Preview

case up2

Good Essays
Open Document
Open Document
1166 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
case up2
The decision for Samuel Firestone
250766441 Joanne (jiayi Xu)
Samuel Firestone is a member of the board of directors of Lakeland Mining Corp. Because of a drastic tension between CEO—Peter Sevko, and chairman of the board-- Philip Scott., Firestone as a key member of the board needs to figure out who he wants to support. This decision is related to some problems which also need to be thought about. First, the decision is about whether to support chairman’s proposal (i.e. to exchange his resignation for a proper nominating committee). Second, he determines what actions should be done to alleviate the current conflict.
From examining the escalation of the conflict, the root cause of this issue is CEO did not have a clear understanding of his own role and responsibilities, and some board members do not realize the relationship between the board and CEO. CEO’s mixing up personal conflict with professional issues and the board members-Steve Smith and Tom McCoy’s very closed relationship with CEO. Therefore, Firestone should stand the side of the chairman. However, there still have been several problems need to be realized.
The first problem is that chairman’s resignation in exchange for the nominating committee. Firestone thought that it was not a wise strategy either for the board or for the long term interest of the shareholders for three reasons. First, the performance of Scott was good, even it was his first-rate chairman; it was not Scott’s fault for this situation-the conflict. Second, if Scott is resigned, it would put more pressure on the board in selecting a director as well as a qualified chairman. Moreover, Steven Smith, Tom McCoy and Frank Jones stand on the side of CEO because of their personal relationship. The following decisions in this board may be controlled by the CEO. As a public company, this information will affect the confidence of the stockholders. Based on the analysis, Firestone would not

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Case

    • 278 Words
    • 2 Pages

    I think that the owner does need to know a medium amount of knowledge because he needs to be able to handle things wisely. What you know is what you can do.…

    • 278 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Savage Beast Case Study

    • 290 Words
    • 2 Pages

    4. Corporate decisions – It is important for everyone in upper management to be on the same page and to agree on company decisions. When the founders of a company are not in agreement the entire company suffers. In this case, I think one of them leaving was a good decision.…

    • 290 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Celeritas Case

    • 1939 Words
    • 6 Pages

    Philip Boyer is the President & CEO who does majority of the end decision-makings himself. He believes in the philosophy where he only takes information from his SVPs and not their opinion on final matters. He has the most influence in the company because not only he makes the final decision mostly on his own but also chooses which information and data to share with the board of directors (VPs) and what not to share. He has the position of the leader in the firm for the managers. However, many argue including the VPs that he lacks traits and character of an effective leader due to mainly his “I” approach in the firm rather than “We as a team”.…

    • 1939 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    Bear's Financial Crisis

    • 485 Words
    • 2 Pages

    • JC moved to chairman after resigning as CEO, hard for AS to criticize previous moves…

    • 485 Words
    • 2 Pages
    Good Essays
  • Good Essays

    The General Manager, Jim West, is quite concerned about his tenure at the company due to his company’s performance during the previous year. He is worried about what will happen to his job security if the coming year is unsuccessful as well. Also, Spinks seems to be quick to resign when dissatisfied with the degree of innovation present within his location.…

    • 526 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Nike Case Answers

    • 1114 Words
    • 5 Pages

    1. When Nike CEO Phil Knight stepped down and handed his job to Bill Perez, he stayed on as chairman of the board. In what ways could Knight’s continued presence on the board have created an informal structure that prevented Perez from achieving full and complete leadership of Nike?…

    • 1114 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    The author Bruce R. Evans is a managing partner in Summit Partners’ Boston office. He has also been a member of more than 25 boards, which include 10 public company boards. He claims that when a Board is working effectively it is a big part of the company’s success. However, an ineffective board can be distracting and cause liabilities for the company. Through his experiences he has created six steps to building an effective Board of Directors.…

    • 502 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Case

    • 574 Words
    • 3 Pages

    According to the case study material, it appears to me that Sammy meet some difficulties in her life which make her upset and really trouble her and her families’ develop. As far as I am concerned, Sammy has three problems, which is mainly affect her life. Firstly, Sammy has low self-esteem. She often keeps comparing herself with others by talent, physical appearance and popularity, but always views herself lower than others. Secondly, Sammy is getting lost in her life. The question “Who am I?” still confuses her. She doesn’t knowing herself clearly while she even have no idea about what she likes or dislikes. At last, Sammy have problem of communicating with others. She does not get along well with her parents. They even could not talk with each other peacefully. Now I would like to analysis these problems and give some advice.…

    • 574 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Tyco International

    • 647 Words
    • 3 Pages

    The main issue between Mr. Kozlowski and the board of directors was the lack of transparency. The board did not take part in the reports from the internal auditors, which solely was reported to Mr. Kozlowshi, neither were they informed about his projects that required capital from the company. To have a well established communication and transparency between these two parties is an essential element at any firm. The corporate policy of decentralization was also present in relations to the board of directors. They trusted Mr. Kozlowski and his management too much based on financial statements that had been tampered with. Because of his great track record the last 10 years, they almost became blinded by the fortune and did not question Mr. Kozlowski’s actions.…

    • 647 Words
    • 3 Pages
    Good Essays
  • Good Essays

    3. The CEO and chairman of the board have different responsibilities. The board is intended to provide a system of accountability and of checks and balances for the CEO: the CEO is most concerned with profit and company expansion, while the board ensures the company is accountable to stakeholders. If Ken Lay were acting in both capacities, his interests could conflict. The system of checks and balances cannot function properly if one person is both CEO and chairman of the board.…

    • 682 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Casestudy2

    • 736 Words
    • 2 Pages

    1. Which type of production processing-job shop, batch, repetitive, or continuous - is the primary mode of operation at Stickley Furniture? Why? What other type of processing is used to a lesser extent? Explain.…

    • 736 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Avon Case Study

    • 1754 Words
    • 8 Pages

    This paper will explore how the company is fairing under the leadership of its current CEO, Andrea Jung. There are two opposing views regarding the company's current and future success. One group feels that the firm has a promising future with Jung at the helm while the other group does not. This paper will analyze the pros and cons uncovered by each team member and discuss which view prevailed in the debate and why.…

    • 1754 Words
    • 8 Pages
    Powerful Essays
  • Better Essays

    1. Why would the Telstra board appoint an internal candidate to the position of chief executive, rather than an external candidate?…

    • 1071 Words
    • 5 Pages
    Better Essays
  • Satisfactory Essays

    I do not think that the board fulfilled their fiduciary obligations and responsibilities because they should not have put that much risk on the firm.…

    • 622 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    The company has announced the resignation of the CEO Philip Pratt per October 9th 2008 and has installed a sub committee of the Board, lead by Philip Lynch, to conduct an in depth review of its marketing and commercial strategies.…

    • 2906 Words
    • 12 Pages
    Good Essays