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Competing Through Sustainability
Sustainable Goal, Unsustainable Business Model
Solyndra, a company producing a new style of solar power panel, garnered high levels of
interest in their new sustainable energy product. However, their business model, premised on
a “if we produce it, people will buy it” philosophy, was anything but sustainable. After
several years of massive financial losses, the company took advantage of the recent
government stimulus package in order to invest in a new production facility. In the end, the
company’s business model still was just not sustainable.
Discussion Question
1. Assess the effectiveness of the company’s decision to invest in a new production facility.
This facility was purchased through loans guaranteed by US taxpayers. Whose interests
were being served?
Student answers may vary, but look for evidence that students demonstrate an
understanding of the different and competing interests of these parties. For example, it
E. Strategy Evaluation and Control—This is the final component of the strategic
management process that includes the monitoring of the effectiveness of strategic
choice and implementation.
V. The Role of Human Resources in Providing Strategic Competitive Advantage
A. Emergent Strategies—Those that evolve from the grass roots of the organization:
that is, what actually is done versus what is planned. HR plays an important role
in facilitating the communication of emergent strategies between levels in the
hierarchy.
Example: When he founded Starbuck’s, Howard Schultz imagined a “third place”
between work and home for people to enjoy Italian-style coffee. While this
B. Enhancing Firm Competitiveness—By developing a rich pool of talent, HR can
assure the company's ability to adapt to a dynamic environment.
1.1 A Look Back
As you have seen, any business strategy has a number of implications for the
workforce, and the HR function plays a critical role in implementing the strategy
through providing systems and solutions to these people issues. As the opening case
illustrated, Samsung’s strategy is being driving by a number of dynamics in the
industry.
Questions
1. What do you think has made Samsung’s transformation so successful?
2. How long do you think Samsung can maintain its positive growth trajectory?
Certainly the decision to differentiate through innovation required a strong presence from
3. How do you think Apple will begin to respond to Samsung’s direct assault
on their products? What will be the human resource implications of this
response?
Apple has to respond quickly and surely. In a fast-paced industry like the mobile phone
industry, trajectory is critical and Apple does not want to be perceived as being in a
Chapter Vocabulary
These terms are defined in the "Extended Chapter Outline" section.
Strategic human resource management (SHRM)
Strategy formulation
Strategy implementation
Goals
External analysis
Internal analysis
Strategic choice
Job analysis
Job design
Recruitment
Selection
Training
Development
Performance management
Role behaviors
External growth strategy
Concentration strategy
Internal growth strategy
Downsizing
Discussion Questions
1. Pick one of your university's major sports teams (like football or basketball). How would
you characterize the team's generic strategy? How does the composition of the team
members (in terms of size, speed, ability, etc.) relate to that strategy? What are the
strengths and weaknesses of the team? How do these dictate the team's generic strategy
and its approach to a particular game?
This question ought to generate some interesting discussion. Let's use football at the
University of Michigan as an example. This team's generic strategy is probably best
The basic Michigan strategy is to run the football, score points, keep the clock moving,
2. Do you think that it is easier to tie human resources to the strategic management process
in large or in small organizations? Why?
Most likely, it is easier to integrate HR and the strategic management process in a
medium to large organization due to two factors: first, larger organizations tend to have a
3. Consider some of the organizations you have been affiliated with. What are some
examples of human resource practices that were consistent with that organization's
strategy? What are examples of practices that were inconsistent with its strategy?
4. How can strategic management within the HRM department ensure that HRM plays an
effective role in the company's strategic management process?
By instituting strategic management within the HRM department, the department will be
5. What types of specific skills (such as knowledge of financial accounting methods) do you
think HR professionals will need in order to have the business, professional/technical,
management, and integrative competencies necessary in the future? Where can you seek
to develop each of these skills?
HR professionals will have to have a basic understanding of the various business
functions. More specifically, knowledge of statistics, accounting, information systems,
6. What are some of the key environmental variables that you see changing in the business
world today? What impact will those changes have on the HRM function in
organizations?
Students can list many different general and/or specific changes that will be affecting
firms and their HR practices. For example the anticipated national health-care program
will result in changes to HR benefit structure and will affect the firm as a new tax.
HR in Small Business Case
Refer to the case in the text at the end of the chapter.
Self-Assessment Exercise
Refer to the self-assessment exercise in the text.
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Manager’s Hot Seat Exercise: Privacy: Burned by the Firewall
Please refer to the Asset Gallery on the OLC for Hot Seat videos and notes.
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