyzed to
discover their intent and to maintain focus in your response.
Wherever appropriate, use the concepts and terminology you
are studying in this course. When using concepts
and course-specific terminology, define them. Using these
concepts and terminology is important in answering most ques-
tions, but is especially important when writing Section V. To
the extent you do not use concepts and terminology from the
course, your grade will be correspondingly lower. The assigned
cases involve organizational sustainability, operations-quality
leadership, stakeholder management, moral leadership, and
environmental leadership, among many other concepts.
Use this template with the footnotes included. Type answers
following the paragraph sign ( ¶ ). Use bullets or number-
ing, and employ other formatting such as graphs or tables, if
you wish. Single-space. You may double-space between para-
graphs or bulleted points. All questions require a response,
except for a few questions containing the words “if any” in

italics,
when the answer then is “Not Applicable” or “None.”
Generally, you should write in complete sentences.
(4/12/16)
2 A perspective, as used here, means to place oneself in
someone else’s position with that person’s beliefs, education,
ethnicity,
gender, nationality, race, skills, and history, among other
possibilities. Imagine yourself “standing in their shoes”
looking out
at the world. The question asks then that, prior to reading the
case study, (a) describe what may be relevant about that
person’s
perspective to the case study and (b) describe in what way the
author’s perspective might turn out to shape or bias the presen-
tation of the case, understanding that we may know too little to
have confidence in our answers. As you then read the case
study after determining the author’s perspective, try to be aware
of possible biases in the material (see question II(C)). Criti-
cal thinking requires critical reading.
3 See footnote 8 about bias.
Template Developed and Written by Darryl Mleynek
2
Georgia professor of management and author of the textbook.
Both individuals are aca-
demics and may have a perspective that is biased in favor of

large corporations, given
their likely research interests that would typically be targeted
toward large corporations
due to the availability of data, and may lack knowledge that
would come from the experi-
ence of managing a multinational corporation. Due to the many
controversies surround-
ing Wal-Mart, it is likely that both authors have many, perhaps
even conflicting, attitudes
towards Wal-Mart that may influence their writing of this case
study. Based upon Profes-
sor Carroll having written the textbook, it is quite likely that he
strongly believes corpo-
rations should be socially responsible, perhaps even socially
responsive and socially per-
forming.
2. Analyst’s Perspective. Describe your perspective4 as the
analyst:
¶ My perspective is that of an instructor of a university course
in Business Environment
that emphasizes public corporations and who has considerable
experience (a) in the
small business sector as an owner of three small businesses over
a 17-year period and (b)
in a governmental agency as the executive of a statewide
consulting group providing
consulting to small businesses in Hawai`i, which often had
problems with stakeholder,
environmental, organizational quality, and ethical relationships,
and (c) who strongly be-
lieves that businesses should be socially performing. I also
organized a statewide re-
sponse in Hawai`i for small businesses adversely effected by the

initial opening of Wal-
Mart Stores on the four major islands. This effort was focused,
not on keeping Wal-
Mart from opening stores, but on helping small businesses
survive. As well, I have
taught many different case studies regarding Wal-Mart, have
strongly negative feelings
about many of the company’s practices, and personally boycott
the store due to those
practices, while recognizing that they have been very successful
in building sales and re-
cently have received some favorable press regarding
environmental issues.
B. Bracketing. State what you are bracketing:5
¶ I have in the past been a customer of Wal-Mart, but never
happily so. Given their em-
ployment practices, policies toward suppliers, and attitudes
toward small communities and
small businesses, I have been boycotting Wal-Mart for a number
of years. While conducting
the analysis of this case study, I will bracket my opinions, the
information that I have ob-
tained over the years about Wal-Mart, and my experience
leading an effort to help small
businesses adversely impacted by Wal-Mart—all of which could
cause me to be biased in my
4 Your perspective as the analyst is very similar to that of the
author(s): Ask of yourself, prior to reading the case study, what
is rele-
vant about myself that might cause me to be biased or to cause
someone else (i.e., your readers) to think that I am biased?

Again, this could include gender, education, ethnicity, beliefs,
opinions, or having worked for the company or conflicts of
interest (e.g. [exempli gratia], owning stock in the company in
the case study). What is it that I, the analyst, need to disclose
in
order to protect my credibility? Critical thinking requires self-
analysis.
5 Bracketing is an internal thought process used by the analyst
to set aside her/his personal opinions, information s/he has
acquired previously about the situation, beliefs, values, and
other attitudes that might prejudice the outcomes of the
analysis.
You must name what it is that you are bracketing; you cannot
bracket what you cannot name. Therefore, state what it is that
you are bracketing and also that you are bracketing those things.
Bracketing must be maintained while completing the analysis in
Sections II through IV. If you are successful in bracketing,
then what is bracketed will not influence your analysis. In Sec-
tion V, it is permissible to un-bracket (see also footnote 23).
Rigorous analysis requires bracketing.
3
analysis or could cause me to be perceived as biased in my
analysis. I will also bracket my
experience in teaching this case study.

II. The Situation:6
A. Facts. List the facts7 relevant to the issue(s) identified:
-Mart became the largest retailer in the U.S.,
surpassing Sears and Kmart.
-Mart’s overhead expenses were 16% of sales
compared to Sears at 29% and
Kmart at 23%. At Wal-Mart the average employee generated
$95,000 in annual sales, at
Sears $85,000.
-Mart was the largest retailer in the world with
sales of $191 billion, 4,500
stores in 9 countries and more than 1,000,000 employees.
By 2007, sales were $345 billion.
o The Buy American Plan. In 1985, Wal-Mart initiated a
program to buy products
manufactured in the U.S. in order to save manufacturing jobs,
which the company
estimated a year later as having “restored” 4,538 jobs. The plan
was later abandoned.
Wal-Mart is now the largest importer of Chinese goods in any
industry.
o In 1989, Wal-Mart initiated an Environmental Awareness
campaign, a first for retail-
ers, that encouraged green practices among their suppliers and
encouraged Adopt-a-

Highway and Adopt-a-Beach programs.
1980s resistance to Wal-Mart
began to develop in some towns due to
o The company’s negative impact upon downtown stores,
o The fear that if Wal-Mart were to leave, no retail stores would
remain in the town,
o Tactics by Wal-Mart that at times seemed to some to split
communities apart, and
o Wal-Mart’s low employee wages and benefits.
-Mart, as did Inglewood,
California, from opening stores;
-Mart as did
many others.
6 The analytical approach begins by answering the questions in
the Pre-Analysis (see Section I). Next, after reading the entire
case, tentatively identify the key issues (see Section IV). Then,
return to Section II and begin a critical reading of the case,
answering questions from Section II through Section III based
upon the issues you have identified. When you have worked
through to Section IV, re-evaluate the issues stated in Section
IV and modify them if necessary. Finally, answer Section V.
7 Facts are data or information stating what is verifiable. They
provide specific information, not vague information. Facts
should be distinguished from assumptions, beliefs, conjecture,
hearsay, hypotheses, judgments, notions, opinions, specula-

tion, and theories. Number the facts or use bullet-points. Use
complete sentences. Most commonly, it is advisable to state
the facts in chronological order, beginning with a date where
known. You may also put them into categories to help clarify
the situation. The facts stated in this section and the next must
be sufficient to provide a foundation for the analysis of the
issues you identify in
Section IV and for the position you write in Section Vin
response to the issues identified. It is not necessary to state all
of the facts in the
case study, since many of the facts may be without relevance to
the issues identified. 61214
4
In Kinder, Louisiana, one-third of the downtown stores closed
shortly after Wal-Mart
opened; 10 years later Wal-Mart closed their store and few
retail stores remained operating
within 30 miles of Kinder.
B. Historical Context. List the facts that comprise the historical
context8 relevant to the issue(s)
identified:
-Mart in 1962. He

