Blaine Kitchenware Case Study Answers Essay

1. ABOUT THE COMPANY Blain Kitchenware, Inc. (BKI), founded in 1927, is a mid-sized producer of small appliances for residential kitchens. BKI has an approximate 10% market share of the $2.3 billion U.S. market for small kitchen appliances, with 65% of sales originating from the US market. The company is public since 1994, and the majority of the shares is controlled by the founder’s family (62% of outstanding shares), who also have a strong representation in the board of directors. Mr. Dubinski – the CEO since 1992 and great-grandson of one of the founders, successfully completed an IPO in 1994 and gradually moved the production abroad in the early 90s. BIK`s current strategy is to complement its product offerings by acquiring small independent manufacturers or the kitchen appliance product lines of larger diversified manufacturers. The financial data at the end of 2006 reflects a strong financial position: The company has raised nearly no debt, it is very liquid, but also under-levered. BKI is one of the strongest companies in this industry in terms of EBITDA margin (22% in 2006), high level of cash holdings and no debt. However, the shift toward higher-end product line could not prevent the margins from a slight decline over the last three years. This was mainly explained by the integration costs and inventory write-downs due to the acquisitions completed so far. The other reason was that its organic revenue growth had suffered in recent years, as some of the core products lost market share. The growth of the top line was mainly due to the acquisitions. BKI’s annual return on equity is significantly below that of its publicly traded peers: 11% compared to an average of 25,9 and a median of 19.5 %. Now the over-liquid and under-levered BKI is facing strong pressure from a private equity group interested in buying the company`s common stock. Thus, the CEO considers a stock repurchase to avoid a hostile takeover. The company decided to distribute all excess cash as a dividend. The second step will be the recapitalization plan to hold permanently $ 300m of debt on the balance sheet, which is a difficult decision due to the first sign of the mortgage crisis. Moreover, the company expects annual revenue decline of 4%  in 2007-2009, and a permanent 2% growth rate afterwards. 2. METHODOLOGY AND VALUATION From a company`s perspective, the benefit of debt is the tax shields created, which are captured by equity holders. The family-controlled company in our case has little experience with holding debt and the board of directors might not easily accept the restructuring plan. What they should know is that the right amount of debt increases the firm’s value and discourages the takeovers. However, a too-high level of debt can lead to financial distress, lower credit rating, and higher interest expenses. For BIK, the credit rating regressed from A (Iteration 1) to A- (Iteration 10), accordingly changing the credit spread from 1.40% to 1.65%. Our aim is to asses the how the proposed recapitalization will affect the enterprise value, after the distribution of the excess cash as dividends, by using APV. We estimate the present value of the firm as if it were all-equity financed (VU), then we add the present value of tax shield associated with the new debt (permanent debt with market value of 300 mln USD), and subtract the present value of bankruptcy costs. We have to estimate expected after-tax operating cash flows , the expected tax shields and discount them at two different discount rates: (unlevered cost of capital) and (usually , cost of debt). For the present value of the bankruptcy costs, we have to first estimate the risk-neutral probability of default of the company. VL = VU + PV (future tax shields from debt) – PV (bankruptcy costs),  or rewritten as  threshold coverage ratio for default  probability of firm default conditional on surviving up to a specified period We start with a forecast of expected after-tax operating cash flows. We assume the annual 4% decline in revenues between 2007 and 2009 from the 2006 level, and a permanent 2% growth afterwards. Analysing the historical values of the operating margins from the Income Statement, we forecast values for the 2007-2009 period. The executives of BKI expect the firm to achieve operating margins at least as high as the historical ones. Thus, we took averages and slightly adjusted them toward higher values. Since the declining tendency in the last three years was cause by integration costs and inventory write-downs associated with acquisitions, which already have been completed. To the EBIT, estimated by using those margins, subtract the taxes, Capex, adjust for Depreciation, Amortization and change in Working capital. The capital expenditures were just over $10m on average per year. The company is expecting the Capex remain modest. Thus, we assumed a Capex of $10m for the next three years. We estimated Net Working Capital by using the average ratio of NWC/Net income of the last three years. Finally, we come up with the value for the operating after-tax operating cash flows for the next three years and the terminal value. We calculate the present value of these cash flows by discounting by the unlevered cost of capital, rU given as 8.7%, which gives us a value of the unlevered firm of ca. $566m. Secondly, we estimate the expected tax shields from the debt level: a permanent amount of $300m market value, and a constant tax rate of 40%. Then we calculate their present value using the appropriate discount rate reflecting the risk, rT (or rD). For the bankruptcy cost, we have the percentage of the unlevered-firm value of 20%, but for the present value, we need to estimate the risk-neutral probability of default q. This probability is calculated iteratively starting from the coverage ratio (EBITt-1 / Interest Expense). We match the coverage ratio number with the corresponding credit rating, which then has a corresponding default. This gives us the yield on debt y, the cost of debt rD, and the risk-neutral probability of default q. The formula for q is q=  where Ï  is the recovery rate in case of default, given here as 41%. In order to calculate the expected interest coverage ratio, we took the average EBIT between 2007 and 2009 for the mean of pre-tax cash flows, as well as the according standard deviation, since our estimation is future based. 2. SENSITIVITY ANALYSIS AND CONCLUSION We can conclude that by raising debt of $300m the company would be better of, since the value of the levered firm would be 16% higher that the value of the unlevered firm and will discourage the takeovers. However, the sensitivity analysis gives us an optimal value of debt of $354m, which would lead to an optimal ratio between the PV of tax shields and bankruptcy costs and, thus, a value of maximal levered firm of $680m, given that our assumptions for AVP will be realized in the future.

Importance of Play for Children Aged Between 4 and 6 Essay

The importance of play for children between 4 and 6 Written by Tessa Batchelor Submitted to New Zealand College of Early Childhood Education 2011 This Booklet outlines the importance of the play curriculum and learning for children aged between 4 and 6 years. Creative, imaginative and physical play will be focused on as well as the adults’ role in the promotion of play and the importance of a positive environment for play and learning. Included in this will be examples of play opportunities that link to Te Whariki and explain intended learning outcomes. The information within this booklet is intended to be a resource for early childhood professionals. How Creative Play Can Promote Learning: Creative play can promote learning in several ways. Three ways this booklet will focus on are cognitive development, fine motor skills and social development. Cognitive skills between the ages of four and six can be developed through creative play. It is stated in Beaver, Brewster, Jones, Keene, Neaum and Tallack (2001), that creative play involves children developing individual ideas in ways that are not immediately apparent. It is valuable for children to engage in problem solving, resulting in the ability to take responsibility for their own learning (Smith, 1998). Concentration can be developed by children engaging in creative play due to extended periods of focus on their chosen task. By the age of six children have gained the ability to concentrate on a task without having their attention diverted from ten minutes to longer periods of time. During a creative play activity children will often portray one object as another, which cultivates the use of their imagination (Beaver, et al, 2001). Beaver, Brewster, Jones, Keene, Neaum and Tallack (2001) details how creative play can promote learning in children by encouraging the use of fine motor skills. Fine motor skills include small finger movements, manipulative skills and hand eye co ordination (Santrock, 2007). Between the ages of four and six fine motor skills are becoming well coordinated (Beaver, et al, 2001). â€Å"Hand, arm, and fingers all move together under better command of the eye† (Santrock, 2007, p. 187). An example of how creative play can help develop fine motor skills would be when a child is using a pencil to create a picture; they are using a fine hold involving the thumb and fingers. This builds on their hand eye co ordination (Beaver, et al, 2001). Creative play also encourages social development. This involves associative play which includes other children joining in play together (Smith, 1998). Santrock (2007) explains that associative play gives children the opportunity to play together in a social setting and in a creative manner, with little to no organisation. †¦ Children make intermittent interactions and/or are involved in the same activity although their play remains personal† (Beaver, Brewster, Jones, Keene, Neaum and Tallack, 2001, p. 368). Being involved in a creative activity promotes children sharing and taking turns. Participating in an activity within a social setting presents the opportunity to make and maintain friendships (Beaver, et al, 2001). Creative Play Opportunity for Four to Six Year Olds: One creative play opportunity for four to six year olds is a play dough activity involving varied materials. To set up this activity, distribute equal amounts of play dough evenly across a table. This activity needs to be situated in a resource area with access to various materials, including glass stones, bottle lids, ice block sticks, small wooden sticks, shells, material pieces, straws, feathers, and glitter. Incorporate a wide range of scissors and other implements such as cake containers, paper plates, paper muffin cases, play dough pizza cutters, rolling pins, differently shaped biscuit cutters and plastic cutting utensils. The children choose what materials they wish to include in the play opportunity creating a free play environment. Although creative play should begin with an individual expression of children’s’ ideas and have an open ended outcome, intended learning can still occur. Penrose (1998, p. 96) states â€Å"creativity is a process and the expression is in the doing-not the result†. The intended learning for this play opportunity is problem solving, creative and imaginative skills, co ordination of eyes, hand, arm and body and exploration. This play opportunity will promote the intended learning outcome by encouraging children to problem solve. This can occur because of the children’s’ chosen use of the varied materials and the new concepts that they create in relation to their choices. Because older children are already aware of the conventional uses for the materials imaginative ideas are necessary for the ability to portray one thing as another (Beaver, et al, 2001). Hand eye co ordination and fine motor skills are promoted by this play opportunity due to the manipulative manner in which play dough is used (E. Salcin-Watts, Class Handout, August 5, 2010). Children are involved in exploration through comparisons in textures between the play dough and various materials. Somerset, 2000). Beaver, Brewster, Jones, Keene, Neaum and Tallack (2001) acknowledge that all children learn through play at their own level, therefore this play opportunity provides a wide range of materials. This is to ensure that the diverse needs in a group of children are met. The play dough supplied should be safe to chew but discouraged due to the belief in many cultures that playing with food is unacceptable. Distinguishing the difference between using food substances for play dough and cooking is valuable for cultural sensitivity (Penrose, 1998). As the play dough is evenly distributed across the table, each child has equal opportunity to be involved. This play opportunity links to Te Whariki through Strand 3 – Contribution, Goal 2. â€Å"Children experience an environment where they are affirmed as individuals. Children develop a perception of themselves as capable of acquiring new interests and abilities† (Ministry of Education, 1996, p. 68). By engaging in this play opportunity young children are helping their own interests and curiosity progress, they are becoming aware of what their strengths and abilities are (MoE, 1996). Strand 5, Exploration Goal 1 can also be linked to this play opportunity. â€Å"Children experience an environment where their play is valued as meaningful learning and the importance of spontaneous play is recognized. Children develop the ability to make decisions, choose their own materials, and set their own problems. †(Ministry of Education, 1996, p. 84). In this play opportunity young children have access to appropriate materials and are stimulated to enhance their problem solving skills. (MoE, 1996). Imaginative Play Imaginative play can promote learning in varied ways. In this booklet children’s learning of self expression, language development and social development will be discussed. Beaver, Brewster, Jones, Keene, Neaum and Tallack describe imagination as â€Å"the ability to form mental images, or concepts of objects not present, or that do not exist† (2001, p. 118). By participating in imaginative play children have the opportunity to begin expressing themselves and their interpretations of the world around them. Feelings of anxiety about unknown situations can be alleviated by acting out and exploring possible scenarios and outcomes in a familiar setting (Somerset, 2000). New characters or situations can be formed during imaginative play which encourages children to express themselves in unique ways (Beaver, et al, 2001). Role play accommodates for children’s sense of the world and creates a safe environment to explore their feelings (Beaver, et al, 2001). An important part of imaginary play is the dialogue that happens between children (Penrose, 1998). â€Å"Imaginative play provides children with a means of communication with others and themselves. † (Beaver, Brewster, Jones, Keene, Neaum and Tallack, 2001, p. 414). Symbolism is indispensable in understanding language both orally and written. Older children display the ability to use symbolism when they no longer need the ‘real thing’ and begin making their own props or improvising to act out their imaginary play (Penrose, 1998). When children watch the world around them language is a big part of what they observe. Somerset recognises that â€Å"As a child grows, adult words to fit a situation are borrowed, practised and adopted. † (2000, p. 63). Therefore whilst engaging in imaginary play language is being developed through phrases, words and conversations children have heard in their community. Imaginary play can encourage group activities, especially when engaging in role play. In dramatic play children take on a role and every child has their part to play (Penrose, 1988). Children between the ages of 4 and 6 have the ability to participate in c-operative play (Beaver, et al, 2001). Social development is displayed in this age group through the use of co-operative play as children are playing for longer periods of time and are taking responsibility for their peers needs and actions (Penrose, 1998; Beaver, et al, 2001). By partaking in co-operative imaginary play children can acquire the capability to problem solve, build on leadership skills and communicate in various ways in regards to turn taking (Penrose, 1998). Play opportunity for Imaginary play for 4-6 year olds: An imaginary play opportunity for children aged between 4 and 6 is a family role play scenario. To set up this activity a family corner/area will need to be created. To create a family area you will need to ensure that the children have enough space to move around and play together, that children have various materials accessible to them and that equipment imitates things children would see in the home (Somerset, 2000). When providing equipment for the family area it is important to include common objects from other cultures also. For example having kete (Maori flax woven bags/baskets) for children to go shopping with. When providing dress up equipment ensure there are a wide range of different jobs available. Children by the age of 4 will often have picked up on stereotypical gender roles, it is important to encourage children to act out a diverse range of roles. By choosing dress up clothing that is easily put on it gives children the opportunity to involve themselves in the play regardless of ability (Beaver, et al, 2001). Intended learning for this play opportunity is social development, language development and communication through expressing one’s self. Social development at the ages of 4 to 6 can consist of taking turns and taking responsibility of their peer’s actions (Penrose, 1998). In this play opportunity children will be required by their peer’s to share roles and take turns with equipment. A family play situation promotes children’s ability to recognise the rules for behaviour they have experienced. This play opportunity creates a safe space to practice these rules. For example when a child is pretending to be a mother and disciplining their doll for breaking the rules set by the child (Smith, 1998). Smith explores this by stating â€Å"They develop more and more complex rules and roles for themselves in dramatic play. † (1998, pg. 18). Arthur, L. , Beecher, B. , Death, E. , Dockett, S. , Farmer, S. (as cited in Dockett, S. , Fleer, M. , 1999) show how this play opportunity relates to language development by stating â€Å"When children engage in dramatic play, especially shared pretend play, there are many opportunities for language interaction. † (2007, pg. 87). Children will use phrases heard in their home while acting out family situations, for example a repetitive phrase used by a mother could be â€Å"time to snuggle down into bed† which a child involved in this play opportunity could repeat to a doll or peer also involved (Penrose, 1998). Children involved in a family play opportunity can use this safe space to express themselves. This play opportunity is a safe way for children to explore their feelings as they can opt out of play at any time which consequently helps children to feel more comfortable and more able to explore their own emotions and express themselves (Beaver, et al, 2001). This family play opportunity entails all of the following â€Å"Imaginative play helps children to practise adult roles and social relationships, to share each other’s experiences and to integrate various aspects of their own experiences, to inhibit conflict and to develop cooperation, to enhance verbal communication and to express emotion. † (Smith, 1998, pg. 18). This play opportunity links to Te Whariki through the Communication strand and Contribution Strand. Te Whariki explains that an adults’ responsibility in practice is to provide a drama rich environment that extends children’s ifferent concepts, ideas and cultures. Strand 4 Communication, Goal 4; â€Å" Children experience an environment where they discover and develop different ways to be creative and expressive. † (MoE, 1996, pg. 80) shows that children can develop a familiarity with drama in which they express their feelings and moods, and explore situations and cultures (MoE, 1996). This play opportunity displays children’s chance to be expressive in regards to emotions and act out situations. Strand 3 Contribution, Goal 3; â€Å" Children experience an environment where they are encouraged to learn with and alongside others. † (MoE, 1996, pg. 0) shows that children can develop â€Å"strategies and skills for initiating, maintain, and enjoying a relationship with other children – including taking turns, problem solving, negotiating, taking another’s point of view, supporting others, and understanding other people’s attitudes and feelings – in a variety of contexts;† (MoE, 1996, pg. 70). This play opportunity encompasses these strategies as children are participating in co-operative play in which they need to, for example, take turns with the dramatic play equipment (Beaver, et al, 2001). Physical Play Physical play can promote learning in several ways. The ways this booklet will focus on are gross motor skills and social and emotional development. By the age of 4 children are confident in climbing up and over large equipment. Between the ages of 4 and 6 children are developing agility and strength. These skills are important for such physical movements as jumping and climbing. Due to climbing children begin developing the ability to balance. Children between these ages are learning hand eye coordination due to new skills in catching, kicking and throwing balls (Beaver, et al, 2001). Arthur, L. , Beecher, B. , Death, E. , Dockett, S. , Farmer, S. ecognises that â€Å"One of the fascinating things about motor skills is that they develop with practice. † (2007, pg. 81). Therefore through repetition children can learn skills involving gross motor skills. Once children are four years of age the speed of their running can be changed more conveniently and their physical competency is displayed through the ability to accomplish tasks such as long jumps while running, skipping or hopping. By achieving in physical activities children have their skills consolidated and consequently develop confidence in their physical aptitude.

