Case Scenario 1: Palmetto

question 117

Essay

Case Scenario 1: Palmetto.
Palmetto was an early pioneer of personal data assistants (PDAs) and dominates that market space (in terms of market share) with its core product, the Palmetto Pidgy. Because this product category was entirely new to the market, Palmetto had to internally develop the hardware and software sides of the business, and today is both a manufacturer of PDAs and a programmer and licensor of its PDA operating system software. Recently, however, the hand-held device maker's performance has taken a dive as a result of slumping sales and costly inventory problems. New large entrants are entering both the equipment and software sides of its business, putting further pressure on margins. Management is currently considering its options, including the break up of Palmetto into two separate, independent public companies - one devoted to hardware, the other software.
-(Refer to Case Scenario 1) How do the I/O and resource-based models help you make recommendations to Palmetto's management regarding a split into two companies? Do they lead to the same recommendation?

Understand the concept of speciation and the role of geographic and reproductive isolation in the process.

Describe the mechanisms of sympatric and allopatric speciation.

Identify various reproductive isolating mechanisms and their significance in evolution.

Explain the significance of Darwin's finches in studying evolution and adaptive radiation.

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Definitions:

External Costs

Costs of a transaction or activity that affect parties who did not choose to incur that cost and are not reflected in market prices, often necessitating government intervention.

External Benefits

The positive effects of a transaction or an activity on an uninvolved third party or the society at large, which are not reflected in the market prices.

Externality

An economic term describing an indirect effect of a transaction not reflected in the market price, affecting third parties who did not choose to be involved.

Hydroelectric Power

Energy generated by converting the energy of falling or flowing water into electricity, commonly through the use of dams.