EBK STRATEGIC MANAGEMENT: CONCEPTS
3rd Edition
ISBN: 8220102807938
Author: Rothaermel
Publisher: YUZU
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Question
Chapter 8.5, Problem 1CC
Summary Introduction
Case summary:
Company AN is one of the largest technology company based on the stock market valuation. They are diversifying relentlessly into different products. They have developed a new campus initiative to bind the younger generations of shoppers into the product of web related products and content.
They are giving the products at a good discount to lure them to these markets. The campus initiative has predicted to save the students up to $400 every year on textbooks and related supplies.
To explain: If the efforts of Company AN contribute to gaining a sustainable competitive advantage.
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A.Based on the case study outline the key reaponsibilities of board directors
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Case Study
The composition and role of boards.
The board of directors is the corporation's governing body. By law, the board is vested with the
authority to manage the corporation's business and affairs, and the board's members have a
fiduciary responsibility to act in the best interests of the corporation and its shareholders. Boards
are thus collegial bodies in the traditional sense that their members share authority and
responsibility, and have both individual and collective accountability.
Boards typically delegate much of their authority to an executive team that carries out the day-to-
day operations of the corporation's business. However, some board duties cannot be delegated,
and boards vary widely in the extent of their involvement in the business. The board's core
functions typically include selecting, monitoring, advising, and compensating the chief executive;
monitoring the company's financial structure and declaring dividends; deciding on major
transactions and changes in…
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