Culture Practice Paper Essay Example | Topics and Well Written Essays - 1000 words

Culture Practice Paper - Essay Example Maya civilization was first established in the pre-classic period. It reached its peak in the classic period and continued until the arrival of the Spanish in the year 1525. At its epitome, it became one of the richest cultures in the world. Maya civilization and Mesoamerican civilization are quite similar due to cultural diffusion and interactions within the societies. Maya civilization helped in the development of famous cities such as, Tikal, Copan, Altun Ha and many others. Maya civilization had intensive agricultural practices with corn as the staple food. Historical anthropologists assert that religion rather than sciences was almost part of every life in Maya civilization. Therefore, more than 40 cities states had temples and pyramids for warships until the fall of Maya civilization in the year 1542. Anthropologists have identified religion, the cosmic tree, the sacred time, deities such as (male/female, old/young, human/animal) language, public life among others as some of the cultural themes in Mayan civilization. Each of these cultural terms played greater roles in the development and peaceful existence of the society. Therefore, these cultures were highly valued to the extent that societies could not do without them. The Mayan society therefore made it necessary to preserve them. Religion, one of the cultural practices in Maya civilization played major role in shaping the society. The fact that religious kings were at the top most level of hierarchy gave religion an upper hand in Maya civilization. For instance, taxation and law were viewed as religious practices, though they were in the civic administrative docket. Other religious aspects were realized on the time factor. The Maya Shaman would interpret the time cycles and give them a prophetic outlook on the past or future within the views of their prescribed calendars. In many cases, the gods would be appeased if by any means the shaman -prophesy would spell

HCM621-0804A-01 Ethics, Policy, and Law in Health Care Management - Essay - 3

HCM621-0804A-01 Ethics, Policy, and Law in Health Care Management - Phase 2 Discussion Board - Essay Example (Safire, 1993) The Watergate scandal impacted our current privacy act and health care privacy laws. If you go to The False Claims Act Legal Center (http://www.taf.org) you will find out of the top 100 claims of violations and fines, over 50 of them are health care institutions. For example, July 2006, Tenet Healthcare had billing violations that include manipulation of outlier payments to Medicare, as well as kickbacks, upcoding, and bill padding. June 2006, St. Barnabas Healthcare, filed false "outlier" Medicare payments (41%) which a hospital can claim if a procedure is particularly difficult or complex. January 2000, Fresenius Medical Care, the worlds largest provider of kidney dialysis products and services, was caught in a scam which involved fraudulent and fictitious blood testing, kickbacks to dialysis facilities to obtain blood testing contracts for LifeChem, and fraudulent claims submitted to Medicare for intradialytic parenteral nutrition. (TAF, 2006) Different kinds of human nature are the driving force behind violations of ethics. Some people are motivated by weighing the risk of getting caught versus the benefit of the fraudulent act. Others might be acting in the interest of rivalry – will this act cause them to move ahead of the competition? A desire to succeed can sometimes cause shortcutting or sidestepping ethical policies. Some people follow the rules of ethics simply because they do not wish to pay the consequences. Many are motivated to keep ethical standards by their own sense of fairness and self-respect. They self-police their own actions based on their moral code learned over time. And finally, some people simply do not know what the standards of ethics are about – never assume all people share the same education and ability to absorb external training. Since it is our business to provide ethical treatment and care for our customer – it’s in our own best interest to exceed minimum legal

Diversity in Society Essay Example | Topics and Well Written Essays - 2750 words

Diversity in Society - Essay Example This is evident from the legislative measures and Disabled Children Act 2000. According to Moss & Petrie, "Our construction of childhood and our images of the child represent ethical and political choices, made within larger frameworks of ideas, values and rationalities". (Moss & Petrie, 2002, p. 55) There is a need to ponder as to why such children suffers discrimination throughout their lives, what can be done morally and socially to detect the negative influences, how the outrageous behaviour can be avoided and what measures can be taken in order to accept them as a part and parcel of our society. We shall explore how the image, which we have created within our minds of the disabled child, can be changed and prolific while utilising the best of public policies and provisions for disabled children. According to Keogh's research, "we should look for subtypes of students with particular patterns of difficulty while examining social, cultural, and environmental explanations for these differences. If we are truly going to provide the most effective services for students and their families with special needs, it will only occur when we understand individual differences". (Bernheimer et al, 1999, p. 8) Developmental disabilities can affect individuals on a temporary or lifelong basis depending upon their capabilities or sometimes the positive utilization of those capabilities. Individuals (children) also move across the spectrum of disability or involvement in their lifetime, depending on several factors, which include the nature of the disability, developmental achievements, individual differences, rehabilitation services, and the environment in which they function and grow. Where individuals are in reference to the spectrum of their disability is an approach that social workers need to be adjusted to because individuals might need different services and support across the life span that vary in need and duration. This has implications for practice, programming, advocacy, and social policy. (Gitterman, 2001, p. 205) Like it is not necessary that every individual require the same kind of assistance and help from social workers, the requirement varies. Similarly the developmental disabilities that affect individuals and their families are not limited to particular ways, instead they affect individuals in different ways, ways that depend on the nature of the disability, ability level, coping and stress, individual differences, culture and belief systems, society's response to a specific condition, and attitudes and value system. (Gitterman, 2001, p. 205) Recent Services It is seen over the last few decades that individuals with developmental disabilities and their families have been profoundly affected by social, economic, philosophical, political, and scientific changes. These changes have included scientific discoveries about drug treatment and prevention of certain conditions, medical technologies to keep at-risk children alive, deinstitutionalisation of the disabled and mentally ill, cash benefits to the disabled and their families, physical and employment access to public places, public special education, legal protection of civil rights, and the rise of self-help movements for both the disabled and their families. (Gitterman, 2001, p. 206) The onus is on the shoulders of social welfare system to identify measures

Spacial topic Essay Example | Topics and Well Written Essays - 1250 words

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Ernie Davis Essay Example | Topics and Well Written Essays - 250 words

Ernie Davis - Essay Example Ernie Davis also holds the honor of being the first athlete of the African American race to be selected in the NFL Draft. In the capacity of being an African American athlete popular for his exceptional performance in many sports in the south, Ernie Davis was racially discriminated against at several occasions. One such event was when Ernie Davis was chosen as the most valuable player (MVP) of the Cotton Bowl in the year 1960 (â€Å"Ernie Davis biography†). The organizers told him to collect his award at the banquet arranged after the game, and leave the facility immediately thereafter. Upon his refusal to accept this proposal, the entire team boycotted the post-game banquet. Ernie Davis died from cancer when he was only 23 years old. His fans continue to wonder what more Ernie Davis might have achieved had he been able to continue playing for the Cleveland Browns. Ernie Davis was young and ambitious, and no hurdle could stop him from earning the fame he has

Comparison of Saudi Aramco and Shell Essay Example | Topics and Well Written Essays - 5000 words

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Write informations about river, Lake and SWAMPS Essay

Write informations about river, Lake and SWAMPS - Essay Example eks to unveil more information about these three main water masses, which are rivers, lakes and swamps besides organisms as well as plants that usually live in these water bodies. Rivers are the chief contributors in the hydrological cycle process (Weston, 2013). A river is a route of water that usually heads towards an ocean or lake. Rivers serve the responsibility of drawing water from the earth before draining it into lakes and seas (Weston, 2013). Apart from water, they also carry along millions of rocks, sediments and living organisms (Weston, 2013). Mainly, the latter rely on rivers as habitats because they cannot survive on dry land except in water. Rivers serve the purpose of regulating environmental processes by shaping continental landscapes through continuous flow, hence resulting to gradual erosion of valleys and plains (Weston, 2013). Rivers comprises of two categories, which are Perennial and Intermittent (Weston, 2013). Perennial carry water throughout the year without running dry while intermittent ones are seasonal. A river can be intermittent due to seasonal changes such as freezing during winter or running dry in summer (Weston, 2013). Some of the common lifeforms found in rivers include fish, dragonflies and snails. Rivers also act habitats for variued types of plants such as arrowheads, skunk cabbage and the blue vervain (National Park Service, 2014). Some plants survive under water while others submerge or just float. Other roles performed by rivers include used for generation of hydroelectric power, aiding varied process essential to human beings like running industrial process, irrigation and domestication of aquatic species meant for consumption like fish (Weston, 2013). These are large water masses enveloped by dry soil and in most case do not have any outlets. They usually comprise about 0.2 percent of the earth’s water (Dickerson, 2008). Most them vary in sizes ranging from those that are many hundred yards wide to dozens of miles

The Modernist Theater’s Departure from the Romantic Theater Essay Example for Free

