Management Questions and Answers Essay Example

as their attempts to increase profits through cost-cutting had a negative impact. This serves as a lesson for the company, highlighting that maximizing shareholder wealth is impossible without considering the interests of other stakeholders. The concept of an entity's stakeholders is expanding, with a growing emphasis on corporate social responsibility and sustainability. Stakeholders go beyond groups like suppliers, employees, or customers and also encompass the well-being of communities in the same environment and future generations affected by the company's current usage, referred to as sustainability. According to the McKinsey Global Survey, 76% of executives consider corporate sustainability to be a positive contribution to long-term shareholder value, while 50% perceive it as advantageous for short-term value creation.

One job that still exists is that stakeholders have struggles of involvement. For example, in the case of British Airways, if the company agrees to every wage increase proposed by thousands of its employees, it will incur a significant amount of salary expenses, reducing the airline's profits. The positive stakeholder theory states that companies should serve the best interests of their main group of stakeholders. This is what many corporations are currently doing.

They prioritize the stakeholders and fulfill them to the extent of their importance. It is always a challenging situation for the company's directors to find an optimal point where stakeholders' benefits are balanced and the company can continue to grow without being hindered by strikes, lawsuits, lack of funding, or similar issues.

Question 2:

You have recently been appointed as the CEO of a medium-sized Vietnamese company. The company's performance has been declining in recent years under family management. The business was originally established by a Vietnamese entrepreneur.

It was successful.

He developed a strong interest in Vietnam and expanded operations by exporting to the Europe Union. Since his son took over, performance declined as the son enjoyed a outgoing lifestyle and did not focus on the business. A Western Multinational has now acquired the family business and appointed you as the first professional CEO with a task to revitalize the company. Evaluate the steps that you will need to take in the first few weeks of your role. Acquiring a business presents many challenges since Western Multinational must carefully consider whether the purchase can support the company's overall goals and come up with different funding solutions for the purchase, which is the most difficult part.

The Western Multinational company's branch aims to enhance the performance of the acquired company and utilize it strategically to achieve corporate results post acquisition. The purchased company lacked a competent manager who could devise effective strategies and implement robust internal control measures, which potentially led to various factors causing its underperformance. As the CEO, my foremost focus will be on identifying the reasons for the decline in performance, rectifying the weaknesses of the company, and proactively planning suitable actions.

To achieve the goal, a number of steps must be taken. These steps include providing treatment for employees and analyzing financial statements. If the company is experiencing losses, immediate action will be taken by closing or temporarily shutting down underperforming divisions or subdivisions to limit further losses. Additionally, the workforce will be reorganized by eliminating excess labor and hiring skilled individuals for suitable positions. For instance, a new Chief Financial Officer and Operation Manager may be recruited with expertise in navigating challenging periods.

Once the restructuring of both the company and its human resources is completed, the CFO, Operation Manager, and I will collaborate on developing a detailed plan for the future.

This program consists of two main phases aimed at achieving the company's goals and strategies. The first phase focuses on improving the company's health, while the second phase aims to enhance performance and align with a Western Multinational company. During the initial phase, it is crucial for the CFO to provide effective financial solutions and maintain strict cost controls. It is also important to identify any hidden liability or pending legal matters in the financial plan. At the same time, the operations manager must devise specific strategies to increase productivity and cost efficiency. In the second phase, further steps are taken to improve performance and align with the parent company's objectives.

During this period, my main focus will be on closely collaborating with other directors to establish clear and significant Key Performance Indicators (KPIs) for the company. These KPIs should serve as meaningful and reliable metrics that can monitor various aspects of the company's overall health, such as sales turnover, profit margins, liquidity, return on assets (ROA), and return on equity (ROE). Additionally, I will also work towards reaching an agreement with other directors regarding the content of Codes of Conducts and Codes of Ethics, as well as other internal controls. The ultimate goal is to create a disciplined, professional, and productive environment for employees while rebuilding their trust in the company's leadership.

References:

1. http://truthonthemarket.com/2010/07/27/the-shareholder-wealth-maximization-myth/
2. http://www.nytimes.com/2010/05/21/business/global/21strike.html