opened his first store in Rogers,
Arkansas, when he was 44. He died in 1992
-Mart was to open stores in rural
towns of 10,000 people or less.
As markets were saturated, he opened stores in larger and larger
towns and cities.
products sold at consistently low
prices. Wal-Mart was the low-cost leader in its field and
competed based upon low operat-
ing costs and low prices.
computer system that controlled in-
ventory and provided extensive sales information.
-Mart’s expansion into Germany failed, in some
significant part due to cultural insensi-
tivity on Wal-Mart’s part.
-Mart has developed a political lobbying program and a
very large corporate program of
donations to federal parties and candidates.
-Mart is claimed by some experts who follow the
company to be the most sued company
in the U.S.
[For a longer case study, the Facts Section and the Historical
Context Section would most
likely need to be correspondingly longer. Note the following
sentence in Footnote 7: “The
facts stated in this section and the next must be sufficient to
provide a foundation for the analysis of the issues

you identify in Section IV and for the position you write in
Section Vin response to the issues identified.”]
C. Bias. (1) Provide quotations from the case study that may
indicate a bias9 of the author(s) and
could possibly influence the reader apart from the simple
statement of facts. (2) State why the
quotations seem to indicate bias. Do not provide more than
three instances.
y: “Wal-Mart: The Main Street
Merchant of Doom.” (p. 771).
This title, because it uses the word “Doom,” is prejudicial to
Wal-Mart because it makes a
negative statement about the company and its treatment of small
businesses without evi-
dence to support it.
8 Historical Context Facts are those facts that do not directly
pertain to the key issues, but may help the reader understand the
context or setting of the case study. For instance, if the key
issues in a case study are about ethical issues, it may still be
use-
ful to list a small number of facts that would help a reader of
your analysis to understand when the company was founded,
who the founder(s) was, how large the company is, etc. These
facts place the events of the case study within a broader con-
text and create an environment for the events of the case study.
9 Bias refers to an inclination deriving from a belief or
experience that prevents an individual from impartially
considering a

question or issue. If you use the word bias, state whether it is a
bias in favor of something or against something. There are
many reasons for biases—some consciously held (ideologies,
for instance) and many unconsciously held. Truth is often a
defense against a charge of bias. Hyperbole is often an
expression of bias, but truth is often a defense again a charge of
bias.
5
merchants as “price-fixing merchant
scum” and a “low-life bunch.” (p.
771). These phrases are highly prejudicial to small town
businesses. No evidence is present-
ed that would justify these strongly worded statements. While
these two introductory para-
graphs may be meant to be taken facetiously, they still remain a
prejudicial introduction—in
this case, in support of Wal-Mart.
-Mart’s
expansion] were and still are run
by social activists left over from the 1960s and 1970s.” (p.
775) This is superfluous infor-
mation about the opposition groups, even if true which it may
not be, that carries the conno-
tation of their being less than responsible—especially evident in
the phrase, “left over,” and
in the identification of the opposition groups with the 1960s and

1970s, a period that for
some would connote lax morality, shiftlessness, and naiveté.
III. The Analysis:
A. Situational Analysis
1. Key Parties.10 (1) Who are the principal parties (i.e., the
key parties) involved in the case
study? List and briefly identify them. (2) For the primary
business in the case study only, (a)
identify the company’s stakeholders, (b) for each stakeholder,
identify their stakes and attrib-
utes, and (c) define what is the meaning of the term mutual
interdependencies of stakeholders11
and discuss in terms of this case.
(1) Key Parties. List key parties to the incident(s):
-time CEO of Wal-Mart, and
the leadership of Wal-
Mart.
-Mart’s expansion into their
communities.
(2)(a) Stakeholders of Principal Corporation. Complete the
matrix below:

Category of Stakeholders Stakes Attributes
[These stakeholders are provided as an example. There are
many more that
should be listed. See your textbook.]
(2)(b) Mutual Interdependencies.10 Define what is the
meaning of the term mutual in-
10 This question is given greater weight in grading.
11 Other terms used to describe aspects of the concept of
stakeholder mutual interdependency are stakeholder
inclusiveness and
stakeholder symbiosis.
6

terdependencies of stakeholders? Discuss in terms of this case.
¶ Stakeholder thinking,” according to the textbook, “is the
process [Sometimes quota-
tions are useful; they require attribution].” (Carroll, p. ??)
Mutual interdependencies or [.
. .]. [Sometimes, when defining terms, paraphrasing works
well, too. Paraphrasing also
requires a citation.] (Carroll, p. ??)
Through understanding interests and rights of stakeholders,
Wal-Mart would have the
opportunity to advance its own interests and reduce conflict and
create new approaches
with stakeholders. The evidence, however, indicates that Wal-
Mart does not understand
the concepts of mutual interdependencies or stakeholder
thinking or stakeholder symbi-
osis. This lack of awareness limits their ability to become a
sustainable organization.
The evidence lies in their dismissive attitude toward many
stakeholders, such as small
communities, main-street merchants, and social activists.
2. Key Processes. (1) List the key processes used by the
principal corporation to resolve the
conflict(s) described in the case study. (2) How did each key
process listed impact the con-
flict?12
against Wal-Mart to resolve

the conflict was to engage in political opposition to Wal-Mart at
the local level, expressed
in particular through activist campaigns of meetings, petitions,
referenda, demonstra-
tions, and boycotts. [This is not a process used “by the
principal corporation,” which is
what the questions requires.]
-Mart to resolve
the conflict was to engage in
negative publicity against their opponents.
[Note that the responses do not address the second question
above. That would be con-
sidered a major weakness in the answer. Also, there are many
more processes used by
Wal-Mart that should be listed.]
3. Key Constraints. (1) List the key constraints13 upon the
leadership’s decision-making in the
primary corporation as discussed in the case study. (2) How
does each constraint listed im-
pact the decisions made?
12 The word process refers to how something occurs. Conflict
resolution refers to the process or steps taken to find a solution
to disagreements between/among principal parties. (1) Ask
yourself, what are the conflicts and how did the principal
parties
try to resolve them? Then, (2) categorize each process with a
word or phrase. An example of categorizing might be,
“Litigation.”

Then, (3) follow this with a statement that begins, “A process
used by [insert the key corporation’s name] to resolve the con-
flict was . . . .” (4) Follow this statement with an additional,
explanatory comment.
13 The word constraint, in this context, means the freedom to
take actions is limited; decisions are confined by an established
boundary (i.e., by the constraint). Constraints are barriers or
limitations to making decisions. There are commonly many
constraints, which typically might include ethical beliefs or
problems, lawsuits, survivability issues, etc. (1) Ask yourself,
what
constraints might keep the primary corporation from making
major strategic decisions? (2) Then, categorize each constraint
using
a word or phrase. An example of a category for a constraint
might be, “Lack of profit.” (3) Then, for each constraint listed,
begin by stating: “A constraint restricting [insert the firm’s
name] decision-making was . . . .” (4) Follow this statement
with
additional, explanatory comments.
7
-Mart’s
decision-making was the po-
litical opposition that occurred in many small towns. This
political opposition often
made it difficult in time and money for Wal-Mart to open new

stores.
-Mart’s decision-
making was lawsuits that some-
times affected Wal-Mart’s ability to expand and to make the
highest possible profit due
to the costs of the lawsuits and the amount of time devoted to
them.
-Mart’s decision-
making was the company’s
drive to expand rapidly by opening new stores, increasing sales,
and building profits.
[Again, the second question above regarding the impact of the
constraint is either not
answered or not answered well or the answer is not fully
focused on the question. As
well, there are many more constraints that should be listed.]
4. Chance Events. What role, if any, did chance events beyond
the firm’s control (in the sense
of fortune or fate) play (a) in the decisions made by the primary
corporation discussed in the
case study and (b) in the outcomes of those decisions?
¶ Not applicable. I found no chance events mentioned in the
case study that are relevant to
the primary issues. [Note the second to the last sentence in the
fifth paragraph of Footnote
1, which permits this answer.]