The Modernist Theater’s Departure from the Romantic Theater Essay From the early theater of the Greeks to Broadway, theater had definitely evolved to one of the most accepted and highly communicated form of art. After all, everything is subject to change, the world of theater is no exception. The theater that we know today had undergone heavy changes. In those stages of changes, it had seemed that just after a type of theater has been accepted by the public, another type of theater will arise. It also seems that the following type of theater intentionally digresses from its predecessor just like in the case of the shift from theater of the Romantic period to the Modernist Theater. Much of the theater that our generation experiences (this type of theater can be categorized as post-modern) owes much from Modernist Theater. With that taken into account, Modern theater also owes much from its forerunner Romantic Theater even though Modern Theater intentionally defies the convention set by the theater of the Romantic period. To start off, we will have a brief background of the kind of theater in the Romantic period. The Romantic period followed after period Neoclassical had receded. Perhaps the best and concise way of theater of the Romantic period could be described is with the name of probably one greatest playwright that had ever written, William Shakespeare. He is considered as an immortal in the world of literature simply because his works are still the most popular of plays even if it has been generations since he had wrought it. Other famous playwrights during this time are Johann Wolfgang von Goethe, Friedrich Schiller, and Victor Hugo among many others. They plays of William Shakespeare and his fellow playwrights during the Romantic period are usually written in poetic language. This poetic language could also be called as â€Å"elevated language† that is seemingly too complicated to be used in conversations of our generation. The plays during this time were mostly plot driven. The theater of the Romantic period is often criticized as appealing more to the emotion and not to the intellect. It is also a convention that the characters of the plays were of noble status in the society. The plays were designed to be long that they could run for several long acts. Moreover, one their theater many practices is having the audiences distributed within the theater according to the amount that they had paid. (Kermode 2005) All of those conventions and practices were intentionally defied by the Modernist Theater. The language that they used is prosaic, imitating the way people normally speak in casual conversations. The plays are also centering on the characters themselves rather than the plot. Modernist Theater also gave way to the rise of one-act plays that would run for just minutes as opposed to hours in Romantic plays. The plays of Modernist Theater is appealing more to the intellect rather than the emotion, thus they can be called intelligent plays. The seats for the audience are fashioned in such way that there will be no marginalization of the poor and the rich. That is because Modernists wanted to have what they call a â€Å"classless† theater. Aside from the direct deviations from the Romantic Theater, Modernists also gave way for revolutions in the theater world. They had formulated plots that can be considered contemporary so the audience could relate more to the play. Modernists Theater also gave way to a new kind of conflict for plays that they call as â€Å"inner conflict. † (Wainscott 1997) All in all, the Modernist Theater had surfaced because (just like how the Romantic period had replaced the Neoclassical period) the context of theater in general is changed through time. The times are changing and so are the demands of the new audience. Modernist Theater had defied the theater of the Romantic period not because the former has no respect to the latter. It just because some things are not fitting anymore, and the new generations requires changes. Reference Kermode, F. 2005. The Age of Shakespeare. Random House Publishing Group: Ontario Wainscott, R. H. 1997. The Emergence of the Modern American Theater, 1914-1929. Yale University Press

Ecofeminism In Environmental Ethics

Ecofeminism In Environmental Ethics Ecofeminism is a term that covers a variety of response to environmental problems and theorizing about them. This paper will look briefly on how the Ecofeminism has to do with Environmental Ethics. In the first section, will look briefly concept on Ecofeminism and environmental ethics and how do they apply. Next this paper will appear on the nature of Ecofeminist, critique of Ecofeminism and the implication of Ecofeminism to women. An attempt has been made in this paper to initiate a discussion about how the issue of how environmental degradation and exploitation of nature became a feminist issue also been discussed. Introduction The word or term of Ecofeminism was introduced by Francoise dEaubonne which is member group of feminists in France. This woman actually tries to pull out and bring out the idea and the attention to womens potential upon the crisis of ecological revolution during that time (dEaubonne 1994). Ecofeminism basely come out from idea on which the women or also known as Eve are closely with the nature compared to the men or Adam. This statement are said so because the behavior of women are feminine and fragile so do nature which are can depleted and destroy if there is no care about it. In last two decades, there are many topics and discussion especially on these Ecofeminism which are relates closely to the environmental ethics in order to prevent nature being degraded by human itself. In 1974, when the Ecofeminism come out with the issue of women and nature, the number of feminist and environmentalist on that time is increasing because of the attraction issue in Western country. The increas ing of number of both parties actually is due to the concern of the link between the domination of women and the domination of nature in Western culture especially in United Kingdom. Although the concept of Ecofeminism has come out to different meaning far from those day during Ecofeminism area in 1974 but at least it still follow the criteria and following claim (Karen 1990): (i) There are important connection between the oppression of women and the oppression of nature. (ii) Understanding the nature of these connections is necessary to any adequate understanding of the oppression of women and the oppression of nature. (iii) Feminist theory and practice must include an ecological perspective. (iv)Solution to ecological problems must include a feminism perspective. Nature of Ecofeminism There are many Feminist that are supportive on Ecofeminist and highlighted on the fact that ecology is a feminist issue. The feminist that highlighted on this issues is Susan Griffin (1998) and Mary Daly (1978), Carolyn Merchant (1980), Ynestra King (1981), Ariel Kay Salleh (1984), Karn Warren (1987,1990), Val Plumwood (1993) also discuss about the link between the oppression of women and nature in order to understand the connection why the environment is a feminist issue and why feminist issues can be addressed in terms of environmental concern(Gaard 1993). There are many feminist agree that ecology is a part of the feminist issue, which only they differ in term of nature and desirability. Ecofeminist can be based on variety of and certain of fundamental claims that point of view which link between oppression women and nature. Supposedly to understand and have wide of view in this discussion, one have to deep understand on nature of these link in order to understand more on oppressi on women and nature (Warren 1987). For ecofeminist, the idea of domination between women and nature is basic of in ideology (Warren 1990). In order to overcome, once has to reconstruct and re-concept of the underlying patriarchal value and structural relation of culture and promote equality, non-violence, non-hierarchical forms of organization to bring out new social forms (Warren 1987). Based on the feminist point of view, they said that one should inter-connect of all life process and revere nature and all life form. They also said that human should not control the nature but co-operate with it (Warren 1990). A characterization of Ecofeminism Ecological feminism is name given based on the characterization or position in different aspects of philosophies. Ecofeminism actually can interpret in much perspective of environmental ethics in the way of ecological such as understanding of the nature concept and how to mitigate or solve of environmental problems (Waren 1987). The understanding of ethics not only refers to one aspect only such as liberal, radical and socialist but it is wide world and it including of nature (Merchant 1992). So to be genuine Ecofeminist, it actually depends on how once describes it or conceptualizes of the Ecofeminist position. This is because to be the genuine Ecofeminist, it depends on how much, which or what level of the position in environmental philosophy to claim it as Ecofeminist. The different configuration of Ecofeminism is react in different way and it depends on how the linked connect between these two topic that discuss which is women and nature. It also depends on how people define it. Different people have their different understanding and view. In addition, it also differ the nature of womens oppression and how the solution been taken, the philosophy of human nature, equality and the how people response on freedom. All these aspect is depends on how each of the feminist theories to describe it (Merchant 1992). During 1960s, the issue on women in the workplace and education has become demanding for the feminist to bring out the topic in order to achieve a fulfilling life. Around the same year, the book Silent Spring written by Rachel Carslon which is feminist in 1962 that focus more on effect of pollution on the human and non-human world which give thousand question of life on earth and it become as a public issue. For an example of liberal in Ecofeminism, this perspectives actually are already been applied in Western country that are focus on political and philosophical framework that build in society to provide freedom in order to pursue their own interest. The liberal perspectives in Ecofeminism to be acceptable is actually depends on how people define it. Many Ecofeminism actually so far has do the concept of liberal feminist work such as keep intact oppressive and patriarchal ways of conceptualizing nature (Roach 1991). For an example, they actually focus work on problematic human- nature that global facing now. For liberal mode, environmental problem is one of the aspects of the degradation of natural resources which the issue are should blame on the lack of regulation of pesticides and other environmental problem. This issue can be mitigating with social production that is environmentally voice. To overcome this issue, combination of science, conservation and law is the best. Opportunity to women should open widely so that this gender can be conservator, lawyer and so on, like men. To change women profession in more professional work as discuss above, it is not the way that can decrease the environmental problem that the world facing right now. As the answer to the view that associated women and nature, these actually were devalued in Western country especially in United Kingdom which the Ecofeminist group with a radical are being analyzed the environmental problem with their critique and idea of patriarchy which could liberate both women and nature (Merchant 1990). So, the argument that always been said is that women are restricted by being closer of nature because their ability to bear children. In fact for the reality, women are actually are already gifted for feminine traits to become close to nature and earth. Critiques of Ecofeminism There are few feminist scholars such as Cecile Jackson (1993), Janet Biehl (1991), Meera Nanda (1991) and Bina Agarwal (1992) have voice out that Ecofeminist perspective which is ethnocentric, essentialist, blind to class, ethnicity and other differentiating cleavages, a historical and neglects the material sphere (Jackson 1993). The existing of Ecofeminist are results as historical exploitation and domination of women and nature as goes by which are seen as victims of development. If any harm to nature, it actually harm to women equally which is act as self-evident to certain Ecofeminist, since the women are close to nature compared to men. None of the claim or argument is link to both of those statements (women and nature). This claim is looking so personal observation and takes its position as self-evident. It actually looks as the maximization to the women and nature in ideology which neglecting the others such as the economic advantage and political power as well as the gender of labor and opportunity (Agarwal 1992). The view of women are become stereotype which men are expect women to become such as caring and nurturing without thought as a full range of women abilities to do other thing (Biehl 1992). Ecofeminist such as Susan Prentice (1998) argue about the combination of women with nature and politics imply that what men are do to earth is destroying or bad compare to women which nurturing to earth. This statement was argued which ignoring that men can also develop to care of nature. This argument actually is going beyond the radical which put Ecofemenism forward a critique that focusing on the relationship between production and reproduction and between ecology (Merchant 1992). Basically, women also provide knowledge of nature which helps in sustain life. The development of Ecofeminism was disrupted because of intervention and capitalist development in society. This which results men are concurred in production of exchange commodities in capitalist system economy while women are more in domestic sphere which specific work-force and social relations. In capitalist system, it actually focuses more on production which sustainability are being neglect. For socialism it focus more on production which to satisfy people need not greed. Based on Ecofeminism view, the socialist ecology should focus more on reproduction and nature rather that focus on production. But it does not happen because they homogenize the category of women. This is because they hardly to see women in other view basics in-term as caste, class, race and ethnicity. Because of this limitation Ecofeminists make effort to join and work together with the socialist framework Implication of Ecofeminist ethics for women. It is fact that females actually give socialized in certain way to achieve and maintain the appropriate system, that it also have been true that socialization aspects which must examined before they can be reclaimed and consider useful (Cuomo 1992).It actually not surprisingly by which the famous claim and argument that mentioned women are Ecofeminism compared to men throughout their behavior are much more closely to nature. The argument of this claim actually can tell that it reinforces the patriarchal ideology of the domination and limit Ecofeminisms own effectiveness which the results noted as the biology actually determine the social inequalities between men and women (Cuomo 1992). Based on the implication that has been studied, it belief that, women are actually very connected to nature with their feminine trait to preserving the environment in order to save the earth from being degraded. Men are actually cannot as feminine as women because the trait are reserve for them which w hy men cannot be expected to participate in the restoration of any environmental projects. This is because; men actually are lack of sensitivity sense to nature that women have it. Therefore, women actually are respectfully to in charge of cleaning up the global problem especially in environment sense as to full fill that they already been done such as nurturing mother. In the nutshell, the implications of Ecofeminst ethics are should appear to women not for men. If one believe that women have all the traits to preserving nature, so it qualifies to save the earth compared to men in a way to doing restoration projects since men gender are less sensitivity to nature. In the nutshell, women therefore can be leader in preserving earth as to full their biological traits which is nurturing mothers. For the conclusion, it actually difficult appears to be emancipator for women. Conclusion Understanding about humanity concept in this world and reality life actually can be build up based on the effort to comprehend those men-women into humanity-nature concept. The account of Ecofeminist that are actually separate both men-women are lead to the exploitation of women which this gender are more likely to viewed as closer to nature compared to men. The perspective of the Ecofeminist and Environmental ethics actually lead to the sense of interdependence of all individual and also human-nature. Interconnection between women and nature of dominant traits actually lead to show the Ecofeminism are mutually supporting each other, the conceptually are linked and the explicit of the acknowledgement of both is vital to any responsible to environmental ethics. The Ecofeminist philosophy actually not mainly focuses on one section that is understand of women characterization but also understanding of liberate women with nature in order to prevent it from the structure of oppression. It has been prove that women actually are very feminine with the nature through their biological behavior. Although it has historical oppression about woman, the Ecofeminism seem agree that trait in women genetic such as caring and nurturing their kid or baby should be include in environmental ethics.

Can Fiction be Philosophy? Essay -- Literature Papers

This paper examines the relation between philosophy and literature through an analysis of claims made by Martha Nussbaum regarding the contribution novels can make to moral philosophy. Perhaps her most controversial assertion is that some novels are themselves works of moral philosophy. I contrast Nussbaum’s view with that of Iris Murdoch. I discuss three claims which are fundamental to Nussbaum’s position: the relation between writing style and content; philosophy’s inadequacy in preparing agents for moral life because of its reliance on rules; and the usefulness of the moral work engaged in by readers of novels. The evaluation of these claims requires a discussion of the nature of philosophy. I find that Murdoch and Nussbaum agree on the ability of literature to contribute to moral understanding, but disagree on the issue of what philosophy is. Therefore, they disagree on the question of whether certain works of fiction are also works of philosophy. I argue tha t the task Nussbaum assigns philosophy is too broad. Through the use of critical and reflective methods, philosophy should examine and sort moral claims. Literary, philosophical and religious texts contribute to moral eduction; keeping them separate helps us appreciate their distinct contributions, as well as respect their distinct aims and methods. Therefore, I conclude that Nussbaum’s inclusion of certain novels in philosophy cannot be sustained. In a recent article, Richard Posner examines the notion, advanced by scholars in the law and literature movement, that "...immersion in literature ... make[s] us better citizens or better people." (1) The focus of his discussion is a set of assertions, including a number made by Martha Nussbaum, concerning the moral influenc... ...h draws the following distinctions: literature does many things, philosophy does one thing (has one aim); literature is natural, philosophy is counter-natural; literature arouses emotion, philosophy tries to eliminate emotional appeal; literature is indirect, philosophy is direct; literature has no problem to solve, philosophy seeks to solve a few technical and abstract problems; literature is concerned with aesthetic form, philosophy does not aim at formal perfection. Murdoch says that she sees "no 'general role' of philosophy in literature" (p. 242). (15) See Frank Palmer, Literature and Moral Understanding (Oxford: Oxford University Press, 1992), chapter 8. (16) In considering what is characteristic of philosophy, I was helped by reading Derrida and Wittgenstein, by Newton Garver and Seung-Chong Lee, (Philadelphia: Temple University Press, 1994), chapter 6.

