Case Study- Vector Aeromotive Corporation

Powerful Essays
No 3. The Extended Case Study- Vector Aeromotive Corporation
Zhenhua Rui 09/20/2010
Vector Aeromotive Corporation was a company which designed, manufactured and sold exotic sports cars. Vector was the only U.S.-based manufacture of exotic sports cars, and his major competitors were Ferrari and Lamborghini. Gerry Wiegert is the President and founder of this company. In 1987, the board of directors was formed with three directors. This case shows events happening between the board and President Gerry. In March 1993, the company’s financial position was critical, and Vector’s board decided to ask President Gerry to resign from the company due to his bad performance. But Gerry declined to resign and declare a war against board of directors. There was a significant conflict between the board of directors and President Gerry.
In general, the board of directors is a group of elected or appointed members to oversee activities of a company or organization. The board of directors has a fiduciary duty to grow the long-term success of the corporation for the benefit of shareholder, and sometimes for debt holders. The basic fiduciary duty includes: 1) duty of care -duty to make/delegate decision in an informed way; 2) duty of loyalty -duty to advance corporate over personal interests; 3) duty of good faith-duty to be faithful and devoted to the interest of the corporation and its shareholders; 4) duty not to “waste” -duty to avoid deliberate destruction of shareholder value. Generally, the board of directors performs major detail functions as below: 1) provide continuity for the organization; 2) select and appoint a chief executive; 3) govern the organization by broad policies and objectives; 4) acquire sufficient resources for the organization’s operations and to finance the products and services adequately; 5) account to the public for the products and services of the organization and expenditures. The board is corporate governance of the company, which is significant for

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Vector aeromotive corporation case study Vector Aeromotive Corporation was a company which designed, manufactured and sold exotic sports cars. Vector was the only U.S.-based manufacture of exotic sports cars, and his major competitors were Ferrari and Lamborghini. Gerry Wiegert is the President and founder of this company. In 1987, the board of directors was formed with three directors. This case shows events happening between the board and President Gerry. In March 1993, the company’s financial…

    • 308 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    the following duties: 1) duty of care – duty to make/delegate decisions in an informed way; 2) duty of loyalty – duty to advance corporate over personal interests; 3) duty of good faith – duty to be faithful and devoted to the interests of the corporation and its shareholders; 4) duty not to “waste” – duty to avoid deliberate destruction of shareholder value. There is no reason to believe that the duties of Vector’s board should be any different. The major conflict between Vector’s board and its…

    • 1200 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Case Study: The Corporation 1. In the mid 1800s the corporation emerged as a "legal person" by way of maneuvering in the legal system. For the next 100 years we saw the rise to dominance of the corporation. The corporation created unprecedented wealth but at what cost? The externalities of corporate operations are responsible for countless cases of illness, death, poverty, pollution, exploitation and lies. Voice your opinion on this. Who Is Responsible for regulating these Corporations?, The Government…

    • 680 Words
    • 2 Pages
    Good Essays
  • Good Essays

    The methodology of this study is use Augmented Dickey Fuller (ADF) test statistic to determine whether the variables had been used are stationary or non-stationary. Vector Auto Regression (VAR) method is apply in this study. The advantages of VAR is time series can be exhibited at the same time. The VAR methodology is revises for autocorrelation and endogeneity parametrically using vector error correction model (VECM) specification. Base on Johansen (1988; 1995), the benefit of VECM is that it prevents…

    • 943 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Vectors

    • 178782 Words
    • 716 Pages

    Calculus in 3D Geometry, Vectors, and Multivariate Calculus Zbigniew H. Nitecki Tufts University August 19, 2012 ii This work is subject to copyright. It may be copied for non-commercial purposes. Preface The present volume is a sequel to my earlier book, Calculus Deconstructed: A Second Course in First-Year Calculus, published by the Mathematical Association in 2009. I have used versions of this pair of books for severel years in the Honors Calculus course at Tufts, a two-semester…

    • 178782 Words
    • 716 Pages
    Powerful Essays
  • Good Essays

    Running Head: SIA Corp Case Study- SIA Corp. The situation in this case study demonstrates the need to consolidate employee knowledge into one system in an effort to improve overall company performance. SIA had acquired 30 separate businesses but they were still functioning like 30 separate companies. They each still had their own set of management and well-defined procedures and policies. As a result, most of the employees had developed their own areas of expertise. In the highly competitive…

    • 530 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Mouse Trap: Woodstream Corporation The company that has been chosen for this case study is Woodstream Corporation. This company was founded in 1832 and was formerly known as Animal Trap Company of America. It manufactures and markets a variety of pest control products including rodent control, caring control for pets and different types of mouse traps. It has been around for more than 150 years and marketed over 2500 unique products. Woodstream works to bring innovation to consumers by combining…

    • 898 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Dell Corporation Case Study I. Introduction Started by Michael Dell, Dell Computer Corporation is one of the world’s leading direct marketers of personal computer systems. Dell Computer Corporation designs, manufactures, markets, services, and supports a wide range of computer systems, including desktop personal computers, notebook computers, and network servers. In addition, it also markets peripheral computer hardware and software, as well as service and support programs. The success of Dell…

    • 709 Words
    • 3 Pages
    Good Essays
  • Better Essays

    1.) CASE STUDY : MAXWELL CORPORATION – DISTRIBUTION SYSTEM: Marks: 15 Division A : roll no. 1 to 30 Division B : roll no.1 to 35 The President of Maxwell Corporation was considering whether the Company should set up its own distribution system or to outsource the entire distribution and logistics functions to a third party service provider. The Company had set up a manufacturing plant in Vizag where a wide range of orthopedic equipments like the crutches, wheel chairs, heating pads, elastic…

    • 1012 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    SUNY EMPIRE STATE COLLEGE MBA Program Strategy and Tactics in Project Management Case Study - Goshe Corporation I’ve called this meeting to try to find out why we’re having a difficult time upgrading our EDP [Electronic Data Processing] Department to an MIS [Management Information Systems] Division,” remarked Herb Banyon, executive vice president of Goshe Corporation. Last year we decided to give the EDP Department a chance to show that it could contribute to corporate profits by removing the department…

    • 1875 Words
    • 6 Pages
    Powerful Essays