5. Differing Values. (a) Separately, name, categorize, and
contrast the differing values14
among the key principal corporation and other parties, if
appropriate, and (b) discuss the
impact upon the decision-making process. In your discussion,
state values explicitly and
when possible categorize them.
¶ Major conflicting values exist between Wal-Mart and [ . . . ].
The values of Wal-Mart ap-
pear to be creating maximum profit regardless of the
consequences upon communities. This
is a radical expression of individualism within the ideology of
classical capitalism. The values
of [ . . . ] are to survive within the context of supporting the
community fabric. This is an
expression of community-based values. As a result of these
values, the small town business-
es tend to compete less strongly with each other and to seek
accommodations with each
other. The values of [ . . .] working to ameliorate Wal-Mart’s
negative impacts upon com-
munities flow out of valuing the community’s welfare
(community-based values) over profit
(values of individualism). Both Wal-Mart and [ . . . ] share
values regarding the importance
of commerce.
14 Values refer to the ethical (and, sometimes, the religious and
cultural) ideals that influence the behavior of individuals,
groups or firms. Think of morals as how we judge others and
ethics as professional standards or systems of beliefs. Ask
your-
self, from the information available, what does “X” appear to
value or believe? Values may be found in mission statements,

value statements, or other writings (e.g., the Declaration of
Independence, the U.S. Constitution, and religious dogma), but
a
firm’s actions are the fundamental test of what its values
actually are, regardless of anything that may be claimed. When
a firm’s actions con-
tradict or appear to contradict its stated values, explain that
situation. This question is given greater weight in grading.
8
Using the Carroll Pyramid of Corporate Social Respon-
sibility, Wal-Mart and its opponents would most likely rank
the priorities differently as follows: Wal-Mart would likely
rank Economic Responsibility as the highest form of social
responsibility, whereas Wal-Mart’s opponents would likely
rank Ethical Responsibility as the most important. Again,
this would reflect the values of individualism (economic
responsibility) as opposed to community-based values (eth-
ical responsibility).
[This answer, which incorporates Carroll’s Pyramid of Social
Responsibility, illustrates
through the use of the Pyramid a response to the sentence in the
fourth paragraph of Foot-
note 1, which is in red type, bolded, italicized, and underlined.
It is one of only many ap-
proaches to answering this question. It is also an example of
the use of a diagram to illus-

trate a point.]
6. Ethical Issues and Theories. (a) Identify the primary ethical
issue(s)15 in the case study.
(b) Name, define, and describe in the context of the case an
ethical principle that may have
been used by the principal corporation. (c) Broaden your
analytical discussion to include
one or more principle ethical theories that might have produced
better results. Again, name,
define, and discuss the ethical principles in the context of the
case.
a. List the Primary Ethical Issue(s) in the Case Study.
¶ A principal ethical issue raised by Wal-Mart’s actions
revolves around the respon-
sibility of a business to the community in which it operates.
Many facts, such as the
closing of a Wal-Mart store in Kinder, Louisiana after the store
had caused the fail-
ure of one-third of the downtown main-street merchants,
indicate that Wal-Mart in
its actions tends to follow the classical ideology of capitalism
based upon individual-
ism as opposed to the modern managerial approach to capitalism
and stakeholder
management based more strongly upon community-based values
while still incorpo-
rating individual-based values.
[Note that the question uses the word “List,” which means to
put the response into

bullet points or numbered responses. If this answer were to be
put into a bullet-
point list, there would be only one bullet point. However, if a
second point were to
be made, then bullet points should be used. While the answer is
good because it has
depth, it is not as good as it would be if there were more than
one issue.]
b. Discuss a Relevant Ethical Principle likely used by the
primary corporation.
¶ Wal-Mart may have embraced Utilitarianism that is often
stated as, “[ . . . ].” [Citation
needed.]] The good from Wal-Mart’s perspective would be low
prices for their custom-
ers and the highest possible return on investment for their
stockholders. The harm
caused (i.e., the least unhappiness for the fewest number of
people) are the outcomes,
15 Use only the ethical principles discussed in class lectures.
For an answer to be responsive, the theories discussed must in-
clude ethical principles (i.e., Normative Ethical Theories) and
definitions must be provided. This question is given greater
weight in grading.

9
even if unintended, to the local merchants. The problem with
this approach is the nar-
row focus of what they considered to be the good since it
excludes the broader needs of
their customers and the complex web of relationships in which
their customers live,
which is sometimes referred to as community-based values.
Wal-Mart’s opponents
might well cite Immanuel Kant’s Categorical Imperative: “[ . . .
].” [Citation?] It is not
likely that Sam Walton would want to be treated as the main
street merchants were, if the
circumstances were reversed.
c. Discuss Relevant Ethical Principle(s) that might have
produced better results.
¶ If Wal-Mart had focused on building a [ . . . ] rather than
maximizing shareholder value,
then Wal-Mart would have as a matter of implementing
sustainability also institutionalized
ethical leadership through [ . . . ] processes, since that is part of
the approach to creating
sustainability. Then, if a more suitable ethical view (e.g., the
Categorical Imperative—Do
only that which you would want to see become a universal
law—or Situational Ethics—
“Agapé is the ultimate good” or the Ethics of Caring--“Empathy
based upon relationships
are the fundamental reality of ethics”) were adopted, the harm
caused to communities

would have been much reduced. [Citations?]
[Note that the last sentence leaves open the question of “Why?”
That is, why if one of the
alternative ethical theories had been used would “the harm
caused to communities . . .
have been much reduced”? Answering the question “Why”
would have produced a far
better answer.]
7. Cognitive Biases. (a) What cognitive biases16 may have
influenced the decision-making by
the leadership of the principal firm? (b) Within your response
name and define the cognitive
biases that you have identified and provide an explanation that
justifies having included
those cognitive biases.
¶ Sam Walton may have been subject to an Ideological
Confirmation Bias, selecting data in
order to conform to an ideology (in his case, a belief in the
Classical Ideology of Capitalism
that the sole responsibility of business is to maximize profit and
shareholder returns on in-
vestment) rather than upon the facts in decisions made. This
belief would have restricted [ .
. . ] based upon the ideology rather than upon the facts. For
instance, because maximizing
shareholder value using a low cost strategy towards consumers
justifies Wal-Mart’s ignoring
community-based needs, Wal-Mart has created an organized
vocal opposition, which is rare
among retail businesses.