My Philosophy of Education Essay -- Philosophy of Education Statement

My Philosophy of Education All children can learn. This has been a philosophy of mine ever since I won a contest in fourth grade. All fourth graders were asked to submit a saying a that was going to be put on our school flag. To my surprise, I won and that was what made me realize just how true that statement is. However, that philosophy can be broken up into five components. The first being the purpose of education. Second, the nature of knowledge. Third, the nature of the student. Next, the method used in teaching. Last, but of course not least, the curriculum that is taught in schools. I feel the purpose of education is to create a better person as well as a better society. In today’s society, people need an education more than ever. If a person has an education , they will have better job security which means they will not be as likely to lose their job to technology. Technology gets better by the day. Jobs that required manual work fifteen years ago are now being done by computers or machines. Car factory assembly lines is a good example because the machines can now put the parts together. Another good example is in libraries, when people used to check out books they would have to fill out a card and write down all kinds of book information. Now however, the librarians simply scan the book. I do not know, nor do I want to know how it would feel to have a nonliving â€Å"thing† take your job. This could cause a person to have some serious mental downfalls which brings me to Rousseau. I agree with him when he said people should be able to ma ke their decision and have the right to choose to be good, physically fit, and happy. These three things are so important when it comes to bettering a person. The nat... ... After graduation, I hope to get a job that will give me the opportunity to make these ideas reality. I know that after a few years of teaching I will make a lot of changes as well as adjustments. Seeing the varieties of teaching styles through my co-workers will give me different ideas on teaching. I eventually would like to be able to join groups of with other teachers and professionals that will allow me to learn more about teaching. Well, there you have it. My philosophy of education. I am aware that there are many ways of teaching and I am going to be very open minded about other teachers philosophies and not criticize them. The variety of people is what makes the world go ‘round and that is why all teachers have a different way of teaching. However, I feel that the importance of these five components need to be stressed throughout all classrooms. My Philosophy of Education Essay -- Philosophy of Education Statement My Philosophy of Education All children can learn. This has been a philosophy of mine ever since I won a contest in fourth grade. All fourth graders were asked to submit a saying a that was going to be put on our school flag. To my surprise, I won and that was what made me realize just how true that statement is. However, that philosophy can be broken up into five components. The first being the purpose of education. Second, the nature of knowledge. Third, the nature of the student. Next, the method used in teaching. Last, but of course not least, the curriculum that is taught in schools. I feel the purpose of education is to create a better person as well as a better society. In today’s society, people need an education more than ever. If a person has an education , they will have better job security which means they will not be as likely to lose their job to technology. Technology gets better by the day. Jobs that required manual work fifteen years ago are now being done by computers or machines. Car factory assembly lines is a good example because the machines can now put the parts together. Another good example is in libraries, when people used to check out books they would have to fill out a card and write down all kinds of book information. Now however, the librarians simply scan the book. I do not know, nor do I want to know how it would feel to have a nonliving â€Å"thing† take your job. This could cause a person to have some serious mental downfalls which brings me to Rousseau. I agree with him when he said people should be able to ma ke their decision and have the right to choose to be good, physically fit, and happy. These three things are so important when it comes to bettering a person. The nat... ... After graduation, I hope to get a job that will give me the opportunity to make these ideas reality. I know that after a few years of teaching I will make a lot of changes as well as adjustments. Seeing the varieties of teaching styles through my co-workers will give me different ideas on teaching. I eventually would like to be able to join groups of with other teachers and professionals that will allow me to learn more about teaching. Well, there you have it. My philosophy of education. I am aware that there are many ways of teaching and I am going to be very open minded about other teachers philosophies and not criticize them. The variety of people is what makes the world go ‘round and that is why all teachers have a different way of teaching. However, I feel that the importance of these five components need to be stressed throughout all classrooms.

Coastal Restoration in Louisiana Essay -- Environmental Management

Geologically speaking, Louisiana is a very young state. Environmentally speaking, Louisiana is a very fragile state. Louisiana has always been dependent upon the nutrient rich deposits from the Mississippi River to build up the land. Centuries ago the Mississippi River periodically changed its course, building up Louisiana one delta at a time. The erosional forces of the Gulf of Mexico and annual hurricanes depleted Louisiana’s coastline, but the mighty Mississippi River would replenish the land losses. Such is the relationship that forces of nature have with one another. Place mankind in the mix, and the relationship becomes stressed and dysfunctional. The present day Louisiana coastline is a mere shadow of its former self. Let’s look at how Louisiana came to its current demise and what is being done to rectify the situation. Historical Data As sea level rose and fell over Louisiana in previous centuries, the Mississippi River carried large loads of sediment to the Gulf Coastal area from the core of the North American continent and deposited it on the rim of the Gulf of Mexico. Prior to the twentieth century, 5 million acres of land were compliments of the large influxes of mud from the river’s mammoth basin, extending from Montana to New York State. Organic matter from highly productive marine waters has been deeply buried under the whole state and far offshore, turning into petroleum. During other dry periods, large beds of salt were laid down through evaporation. Human engineering has temporarily tamed the river, most of the time, preventing it from dumping its valuable land building sediment all over the place. As a result, coastal Louisiana is sinking out of sight, starved of fresh material. The Mississippi Delta was... ... University of New Orleans. "That's not even possible. The goal is to restore healthy natural processes, then live with what you get." (Bourne) Sounds like a good attitude to this happy Cajun. Works Cited Alden, Andrew. About.com Guide. 4 December 2010 . Bourne, Joel K. National Geographic Society -Environment-The Big Uneasy. 4 December 2010 . State of LA, Gov. Bobby Jindal. Coastal Protection and Restoration. 4 December 2010 . Tibbetts, John. "Environmental Health Perspectives." January 2006. Louisiana-A lesson in Nature Appreciation Vol. 114, Number 1. 4 December 2010 .

Two Levels of Control: Strategic and Operational

Two Levels of Control: Strategic and Operational Imagine that you are the captain of a ship. The strategic controls make sure that your ship is going in the right direction; management and operating controls make sure that the ship is in good condition before, during, and after the voyage. With that analogy in mind, strategic controlstrategic controlThe process by which an organization tracks the strategy as it is being implemented, detecting any problem areas or potential problem areas that might suggest that the strategy is incorrect, and making any necessary adjustments. s concerned with tracking the strategy as it is being implemented, detecting any problem areas or potential problem areas suggesting that the strategy is incorrect, and making any necessary adjustments. [716] Strategic controls allow you to step back and look at the big picture and make sure all the pieces of the picture are correctly aligned. Operational control : A process concerned with executing the strategy. , in contrast to strategic control, is concerned with executing the strategy. Where operational controls are imposed, they function within the framework established by the strategy.Normally these goals, objectives, and standards are established for major subsystems within the organization, such as business units, projects, products, functions, and responsibility centers. [717] Typical operational control measures include return on investment, net profit, cost, and product quality. These control measures are essentially summations of finer-grained control measures. Corrective action based on operating controls may have implications for strategic controls when they involve changes in the strategy.Types of Control It is also valuable to understand that, within the strategic and operational levels of control, there are several types of control. The first two types can be mapped across two dimensions: level of proactivity and outcome versus behavioral. The following table summarizes thes e along with examples of what such controls might look like. Proactivity Proactivity can be defined as the monitoring of problems in a way that provides their timely prevention, rather than after the fact reaction.In management, this is known as feedforward controlfeedforward controlsThe active monitoring of problems in a way that provides their timely prevention, rather than after-the-fact reaction. ; it addresses what can we do ahead of time to help our plan succeed. The essence of feedforward control is to see the problems coming in time to do something about them. For instance, feedforward controls include preventive maintenance on machinery and equipment and due diligence on investments. Table  15. 1. Types and Examples of Control Control Proactivity |Behavioral control |Outcome control | |Feedforward control |Organizational culture |Market demand or economic forecasts | |Concurrent control |Hands-on management supervision during a project |The real-time speed of a production line | |Feedback control |Qualitative measures of customer satisfaction |Financial measures such as profitability, sales | | | |growth | Concurrent Controls The process of monitoring and adjusting ongoing activities and processes is known as concurrent controlconcurrent controlsProcesses that entail monitoring and adjusting ongoing activities..Such controls are not necessarily proactive, but they can prevent problems from becoming worse. For this reason, we often describe concurrent control as real-time control because it deals with the present. An example of concurrent control might be adjusting the water temperature of the water while taking a shower. Feedback Controls Finally, feedback controlsfeedback controlsProcesses that involve the gathering of information about a completed activity, evaluating that information, and taking steps to improve the similar activities in the future. involve gathering information about a completed activity, evaluating that information, and taking steps to improve the similar activities in the future.This is the least proactive of controls and is generally a basis for reactions. Feedback controls permit managers to use information on past performance to bring future performance in line with planned objectives. Control as a Feedback Loop In this latter sense, all these types of control function as a feedback mechanism to help leaders and managers make adjustments in the strategy, as perhaps is reflected by changes in the planning, organizing, and leading components. This feedback loop is characterized in the following figure. Figure  15. 4. Controls as Part of a Feedback Loop [pic] Why might it be helpful for you to think of controls as part of a feedback loop in the P-O-L-C process?Well, if you are the entrepreneur who is writing the business plan for a completely new business, then you would likely start with the planning component and work your way to controlling—that is, spell out how you are going to tell whethe r the new venture is on track. However, more often, you will be stepping into an organization that is already operating, and this means that a plan is already in place. With the plan in place, it may be then up to you to figure out the organizing, leading, or control challenges facing the organization. Outcome and Behavioral Controls Controls also differ depending on what is monitored, outcomes or behaviors. Outcome controlsoutcome controlsProcesses that are generally preferable when just one or two performance measures (say, return on investment or return on assets) are good gauges of a business’s health. re generally preferable when just one or two performance measures (say, return on investment or return on assets) are good gauges of a business’s health. Outcome controls are effective when there’s little external interference between managerial decision making on the one hand and business performance on the other. It also helps if little or no coordination wi th other business units exists. Behavioral controlsbehavioral controlsThe direct evaluation of managerial and employee decision making, not of the results of managerial decisions. involve the direct evaluation of managerial and employee decision making, not of the results of managerial decisions. Behavioral controls tie rewards to a broader range of criteria, such as those identified in the Balanced Scorecard.Behavioral controls and commensurate rewards are typically more appropriate when there are many external and internal factors that can affect the relationship between a manager’s decisions and organizational performance. They’re also appropriate when managers must coordinate resources and capabilities across different business units. Financial and Nonfinancial Controls Finally, across the different types of controls in terms of level of proactivity and outcome versus behavioral, it is important to recognize that controls can take on one of two predominant forms: f inancial and nonfinancial controls. Financial controlfinancial controlThe management of a firm’s costs and expenses to control them in relation to budgeted amounts. nvolves the management of a firm’s costs and expenses to control them in relation to budgeted amounts. Thus, management determines which aspects of its financial condition, such as assets, sales, or profitability, are most important, tries to forecast them through budgets, and then compares actual performance to budgeted performance. At a strategic level, total sales and indicators of profitability would be relevant strategic controls. Without effective financial controls, the firm’s performance can deteriorate. PSINet, for example, grew rapidly into a global network providing Internet services to 100,000 business accounts in 27 countries. However, expensive debt instruments such as junk bonds were used to fuel the firm’s rapid expansion.According to a member of the firm’s board of dire ctors, PSINet spent most of its borrowed money â€Å"without the financial controls that should have been in place. †[718] With a capital structure unable to support its rapidly growing and financially uncontrolled operations, PSINet and 24 of its U. S. subsidiaries eventually filed for bankruptcy. [719] While we often think of financial controls as a form of outcome control, they can also be used as a behavioral control. For instance, if managers must request approval for expenditures over a budgeted amount, then the financial control also provides a behavioral control mechanism as well. Increasing numbers of organizations have been measuring customer loyalty, referrals, employee satisfaction, and other such performance areas that are not financial.In contrast to financial controls, nonfinancial controlsnonfinancial controlsProcesses that track aspects of the organization that aren’t immediately financial in nature but are expected to lead to positive financial perfor mance outcomes. track aspects of the organization that aren’t immediately financial in nature but are expected to lead to positive performance outcomes. The theory behind such nonfinancial controls is that they should provide managers with a glimpse of the organization’s progress well before financial outcomes can be measured. [720] And this theory does have some practical support. For instance, GE has found that highly satisfied customers are the best predictor of future sales in many of its businesses, so it regularly tracks customer satisfaction. Key Takeaway Organizational controls can take many forms.Strategic controls help managers know whether a chosen strategy is working, while operating controls contribute to successful execution of the current strategy. Within these types of strategy, controls can vary in terms of proactivity, where feedback controls were the least proactive. Outcome controls are judged by the result of the organization’s activities, w hile behavioral controls involve monitoring how the organization’s members behave on a daily basis. Financial controls are executed by monitoring costs and expenditure in relation to the organization’s budget, and nonfinancial controls complement financial controls by monitoring intangibles like customer satisfaction and employee morale.

