1_lecture_StrategyMission_handout

Mba 565 22 1 mba 565 23 1 examples of values departure

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Unformatted text preview: / 1 MBA 565 23 / 1 Examples of values Departure from mission, vision, or values BP Agency problems i.e. Separation of the ownership from management creates the potential for the wishes of owners to be ignored 1 2 24 / 1 Strategy-making, strategy-execution process Source: Thompson, Strickland, and Gamble, 2010; 17th edition MBA 565 27 / 1 Moral hazard Occurs because owners have limited access to company information, allowing executives to pursue their own interests 3 MBA 565 Agency costs The cost of agency problems and the cost of actions to minimize them Adverse selection Occurs because of the limited ability of stockholders to precisely determine the competencies and priorities of executives at the time they are hired MBA 565 25 / 1...
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This note was uploaded on 02/04/2014 for the course MATH 108 taught by Professor Jamesbaglama during the Spring '13 term at Rhode Island.

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