[Note that the question asks for more than one example of a
cognitive bias. This answer has
provided only one. Therefore, the answer is not a fully
adequate response. However, in the
instance of this case study, Sam Walton was very successful,
except for his relationships with
small towns and their merchants. As a result, it is difficult to
find decisions described in the
case study that might have been made due to a cognitive bias,
because the assumption of a
cognitive bias is that the decision-making process led to a
mistake or poor outcomes. If that
explanation were given, then this would be a fully adequate
response.]
16 Refer to your lecture outlines and notes about the type of
cognitive biases that scientific research has shown to produce
errors
in decision-making. Use only cognitive biases and similar
concepts that have been discussed in class. See also footnote 8.
10
8. Organizational Sustainability.17 (a) What decisions were
being made that predictably
would lead to organizational sustainability (as this term is
defined in the instructor’s lectures)? (b)

Also, discuss whether the decisions being made increased or
decreased the achievement of
long-term objectives and (c) why and how the achievement of
long-term objectives relates to
building a sustainable organization?
requires embedding operations-
quality leadership into the development of strategy and its
implementation using system-
atic processes that through operations-quality leadership
produce excellence in organiza-
tional performance (and, in turn, stakeholder management,
moral leadership, environ-
mental leadership, and competitiveness). [A good approach to
answering some of the
questions is to first define critical terms. In this case, I am
providing you with the defini-
tion for a sustainable business as an illustration of the approach.
It will take most of the
course for us to reach a full understanding of this definition. In
the meantime, answer
the question with what you know. Since I am the author of that
statement, I have not
used quotation marks or a citation. If you were to use the
definition, you would need to
use quotation marks and a simple in-line citation.]
Wal-Mart has been highly successful in terms of
expansion and profitability, there
is no evidence in this case study that it has implemented
operations-quality leadership.
[Asking, “Why do we know that operations-quality leadership
has not been implement-

ed?” would when answered improve this response. One of the
reasons we know that
operations-quality leadership had not been implemented is
because if it had, then ethical
leadership would also have been implemented and Wal-Mart
would then have avoided
the ethical problems they encountered.] Therefore, Wal-Mart
had not likely at the time
of this case study created a sustainable business, even given
their many successes in
growing the business and being profitable.
-Mart, according to the case study, has made many
decisions to pursue both short-
term goals and long-term objectives quite successfully,
especially in terms of growth and
profit. [Examples would improve this answer. What is the
evidence for the assertion?]
e areas of social responsibility and
organizational sustainability, the case
seems to imply that only short-term goals have been seriously
pursued (e.g., public rela-
tions-types of goals such as the Buy-America Plan, which was
highly publicized then
closed down with little comment), and long-term objectives
regarding social responsibil-
ity and organizational sustainability have been largely ignored.
This has resulted in sig-
nificant public opposition and even public boycotts of Wal-Mart
Stores by social activist
individuals and groups who believe the social contract has been
violated by Wal-Mart
Stores, and as a result the firm has lost its legitimacy in their

eyes.
9. Unexamined Presuppositions. (a) Identify likely unexamined
presuppositions18 regarding
the decisions made by the key firm. (b) Justify why this is an
unexamined presupposition and
17 This question is given greater weight in grading.
18 A presupposition is a reality or fact that underlies an action
or decision. If the presupposition was not considered by the
deci-
sion-makers, only then is the presupposition an unexamined
presupposition. An unexamined presupposition is one that was
overlooked. Unexamined presuppositions are a major cause of
poor outcomes from decisions. Rarely are unexamined pre-
11
(c) state how the unexamined presuppositions could have or
may have compromised the com-
pany’s sustainability.
that Wal-Mart’s resources
are larger than what their opponents can put together, except in

rare cases that do not
markedly impede Wal-Mart’s growth and profit in significant
ways. Comment: The con-
fidence that grows out of this examined presupposition enables
Wal-Mart to ignore
complaints, to refuse to negotiate, and to be willing to both take
on lawsuits and to initi-
ate lawsuits. [This examined presupposition is provided as a
learning example only,
giving you the opportunity to compare a presupposition
seemingly examined by Wal-
Mart against two unexamined presuppositions below. Do not
put examined presup-
positions into the analyses that you complete, but do use this to
learn the difference
between examined and unexamined presuppositions.]
o An unexamined presupposition for Wal-Mart is that the fragile
cultural fabric of
small towns and communities is not important to protect if it
interferes with Wal-
Mart’s expansion or profit. Comment: Because of Wal-Mart’s
lack of concern about
their actions, they have among many people in the communities
effected earned a
lasting enmity that as a consequence affects Wal-Mart’s
reputation and sales. [The
Comment explains how the unexamined presupposition has
injured Wal-Mart. The
presupposition is unexamined because there is no evidence that
Wal-Mart was more
than intellectually aware of the destruction they were causing or

understood how
such destruction would adversely affect the community or why
they should care.]
justifies whatever conse-
quences may occur. Comment: This belief, which is an
outgrowth of Wal-Mart’s in-
terpretation of the classical ideology of capitalism, has
engendered opposition in
many communities and frequent lawsuits, which are expensive
to Wal-Mart in terms
of focus, energy, time, and often damages and settlement costs.
This unexamined
presupposition as well likely flows from Sam Walton’s use of
the immoral management
model (exploiting opportunities without regard for any
consequences other than prof-
it). Because he often spoke about the need for moral behavior,
he does not seem to
fit as well either the intentional amoral management model (i.e.,
ethical considerations do
not belong in the workplace) or the unintentional amoral
management model (i.e., the indi-
vidual simply does not think in ethical terms). Immoral
managers, according to the
research, think of themselves as moral individuals, and the
evidence indicates that
Sam Walton thought of himself as moral (e.g., he taught Sunday
School and ex-
pressed approval of J.C. Penney’s credo), but engaged in
actions that are often harm-
ful to others and appear to many as immoral. [Note the use of
concepts and termi-
nology from another part of the course.]

suppositions presented in the case study; it is the task of the
analyst to ferret them out. For each unexamined presupposition
listed, begin by stating: “An unexamined presupposition for
[insert name of key firm] is that . . . .” This question is given
greater
weight.
12
B. Organizational Analysis: The questions in this section are
about the effects of the decisions
made by the primary business organization discussed in the case
study.19
1. Effectiveness, Efficiency, and Efficacy:20
a. Necessary Actions. Were the actions under analysis
necessary to the effectiveness, effi-
ciency, and/or efficacy of the primary corporation discussed?
Discuss why the actions
were or were not necessary.
¶ No, the rapid growth of Wal-Mart at the expense of many

small towns was not neces-
sary and is not justified from a socially responsible perspective.
The detrimental effects
of their actions, it is reasonable to postulate, could have been
lessened and ways found to
support and help small towns while still maintaining a rapid
growth rate and high profit
margin, although perhaps one marginally less than what was
achieved. That “excessive”
aspect of growth was not necessary to the effectiveness,
efficiency, and efficacy of the
firm. In fact, it was arguably harmful to the organizational
sustainability of the firm over
the long-term. [Why? As stated, this response is “an assertion
made as if self-evidently true,”
which it is not, requiring evidence to prove its truthfulness.]
b. Outcomes of Actions. Did the outcomes of the actions taken
increase or decrease the ef-
fectiveness, efficiency, and/or the efficacy of the primary
business organization dis-
cussed? Was the result achieved the one intended? Explain.
¶ Wal-Mart has not been adversely affected by their actions
when compared against
their sales, except among a relatively small group of people who
boycott them, and Wal-
Mart has achieved the results it sought in the short-term. In the
process, however, it has
built a vocal opposition, even if it is generally weak and
disorganized. That opposition,
however, may eventually result in change if the Iron Law of
Responsibility (which states

