Ch10 - The Management of Strategy (Concepts and Cases) Part...

Info iconThis preview shows pages 1–10. Sign up to view the full content.

View Full Document Right Arrow Icon
1 The Management of Strategy (Concepts and Cases) Part III: Strategic Actions: Strategy Implementation Chapter 10: Corporate Governance
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2 The Strategic Management Process
Background image of page 2
3 Chapter 10: Corporate Governance (CG) Overview: Eight content areas Define CG and its monitor/control of managers’ decisions Separation between ownership and management control Agency relationship and managerial opportunism Three internal governance mechanisms used to monitor/control management decisions External corporate governance mechanisms: management restraint Executive compensation - types and effects Use of external CG in international settings How CG fosters ethical strategic decisions
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
4 CG and Its Effect on the Lives of CEOs In 2006 record number of CEOs lost jobs Dismissal Retirement Recruitment to another firm Partly due to increasing scrutiny by Boards Governance activists Increased pressure from the market for corporate control Media Trend: decrease in average tenure (current: 18-24 mo.) Result: CEOs looking at short-term vs. long-term
Background image of page 4
5 CG and Its Effect on the Lives of CEOs (Cont’d) CEOs now serving on fewer external boards CG: Double-edged sword Can put an end to scandals Might restrictive CEOs (i.e., they won’t take risks)
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
6 Chapter 10: Corporate Governance (CG) Overview: Eight content areas Define CG and its monitor/control of managers’ decisions Separation between ownership and management control Agency relationship and managerial opportunism Three internal governance mechanisms used to monitor/control management decisions External corporate governance mechanisms: management restraint Executive compensation - types and effects Use of external CG in international settings How CG fosters ethical strategic decisions
Background image of page 6
7 Introduction Corporate Governance (CG) Set of mechanisms used to manage the relationships (and conflicting interests) among stakeholders, and to determine and control the strategic direction and performance of organizations (aligning strategic decisions with company values) Effective CG interest to nations as it reflects societal standards Firms’ shareholders are treated as key stakeholders as they are the company’s legal owners
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
8 Chapter 10: Corporate Governance (CG) Overview: Eight content areas Define CG and its monitor/control of managers’ decisions Separation between ownership and management control Agency relationship and managerial opportunism Three internal governance mechanisms used to monitor/control management decisions External corporate governance mechanisms: management restraint Executive compensation - types and effects Use of external CG in international settings How CG fosters ethical strategic decisions
Background image of page 8
9 Separation of Ownership and Managerial Control Introduction Historically, firms managed by founder-owners & descendants Separation of ownership and managerial control
Background image of page 9

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 10
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 39

Ch10 - The Management of Strategy (Concepts and Cases) Part...

This preview shows document pages 1 - 10. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online