The industrial organization model and resource-based model

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How can Apple earn above-average returns if they used both the industrial organization model and the resource-based model?

Regarding Business and Management Ethics, (Textbook Beyond Integrity, 3rd ed.):

The textual materials in Chapter 2, Case 2.1 at page 105 of the text, relate the story of Philippe Kahn. In engineering the growth and early success of Borland International, Kahn and his fellow incorporators envisioned taking on the software giant Microsoft. The vision fell short and in 2009 Borland was acquired by Micro Focus for $1.50 per share, an ignominious end to the dream that nevertheless was lauded by Kahn as a synergistic result.

The text relates the story of Kahn’s inducement of a salesman for BYTE Magazine to offer credit terms to Borland for the placement of Borland advertising in the magazine. Kahn orchestrated a deceptive scenario which appeared to the salesman to suggest significant operation and business activity. In fact, it was all a ruse but the salesman ended up offering to place Borland’s ad in the magazine on credit. The ad was successful, presumably Borland paid the magazine, and Borland reaped the benefits of $150,000 in sales of software.

Discussing the questions: Since Kahn’s actions appeared to be a win-win for Borland and for BYTE Magazine, would you characterize his actions as shrewd business? As ethical? Why or why not?

Reference no: EM132269090

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