that when power and responsibility become substantially out of
balance, forces will be
generated to bring them into closer balance) holds true for a
firm as large as Wal-Mart.
In the long-term, therefore, the firm’s actions may decrease its
effectiveness.
2. Risk:21
19 Organizations sometimes rationalize why they make
particular decisions. For instance, a corporation may claim to
make
decisions in order to increase the efficiency or profitability of
the organization, when in reality the firm has made decisions
that will predictably decrease the long-term efficiency or
profitability of the organization. The questions in this section
attempt
to draw out these types of distinctions that may become
problems. More so than in previous questions, the questions in
this
section call for speculative conclusions, but still ones based
upon the evidence (i.e., facts within a logical framework) in the
case. All of your responses to the questions in this section
must, using evidence, justify or explain why you have reached
your conclusions.
20 Efficacy is a word used here to mean the balance between
effectiveness and efficiency (efficiency being used here in the
sense
of low costs). What that balance should be varies depending on
the needs of the corporation and the strategy chosen by that
firm. Organizations should strive for an optimal balance
between effectiveness and efficiency, meaning the best balance
for

the needs of the organization given the strategy chosen.
21 In the questions in this section, the first question asks you to
assess the level of risk "at the time of the actions under analy-
sis." For instance, what was the level of risk at the beginning
of the case study prior to whatever event takes place? The sec-
ond question refers to the level of risk after the event has
occurred.
These two questions concerning risk ask the analyst to think
about whether the decisions made by the firm in the case
study increased or decreased their risk for being in business.
All businesses are at risk all of the time; risk is the very essence
of business. The optimal level of risk is the level that (a) is no
higher than what is necessary to create competitiveness, but (b)
13
a. Initial Optimal Risk. Was risk at an optimal level for the
primary business organiza-
tion discussed at the time of the actions under analysis?
¶ While risk was not at an optimal level early in Wal-Mart’s
existence [Why? What’s the
evidence for this assertion?], its level of risk has further
increased over the years in re-

sponse to its continued decisions that are harmful to its
stakeholders, but the level seems
manageable and may well represent a calculated decision on
Wal-Mart’s part that the
costs (which are the primary expression of risk in this case)
associated with violating the
social contract (lost sales, lawsuits, punitive damages and fines,
etc.) are less expensive
than compliance with the social contract (which would mean
assuming some level of fi-
nancial responsibility for the damage to small businesses and
communities caused by
their expansion). It may also be possible that Wal-Mart
cynically believes that once it
dominates the world market, that domination will then be the
appropriate time to be-
come socially responsible and rectify their reputation and brand.
b. Subsequent Optimal Risk. Was risk at an optimal level for
the primary business or-
ganization discussed following the actions under analysis?
¶ In the sense that the level of risk is the level most likely
intended by Wal-Mart (or at
least is acceptable to them), it may be optimal from their
perspective. Over time, how-
ever, risk may be increasing as the firm alienates more
customers, especially as it expands
internationally (e.g., they have pulled out of Germany due to an
inability to be competi-
tive). It is possible that the risk will eventually be seen even by
them as greater than op-
timal.

C. Operations-Quality Leadership, Stakeholder Management,
Moral Leadership, and Envi-
ronmental Leadership:22 At the time of the event(s) related in
the case study, was the primary
business discussed effectively practicing operations-quality
leadership, stakeholder management,
moral leadership, and environmental leadership? Include within
your argument the evidence that
supports the position you have taken.
¶ There is no substantial evidence that Wal-Mart Stores
practiced stakeholder management, op-
erations-quality leadership or moral leadership since the case
study does not provide evidence of
[ . . .] specifically involving these concepts, which in turn
would be evidence of [ . . . ]. But, Wal-
Mart did initiate some environmental programs (the
Environmental Awareness campaign began
in 1998) that have continued. Other socially responsible
programs included the Buy American
Plan, which became the “Made in the U.S.A.” program that
began in 1985, but was abandoned
some years later as Wal-Mart became the nation’s largest
purchaser of Chinese goods. None of
these efforts would constitute effective operations-quality
leadership, stakeholder management,
moral leadership or environmental leadership because they are
too limited in scope and provide
no evidence of long-term commitment or [ . . . ]. The
appearance is that of a public relations at-
tempt to confuse the critics and customers rather than a
reasonable effort to implement any of

no lower than what will permit the company to be sustainable,
which includes being competitive, but much more too. Risk
involves more than profit.
22 This question cannot be well answered without discussing
the implementation of concepts and the use of systematic pro-
cesses. This question is given greater weight in grading.
14
these concepts.
-
Mart has been accused of taking
advantage of small town merchants and of attacking its critics—
both major stakeholders. [A
more specific example would improve this part of the answer.]
evidence this occurs. Some experts
consider Wal-Mart Stores to be the most sued company in the
U.S. [Citation ?] That is evi-
dence that the firm has little interest in ethics.
-Quality leadership requires that the firm would
have embraced and implemented

stakeholder management, [ . . . ] with well-established and
deployed [ . . . ], including those of
a performance system. None are evident.
decision-making far broader than
the public relations-type of programs developed by Wal-Mart,
which are characterized by a
limited scope that lacks the comprehensive approach of
committed leadership. These pro-
grams would not likely have even qualified as “bolt-on
approaches,” besides embedded ap-
proaches.
D. Societal Analysis. What were the effects of the decisions
made by the principal parties upon
differing parts of society (or societies)?23
-Mart opened a
store, one-third of the town’s
businesses closed, and then Wal-Mart closed its store, leaving
the town without a place to
purchase many goods. Wal-Mart’s actions appear to be highly
destructive to that town and
its citizens’ way of life. By extension, their operations are
viewed by many as destructive to
other towns.
launched referendums, Wal-
Mart out-spent the opposition groups by very large margins.
Large amounts of money on
one side of a political issue tend to predetermine the outcome.
[This answer would have

been better if its relevance to the question had been stated.]
Wal-Mart has contributed to large numbers of small business
failures, especially in small
towns across the U.S. While in some cases this was because
Wal-Mart could offer lower
prices and benefit consumers, it left downtown areas in small
towns with empty, un-rentable
buildings, and a loss of vibrant communities as the failure of
the small business competitors
caused a further downward spiral of other types of business
failures due to a lack of vitali-
ty—e.g., restaurants, coffee shops, boutiques, etc.
IV. Key Issues. List the questions expressing the key issues24
in this case study that are relevant to this
class in Business Environment?
23 This question asks that you determine in what ways and to
what extent the decisions and outcomes from the events de-
scribed in the case study affected the larger society beyond the
primary business organization and other key parties. Write
from the perspective of a society looking at the actions of the
principal parties.
24 State one to four key issues in the form of a question. A key
issue is one that reflects central issues in the case study that
are at the same time major issues in the course. These issue-
based questions, then, are what you should respond to in section
V. Do not ask a question that cannot be answered from the
facts within the case study.)

