The worldwide availability of the Internet and supply-chain
logistical improvements, mean that companies can now locate anywhere and work
multiple partners to serve any market.
To reach economies of scale necessary to schieve
the low costs, and thus low process, needed to be competitive, companies are now
thinking of the global market instead of national market.
the purpose or reason for the organization’s existence.
what the company is providing to society—either a service or a product.
A well defined
mission statement defines the fundamental, unique purpose that sets a company a part
from other firms of its type and identifies the scope or domain of the company’s
operations In terms of products and markets served.
Entrepreneurial Strategy Formulation:
Strategy is made by one powerful individual.
The focus is on opportunities, problems are secondary.
Strategy is guided by the
founder’s vision of direction and is exemplified by large, bold decisions.
goal is growth of the corporation.
The obligation of board members to closely monitor and evaluate top
sometimes called non-management directors, may be executives
of other firms but arte not employees of the board’s corporation.
the inclusion of a corporation’s workers on its board, began only
recently in the US.
Standing Committees of Boards:
(in order of prevalence) Audit, Compensation,
Nominating, Corporate Governance, Stock Options, Director Compensation and
Except for the Executive, finance, investment committees, board
committees are now typically staffed only by outside directors.
Milton Friedman on Business Responsibility:
“fundamentally subversive doctrine,
“There is one and only social responsibility of business—to use its resources and engage
in the activities designed to increase its profits so long as it stays within the rules of the
game, which is to say, engages in open and free competition without deception or fraud.
those who have only an indirect stake in the corporation
but who are also affected by the corporate activities.
These usually include
nongovernmental organizations, activists, local communities, trade associations,
competitors, and governments.
Because the corporation’s relationship with each of these
stakeholders is usually not covered by any written agreements, there is room for
Moral Development Levels:
a person’s ethical behavior is affected by his level of
moral development, certain personality variables and such situational factors as the job
itself, the supervisor, and the organizational culture.
The individual moves from total