This exercise from Norman Sheehan is based loosely on the Tinkertoy exercise (on this site). The main difference is that groups get unequal resource endowments (one group gets tape and paper, while the rest get paper clips, elastic bands and paper) and are asked to build the highest paper tower. The results lead to a discussion of how superior resources (tape) can lead to better performance if they are organized properly. The takeaway is that students need to see if their focal firm has a tape-like resource. If so, they need to make it the cornerstone of their strategy. If the focal case firm lacks a tape-like resource, then it needs to be excellent at execution if it is to have any chance at having above average performance. Students love the exercise and it is a great way to teach students why they should look for VRIO resources when doing a case analysis. A related exercise, the Egg Drop Auction, explores strategic factor markets and the accumulation of heterogeneous resources. Here is the Paperscape Teaching Note (published in JME) and here are Discussion Questions to assist in the debriefing.
Contributed by Norman Sheehan