Discuss the Ways in Which in Chapter 1 of ‘Enduring Love’ Essay

â€Å"The beginning is simple to mark†. This is the opening sentence of Ian McEwan’s novel â€Å"Enduring Love†, and in this first sentence, the reader is unwittingly drawn into the novel. An introduction like this poses the question, the beginning of what? Gaining the readers curiosity and forcing them to read on. The very word â€Å"beginning† allows us an insight into the importance of this event, for the narrator must have analysed it many a time in order to find the moment in which it all began, and so it is obviously significant period of his life. And surely if the beginning is â€Å"simple†, what is to come must be complex. This and the writers delaying tactics, attention to precise detail and a red herring hook the reader and draw them well and truly into the novel. The reader joins â€Å"Joe†, the narrator, as he and his lover â€Å"Clarissa† are enjoying a romantic picnic in the countryside. Bathed in sunlight under a turkey oak, â€Å"partly protected from a strong gusty wind†, the relationship between the two is yet to be divulged, but McEwan’s use of the phrase â€Å"partly protected†, seems to imply that these two people have been protected from such horrors until this moment. Before the cry is heard and the race into the tale begins, a strong picture is painted; the reader can almost taste the air, and feel the â€Å"cool neck† of the 1987 Daumas Gassac as they themselves clutch the corkscrew. This attention to detail is a technique McEwan uses frequently throughout this chapter, to enforce just how important this day was to Joe, how the memory of this day has been replayed over and over in his mind until he is able to reel off the minutiae almost mechanically. The reader is therefore drawn into the story with the morbid curiosity of what is to happen, what the â€Å"pinprick on the time map† of Joe’s’s life is, and how it affects it. When the shout is heard, and Joe’s’ life begins its descent â€Å"away from [our] happiness among the fresh spring grasses by the oak†, the reader is still unaware of what this â€Å"danger† is exactly. However we do know that this is the event that shapes the rest of the novel and is the fundamental moment of the narrative. Whilst Joe runs towards the danger, he hears the shout again, followed by a child’s’ cry, â€Å"enfeebled by the wind†. Now that a child has been involved in this danger, it becomes all the more grave, for nothing provokes more feeling then the possibility of a child perishing. This in itself goads the reader to read on, willing the child to be saved, yet prepared for it to die. Yet we are still unaware as to what this danger is exactly. As our  hero races towards it, we are treated to a rather mathematical description of what is happening around him through the viewpoint of a buzzard, again giving the impression that this is something Joe has been recollecting and scrutinizing since it took place, looking at it from all angles, therefore giving it even more importance. The only clue we are given is the narrator revealing that the event about to take place is a fall, but who’s? While Joe rushes to the scene, so too do others; John Logan, family doctor, wife and two children; Joseph Lacey, captain of his local bowls team, living alone with his wife; Toby Greene, farm labourer with a reliant mother; James Gadd, wife and mentally handicapped child; Jed Perry, twenty eight and living on an inheritance. Harry Gadd, ten years of age. Thanks to these short but informative introductions we now have empathy with all of McEwan’s characters. Someone is to die, but who would we rather it be? Greene? Unspeakable, for that would leave his mother (no doubt a meek and feeble old woman) alone in the world. Logan? What of his widow, children and patients? It is to be one of these characters, and we are reminded this by the mention of the coroners inquest, but who? The automatic assumption is that it is to be the child, and this red herring is another of McEwan’s tactics of hooking the reader into the novel and making it impossible to put down. An important aspect of this first chapter is the way in which the narrator delays in giving us this information. He himself admits to it, to â€Å"holding back†, yet he uses language such as â€Å"fatal†, â€Å"aftermath† and â€Å"catastrophe† to hint to an imminent death of someone. This technique is echoed in the way McEwan lingers on the period of time before the disaster, recounting the day from the very beginning. This causes a build-up of tension, it is almost like when watching a soap opera; the events to come are revealed at the start, and then the story commences from before they take place. This method causes the readers to feel impatient, almost wanting to skip ahead to see what happens, but too engrossed in the story, anxious for, yet dreading the moment in which the shout is heard. Phrases such as â€Å"other outcomes were still possible† again add to the feeling of impending doom; other outcomes were possible, but they did not take place, this collision of men all intent on helping the distressed was futile. It is in these ways that McEwan succeeds in creating suspense that â€Å"demands a kind of physical courage from the reader to continue reading†, by using detail, delay and decoy. The first chapter is no doubt one of the most effective openings of any narrative, making it not only â€Å"unforgettable†, but achieving exactly what McEwan intended it to; the undivided and unconditional attention of the reader.

Distinctive Marketing, IT Capabilities, and Strategic Types: A Cross-National Investigation

