SMG SM 131 Lecture Notes - Lecture 1: Customer Satisfaction, Non-Bank Financial Institution, Public Announcement
13 Mar 2018
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Document Summary
The purpose of business: to create sustainable, long-term value for owners. Last decade changed from owners to stakeholders. Blackrock (one of the largest investor firms): society is demanding that companiesserve a social purpose. To prosper over time, every company must not only deliver financial performance, but also show how it makes a positive contribution to society. Automation - self driving cars: talented, aligned, engaged people, aligned - work together to get to corporate goals, most important value in business, strategic planning model, values, vision/mission, strategic goals, tactical actions, metrics (measure of success) Leadership = performance = f (behaviors, results) Companies fall apart of y-axis than x-axis (how they behave) Not good formula for long-term sustainable business model. No direct involvement in company management/decision making (of day to day basis) Elect board of directors / approve number, terms, compensation. Approval significant transactions involving issuance of stock. Because this may mean affecting shares already in place.