15
-Mart, on balance, a good corporate citizen?
-Mart, because of its rapid growth and large size,
become too powerful and, therefore,
unaccountable to society and its representatives in government?
[The evidence in the case study
may not be sufficient to develop a strong answer to this
question.]
V. The Analyst’s Position: As the analyst, state and argue for
your own viewpoint regarding the is-
sue(s) you have identified. Include within your response, the
evidence25 that supports the viewpoint you
have taken.
¶ I do not believe that Wal-Mart is a good corporate citizen,
even though it has made some at-
tempts to build a case for being socially responsible, even for
being socially responsive. However,
Wal-Mart has placed maximum growth and profitability at the
center of its strategy, even though the
firm could have slowed somewhat that rate of growth and
profitability, both of which have been
phenomenal, and the company could have protected to some

considerable extent those injured by
the company while still building one of the great businesses in
the world. If it would have done so,
then Wal-Mart would have been a good corporate citizen. As it
is, Wal-Mart has violated their social
contract with society. The only reliable path to good corporate
citizenship is through the implemen-
tation of embedded operations-quality leadership in order to
achieve excellence in organizational
performance, including the implementation of stakeholder
management, moral leadership, and envi-
ronmental leadership. This, Wal-Mart did not do.
Wal-Mart’s size and profitability enable it to largely avoid the
consequences of its actions. In
2001 Wal-Mart became the largest retailer in the world with
$191 billion in sales. By 2007 Wal-Mart
had $345 billion in sales. After becoming the largest retailer in
the world, Wal-Mart continued to in-
crease sales at the rate of more than 13% per year. A somewhat
slower rate of growth could have
freed up funds to help communities deal with the negative
effects of Wal-Mart’s impact on small
communities. For instance, for a relatively small amount of
money, Wal-Mart could have funded
consulting and non-recourse loans for communities and small
businesses to help them adjust their
strategies in order to remain competitive, profitable towns and
businesses. (The above argument is
hampered by the fact that the best statistic to use would be net
profit, but that figure is not available
in this case study.)

According to the case study, “Just about every other hour of
every day of every year, Wal-Mart
gets sued.” [Quotations need to have a citation. Since the only
permissible quotations are from the
textbook, a page number in brackets following the quotation
would be sufficient.] Clearly, this
statement, while likely an exaggeration and far from factual, is
evidence of a sense of injury by many.
25 Section V—“The Analyst’s Position”—is the conclusion or
culmination of the analysis and should be focused on answer-
ing the questions (or hypotheses) in Section IV (see footnote 23.
Evidence, for the purposes of this analysis, is a set of facts
within a logically persuasive presentation of what the facts
demonstrate or prove. Avoid assertions made as if self-
evidently
true (i.e., not supported by evidence). Your analyst’s position
should be fully developed, comprehensive, and include alterna-
tive approaches, solutions, strategies or ways of thinking that
the primary firm could possibly have used, if appropriate. Your
answer to this question will constitute approximately 25% of the
grade for the term paper.
A helpful simile: The Issues (Section IV) identify the
“hypotheses.” The Situation (Section II) is the selection of
infor-
mation that occurs during the first part of the “research” stage.
The Analysis (Section III) preceding Section IV is the analy-
sis of the selected information that occurs during the second
stage of “research.” The analysis must be used to support your
Position Statement as you write Section V, which is what we
normally think of as a “term paper.”

16
Even when Wal-Mart loses lawsuits, the damages—however
large—seem to be quite insignificant
given the corporation’s sales. Damages and negative publicity
certainly cause the loss of some sales
(estimated by some to be about 5%) [Citation?], but Wal-Mart
continues to thrive without the 5%.
With its vast resources, it can finance lawsuits, fight
communities, maintain lobbyists, and make large
contributions to political campaigns and candidates. As Wal-
Mart expands internationally, it can
build an organization that to some considerable extent lies
outside of the control of governmental
entities in the U.S. In terms of the balance of power in our
society, Wal-Mart has so much econom-
ic power (and in recent years is willing to turn that economic
power into political power) [Citation?
Or other evidence?] that the government in the U.S. is unlikely
to challenge it effectively. Even the
courts, while they can award damages in lawsuits, have
apparently little power to effectively change
Wal-Mart’s operating philosophy. However, that philosophy
may change over time if the firm’s
managers adopt more enlightened views.
Very simply, Wal-Mart at the time of this case study was not a
good corporate citizen [a definition of
“a good corporate citizen is needed]. In part, this was due to its

incredible economic power. The
problem with economic power as great as that of Wal-Mart is
that compliance with its social con-
tract becomes voluntary. Voluntary compliance does not often
work (witness the violations of volun-
tary compliance with regulations that have recently fueled the
current recession). It remains to be
seen whether the firm will evolve into becoming a more
responsible company. The pressure from
society—and, perhaps, its own employees, including its
leadership and their peer group in the busi-
ness-world—may be substantial and win out over time. The
Iron Law of Responsibility supports
this possibility.
Instructions for
The Case Study Analysis / Term Paper
This case study analysis is the term paper assignment mentioned
in the syllabus.
Format: Use the case study analysis template provided to you
as a separate attachment along with these instructions; it has a
number of important revisions from the one you were given
earlier in the quarter. Do not alter this format; type directly
onto the template after the paragraph ( ¶ ) sign. Leave the
questions and footnotes in your paper. Single-space. You may
double-space between bullet-points and paragraphs, if you wish.
The analysis should be as long as is necessary to write the
quality of term paper that you desire. There is no maximum
page length. Most likely, however, the term paper will need to
be 10 - 14 pages (or more) in length (including over 6 pages for

the template). Quality (i.e., grades) and length do not directly
correlate. Turn in a hard copy, but maintain an electronic copy
until after you have received your grade.
Case Study Selection: All members of the BA 385 class who
are pursuing Track A will conduct an analysis on the same case
study—“Google, Inc., in China.” This is an important and well
known incident that contains many of the themes of this course
in the Business Environment. The case study will be a separate
attachment along with this document. Note that the case study
is a pdf file. It is 20 pages long. Limit your analysis to the
material in the case study. Do not do additional research
(except, you may do 5 minutes of research on the author and
places of employment, if you wish). You cannot find the
answers to the template questions on the Internet.
Note the Following: You must do your own work on this case
study analysis. Do not collaborate with others. If you quote
anyone or use information that should be credited, provide
citations in footnotes or in notes-within-your-text. You may
use simple citations, but there must be sufficient information
for me to locate the source. Review PSU’s policy on Academic
Dishonesty in the Syllabus. Sources of information you may
use: the case study, textbook, lecture notes, Wal-Mart Case
Study Example, and the Week 4 Addendum on Unexamined
Presuppositions. You may also write to or ask the instructor for
clarification.
Case Study Analysis Example. As a guide for writing your term
paper, use my case study analysis example sent to you earlier in
the quarter on “Wal-Mart: The Main Street Merchant of Doom.”
This analysis will be useful to you for determining formatting
and how to approach answering the questions. Do not, however,
copy or closely paraphrase any parts of that case study into your
term paper. Avoid being derivative. Do not use it as your
template.

