"The Road to Baghdad," pp. 72-74: Twelve years after his father sent U.S. troops to Iraq, President George W. Bush is preparing the country for another war against Saddam Hussein. This time, however, the road to war is considerably rockier. The U.S. has less international support to attack Iraq than it did in 1990, and has little hope that Hussein will be removed from power by insiders or forced into exile. If President Bush backed down now, he'd be consenting to the unacceptable dangers that he rallied against in his 2002 State of the Union address. A final decision must be made soon, because the window of opportunity to attack Iraq is closing as summer approaches. (http://usinfo.state.gov/regional/nea/iraq/, http://www.un.org)

"Show Us the Money," pp. 76-78: From 1871 to 1980, dividends accounted for nearly 80% of U.S. stock markets' inflation-adjusted return to investors. During the past couple decades, however, dividend yields have declined and more companies have elected not to pay any dividends at all. The decrease in dividend payouts can be traced to their tax disadvantages and the idea that management would put the extra dollars to better use than shareholders would. More than a year ago, investors resumed their interest in receiving stock dividends, and President George W. Bush has since proposed reform to cut dividend taxes. Some market theorists believe that nothing better demonstrates management's good intentions toward stockholders than doling out cash dividends. Others wonder why investors would even own a company's stock if they didn't trust its management. (http://www.ncpa.org/edo/bb/2003/bb011303.html)

"Dick Parsons' Make-or-Break Year," pp. 81-85: After eight months as CEO of AOL Time Warner, Dick Parsons is slated to become chairman of the board when Steve Case steps down in May. At that time, Parsons will have to prove he possesses the ability to execute one of the largest, most-watched corporate turnarounds ever. Most analysts estimate that the $41-billion-a-year conglomerate will grow its top line by just 4% to 5%, and it is within this tough business climate that Parsons must fix the online unit, reduce the company's $26 billion debt load, and restore investor confidence. Parsons is a proven manager -- with experience in turning around troubled Dime Bancorp in the late 1980s -- and now has strong managerial support to propel him forward. (http://www.aoltimewarner.com)

"Pumping Trouble," pp. 94-96: On Dec. 2, 2002, Venezuelan labor unions, business groups, and civic organizations began a general strike aimed at removing President Hugo Chávez from office. At the center of the opposition strategy is oil giant Petróleos de Venezuela, which, with $46.3 billion in revenues and $3.7 billion in profits in 2001, accounts for a third of the country's GDP, 80% of its export income, and half of the government's revenues. Understandably, the strategists figured if they shut down PDVSA, Chávez would be forced to step down. Yet, with soldiers seizing the oil wells and controlling daily demonstrations, Chávez remains in control. The prolonged strike and reduced oil production is negatively affecting not only Venezuelan citizens, but also international oil companies and the U.S. The situation most likely will get worse before it gets better. (http://www.opec.org, http://www.citgo.com, http://www.petroleumworld.com)

"Bringing Linux to the Masses," pp. 98-100: Michael Robertson earned his reputation as a ruthless perfectionist at MP3.com, locking horns with his co-founders and the music industry. Now, with his latest company, Lindows, Robertson is in another business fight -- this time against heavyweight Microsoft. Like its name, Lindows has similar features to those of Windows software, but costs several hundred dollars less. Within weeks of Lindows' formation, Microsoft sued the company for trademark infringement. However, Robertson is undeterred, noting that there is always room for a low-cost provider in every business sector. By capitalizing on the increasing popularity of Linux, the operating system that runs Lindows, and the industry's increasing frustration with Microsoft, Robertson just might win this battle. Linux now runs nearly 10% of all servers and is growing at about 23% a year. In fact, demand for Microtel PCs loaded with Lindows was so strong in December, Wal-Mart suspended sales for four weeks to allow Microtel to fulfill its backlog. (http://www.lindows.com, http://www.microsoft.com)

"Wanted: Kim Woo Choong," pp. 102-108: The story about Daewoo chairman Kim Woo Choong's fall from power is not only a personal drama, but also a case study about the demise of the cozy business-government partnership that lifted South Korea from poverty to an industrial power in just one generation. With the government's approval and preferential loans, Daewoo took over ailing industries, making them profitable and allowing Daewoo to become Korea's third-largest chaebol, or conglomerate. However, the Asian financial crisis exacerbated Daewoo's debt, which cut into profit margins even in good years. In 1998, the year before creditors dismantled it, Daewoo's 12 core companies lost $58 million on revenues of $51 billion. In 1999, Kim visited China and decided never to return home. His best hope for restoring his reputation would be an official pardon, but first he would need to face court proceedings in Seoul. In the meantime, the debate continues whether Daewoo's financial debacle was caused by Kim or the government bureaucrats who mismanaged the Korean economy. (http://www.daewoo.com/index_english.jsp)

2. What management skills does AOL Time Warner CEO Dick Parsons possess to help him successfully turn around the ailing conglomerate? What challenges does he face in improving the company's performance? Will AOL Time Warner ever capitalize on synergies as promised by Steve Case and Gerald Levin during the January 2000 merger? Why or why not? (pp. 81-85) 

3. Some economists believe that Venezuela is a classic example of the "natural resource curse." Discuss the rationale behind the belief that oil is not an economy. How can Venezuela improve its economy and curb the effects of a sudden windfall from oil resources? (p. 96) 

4. Develop an advertising campaign that markets the advantages of Lindows over Windows, including lower cost and less installation time. What companies can Lindows partner with to increase its sales? Other than a lawsuit for trademark infringement, how can Microsoft counter this competition? (pp. 98-110)

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