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Glbl entry & competition strategies - exam II - Coggle Diagram
Glbl entry & competition strategies - exam II
Corporate governance
bodies/members of corporate governance
owners
role
provide capital
bear risk
pwn the firm
ownership patterns
concentrated versus diffused concentrated wonership and control
concentrated
concentrated ownership and control
concentrated usually in the beginning, growth and capital needs dictate when more people will join in
diffused
separation of ownership
day to day control by amnagers
power issue: managers versus stockholders
ris eof inverstor and activist chareholders - pro: less likely sjebat firmu; con: more likely to excercise more rigorous control
family owned
+: focus on longterm perfromance
-:selection of less qualified managers, destruction of value because of family conflicts;
state ownership
issue with lack of incentives for both management and the owners
problem of "who is the owner" - govenrment agecies versus the people
privatization versus nationaliaztion
management (agent)
board of directors (intermediary)
board composition
inside
outside (are they really inde'pendent - affiliated)
leaddership structure
ceo duality
board interlocks
role
control
service
resource acquisition
strategic directing
potential conflicts
principal-agent conflict
problemi
problem - information asymmetry
problem - conflict of interest
problemi uzrokuju agency cost
manifestacija
excessive comepnsation
on the job spending
short term focus
empire building
generally - in diffused ownership structures,
principal-pricnipal conflicts
between minority and controllihng shareholders, ccan manifest itself through appoihnting family members on board of directors
stiuations
acquiring another comapny at abovr market price
selling off conapnys valauble assets / units to other company
governance mechanisms
internal ( voice-based)
carrots
sticks
external (exit-based)
market for product comeptition
market for corporate control
market for privety equity
comprehensive model of corporate governance
industry based considerations
depending on the industry, the comapny has different needs from thr BoD (unstable, growth industry = insider directors might be better, CEO duality better)
resoirve based considerations
amangerial human capital ( VRI) a BoD mora djelovati kao O
institution absed considerwtions
formal institutional framework - strongly encourages diffused oownership
infromal institutional framworsk: capitalism, globalism
CSR
stakeholders
pitanje: je li managers efforts to promote interesrs of stakeholders at odds with fiduciary duty to asfeguard interests of shareholders
primary versus secondary
stakeholder view of the firm
drivers related to urgency of susatinability
triple bottom line - economic, social, envrionemntal
key role of amangers
CSR = has a goal of global sustainability (meeting today sneeds without compromising on future abiltiy to fullfil other next genrations needs)
comprehensive view od CSR
industry based
resource based
institution based
strategies
reactive
defensive
accomodative
proactive
Growing and internationalizing the entrepreneurial firm
entrpreneruship
identification and exploitation od previously undiscovered opportunities; entrepreneuers discouver evaluate and expoit opporuntieis
comprehensive model of entrepreneurship
industry based
resporce based
institution based
5 entrepreneurial startegies
growth
innovation
network
fianncing and governance
harvest adn exit
internationalizing the entrepreneurial firm