· Pledges. Before starting to write, sign the Pledge at the
beginning of the template by typing your name on the signature
line and the date. When you print out the final case study to
hand in, then sign and date the ending pledge in ink.
· TemplateFootnotes. When using the case study analysis
template, read and re-read all of the footnotes carefully. They
have been placed in the template to help you with definitions,
formatting, and suggestions on how to proceed (i.e., approach).
Read all of footnote 1 in the template before you begin.
· A First Step. After completing the Pre-Analysis (Section I),
read the case study and then tentatively identify the Key Issues
(Section IV). You need to know what the key issues are before
you begin analyzing the case study, since the key issues should
influence your responses. The key issues must focus on one or
more of the key concepts of the course. Next, go back to
Section II and begin the analysis. Read footnote 6 in the
template now.
· The Facts Section. This is a complicated case study with
many facts. Avoid letting the number of facts or their technical
nature overwhelm you. The only facts that you need to include
in the Fact Section ((II)(A)) are the facts that will provide a
foundation for understanding the key issues you have identified,
for analyzing them, and for supporting your position in Section
V. While it is better to error on the side of including too many
facts, it is not a good use of your time to include a large number
of unnecessary facts. Read footnote 7 in the template now.
Note the sentence in italics. It is often useful to list the facts
chronologically, thereby creating a time line.
· The Context for the Case Study Analysis. The context for
your analysis of this case study is the Business Environment
class. Therefore, the key issues should involve the type of
issues that are discussed in the textbook and course. Wherever
appropriate and possible, you should make reference to the
concepts and terminology used in the textbook and course.
When using concepts and course-specific terminology, define
them. Read the 4th paragraph in footnote 1 in the template

now.
· The Subject of the Case Study Analysis. The subject of the
case study analysis is Google, Inc. during the period when they
first began offering their services to the Chinese people. You
should respond to the questions in the template on that basis.
· Section V: The Analyst’s Position. When stating your
position on the key issues you will have identified in Section
IV, you need in Section V to build a strong, logically
developed, and persuasive argument in support of your position
based on evidence (see the 2nd sentence of that question (V)
and footnote 23). Section V is the most important part of the
case study analysis. The analysis leads up to that point. Think
of Section IV as the hypotheses, Section II as information
gathering and selection of facts, and Section III as the analysis
of the information upon which the “term paper” (that is, Section
V) will be based. The answer to Section V will constitute
approximately 25% of your term paper grade. It is rare to
obtain a grade on the term paper higher than the grade for
Section V.
· English Grammatical Conventions. If necessary, obtain help
with grammar at PSU’s Writing Center. Your ability to write
English will be one factor in your grade, and I will reduce your
grade because of poor grammar, repeated misspellings, poor
proofreading, and other problems with English usage (syntax,
diction, tense agreement, word order, coherence, etc.). If you
do obtain help, provide me with the name of the person and a
phone number, and, if appropriate, the organization helping.
Assistance must be limited to grammar, spelling, and clarity.
Those who help must not change the substance or meaning of
your comments; this is your responsibility. Some highly useful
help can be obtained from a series of 2-minute film clips
published by The New Yorker magazine, called Comma Queen.
All of you can benefit from this review.
Grading: Grading will be based upon (but may not be limited
to) your understanding and use of the case study template; your

understanding of the case study itself; your ability to focus on
those issues critical to this class; the reasonableness of your
statements (while acknowledging that a range of different
answers are acceptable); the use of concepts and terminology
from the textbook and lectures; the use of evidence and critical
thinking skills; the depth and breadth of the analysis; and the
coherence and persuasiveness of the entire case study
analysis/term paper, but especially of Section V. Responses
among students to Section V may legitimately reach very
different conclusions. While the conclusions reached are
important, how well they are supported with evidence (facts
within a logical framework) is even more important.
If you have questions, ask them in class or write me or see me
during my office hours or make an appointment with me to meet
at other mutually acceptable time
http://www.corporate-ethics.org
BRI-1004
-2-
the brutal suppression of demonstrators in China in June 1989.
The same search on Google.cn
provided a much smaller list and included pictures of a smiling
couple in the square.2

The decision to develop Google.cn was complicated. In the
words of Elliot Schrage,
Google’s vice president of Global Communications and Public
Affairs:
[Google, Inc., faced a choice to] compromise our mission by
failing to serve our
users in China or compromise our mission by entering China
and complying with
Chinese laws that require us to censor search results.… Based
on what we know
today and what we see in China, we believe our decision to
launch the Google.cn
service in addition to our Google.com service is a reasonable
one, better for
Chinese users and better for Google.… Self-censorship, like
that which we are
now required to perform in China, is something that conflicts
deeply with our core
principles.… This was not something we did enthusiastically or
something that
we’re proud of at all.3
MacLean knew that he was perfectly prepared for his current
position as director of
International Business. After earning a computer-science
degree, MacLean had traveled
extensively, implementing information systems with an IT
consulting firm. He was well-versed
in the technical and cultural components of this current project.
It was his first job after earning
an MBA. He had worked very hard as a summer intern to get his
foot in the door at Google, Inc.,

and landed a job offer in his second year of the MBA program.
He had been working at Google
for 13 months and was starting to worry about his job security.
Within the organization, he did
not have enough political capital to weather a storm of
critiques.
The congressional hearing had planted seeds of doubt in
MacLean’s head about the
Google in China decision. Was Google endorsing censorship by
conforming to the Chinese
authorities’ rules? Was Google acting as a tool for the
government? Were Chinese citizens better
off after Google’s decision to enter China with Google.cn?
MacLean was starting to question
whether the decision went against their stated mission of
organizing the world’s information and
making it universally accessible and useful.4
Google’s top leadership had left open the door for revising their
strategy by always
reminding reporters and those in the company that the decision
was made based on the
information currently available. The company was not afraid to
revisit previous decisions.
MacLean had only one day before attending a meeting where he
would be queried on the
development and implementation of Google’s China strategy
and asked for his suggestions for
future courses of action. The Senate hearing had attracted a
lively audience and had generated
vigorous debate. There was a lot of pressure to act, but
MacLean’s instinct was to stick by his

2 Congressional testimony before the House Committee on
International Relations Subcommittee on Asia and
the Pacific, The Internet in China: A Tool for Freedom or
Suppression? (February 15, 2006).
3 Congressional testimony, The Internet in China.
4 <http://www.google.com/intl/en/corporate/index.html>.
http://www.google.com/intl/en/corporate/index.html
BRI-1004
-3-
strategy and let it play out a bit longer. He hoped that perhaps
the Senate hearing would be the
last bit of publicity for a while.
Google
Google, Inc., took great satisfaction in being different from
other corporations. Founded
by Larry Page and Sergey Brin, Google’s start was legendary.
While Stanford graduate students,
Page and Brin had developed a search technology and grew
Google.com into the most popular
search engine in the world. The technology used an algorithm to
find possible Web pages with
search criteria provided by the user. Google’s PageRank™
technology “measures the importance
of different Web pages by solving an equation with more than

500 million variables and 2 billion
terms.”5
The company remained private until 2004, when Page and Brin
decided to conduct a
Dutch auction for their initial public offerings (IPOs). The
Dutch auction was designed to
“democratize IPO share allocation and afford companies and
early investors the best price for
their shares.”6 The company sold shares directly to the public
by announcing only the total
number of shares to be auctioned and a suggested target price.
Anyone could place a bid (both
quantity and price) to purchase stock, with the final clearing
prices determined by the market at
the end of the day. Once a minimum clearing price was set by
the market, investors who bid
above that price were awarded shares on a pro rata basis. This
type of auction removed a layer of
investment banks that traditionally underwrote the IPO process
by setting the price, allocation,
and marketing for their clients. Traditional IPOs utilized the
underwriting bank as the central
controller of the market (price and allocation) and as the
marketer of the private organization to
the potential investors. Google’s Dutch-auction process allowed
a greater range of investors to
bid (and win) initial shares. While smaller companies had
infrequently held this type of public
offering, Google’s auction was unprecedented in size.7 August
19, 2004, marked the initial
public offering of GOOG on NASDAQ.
In addition, the public-offering statement was “part financial

document, part populist
manifesto.”8 In April 2004, Brin and Page wrote a founders’
letter that was included in the
documents for Google’s initial public stock offering. Brin and
Page stated, “Don’t be evil. We
believe strongly that in the long term, we will be better
served—as shareholders and in all other
ways—by a company that does good things for the world even if
we forgo some short-term
gains. This is an important aspect of our culture and is broadly
shared within the company.”9 The
5 <http://www.google.com/corporate/tech.html>.
6 Ari Weinberg, “IPO Dutch Auctions versus Traditional
Allocation,”
<http://www.forbes.com/insights/2004/05/10/cx_aw_0510monda
ymatchup.html> (accessed on May 10,
2004).
7 Les Christie, “The ABCs of a Unique IPO: The Hottest Tech
IPO in Years Will Be Run as a ‘Dutch Auction’”
<http://money.cnn.com/2004/04/29/technology/googleauction/>
(accessed on April 29, 2004).
8 Matt Richtel, “Analysts Doubt Public Offering of Google Is a
Bellwether,” New York Times, May 1, 2004.
9 “Letter from the Founders.”
http://www.google.com/corporate/tech.html
http://www.forbes.com/insights/2004/05/10/cx_aw_0510monday
matchup.html
http://money.cnn.com/2004/04/29/technology/googleauction/

