This question has been answered by VJhunjhunwala on Dec 24, 2012. View Solution
Johnson296 posted a question Dec 16, 2012 at 2:16pm
Remember watching the videos about the vision and mission statements? “Do you agree that a mission statement provides substantive guidance while a vision statement provides inspirational guidance” (Pearce & Robinson, 2011, p. 38)? Please explain.

Minimum 200 words.

Reference

Pearce, J.A., & Robinson, R.B. (2011). Strategic management: Formulation, implementation, and control. (12th ed.). New York, NY: The McGraw-Hill Companies, Inc.

Additional Requirements

Min Words: 200
Level of Detail: Show all work
Other Requirements: Yahoo! stock was
battered for several
years, leading up
to the crisis-laden
replacement of CEO
and co-founder Jerry
Yang with Carol Bartz.
Several poor competitive
strategy decisions,
compounded
by Yang’s spurning
overtures and
offers to buy Yahoo!
from Microsoft, led
Yahoo!’s board to “encourage” Yang to finally
step down in early 2009 to be replaced by Bartz,
Autodesk CEO at the time. Her compensation package
upon taking the helm at Yahoo! was intended
to focus her efforts on rebuilding the Yahoo! stock
price. The seven elements of her initial Yahoo! compensation
package were:
1. Annual base salary of $1,000,000.
2. Annual bonus with a target of 200% of base salary
and a maximum of two times the target, to be
determined by the Compensation Committee of
the Board of Directors of Yahoo!
3. Stock options for 5,000,000 shares at the price on
February 1, 2009.
4. Annual equity grants as generally made to senior
executives, including a grant valued at $8 million
in February 2009.
5. Health, life, disability insurance, an employee
stock purchase plan, a 401k plan, and four weeks
vacation per year.
6. $150,000 in advisory fees related to this
agreement.
7. An equity grant valued at $10,000,000 to compensate
Bartz for forfeiture of the value of equity
grants and medical coverage with her previous
employer, Autodesk.
What is your evaluation of this “deal?” Does it
seem fair and appropriate to Bartz, Yahoo!, and
its stockholders? If you want to see what other
people thought about this arrangement, you can
view comments from a wide variety of people at
http: // www.businessinsider.com/2009/1/carol-bartzspay-
1-million-salary-2-million-bonus-yhoo.
Source: http: // idea.sec.gov/Archives /edgar/data /1011006 /
000089161809000005 / f51094e8vk.htm.




Take on the role of one of Yahoo!’s stockholders. What is your evaluation of this very attractive offer from the company to Ms. Bartz? Is this very favorable package fair to Ms. Bartz, the company, and stockholders? Why/why not?

VJhunjhunwala answered the question Dec 24, 2012 at 10:56am
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Yes ,I am of a strong believer that mission statement provides a substantive guidance while a
vision statement provides an inspirational guidance and the sole reason for this strong belief is...