TAILIEUCHUNG - Ebook Strategic management - Creating competitive advantages (7th edition): Part 2

(BQ) Part 2 book "Strategic management - Creating competitive advantages" has contents: Strategic control and corporate governance, creating effective organizational designs; strategic leadership - creating a learning organization and an ethical organization,.and other contents. | PART 3: STRATEGIC IMPLEMENTATION chapter 9 Strategic Control and Corporate Governance After reading this chapter, you should have a good understanding of the following learning objectives: The value of effective strategic control systems in strategy implementation. The key difference between “traditional” and “contemporary” control systems. The imperative for “contemporary” control systems in today’s complex and rapidly changing competitive and general environments. The benefits of having the proper balance among the three levers of behavioral control: culture, rewards and incentives, and boundaries. The three key participants in corporate governance: shareholders, management (led by the CEO), and the board of directors. The role of corporate governance mechanisms in ensuring that the interests of managers are aligned with those of shareholders from both the United States and international perspectives. Learning from Mistakes Hewlett-Packard (HP) is one of the largest firms in the world and also one of the most dysfunctional. Sitting #10 on the Fortune 500 list with $120 billion in sales in 2012, it is a titan in the computer hardware However, it is a struggling titan that lost $ billion in 2012, in contrast to earnings of almost $9 billion only two years earlier. But HP’s struggles go back much farther than the last two years. Their inability to effectively respond to the dramatic shifts that have transformed the computing industry in the last several years has been, at least partly, driven by their toxic corporate governance culture. The dynamics in the board of directors has resembled a soap opera for over 10 years. Going back to 2002, HP’s CEO, Carly Fiorina, was pushing hard for HP to acquire one of its main rivals, Compaq. Standing in her way to get this deal done was Walter Hewitt, the son of one of the firm’s founders. The members of the board took sides in this debate and started leaking .

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