1. Corporate Governance
The three internal governance mechanisms are expounded as follows: first, under the ownership concentration mechanism, the activities of the firm are mainly affected by individual shareholders as well as institutional shareholder’s relative stock-owned capacities (Hitt, 2004). This means that most of the company’s corrective measures are established by this fundamental facet. Under the board of director’s mechanism, experienced individuals are tasked with the responsibility of representing the firm’s owners by way of monitoring their strategic based decisions. Subsequently, under the executive compensation, the shareholder’s interests are matched with the owners by way of affecting salaries, bonuses and also, long-term incentives (Hitt, 2004). The possible fourth recommendation for this internal governance mechanism can rest with independent internal audits whereby a company’s financial statements are analyzed before they can be deemed fit for making effective strategic decisions. For instance, financial statement analyzed by Deloitte can be used by potential investors to make decisions on whether it will be viable to invest or not.
US- based firms can use the three internal corporate mechanisms for purposes of monitoring the underlying progress as well as the activities of the company and thus, help in assuming corrective actions whenever it is assumed that these corporations are going astray in respect to productivity and governance. For instance, IT and industrial based corporations within America might sought to assume internal corporate mechanism for purposes of ensuring smooth operations as well as the maintenance of an effective performance measurement system.
2. Finding the Best Buy
In its way, upward in respect to growth and development, corporate governance issues that might likely affect the company might include: first, the lack of formulating a contingency plan that is needed for mitigating risks that can be mostly attributed to fierce market competition. For purposes of ensuring that an organization is not faced with such n issue then the board of directors should be comprised of professionals from different areas of work disciplines that will be able to formulate and implement an evacuation plan in the event that a flaw is established. Second, the organization might suffer from possible mismatch in shared values, vision and goals needed for catapulting Best Buy to greater development heights. The best way to curb this possible menace is to encourage teamwork frameworks needed for setting newer goals and metrics in order to assure the company’s is heading on the right direction that is characterized by evolvement, growth and increase shareholder’s value (Hitt, 2004).
3. “Domino’s Pizza”
In my opinion, the current organizational structure excised at the Domino’s Pizza is a good match for its product differentiation corporate strategies given that it allows for intensive marketing campaigns for purposes of tracking new product ideas. It also emphasizes on activities of R&D while most of the functions are decentralized to allow for efficient production capability. The business might as well as adopt a division organizational structure that adheres to a multi-domestic corporate strategy (Hitt, 2004). This will likely foster the decentralization of the company’s immediate operations as well as help in the differentiation of products that will be based on the local demand in order to fit a culture of the place.
4. “Strategic Leadership”
Strategic control is the utilization of long-term as well as strategically relevant criterion by the corporate-level managers for purposes of analyzing the performances of the divisional managers and their respective units. A good example is where strategic control is used to measure the ability of the divisional managers to sharing a common’s organizational objective of wealth maximization and cost minimization (Hitt, 2004). On the other hand, financial control is the resultant objective criterion that the senior-most managers utilize to evaluate the returns that are earned by individual business sections as well as the divisional managers that are accountable for their performances. A good example of where financial control mechanism can be used is in evaluating return on investments that each sectional manager has been able to attain within a given timeframe.
As a strategic leader, I will ensure that human capital is well-developed given that they foster the degree of operations and production capacities as well. A skilled and well-informed human capital is considered efficient for maintaining a positive growth of operations. This is basically the rationale behind the popularity of the facet amongst many of the today’s strategic leaders (Hitt, 2004).
5. “Strategic Entrepreneurship”
The most significant and applicable lesson that I learnt in the class and can well be used for real-life scenarios in regards to my organization is the use of corporate strategies in order to attain both functional and strategic objectives. For instance, I have learnt that differentiation strategies can well be used with divisional organizational cultures to bring about enhanced production rates and profitability. I believe that for Chevron Corporation, Tesla can be a good strategic partner since the activity of sub-contracting production with the firm will allow Chevron to attain reduced production costs as well cut unnecessary energy-focused competition within the market (Falola & Genova, 2005, pp.33-49).
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6. “Innovation Applied”
In my opinion, the “find-customer needs-first” approach to innovation is the most likely one that can bring about relentless value to the organizations. This is because the approach is set to explore the untapped demanding needs that can be well-articulated with the consumers. It should be noted that market research, in most cases, fail to devise solutions to this need.
The innovation approach that is not included is the “time is a valuable resource” technique for which planning for new methodologies one is expected to establish whether or not the benefits of the approach will be worthwhile visa-vie the time spent to implement them within any given moment.