Distinctive Marketing and Information Technology Capabilities and Strategic Types: A Cross-National Investigation ABSTRACT Keywords: strategic typology, firm capabilities, cross-national, Japan, China The authors examine the relationship between strategic type and development of distinctive marketing, market-linking, technology, and information technology (IT) capabilities to implement innovation strategy. They hypothesize that prospectors must build technical and IT capabilities, whereas defenders develop market-linking and marketing capabilities. The authors collect data from 709 firms across the United States, Japan, and China.They find support for their capability hypotheses, as well as for some of their cross-national hypotheses that are based on cultural and business environment differences among the three countries. In particular, they find support for the hypotheses that Japanese firms have greater technology and IT capabilities than U. S. firms of the same strategic type. Th ey conclude with implications for management. The strategic typology of Miles and Snow (1978) has received much attention in the marketing and management literature over the past two decades (e. g. Conant, Mokwa, and Varadarajan 1990; Dyer and Song 1997, 1998; Griffin and Hauser 1996; Gupta, Raj, and Wilemon 1986; McDaniel and Kolari 1987; McKee, Varadarajan, and Pride 1989; Parry and Song 1993, 1994; Ruekert and Walker 1987; Song and Xie 2000; Walker et al. 2003). Almost 30 years after its initial appearance in the literature, their typology is viewed widely as having stood the test of time and is still the most popular and commonly accepted model of strategic types in the management literature, having been applied in many different industry settings (DeSarbo et al. 005; DeSarbo et al. 2006; Hambrick 2003). Miles and Snow envision strategy as the patterns in the decisions by which a strategic business unit (SBU) aligns itself with its environment, and they categorize SBUs according to these patterns. The critical underlying variable in their typology is the rate of change in an SBU’s products or markets. Using an exploratory empirical study, Miles and Snow propose four strategic types—prospectors, analyzers, defenders, and reactors—and suggest that each of the first three types chooses a different competitive strategy ith respect to products and/or markets: Prospectors will innovate technologically and seek out new markets, analyzers will prefer a â€Å"second-but-better† strategy, and defenders will focus on maintaining a secure niche in a relatively stable Michael Song, Robert W. Nason, and C. Anthony Di Benedetto Journal of International Marketing  © 2008, American Marketing Association Vol. 16, No. 1, 2008, pp. 4–38 ISSN 1069-031X (print) 1547-7215 (electronic) 4 product or service area.Miles and Snow suggest that all three of these strategic types can be successful if the SBU matches its strategy to the competitive en vironment and develops and deploys appropriate capabilities. Capabilities have been broadly defined as â€Å"complex bundles of skills and accumulated knowledge that enable firms [or SBUs] to coordinate activities and make use of their assets† (Day 1990, p. 38). In this article, we examine the relationship between Miles and Snow’s (1978) strategic type and four capability constructs: technology, market linking, marketing, and information technology (IT).Day (1994) suggests that both technology and market-linking capabilities (or â€Å"insideout† and â€Å"outside-in† capabilities, respectively) are critical to sustained competitive advantage and superior performance (see also Day 1990; Day and Wensley 1988). Technology capabilities, which enable the organization to improve production process efficiencies and ultimately reduce its costs and increase its competitiveness, include financial management, cost control, technology development, logistics, manufact uring, and other processes with an internal emphasis.Market-linking capabilities, which enable the organization to use its technology capabilities to exploit marketplace opportunities, include market sensing, channel bonding, customer linking, technology monitoring, and spanning processes such as purchasing and new product development (Day 1994). Marketing capabilities, such as customer and competitive knowledge, skill in market segmentation and targeting, and effective marketing program design, should also be related to an organization’s performance. In a ioneering study, Conant, Mokwa, and Varadarajan (1990) link marketing capabilities to the four strategic types and find that prospectors are superior in marketing capabilities. The marketing literature suggests that obtaining market and competitive information and diffusing it throughout the organization lead to better market orientation, better performance, and sustainable competitive advantage (Day 1994; Jaworski and Kohl i 1993). The literature also suggests that IT capabilities are increasingly important means to these ends.Research in both the marketing and new product streams has recognized the difficulty of communication across functional boundaries and has identified ways to improve both the quantity and quality of information (Dyer and Song 1997, 1998; Griffin and Hauser 1992, 1993, 1996; Montoya-Weiss and Calantone 1994; Parry and Song 1993, 1994; Ruekert and Walker 1987; Song, Thieme, and Xie 1998; Song and Xie 2000; Swink and Song 2007). All four capability constructs include significant marketing processes. The original, exploratory Miles and Snow (1978) research finds relationships between firm capabilities andInformation Technology Capabilities and Strategic Types 5 strategic types in a limited number of industries. A subsequent study in this research stream empirically examines the relationships between marketing capabilities and strategic types and also validates a scale for assessing a business unit’s strategic type (Conant, Mokwa, and Varadarajan 1990). Two recent studies by DeSarbo and colleagues (2005, 2006) propose and empirically test models that include a range of capabilities in addition to marketing capabilities.DeSarbo and colleagues (2005) use SBU data from three countries (the United States, China, and Japan) to derive a descriptive strategic typology that improves on the Miles and Snow typology in terms of explanatory power; this study is extended by DeSarbo and colleagues (2006) to a predictive model that examines causalities between strategic capabilities and SBU performance. The first objective of the current study is to examine the relationships between an SBU’s strategic type and its development of the four distinctive organizational capabilities technology, market linking, marketing, and IT). This research extends the previously mentioned research stream (Conant, Mokwa, and Varadarajan 1990; DeSarbo et al. 2005; DeSarbo et al. 200 6) in that we seek to quantify and to better understand these relationships. The second objective is to build and test hypotheses regarding cross-national differences and their effects on the relationships between strategic type selection and the capabilities, a topic in which no empirical work has been conducted so far. We gather empirical data from three countries: the United States, China, and Japan.As China and Japan are the two largest East Asian economies, and together with the United States make up the three largest economies worldwide as measured by purchasing power (World Bank 2000), it is important to examine how firms from these countries compare with respect to their capabilities and strategies. Although DeSarbo and colleagues (2005) use a three-country database to build their descriptive typology, the research does not use the extant international marketing and management literature to build or test hypotheses of cross-national differences.We believe that the cross-nati onal hypothesis testing constitutes a clear extension to the work of Conant, Mokwa, and Varadarajan (1990) and DeSarbo and colleagues (2005, 2006). We first propose a set of four hypotheses relating an SBU’s relative capabilities to its selection of strategic type, as well as four additional hypotheses expressing expected crossnational differences in the magnitudes of the capabilities. We then test these hypotheses using a data set of 709 managers from the United States, Japan, and China. Our empirical results largely confirm these hypotheses. We conclude by 6 Michael Song, Robert W. Nason, and C.Anthony Di Benedetto providing theoretical implications and some possible prescriptions for managers seeking to improve their organization’s strategy selection. In this section, we define the Miles and Snow (1978) typology and discuss the implication of the strategic selection. We then define the four capability constructs and develop four hypotheses relating the capability co nstructs to strategic type. The Miles and Snow (1978) strategic types differ in the rate at which they change products or markets in response to environmental change. According to Miles and Snow, prospectors are the leaders of change in their industry.They operate within a broad product-market domain that undergoes periodic redefinition (Conant, Mokwa, and Varadarajan 1990; Dyer and Song 1997). They value being â€Å"first in† in new product and market areas as market pioneers even if not all these efforts prove to be highly profitable (Robinson and Fornell 1985; Robinson, Fornell, and Sullivan 1992). They often need to respond rapidly to early signals involving areas of opportunity, and these responses often lead to a new round of competitive actions. Nevertheless, prospectors may not maintain market strength in all the areas they enter.They compete principally through launching new products and meeting new marketplace opportunities. Consequently, they devote significant res ources to new product development, market research, and other marketing expenses (Hambrick 1983; McDaniel and Kolari 1987; Shortell and Zajac 1990; Walker et al. 2003). Prospectors also rely on close ties with the channel of distribution to anticipate customer needs and environmental changes (Walker et al. 2003). Sony’s audio products SBU, which is responsible for innovations such as the Walkman, is an example of a typical prospector organization.Defenders attempt to locate and maintain a secure niche in a relatively stable product or service area. They are less risk oriented than prospectors; typically they do not look outside well-defined product-market domains for new opportunities (McDaniel and Kolari 1987; Shortell and Zajac 1990). Rather than invest time in new product or market development, they tend to offer a more limited range of products or services than their competitors, and they focus on resource efficiency and cost-cutting process improvements to try to protect their domain by offering higher quality, superior service, lower prices, and so forth (Hambrick 1983).Defenders are normally not at the forefront of developments in the industry. Walker and colleagues (2003) distinguish between two defender strategies: price cutting and competitive differentiation. Unlike Sony’s audio SBU, Matsushita’s audio division, a typical defender organization, is likely to focus not on developing products but rather on cutting manufacturing costs (Lieberman and Montgomery 1988). HYPOTHESIS DEVELOPMENT The Miles and Snow Strategic Typology Information Technology Capabilities and Strategic Types 7 Analyzers show qualities of both defenders and prospectors.They attempt to maintain a stable, limited line of products or services, while moving out quickly to follow a carefully selected set of the more promising new developments in the industry (Conant, Mokwa, and Varadarajan 1990; Dyer and Song 1997). Analyzers are seldom â€Å"first in† with new products or services. However, by carefully monitoring the actions of major competitors in areas compatible with their stable product-market base, they are frequently â€Å"second in† with a more cost-efficient product or service (Conant, Mokwa, and Varadarajan 1990; Dyer and Song 1997).For example, they might develop a new product in a stable market domain or sell established products in new geographic markets or through new distribution channels. They can operate in different domains, perhaps one stable and one more turbulent (McDaniel and Kolari 1987). Miles and Snow (1978, p. 73) characterize analyzers as â€Å"avid followers of change,† always ready to pursue a promising, emerging product or market with a later-entrant, â€Å"second-but-better† strategy (Robinson, Fornell, and Sullivan 1992).They can initiate product and/or market development, but less often than prospectors; at the same time, they can focus on stability and efficiency, but to a lesser extent than defenders (Hambrick 1983). Reactors typically lack long-term plans and any consistent strategy, instead reacting to environmental pressures as necessary (McDaniel and Kolari 1987). Empirical study has suggested that prospectors, analyzers, and defenders all perform well (Conant, Mokwa, and Varadarajan 1990; Miles and Snow 1978) and generally outperform reactors.We are interested primarily in the relative capabilities of the three potentially successful archetypal strategic types, so we do not explicitly include reactors in our hypotheses. We have gathered data from reactor organizations, however, and included them in our analysis section. To create economic value, sustain competitive advantage, and achieve superior profitability, an organization requires a wide range of capabilities. Although it would be impossible to list them all, certain categories of capabilities common to many organizations have been identified and used in prior research (e. . , Day 1994; DeSarbo et al. 2006). Technology capabilities—such as financial management, cost control, technology development, and logistics—enable an organization to keep costs down and to differentiate its offerings from those of competitors. Market-linking capabilities—such as sensing market trends, channel and customer linking, and technology monitoring—enable an organization to be responsive to changing customer needs and to use its technical capabilities effectively to exploit external possibilities (Day 1994). Marketing capabilities—such as skill in segmentation,Organizational Capabilities 8 Michael Song, Robert W. Nason, and C. Anthony Di Benedetto targeting, pricing, and advertising—enable the organization to take advantage of its market-sensing and technological capabilities and to implement effective marketing programs (Song and Parry 1997a, 1997b). Finally, IT capabilities enable the organization to diffuse market information effectively across all rel evant functional areas so that it can direct new product development. Not all organizations will have all of these capabilities (Day and Nedungadi 1994; Day and Wensley 1988).Furthermore, organizations will solidify and even develop their particular capabilities through time according to their strategic type, as Miles and Snow’s (1978) classification posits. For example, prospectors tend to compete by anticipating new product or marketplace opportunities and by implementing technological innovation; continued, successful prospecting will have the effect of strengthening inside-out and IT capabilities. The subsequent sections explore the hypothesized relationships between strategic type and organizational capabilities.Market-linking and -sensing capabilities enable the organization to compete by sensing market changes effectively, anticipating shifts in the market environment, creating and retaining durable links with customers, and creating strong bonds with channel members s uch as wholesalers and retailers. These capabilities enable the organization to sense marketplace requirements before competitors and to connect its other capabilities to the external environment (Day 1994). Organizations of all strategic types need well-developed market-linking capabilities.For defenders, however, such capabilities are particularly critical because these organizations must correctly and quickly anticipate changes in the market and their customers’ needs if they are to maintain their prominence within their existing product-market domain (Conant, Mokwa, and Varadarajan 1990). Because defenders attempt to locate and maintain a secure niche in a relatively stable product or service area, they tend to offer a more limited range of products or services than their competitors, and they try to protect their domain by offering higher quality, superior service, lower prices, and so forth.To be effective in achieving these objectives, defenders must possess a high lev el of market-linking capabilities. Walker and colleagues (2003) also note that tracking changes in customer needs and competitive behavior is especially important to a differentiated defender strategy. They note that defenders should be strongest in business functions related to their competitive strategy, such as market sensing and linking. Although prospectors should also have good market-linking capabilities, their ability to sustain competitive advantage is more closely tied to the development of new products, markets, and technologies.Therefore, although Market-Linking Capabilities Information Technology Capabilities and Strategic Types 9 market-linking capabilities are important to prospectors and analyzers, defenders will need them most. Our expectations about organizational strategy types and market-linking capabilities (relative to competitors) can be summarized as follows: H1: Along the prospectors–analyzers–defenders continuum, prospectors have the least rel ative marketlinking capabilities, nd defenders have the greatest. Technical capabilities involve the manufacturing processes, technology, new product development, production facilities, and forecasting of technological change in the industry. They are contained within the organization and activated by market, competitor, and external challenges and opportunities. By increasing efficiency in the production process, they can reduce costs and improve consistency in delivery and, therefore, competitiveness (Day 1994).Although technical capabilities are likely to be important for all strategic types, they should be most important to prospectors, which prosper in unstable, changing environments, especially those marked by rapid technological change such as biotechnology, medical care, and aerospace (Walker et al. 2003). Because prospectors use a first-to-market strategy and typically operate within a broad product-market domain that undergoes periodic redefinition (Robinson, Fornell, and Sullivan 1992), they must be able to develop new technologies, products, and markets rapidly (Conant, Mokwa, and Varadarajan 1990; McDaniel and Kolari 1987).Walker and colleagues (2003) note that prospectors require strength in product research and development (R&D) and product engineering, and they perform best when the amount spent on product R&D is high. Because defenders typically locate and maintain a secure niche in a relatively stable product or service area, they tend to be less interested in developing new products and technologies and therefore will depend less on technical capabilities. Formally, H2: Along the prospectors–analyzers–defenders continuum, prospectors have the greatest relative technical capabilities, and defenders have the least.Marketing capabilities include knowledge of the competition and of customers and skill in segmenting and targeting markets, in advertising and pricing, and in integrating marketing activity. Conant, Mokwa, and Varadaraj an (1990) find that prospector firms have distinctive competencies in marketing planning, allocation of marketing resources, revenue forecasting, and control of marketing activities. However, although both prospectors and defenders require skills in Technical Capabilities Marketing Capabilities 10 Michael Song, Robert W. Nason, and C. Anthony Di Benedetto arketing and market research to succeed (Song and Parry 1997a, b), certain marketing capabilities will be of most importance to defender firms because they are most concerned about protecting products and retaining customers (McDaniel and Kolari 1987). Walker and colleagues (2003) note that differentiated defenders must be able to communicate their products’ unique advantages so as to sustain customer satisfaction and loyalty. Low-cost defenders must be able to standardize effective marketing programs across all customer segments so as to reduce overall marketing costs.Thus, because both differentiated and low-cost defenders rely on marketing