BRI-1004
-4-
format of the IPO and the substance of the SEC registration
forms received much attention from
the business press.
Financial Success
Google’s core technology was a search tool designed by
founders Page and Brin. The
primary source of revenue was through the advertising placed
on its Web site. Important to
Google’s search philosophy was maintaining as much search
“neutrality” as possible, with
advertisements distinguished from all other search results.
Companies could not purchase
placement on a search-result list.
Google had seen tremendous market and financial success. The
company’s 5,680
employees were scattered throughout the world. In 2005,
Google had a positive cash flow of
$3.45 billion and starting in 2006, was generating more than $1
billion in cash every quarter.
Google had revenue of $6.14 billion and a net profit margin of
25.18%.10 While growing
domestically, Google had started to focus more on its global
strategy. The majority of searches
were international, yet revenue was just 34% of $3.2 billion in

2004.11
Although Google was in a secure financial position, going
public had increased public
scrutiny, and the company was facing growing competition from
Microsoft, Yahoo!, and “meta”
search technology that combined the search results from other
search engines such as Dogpile or
Mamma.
Corporate Ethos
Google had adopted the informal corporate motto “Don’t be
evil” from the founders’
letter, and also developed an ethical code of conduct for both
internal and external audiences.
The core message is simple: Being Googlers means striving
toward the highest
possible standard of ethical business conduct. This is a matter
as much practical as
ethical; we hire great people who work hard to build great
products, but our most
important asset by far is our reputation as a company that
warrants our users’ faith
and trust. That trust is the foundation upon which our success
and prosperity rest,
and it must be re-earned every day, in every way, by every one
of us.
So please do read this code, and then read it again, and

remember that as our
company evolves, the Google Code of Conduct will evolve as
well. Our core
principles won’t change, but the specifics might, so a year from
now, please read
10 <http://finance.goolge.com/finance?q=google>.
11 Jason Dean and Kevin Delaney, “Limited Search: As Google
Pushes into China, It Faces Clashes with
Censors,” Wall Street Journal, December 16, 2005.
http://finance.goolge.com/finance?q=google
BRI-1004
-5-
it a third time. And always bear in mind that each of us has a
personal
responsibility to do everything we can to incorporate these
principles into our
work, and our lives.12
In addition to the code of conduct, Google’s mission “to
organize the world’s information
and make it universally accessible and useful” was supported by
a list of “10 things”
consitituting the company’s philosophy. Google’s focus on the
user guided most of its decisions.

From its inception, Google has focused on providing the best
user experience
possible. While many companies claim to put their customers
first, few are able to
resist the temptation to make small sacrifices to increase
shareholder value.
Google has steadfastly refused to make any change that does not
offer a benefit to
the users who come to the site.13
This principle was best exemplified in Google’s refusal to
accept sponsored search
results. While competitors allowed organizations to pay money
for a prime spot on search
listings, Google relegated all sponsored links to the right-hand
portion of the screen and clearly
designated them as sponsored links. A cottage industry of
search-engine optimizers (SEOs)
promised to modify customers’ Web sites to increase their rank
within Google’s search results.
Google continually fought such manipulations of their search
results.
For Google, the listing of a code of conduct, the 10 things, and
even business decisions
were in flux. The company steered clear of proclamations and
was not afraid to change its mind.
In reference to the 10 things constituting its organizational
philosophy, Google included
examples of how it had changed or dropped rules of conduct
from even a few years ago: “Over

time we’ve expanded our view of the range of services we can
offer—Web search, for instance,
isn’t the only way for people to access or use information—and
products that then seemed
unlikely are now key aspects of our portfolio. This doesn’t
mean we’ve changed our core
mission; just that the farther we travel toward achieving it, the
more those blurry objects on the
horizon come into sharper focus (to be replaced, of course, by
more blurry objects).”14
China
With a population of 1.6 billion people (2006 estimate), China
had become an attractive
market for many U.S. companies, which had entered into
agreements establishing more than
20,000 equity joint ventures, contractual joint ventures, and
wholly foreign-owned enterprises in
China. More than 100 U.S.-based multinationals had projects in
China in 2006.15
12 <http://investor.google.com/conduct.html>.
15 U.S. Department of State, Bureau of East Asian and Pacific
Affairs, “Background Note: China,”
<http://www.state.gov/r/pa/ei/bgn/18902.htm> (accessed on
April 2006).
http://investor.google.com/conduct.html

http://www.state.gov/r/pa/ei/bgn/18902.htm
BRI-1004
-6-
In 2006, China attempted to move away from the Communist
model of socialism that the
country had embraced for decades. China declared itself “firmly
committed to economic reform
and opening to the outside world” by privatization.16 China
formally joined the World Trade
Organization in December 2001, agreeing to lower tariffs and
abolish market impediments.
China became “one of the most important markets for U.S.
exports: in 2005, U.S. exports to
China totaled $41.8 billion, more than double the $19 billion
when China joined the World Trade
Organization in 2001, and up 20% over 2004.”17 Membership in
the World Trade Organization
coupled with hosting the Olympic Games in the summer of
2008, put China back on the map as a
possible market for Western companies.
China’s market reform improved “the lives of hundreds of
millions of Chinese, increased
social mobility, and expanded the scope of personal freedom.
This has meant substantially
greater freedom of travel, employment opportunity, educational
and cultural pursuits, job and
housing choices, and access to information.”18 Nevertheless,

China remained entrenched in a
system of brutality that enforced rules and regulations through
its totalitarian regime. Although
China had recognized “the need for decentralized, flowing
economic data to make ‘market-
oriented’ reform possible,” it maintained harsh enforcement of
political and religious
regulations.19
As James Keith, senior adviser for China and Mongolia in the
State Department’s Bureau
of East Asian and Pacific Affairs, testified before Congress:
China’s well-documented abuses of human rights are in
violation of
internationally recognized norms, stemming both from the
authorities’ intolerance
of dissent and the inadequacy of legal safeguards for basic
freedoms. Reported
abuses have included arbitrary and lengthy incommunicado
detention, forced
confessions, torture, and mistreatment of prisoners as well as
severe restrictions
on freedom of speech, the press, assembly, association, religion,
privacy, worker
rights, and coercive birth limitation. In 2005, China stepped up
monitoring,
harassment, intimidation, and arrest of journalists, Internet
writers, defense
lawyers, religious activists, and political dissidents.20
These oppressive measures were a major setback for China. In
June 1989, the Chinese

Template DevelopedBA 385 Business Environment .docx

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