Corporate board

Question 1

4 Phases of Strategic Management

Answer 1

Basic financial planning
Forecast-based planning
Externally-oriented planning
Strategic management

Question 2

Basic financial planning

Answer 2

(Time horizon: 1 year)

Question 3

Forecast-based planning

Answer 3

(Time horizon: 3 – 5 years)

Question 4

Externally-oriented planning

Answer 4

(by expert planners)

Question 5

Strategic management

Answer 5

(constructed with the inputs and

commitments of lover lever managers too)

Question 6

Globalization

Answer 6

Internationalization of markets and corporations
Global (worldwide) markets rather than national
markets

Question 7

Electronic Commerce

Answer 7

Use of the Internet to conduct business transactions.

The basis for competition on a more strategic level rather than the traditional focus on product features and costs

Question 8

When Outsiders can be considered Insiders

Answer 8

–Affiliated Directors
–Retired Directors
–Family Directors

Question 9

Codetermination

Answer 9

–The inclusion of a corporation’s employees on its

board of directors

Question 10

Interlocking Directorates

Answer 10

–Direct Interlocking

–Indirect Interlocking

Question 11

Nominations & Elections

Answer 11

–Traditional Approach

–Staggered Board Approach

Question 12

–Traditional Approach

Answer 12

• CEO invitation to membership
• Shareholders approval in the annual proxy statement
• All nominees usually elected

Question 13

–Staggered Board Approach

Answer 13

•Staggered terms of service/election

Question 14

Sarbanes-Oxley

Answer 14

–Code of Ethics

–Audit, Nominating, and Compensation Committees all outside directors,

–Stronger criminal penalties for fraud,

–Prohibit public accounting firms from serving as a consultant to firms they audit, and

–Legislate other means to protect investors and others

Question 15

Corporate Governance

Answer 15

–Review & shaping of strategy
–Pressure for corporate performance
–Demand for executive stock ownership
–Outside directors increasing
–Impact of Sarbanes-Oxley

Question 16

Transformational leaders

Answer 16

–Change agents through vision for change

Change can come from within an individual or
organization, but it is far more likely to come from without.

Question 17

Transformational leaders 2

Answer 17

In an open system, the economic environment can bring new opportunities as well as added competitive pressures;
technology can change how we live and earn our living;
the political environment may create freedom as well as limits to individual and organizational discretion; and the social environment can place more, or different, expectations on appropriate conduct.

Question 18

Successful CEO’s

Answer 18

–Strategic vision
–Passion for the company
–Strong communication
–charisma

Question 19

Executive Leadership

Answer 19

–Strategic vision
–Role model
–Communication of performance standards
–Demonstrates confidence in abilities of followers

Question 20

HOW DO YOU EVALUATE TOP MANAGEMENT ?
Jackson Martindell
‘‘Excellently Managed Companies’’
Ten Criteria

Answer 20

1. The economic function of a company
2. The organizational structure of a company
3. The health of a company’s earnings growth
4. The fairness of a company’s practices to stockholders
5. A company’s research and development practices
6. The value contributed by a company’s board of directors
7. A company’s fiscal policies
8. A company’s productive efficiency
9. A company’s sales organization
10. The abilities of a company’s executives.

Question 21

Primary Measures of Performance

Balanced Scorecard Approach

Answer 21

Is a measurement tool that uses goals set by managers in four areas to measure a company’s performance.
Is intended to emphasize that all of these areas are important to an organization’s success and that there should be a balance among them

Question 22

four areas to measure a company’s performance

Answer 22

•Financial
How do we appear to shareholders?
•Customer
How do customers view us?
•Internal processes (internal business perspective)
What we must excel et?
•People / innovation and learning / growth assets
Can we continue to improve and create value?

Question 23

Corporate Stakeholders:

Answer 23

Affect or are affected by the achievement

of the corporation’s objectives