capabilities, they should develop them to a greater degree than should other strategic types. H3: Along the prospectors–analyzers–defenders continuum, prospectors have the lowest relative marketing capabilities, and defenders have the greatest. A firm active in product development must be able to gather technical and market information effectively and disseminate it throughout the organization (Jaworski and Kohli 1993; Kohli and Jaworski 1990; Narver and Slater 1990).These IT capabilities facilitate internal communication and cross-functional integration (Song et al. 2007). Better IT is associated with greater strategic flexibility and, ultimately, with better performance and greater organizational success (Bharadwaj, Bharadwaj, and Konsynski 1999; Swanson 1994). Day (1994) notes that more creative use of IT should lead to better firm performance, and other researchers have found that better information transmission across functional areas leads to m ore successful new products (Griffin and Hauser 1992, 1993, 1996; Gupta, Raj, and Wilemon 1986; Moenaert and Souder 1996).As we discussed previously, prospectors typically operate within a broad product-market domain that undergoes periodic redefinition. They also rely on the rapid development of new products and new markets (Robinson, Fornell, and Sullivan 1992). Therefore, prospectors need relatively high IT skills to respond rapidly to early signals involving areas of opportunity. Miles and Snow (1978) note that prospectors tend to have the most complex coordination and communication mechanisms.Because of the technologically advanced nature of the products they develop, prospectors are also more likely to encounter conflicts among marketing, R&D, engineering, and possibly other functional areas (Dyer and Song 1997, 1998; Walker et al. 2003). This makes even more critical prospectors’ ability to communicate as effectively as possible and to ensure the free flow of informati on throughout the organization. In addition, prospectors might need greater strategic flexibility than other strategic types because they must constantly monitor and target emerging technology IT CapabilitiesInformation Technology Capabilities and Strategic Types 11 and product opportunities; better IT contributes to greater strategic flexibility (Bharadwaj, Bharadwaj, and Konsynski 1999). Formally, we propose the following: H4: Along the prospectors–analyzers–defenders continuum, prospectors have the greatest relative IT capabilities, and defenders have the lowest. CROSS-NATIONAL HYPOTHESES The cultural differences among Japan, China, and the United States are well documented in the literature (Hofstede 1980; Tse et al. 1988). Japanese and Chinese cultures are collectivistic and long-term oriented, whereas the U.S. culture is individualistic and short-term oriented. Japan and China emphasize group harmony and cohesiveness, whereas the United States values freedom of c hoice and competition (Hofstede 1980). The business environments in both Japan and China reflect these cultural tendencies. In Japan, the Ministry of Economy, Trade, and Industry (METI) encourages investment in key technologies and fierce competition among Japanese firms in selected industries (Kagono et al. 1985). These policies have helped strengthen Japan’s competitiveness in the global marketplace. In addition, METI’s olicies have recently encouraged new initiatives, such as growth in IT and support for environmentally friendly products (Elder 2000). The keiretsu, or interorganizational business groups, also strongly support technology development in Japan (Lai 1999; Lincoln, Gerlach, and Ahmadjian 1996; Miwa and Ramseyer 2002). A major manufacturer might work cooperatively with its suppliers and distributors (vertical keiretsu) or with other manufacturers (horizontal keiretsu) to perfect a new technology; consider, for example, the consortium of Japanese firms tha t worked with Sony in the development of the global positioning system (Campbell 1999).In addition to technology and IT capabilities, Japanese firms in many industries possess formidable marketing and marketlinking capabilities. Their cultural predilection toward group harmony and cohesiveness has led Japanese firms to value long-term relationships with their suppliers, distributors, and customers (Kagono et al. 1985; Kotabe et al. 1991; Smith, Peterson, and Wang 1996; Tse et al. 1988). These relationships enable Japanese manufacturers to link with their customer markets effectively and to develop appropriate marketing strategies and programs.Since the end of World War II, Japanese firms have closed the gap between themselves and their U. S. competitors in terms of marketing capabilities, in some industries surpassing them. As an example, Japanese carmakers are renowned for their excellence in customer research. Use of observational research techniques has enabled Toyota, Nissan, an d Honda to develop cars that are 12 Michael Song, Robert W. Nason, and C. Anthony Di Benedetto ideally suited to the unique demands of the U. S. marketplace (Shirouzu 2001).Japanese carmakers were also among the first to use Quality Function Deployment techniques (e. g. , the House of Quality; see Hauser and Clausing 1988), which ensure that market needs drive all the subsequent steps in product development and manufacturing processes, including product engineering, process planning, and production (Griffin 1992). It was the U. S. carmakers that had to learn these techniques from Japanese carmakers to catch up (Dyer 1996). This literature suggests that Japanese firms are at least equal to their U. S. ompetitors in terms of marketing capabilities and, because of their cultural tendency toward group harmony and cohesiveness, could possess even stronger market-linking capabilities. The Chinese business environment differs from that of Japan, though the two countries share some cultural traits. Despite recent economic reforms, many Chinese firms remain state-owned enterprises, characterized by shared government and firm authority (Schermerhorn and Nyaw 1991). Since the 1970s, investment in technology and innovation has been supported strongly by government policy to stimulate Chinese economic growth and to boost global competitiveness.As decentralization has occurred, stateowned enterprises have increased their decision-making authority on issues such as products and prices (Henley and Nyaw 1986; Laaksonen 1988; Schermerhorn and Nyaw 1991), and smaller collective enterprises with even less government control have become more prevalent (Parry and Song 1994). Nevertheless, Chinese government policy continues to prioritize technology capability investment. However, our review of the literature on Chinese state-owned enterprises reveals little evidence that the Chinese government has prioritized or funded marketing, market-linking, or IT capabilities.In summary, the l iterature suggests that Japanese government and keiretsu policy favor technology and IT capability development, whereas Chinese government policy favors technology development. In addition, the marketing and marketlinking capabilities of Japanese firms are well established, whereas Chinese governmental policy has not supported the development of these capabilities On the basis of this evidence, we propose the following: H5: Japanese firms have greater market-linking capabilities than U. S. and Chinese firms of the same strategic type.H6: Japanese and Chinese firms have greater technology capabilities than U. S. firms of the same strategic type. Information Technology Capabilities and Strategic Types 13 H7: Japanese and U. S. firms have greater marketing capabilities than Chinese firms of the same strategic type. H8: Japanese firms have greater IT capabilities than U. S. firms of the same strategic type. Note that H5–H8 can be tested for each of the four strategic types separa tely—thus the qualifier â€Å"of the same strategic type. † RESEARCH DESIGNInstrument Development and Cross-Cultural Validation Process Our constructs are defined using competitive capability theory (Conant, Mokwa, and Varadarajan 1990; Day 1994) and must be operationalized using valid, reliable measures (Churchill 1979). We used a four-step instrument development procedure to develop new scales for market-linking, technical, marketing, and IT capabilities and to ensure crosscultural validity. (For a fuller discussion of the instrument development procedure, see DeSarbo et al. 2005. ) Step 1: Measurement Items for Each Capability Type.We identified relevant measurement scales from the marketing literature. We grouped the scale items derived from these scales into the four capability types. To this initial pool of items for each capability type, we added new items in instances in which we believed that not all the dimensions of the construct had been sufficiently covere d. To ensure content validity and appropriateness of items, we refined the scales through in-depth focus interviews in two SBUs. Managers at these SBUs were asked their opinions about salient issues in SBU capabilities.They were also asked to evaluate whether the theoretical model described their own experiences adequately. Next, managers commented on their perceptions of the relevance and completeness of the scale items drawn from the literature review and previous case studies. Finally, we tested and validated the Conant, Mokwa, and Varadarajan (1990) strategic typology scale. Step 2: Scale Development. Following Churchill (1979), we assessed construct validity of the scales being developed and corrected any scale items that might still be ambiguous.Seven judges (two professors and five doctoral students with background in measurement development) sorted the items from the first step into the four capability scales, following Davis’s (1986) procedure. Construct convergence and divergence were examined by assessing interrater reliability (for assessment statistics, see DeSarbo et al. 2005). Step 3: Instrument Pretesting. Using the judges’ comments, we reexamined all scale items and eliminated inappropriate or ambiguous items or any that were inconsistently classified.We then combined the four scales into an overall instrument 14 Michael Song, Robert W. Nason, and C. Anthony Di Benedetto for additional pretesting. We distributed the instrument to 32 managers in the two SBUs to further assess scale reliability and validity; two problematic items were deleted. Then, the instrument was distributed to 41 executive MBA students taking a new product development class. We subjected the results to factor analysis and assessment of reliability. (Factor loadings and reliability test results are available on request. We deleted two more items, which resulted in a questionnaire including all items judged to have high consistency and face validity. Step 4: Cr oss-Cultural Validation of the Research Instrument. To ensure that the translation was accurate and that the question meanings were not altered, we used a double-translation method to translate the questionnaire into Japanese and Chinese (Adler 1983; Douglas and Craig 2006; Sekaran 1983). After translation, we conducted field research in six Japanese firms and two Chinese firms in which we examined SBU capabilities and innovation strategies.The purposes of the field research were to establish the content validity of the concepts and the hypothesized relationships among the constructs; to establish equivalence of the constructs, concepts, measures, and samples; and to assess the possibility of cultural bias and response format bias (Douglas and Craig 2006). The field research studies were conducted over a ninemonth period with multiple visits to the companies. The field research studies were important for several reasons. First, they facilitated an assessment of construct (conceptual , functional, and category) equivalence.Second, they indicated that the measurement scales were appropriate for studying capability and strategic types in Japanese and Chinese context. Third, the field research results suggested that it is more appropriate to ask the respondents to rate their SBU on each of the capability scale items relative to their major competitors (for exact wording, see Appendix A). Appendix A provides a list of the final measure measurement items and the response format employed in the questionnaire. The following sections briefly summarize the four scales.Market-Linking Capabilities. We measured market-linking capabilities using several scale items derived from Day (1994). The items measure relative capability in creating and managing durable customer relationships, creating durable relationships with suppliers, retaining customers, and bonding with channel members. Technical Capabilities. We also measured technical capabilities according to a set of scale i tems derived from Day (1994). These items measure relative capabilities in the prediction ofInformation Technology Capabilities and Strategic Types 15 technological change, technology and new product development, manufacturing processes, and production facilities. Marketing Capabilities. We measured marketing capabilities using a set of scale items derived from Conant, Mokwa, and Varadarajan (1990). These items measure knowledge of customers, knowledge of competitors, integration of marketing activities, skills in segmentation and targeting, and effectiveness of pricing and advertising programs. IT Capabilities.We defined IT capabilities as the relative capabilities that help an organization create technical and market knowledge and facilitate intraorganizational communication flow. We developed items to measure the possession of IT systems for new product development, cross-functional integration, technology and market knowledge creation, and internal communication. We subjected th ese items to the measurement development procedure described previously. We obtained the data from a large-scale mail survey of the companies listed in Ward’s Business Directory, the Directory of Corporate Affiliations, and the World Marketing Directory.We drew a proportionate-stratified random sample of 800 firms from each country, using each industry as a stratum. The data collection consisted of three stages: presurvey, data collection on SBU strategies, and data collection on relative capabilities. In the first stage, we sent a one-page survey and an introductory letter requesting participation to all the selected firms and offered a list of available research reports to participating firms. The letter requested each firm to select an SBU/division for participation and provide a contact person in that SBU/division.Of the 2400 firms contacted, 392 in the United States, 429 in Japan, and 414 in China agreed to participate and provided the necessary contacts at the SBU/divis ion level. In the second stage, on strategic types, we contacted the designated SBU managers directly and mailed a questionnaire and personalized letter to each manager. We employed a three-wave mailing on the basis of the recommendations of Dillman (1978). We received data on the multi-item measures of the strategic types from 308 firms in the United States, 354 firms in Japan, and 352 firms in China.Two items at the end of the instrument assessed respondents’ confidence in their ability to answer the questions. Respondents with a low level of confidence (less than 6) were excluded from the final sample. In the third stage, on the four capabilities, we sent another questionnaire to the SBU managers, followed again by a three-wave mailing. This time, we received data on the rela- Data 16 Michael Song, Robert W. Nason, and C. Anthony Di Benedetto tive capabilities from 216 U. S. firms, 248 Japanese firms, and 245 Chinese firms.These sample sizes represent response rates of 27. 0% in the United States, 31. 0% in Japan, and 30. 6% in China. The final sample includes the following industries: computer-related products; electronics; electric equipment and household appliances; pharmaceuticals, drugs, and medicines; machinery; telecommunications equipment; instruments and related products; air conditioning; chemicals and related products; and transportation equipment. The majority of participating SBUs/divisions had annual sales of $11 million–$750 million and 100–12,500 employees.Appendix A presents all of the measures used in this study. We asked respondents to rate their SBU on each of the capability scale items relative to their major competitors. We used an 11-point scale to elicit levels of agreement, with values ranging from 0 (â€Å"much worse than our competitors†) to 10 (â€Å"much better than our competitors†). We used the data collected in the second phase of the collection process to classify the SBU/division into the four strategic types. We adopted the 11-item scale from Conant, Mokwa, and Varadarajan (1990).We classified the SBU’s strategic type (prospector, analyzer, defender, or reactor) using the â€Å"majority-rule decision structure† (for details, see Conant, Mokwa, and Varadarajan 1990) with the following modification: For an SBU to be classified as a prospector or a defender, it must have at least seven â€Å"correct† answers. Before testing our hypotheses, we performed principal factor analyses with Varimax rotation on all the variables measuring the four relative capabilities for all three countries. To assess measurement invariance, we examined factor structure similarity (Mullen 1995).We retained variables using the following criteria: (1) Each factor must contain the same scale items across all three countries, (2) each item’s factor loading must be comparable across all three countries, and (3) for each factor, the factor loading must exceed . 40. This procedure produced four factors and reduced the total number of variables to 21. We made comparisons among the factor structures of the three countries using visual inspection, the salient similarity index, and Pearson correlation of the factor loadings across the three countries. The factor loadings appear in Table 1.As indicated, all factors are distinguishable and well defined for all three countries. The percentage of the variance explained by the four factors is 72% for the United States, 71% for Japan, and 69% for China. The examination of the diagonal of the factor score covariance matrix indicates that all factors for the three Measures ANALYSIS AND RESULTS Factor Analysis of the Capability Scales Information Technology Capabilities and Strategic Types 17 Table 1. Principal Component Factor Analysis: Rotated Factor Patterns United States Market-Linking Capabilities Market-sensing capabilities Customer-linking (i. e. creating and managing durable customer relationships) capab ilities Capabilities of creating durable relationships with our suppliers Ability to retain customers Channel-bonding capabilities (creating durable relationships with channel members such as wholesalers, retailers) Eigenvalue of this factor % variance explained by this factor Technical Capabilities Manufacturing processes Technology development capabilities Ability of predicting technological changes in the industry Production facilities New product development capabilities Eigenvalue of this factor % variance explained by this factor Marketing Capabilities Knowledge of competitors Effectiveness of advertising programs Integration of marketing activities Skill to segment and target markets Effectiveness of pricing programs Knowledge of customers Eigenvalue of this factor % variance explained by this factor IT Capabilities IT systems for facilitating crossfunctional integration IT systems for new product development projects IT systems for internal communication (e. g. , across diff erent departments, levels of the organization) IT systems for facilitating technology knowledge creation IT systems for facilitating market knowledge creation Eigenvalue of this factor % variance explained by this factor . 71 . 80 . 90 . 58 . 86 . 85 . 62 . 89 4. 22 20. 1 . 97 . 93 . 90 . 92 . 91 6. 10 29. 1 . 85 Japan .81 China .88 .80 . 81 . 79 .77 . 71 . 57 .79 . 66 . 70 .65 3. 04 14. 4 .44 1. 68 8. 0 .67 2. 64 12. 6 .79 . 78 . 78 . 77 . 71 2. 51 12. 0 70 . 81 . 69 . 73 . 78 4. 36 20. 7 .95 . 95 . 94 . 95 . 90 . 86 5. 69 27. 1 .95 . 86 . 94 . 93 . 83 . 83 5. 39 25. 7 .90 . 89 .83 . 80 .75 . 66 . 74 1. 66 7. 9 .85 . 65 . 57 5. 08 24. 2 .46 . 67 . 63 1. 75 8. 3 18 Michael Song, Robert W. Nason, and C. Anthony Di Benedetto countries are internally consistent and well defined by the measurement items. We provide the final set of included measurement items in Appendix A and the construct reliabilities (as measured by Cronbach’s ? ) and item-to-total correlations in Appendix B. All 12 construct reliabilities (three countries ? four constructs) exceeded the . 