Paper Topic:

Strategic Management

Running Head : STRATEGIC MANAGEMENT

Strategic Management

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Introduction

Corporate governance is a relatively a new concept which is seen as a solution to the problem of explaining and analyzing the behavior of firms . According to Zingales (1998 , corporate governance is defined as a complex set of constrains that shape the ex-post bargaining over the quasi-rents generated by the firm

Corporate governance as a new concept is important in that it sets out ex-ante incentives , alters ex post bargaining efficiency , and spreads

risks . There are several corporate governance styles which include chaos management , partnership management , entrepreneurship management and marionette management . These styles vary across and within countries in modern times . Developed economies are not uniform in the way they carry out their corporate governance . This is as a result of the various industries and sub-industries within the economies of individual countries . For example , American (Anglo-Saxon , Japanese or German economies are characterized by their own individual corporate control mechanisms . In other countries , findings from conducted research revealed that global experience in different countries is multi-faced (Shleiger Vishny , 1997

Corporate governance faces some problems . These corporate governance problems are inter-twined with corporate finance . Findings reveal that contracts between businesses or organizations and stakeholders such as employees , owners , creditors are associated with corporate governance problems . The contracts between the enterprises and its stakeholders set the layout for corporate governances by innovating incentives and by setting the platform for bargaining processes (Zingales , 1998

Chaos Management

In organizations chaos becomes an issue to handle or mange in for them to survive the test of time . Interesting things happen at the time of chaos . Chaos is a situation in which nothing can literally be done to save the situation and it can be equated with death where the only thing that can occur is decay . Chaos is synonymous to confusion in the organization

Chaos management involves taking into consideration the current or prevailing environment and then trying to build and reinforce sector relationships . To deal with chaos involves planning for reactive response to situations . This calls for change which could involve restructuring , re-engineering and re-direction of specific functions within the organization that have reactive approach to environmental conditions i .e . economic , political , social , cultural and technological It has been found out that chaos is inevitable in some circumstances This is so because some events in both the macro and micro environment of the organization occur unpredicted . To counter such eventualities organizations ought to be prepared in advance to face them . Turbulent markets and volatile political situations are real and can occur and as such organizations should be ready to face them and be able to survive in such circumstances

Organizations are interested in being perceived as good corporate citizens . It is because of this reason that organizations are becoming more actively engaged in contributing resources and knowledge to the society and eventually end up creating win-win relationships . With good established partnerships with the society , organizations enjoy the benefits of collaboration in both...

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