MGT 498 Final Exam Latest 1. According to Porter, the corporation is most concerned with • the aggregate level of demand for a product line • the amount of pressure from the societal environment • the intensity of competition within its industry • a market's position on its life cycle 2. Which strategy specifies the firm's overall direction in terms of its general orientation toward growth, the industries or markets in which it competes, and the manner in which it coordinates activities and transfers resources among business units? • Corporate • Divisional • Functional • Organizational 3. Which is the MOST commonly used measure of corporate performance (in terms of profit)?
Bonuses must be accounted for and properly publicized to shareholders. The business is usually located in the state that it does business. It can be registered in another state and do business elsewhere as long as business laws for the originating state are properly followed. A disadvantage of a C-Corporation is it requires attorneys and accountants to properly conduct business. Profits must be legally and accurately accounted for.
(Schlesinger) Stakeholder can be outer or inner to the commerce or the organization. For the victorious execution of the commerce and for the correct or utilized use of invested money, stakeholders rely on the CEO. Therefore, pay of the CEOs is vital for the stakeholders of the John Deere and Caterpillar. b. Literature
EST1 Task 310.2.1-05: Ethical Situations in Business Western Governors University February 2, 2013 EST1 Task 310.2.1-05: Ethical Situations in Business Companies have four levels of social responsibility: 1) economic, 2) legal, 3) ethical, and 4) philanthropic. A company has to balance its duty to shareholders to make a profit with its contract with society to make socially responsible decisions. In order to increase profit, a company must understand the needs of the stakeholders and develop a coordinated plan which establishes standards within the company that can be understood and accepted by all employees; as well as supporting the needs of the community it serves. Company Q has supported the need to improve profit by closing two unprofitable stores. However, an analysis should be made regarding the need to close those stores.
Lesson 10: Attention Shoppers 1. Discuss whether the structure of the executive compensation program is consistent with the corporate strategy for each company. At a minimum, consider the mix of compensation (i.e. fixed vs. contingent, short term vs. long term, accounting or stock, price-based vs. non-financial based). In your opinion, does the compensation program motivate executives to achieve strategic success?
Companies are in business to produce a profit for their shareholders. To make a profit one must consider all the stakeholders involved that make a business run. Stakeholders are the owners, employers, employees, investors, customers, suppliers, competitors, communities, media and government agencies. Some may think the only responsibility of business is to compete without fraud or deception and in a legal manner using its assets to increase profit. If you consider all the stakeholders, there is a responsibility to do more than make a profit.
Companies must view themselves as part of an ecosystem; one entity in an interdependent interconnected environment. Each part of this ecosystem of business is impacted by the decisions and operations of the other parts. The organization of today and tomorrow has to adopt a system-centric model of business or suffer the consequences, most of which being dire and unforgiving. The key to business success is to make sure no part of the system is overlooked and undervalued. Research has revealed that there is a strong correlation between a stakeholder conscious organization’s
Your boss has developed the following set of questions you must answer to explain the U.S. financial system to DellaTorre. Why is corporate finance important to all managers? Corporate finance is essential to each and every executive level position, which provides the skills to ascertain specific business strategies and particular tasks that integrate value to their organization. In addition to being able to foresee capital provisions and their implementation into the business Describe the organizational forms a company might have as it evolves from a start-up to a major corporation. List the advantages and disadvantages of each form.
Full disclosure requires that publicly traded businesses use accrual based accounting and revenues are recognized as sales are earned. Full disclosure also requires that footnotes describe accounting procedures and provide details for unusual transactions. With companies such as Enron and WorldCom, the accounting field has an increased need for businesses to tell the truth in its financial statements. Full disclosure acts as the obligation for businesses to be truthful in its statements in order to protect the parties
B. Describe the organizational forms a company might have as it evolves from a start-up to a major corporation. List the advantages and disadvantages of each form. The organizational forms are sole proprietorships, partnerships, and corporations. There are also hybrid forms which are limited partnership, the limited liability partnership, the professional corporation, and the s corporation.