70 level that Peter (1979) recommends.To test H1–H4 in each of the three country settings, we performed multivariate analyses of variance (MANOVAs) to compare the scores on each of the four multi-item relative capability scales across all four strategic types using SAS general linear model procedure. For each capability scale, we obtained a multiple-item scale by a simple average of the items. As Table 2 shows, the MANOVA F-statistic was significant for all four relative capabilities and in all three countries, so we computed pairwise comparisons to examine the nature of the differences in relative capabilities among the four strategic types. We also include the t-test results of the pairwise comparisons in Table 2.The results in Table 2 provide support for H1–H4 in all three countries. (A hypothesis is supported if at least one pairwise comparison is significant and the direction is in t he hypothesized direction. ) As H1 hypothesized, the relative marketlinking capabilities of defenders and analyzers are significantly greater than those of prospectors in all three countries, though the difference between defenders and analyzers is not significant. For example, in the United States, mean scores on market-linking capabilities are 2. 69, 2. 35, and 1. 67 for defenders, analyzers, and prospectors, respectively. The F-statistic from the analysis of variance is 3. 52, which is significant at p < . 05.T-tests of the paired comparisons showed that both the defender mean and the analyzer mean were significantly larger than the prospector mean (D > P; A > P) at the p < . 05 level. We obtained similar results for the Japanese and Chinese samples. These findings are consistent with H1. Prospectors have lower market-linking capabilities than defenders and analyzers because the latter two strategic types rely primarily on their market-sensing and -linking abilities to serve thei r current markets with their current products and technologies. The results also support H2 (prospectors have greater technical capabilities than defenders) in all three countries.For the United States, the prospector and defender means were 3. 42 and 2. 25, respectively, significantly different at p < . 05. Both prospectors’ and analyzers’ technical capabilities are greater than those of defenders in Japan. The means for prospector, analyzer, and defender were 8. 75, 8. 47, and 7. 84, respectively; both prospector and analyzer means were significantly Tests of H1–H4: Possession of Capabilities by Different Strategic Types Information Technology Capabilities and Strategic Types 19 20 Table 2. Analysis of Variance Results: Relative Capabilities and Strategic Types Strategic Type Prospector 1. 67 (1. 67) 3. 42 (2. 70) 1. 75 (1. 50) 7. 5 (1. 49) 6. 72 (1. 79) 5. 48 (1. 09) 5. 05 (1. 72) 2. 37 (1. 75) 3. 26 (1. 99) 1. 98 (2. 38) 2. 78 (2. 46) 2. 25 (2. 59) 2. 46 (2. 90) 2. 16* 7. 47** 31. 96** 2. 35 (1. 82) 2. 69 (1. 79) 2. 46 (2. 01) 3. 52** Univariate Defender Reactor F-Value Paired Comparisons Hypothesis (t-Tests)a D > P; A > P P>D D > A; D > P; D > R; A > P P > A; P > D; P > R; A > D; A > R Countries/Relative Capabilities Analyzer Supportedb Yes Yes Yes Yes United States Market-linking capabilities Technical capabilities Marketing capabilities IT capabilities Japan 1. 03 (. 91) 8. 75 (1. 23) 3. 58 (2. 36) 9. 48 (. 87) 9. 00 (1. 01) 3. 9 (2. 88) 8. 47 (1. 20) 7. 84 (1. 35) 3. 68 (2. 73) 8. 72 (1. 09) 1. 96 (1. 12) 2. 07 (1. 19) 2. 51 (1. 56) 7. 42 (1. 42) 4. 82 (2. 29) 8. 46 (1. 28) 19. 17** 12. 02** 2. 24* 11. 28** D > P; A > P; R > D; R > A; R > P P > D; P > R; A > D; A > R R > D; R > A; R > P P > A; P > D; P > R; A > R Yes Yes No Yes Market-linking capabilities Technical capabilities Marketing capabilities Michael Song, Robert W. Nason, and C. Anthony Di Benedetto IT capabilities Strategic Type Prospector 1. 21 (1. 28) 8. 53 (1. 27) 2. 9 2 (2. 20) 8. 96 (1. 10) 8. 58 (1. 13) 7. 94 (1. 33) 7. 59 (1. 60) 13. 38** 3. 37 (2. 52) 3. 9 (2. 82) 4. 13 (2. 45) 2. 30* 7. 81 (1. 28) 7. 43 (1. 19) 6. 79 (1. 85) 15. 69** 2. 17 (1. 52) 2. 22 (1. 49) 2. 71 (1. 74) 11. 21** Univariate Defender Reactor F-Value Paired Comparisons Hypothesis (t-Tests)a D > P; A > P; R > A; R > P P > A; P > D; P > R; A > R; D > R D > P; R > P P > A; P > D; P > R; A > D; A > R Countries/Relative Capabilities Analyzer Supportedb Yes Yes Yes Yes China Market-linking capabilities Technical capabilities Marketing capabilities IT capabilities Information Technology Capabilities and Strategic Types *p < . 10. **p < . 05. aSignificant differences at p < . 0 are reported. bA hypothesis is supported if at least one pair is significantly different in the hypothesized direction. Notes: Each cell shows the mean; standard deviations are in parentheses. P = prospector, A = analyzer, D = defender, and R = reactor. Table 2. Continued 21 higher than the defender mean at p < . 05. In China, prospectors scored higher than analyzers and defenders on this capability (prospector, analyzer, and defender means were 8. 53, 7. 81, and 7. 43, respectively; the prospector mean was significantly higher than the other two means at p < . 05). H3 was supported in the United States and China samples. For the U. S. ample, defenders had significantly greater marketing capabilities than analyzers, and analyzers had significantly greater marketing capabilities than prospectors. The defender, analyzer, and prospector means on relative marketing capabilities in the United States were 3. 26, 2. 37, and 1. 75, respectively, all significantly different from one another at p < . 05 according to the pairwise t-tests. For the Chinese sample, the only differences are the pair between defenders and prospectors and the pair between reactors and prospectors. However, for the Japanese samples, the hypothesis was not supported. The three â€Å"archetypal† strategic types we re insignificantly different and, notably, rather low.The reactors had significantly greater marketing capabilities than all other three strategic types. Finally, H4 was also supported in all three countries. Almost without exception, prospectors had greater IT capabilities than analyzers, which in turn had greater IT capabilities than defenders. For example, in the U. S. sample, the relative IT capabilities for prospectors, analyzers, and defenders were 7. 95, 6. 72, and 5. 48, respectively, all significantly different from one another at p < . 05. Similar results were found in Japan and China. In summary, our expectations, expressed in our hypotheses, were that prospectors would be strongest in technical and IT capabilities and defenders in market-linking and marketing capabilities.We find support for all these hypotheses in all three countries, and all significant findings were in the hypothesized directions. The next set of hypotheses involves expected cross-national differences in terms of the relationship between capabilities and strategic types due to cultural or business environment differences. Before discussing the direct empirical testing of these hypotheses, however, we explain some preliminary findings regarding cross-national differences using data from Table 2. Market-Linking Capabilities. Reactors had significantly greater relative market-linking capabilities than did other strategic types in both Japan and China, but not in the United States. Market-linking capability = 2. 51 and 2. 71 in Japan and China, respectively; in each case, this is the highest capability mean. ) Miles and Snow (1978) find that reactors Tests of H5–H8: Cross-National Similarities and Differences 22 Michael Song, Robert W. Nason, and C. Anthony Di Benedetto did not implement strategies consistently and therefore did not fully develop internal capabilities that would enable them to compete successfully. Our results suggest that this expectation is not borne out in Japan or China, possibly because some firms in these countries have well-developed market-linking capabilities but choose to compete as reactors rather than defenders.That is, superior market-sensing skills enable these firms to act successfully as prospectors in certain markets and as adapters or defenders in others. This finding appears to be supported by the H3 results, at least for Japanese firms. Reactors in Japan have significantly greater relative marketing capabilities than all other strategic types. Leaders of a multinational organization doing business against a Japanese competitor should keep in mind that a firm apparently lacking a consistent strategy (i. e. , displaying reactive behavior) may be nonetheless highly skilled in marketing and market linking and, therefore, a surprisingly formidable opponent. Technical Capabilities.Although H2 was largely supported, it is worthwhile to note that across all four strategic types, managers from U. S. firms rated their technica l capabilities (relative to competitors) substantially lower than did their Japanese or Chinese counterparts. The means for the United States were 2. 2–3. 4 on a ten-point scale, and comparable means in Japan and China were 7–9. This finding suggests that in Japan and China, all strategic types (including defenders and reactors) have well-developed relative technical capabilities. Again, a U. S. firm in competition against, for example, a Japanese defender should not infer low technical capabilities from its competitor’s defensive posture. Marketing Capabilities.Finally, it was surprising to note that H3, which involves relative marketing capabilities, was not supported in Japan and only partially supported in China. As we noted previously, Japanese reactor firms have the greatest relative marketing capabilities; all other firms are insignificantly different on this capability. In China, defenders rate significantly higher than prospectors in this (as hypothesiz ed), but we found no other significant differences among the archetypal strategic types. Cross-National Differences. To test the cross-national hypotheses (H5–H8), we performed additional analyses to compare the means on each relative capability construct across countries for each of the four strategic types using SAS general linear model procedure.We used the same procedure described previously: a MANOVA followed by a series of pairwise t-tests to identify significant differences. As Table 3 shows, the F-statistic was significant for 13 of the 16 possible comparisons. Information Technology Capabilities and Strategic Types 23 Consider first the technology and IT capability hypotheses (H6 and H8). Table 3 shows that across all four strategic types, Japanese and Chinese SBUs rate significantly higher than U. S. SBUs in relative technical capabilities. As an example, technical capabilities for prospectors were rated as 8. 75, 8. 53, and 3. 42 for Japan, China, and the United St ates, respectively (significant at p < . 05).This is directly supportive of H6. Japanese and Chinese SBUs also rated significantly higher than their U. S. counterparts in relative IT capabilities across all four strategic types; therefore, we find only partial support for H8. For prospectors, IT capabilities were 9. 48, 8. 96, and 7. 95 for Japan, China, and the United States, respectively (significant at p < . 05). High relative IT capability among Japanese SBUs was expected according to H8, but the high relative IT capability among Chinese SBUs was unanticipated and is worthy of further research. We found less support for the market-linking and marketing capability hypotheses (H5 and H7).Cross-national differences are not very pronounced in the case of relative marketlinking capabilities. As Table 3 shows, U. S. prospector SBUs rate significantly higher than their Japanese and Chinese counterparts, and U. S. defenders rate significantly higher than their Japanese counterparts. The se findings are contradictory to the expectations of H5. Given the evidence of Japanese market-linking expertise, it is surprising that Japanese SBUs rate significantly higher than U. S. or Chinese competitors in market linking only in the case of reactors. In addition, H7 is only partially supported. Japanese and Chinese prospectors and analyzers rate significantly higher than their U. S. ounterparts on relative marketing capabilities. For example, in the case of prospectors, marketing capabilities are rated as 4. 58, 2. 92, and 1. 75 for Japan, China, and the United States, respectively (significant at p < . 05). Although we expected high relative marketing capability for Japan, we did not expect the significantly lower marketing capabilities among U. S. SBUs. Nevertheless, consistent patterns appear with respect to the cross-national hypotheses and suggest directions for further research. DISCUSSION AND CONCLUSION According to the Miles and Snow (1978) typology, organizations ado pt certain mechanisms to respond to environmental changes.That is, they choose to be pioneers in product or market development or to protect existing positions within their niches, or they seek some kind of intermediate position between these two extremes. As a result, firms exhibit relatively consistent strategies, or patterns of product-market innovation decisions, in response to environmental shifts. Furthermore, a firm that pursues a given strategy develops certain capabilities that help it implement that strategy, thus increasing the likelihood that it will continue to use the same strategy in response to future environmental shifts. As Ham- 24 Michael Song, Robert W. Nason, and C. Anthony Di BenedettoStrategic Types/ Relative Capabilities United States 1. 67 3. 42 1. 75 7. 95 9. 48 8. 96 33. 14** 3. 58 2. 92 13. 91** 8. 75 8. 53 202. 00** 1. 03 1. 21 4. 74** Country Japan China Univariate F-Value Cross-Country Comparisonsa U. S. > China; U. S. > Japan Japan > U. S. ; China > U . S. Japan > China; Japan > U. S. ; China > U. S. Japan > China; Japan > U. S. ; China > U. S. Prospectors Market-linking capabilities Technical capabilities Marketing capabilities IT capabilities Analyzers 2. 35 2. 78 2. 37 6. 72 9. 00 8. 58 3. 59 3. 37 8. 47 7. 81 230. 38** 5. 46** 58. 07** 1. 96 2. 17 1. 16n. s. — Japan > China; Japan > U. S. China > U. S. Japan > U. S. ; China > U. S. Japan > China; Japan > U. S. ; China > U. S. Market-linking capabilities Technical capabilities Marketing capabilities IT capabilities Defenders 2. 69 2. 25 3. 26 5. 48 8. 72 3. 68 3. 69 7. 94 7. 84 7. 43 2. 07 2. 22 2. 70* 163. 99** . 54n. s. 121. 94** U. S. > Japan Japan > U. S. ; China > U. S. — Japan > China; Japan > U. S. ; China > U. S. Market-linking capabilities Technical capabilities Marketing capabilities Information Technology Capabilities and Strategic Types IT capabilities Table 3. Analysis of Variance Results: Cross-National Comparisons 25 26 Table 3.Continued Country Un ited States 2. 46 2. 46 1. 98 5. 05 8. 46 7. 59 4. 81 4. 13 7. 42 6. 79 2. 51 2. 71 . 17n. s. 38. 68** 7. 99** 28. 82** Strategic Types/ Relative Capabilities Japan China Univariate F-Value Cross-Country Comparisonsa Japan > U. S. ; China > U. S. Japan > U. S. ; China > U. S. — Japan > China; Japan > U. S. ; China > U. S. Reactors Market-linking capabilities Technical capabilities Marketing capabilities IT capabilities Michael Song, Robert W. Nason, and C. Anthony Di Benedetto *p < . 10. **p < . 05. aSignificant differences at p < . 10 are reported. Notes: n. s. = not significant. brick (1983, p. ) notes, â€Å"prospectors tend to want to continue prospecting; defenders tend to want to continue defending. † Among the capabilities Miles and Snow investigate are technology, structure, management processes, and power distribution. As we noted previously, the Miles and Snow (1978) typology is, above all, a typology of innovation strategies. In this study, we mapped four ca pabilities of interest to innovating firms (market-linking, technical, marketing, and IT capabilities) onto the Miles and Snow strategic typologies. We hypothesized (in H1–H4) that prospectors, which typically pursue a first-mover strategy through product-market innovation, would need to build up technical and IT capabilities.Similarly, defenders, which are most concerned with preserving protected market segments with existing technology, must develop market-linking and marketing capabilities. We found supporting evidence for all these hypotheses in firms from all three countries. We then developed and tested a set of cross-national hypotheses (H5–H8), based on cultural and business environment differences existing among the United States, Japan, and China. Our development and empirical testing of these hypotheses represent a significant advance of the literature beyond the contributions of DeSarbo and colleagues (2005, 2006). We found clear support for one of the four hypotheses (H6), partial support for two others (H7 and H8), and no support for the last (H5).In general, the cultural and business environment prevalent in Japan and China has given SBUs in those countries relative advantages in technology and IT capabilities (H6 and H8), yet we did not observe anticipated advantages in market-linking and marketing capabilities (H5 and H7). This study has some implications for theory development and further research. In general, the results support the hypotheses that relative to other organizations, prospectors develop greater technical and IT capabilities so that they can pursue first-to-market initiatives and that defenders develop greater market-linking and marketing capabilities so that they can respond effectively to marketplace changes.These findings lend support to the Miles and Snow (1978) typology and to the contention that organizations tend to respond in certain, consistent ways to environmental change. Therefore, our findings can be i nterpreted as further empirical support of the Miles and Snow typology, originally conceived after an exploratory study of a limited number of industries but empirically supported in other settings (Hambrick 2003). Our findings are also consistent with Hambrick’s (1983) contention that prospectors want to keep prospecting and consequently develop the capabilities most closely related to Information Technology Capabilities and Strategic Types 27 prospecting more than do other firms. Because IT has evolved only in the past few years, further research should explore the impact of IT on strategic choices.Because no existing theories are sufficient to enable us to predict a priori the nature of cross-national differences in the relationship between the four capabilities and strategic types, further research also should examine further our preliminary results regarding cross-national differences in relative capabilities. In addition, note that our model provides evidence of the val idity of Conant, Mokwa, and Varadarajan’s (1990) 11-item scale for assessing strategic type in both Japan and China. We believe that this is the first application of this scale in China and one of the first in Japan (for an earlier Japanese application, see Dyer and Song 1997). There are several notable managerial implications. The Miles and Snow (1978) typology suggests that organizations must do a sincere internal and external assessment when planning strategic moves for future competition.The external assessment should include analysis not only of likely opportunities or developments in product, market, and technology but also of past moves by primary competitors classified by strategic type. In the internal assessment, the organization’s leaders must identify honestly the firm’s strengths and recognize its weaknesses in light of external challenges. They must then choose a strategic stance, deciding how it can best capitalize on the strengths and overcome th e weaknesses. Although this recommendation is hardly new, it is important in this context to recognize that there is a mutually complementary relationship between capabilities and strategies.Relative strengths in technology and IT capabilities might suggest that a prospector (or even an analyzer) strategy could be a more appropriate choice than a defender strategy. Consistent, successful pursuit of a prospector strategy over time should help a firm develop these relative strengths and enable it to retain its competitive advantage. This implicitly suggests also that a firm that recognizes itself as a reactor type should use its internal assessment to decide which â€Å"archetypal† strategic type it should strive to become. Cross-national differences in strategic type also carry managerial implications. Previously, we noted several