Term
| What are the duties of Boards? |
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Definition
1) Monitor Top Management
2) Initiate and Determine: mergers/acquisitions, strategic planning
3) Represent Shareholders: fiduciary, declare dividends
4) Review Corporate Programs and Resources |
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Term
| What are the 4 Board Committees? |
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Definition
CANE
Compensation
Audit
Nominating
Executive |
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Term
Traditional Governance Models:
Explain a UNITARY BOARD
(More American)
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Definition
Liberal market economy
Short-term profit orientation
Flexible employment
Performance-related labor
High cost of controlling mgmt
Equity funding
Disclose financial info
Limited legal control
Dispersed ownership
Limits firms in pursuing strategies advantageous to labor
Financial motives
High executive compensation
Market shock countered with layoffs |
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Term
Traditional Governance Models:
Explain a TIERED BOARD
(More German) |
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Definition
Coordinated market economy
Long-term orientation
Long tenure for employees
High cost of controlling labor
Internal funding
Less public financial info
Extensive system of case law
Concentrated ownership
Limits firms in terms of pursuing strategies favorable to shareholders
Web of contacts - social standing
Relatively high worker pay
Market shock absorbed with capital |
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Term
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Definition
Concentrated ownership, single shareholder often owns most of company (bank),or owner is the manager,
Two-tier board required for larger employers (2,000+), committees run the day-to-day business, half internal-half external board members
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Term
| What is the evolutionary pattern of strategy/organizational structure? |
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Definition
Simple Structure
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Sales Growth
(coordination/control problems)
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Functional Structure
(efficient implementation of strategy)
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Sales Growth
(coordination/control problems)
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Multidivisional Structure |
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Term
| Functional Structure Workflow |
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Definition
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