Swords to ploughshares

1. Describe how successful the business has been at recognizing and satisfying stakeholder’s interest.

The Space Centre business has been successful in recognising and satisfying stake holders interest because in the first place it agreed to give in to the accusation it received from the minority shareholders of the company. After the court decision, the brothers tried to settle the judgement by liquidating some of their assets and transferring the assets to the minority shareholders who had been complaining. This showed that they satisfied the stakeholder’s interest and at the same time saved the business. The space centre enterprises also showed interest to its stakeholders when it was about to have a new CEO of the Company. The board members took the initiative to inform all the share holders about the decisions that were going on in the company of choosing the new CEO of the company. They were also informed about the intentions of Paddy of becoming the new CEO who was the first son of Harry.

2. Describe the mechanisms that are available to manage relationships with stakeholders and to influence the strategic direction and performance of the company.

The stakeholders of a company are always interested in the affairs of the company and its operations. Stakeholders put their trust on the management of a company and they expect them to run the company in a good manner being that they are considered as the owners of the company because they own shares of the company. Corporate governance will help the relationship between the management and the stakeholders to relate well. This is the relationship of a principal and an agent. The management acts as agents of the stakeholders because their work is to oversee and manage the shares of the stakeholders and give them the report of their operations. The stakeholders act as the principal and they require all the information about the company from the management of the company. According to Bolton and Nie, (2010), the stakeholders are always affected by what the management of the company do and decide. They can also affect the company in many ways including their decisions on how they want the company to be managed.

The management of the company is supposed to show interests to the stakeholders. Most of the stakeholders are identified by their companies because of interest they have for the company. Their interest as Yilma and Gunel, (2009), suggest should be recognized and their decisions should be respected.

The relationships with stakeholders can be managed by the management trying to get a deeper understanding of their stakeholders. The stakeholders should be treated with respect and not like mere investors in the register of stakeholders. The management of a company can get important benefits by trying to understand the stakeholders of the company. By doing this, a company can increase its effectiveness and its efficiency. This also will bring beneficial factors that will help the company. It will also help the stakeholders to support the corporate objectives of the company.

Creating of a centralised system is a good mechanism to manage the relationship of the stakeholders. This system helps to store and keep all the information of the stakeholders and their ideas. By this system, the information that the stakeholders require will be given to them through a fast means because the information will be in a centralised system. It will also help in dealing with all the external affairs of the company. Key issues are dealt with and interactions with the stakeholders are made simple. The stakeholders interactions results to improved and increased risk management. It also leads to good relationship with the management which decreases the potential for negative impacts on the stakeholders to the clients.

3. Explain why you think the board of directors for Space Centre Enterprises was or was not successful in fulfilling its governance role and in meeting the challenges it faced.

The board of directors of the Space centre enterprise was comprised of experienced people who were ready to handle the transition of the company. The board was to a certain extent fulfilling its governance role because it was successfully managed and the board of directors had the freedom to make decisions and even to make changes in the business. It was successful because the CEO who was then Harry gave them the freewill to manage the company in the best way they thought. Their success of governance was also seen when they were faced with the challenge of choosing a new CEO of the company. They did it successfully and there were no more problems. The board worked through the whole issue of discussing the exit of Harry and having the new CEO in a methodically and transparent way. The sensitive matter was settled smoothly and without any disruptions which showed that the Board fulfilled its duties well. It was also successful because the Space Centre Enterprise was finally managed to unite the family of Harry as he had wanted despite the things that were going on in the family. With the outsiders in the Board, the management was made easier and the CEO though he had shares was treated just like other employees.

4.Explain why you think Paddy was or was not qualified to fill in his father’s footsteps as CEO of the newly-merged Meritex organization, based on strategic leadership responsibilities.

The newly merged Meritex organization needed specialised management skills because of the diversified businesses they owned. Paddy at first seemed like he had not qualified to fill in his fathers footsteps as CEO of the newly merged Meritex organization. This is because he did not have any experience in the management. He was faced with challenges which later proved that he could succeed his father. The board thought that he had a special talent that would make him lead the company. He was first given the position of the chief administrative officer which worked for him well and gave him the experience that he needed. For him to succeed his father, he was required to hire an experienced outsider to be the president and the chief operating officer who was to bring a lot of knowledge and work with paddy in the management. He was given an opportunity to develop his skills on management of the company. His father was finally satisfied with the decision of his son becoming the CEO of Meritex organization.

 

 

 

 

 

 

 

 

 

 

 

References

Bolton. D; Nie. R, (2010), Creating Value in Transnational Higher Education: The Role of Stakeholder Management. Academic Journal. Vol. 9 Issue 4, p701-714, 14p,

Yilmaz, B; Gunel. O, (2009), The importance of strategic stakeholder management in tourism sector: research on probable applications. Academic journals. Vol. 4 Issue 1, p97-108, 12p,