The changing role of the European company

The European Company was originally perceived as a means of encouraging the concentration of companies within the EEC to form enterprises of ‘European’ dimensions. However, with recent changes in Community attitudes towards the desirability of concentration, the reluctance of national governments to allow freedom of movement in some important areas of industrial activity and a feeling of frustration in the Commission that progress in related areas of industrial policy is slow or non-existent, a significant change in emphasis in the role of the European Company can be detected.     

The impact of corporate outsourcing on company value

Companies worldwide are expanding their use of outsourcing for services and products. This article appraises what is known about the impact of outsourcing on company value, and the emergent picture is not an unblemished one. Company managers frequently complain about the downsides, some companies have retrieved what they had sourced out, failures can be seen here and there, and the long-term potential consequences of outsourcing too much are yet to be seen. Still, the weight of the research evidence indicates that, when well designed and well managed, outsourcing reduces operating cost, enhances competitive strategy, and enlarges shareholder value.     

The role,power and influence of company chairs

This paper develops an analytical framework to depict the heterogeneity that characterises the role of board chair and demonstrate the potential variability in how chairs operate boards and exercise power and influence on strategy, control and resource related tasks at board level. Theories of power and influence, as applied to top management teams and boards of directors, are explicated within the context of contemporary governance practices that are establishing the role of the board chair as distinct to that of the chief executive officer. Specifically, the paper maps sources of power and varying contemporary chair practices, including chair nomenclature (i.e. executive vs. non-executive chairs), chair origin (insider vs. outsider) and chair time (full-time vs. part-time). A number of theoretical chair-power models emerge from this analysis and are subject to empirical analysis using data collected from 160 chairs of 500 FTSE-listed companies. Theoretically and empirically, the paper complements structural approaches to studying boards with attention to behaviour on boards. By linking board structure, board process and the exercise of influence, the study reveals both differences amongst chairs in how they run the board, but also that chairs’ differ in the influence they exert on board-related tasks. Full-time executive chairs exert their greatest influence in strategy and resource dependence tasks whereas part-time, non-executive chairs seem to exert more influence over monitoring and control tasks.     

The impact of key success factors on company performance

This article presents the results of a large scale survey taken among U.S. manufacturers of mature industrial products. The results of the study indicated that within each product/market there are some tasks which are more important (i.e. critical) than others for success—success being defined as outperforming the competition in terms of profitability. The results also showed that different product/market areas have different critical success factors, but the more similar they are in their make-up the more similar their key success factors tend to be.     

The private practitioner in hospital quality assurance

External forces continue to dictate the necessity of delivering high-quality health care along with methods of proving that the claimed quality is attained. Gone are the days when both the institution and its practitioners could answer quality questions simply by stating that they were delivering excellent health care to their patient population. The federal government, via the Health Care Financing Administration, and the Joint Commission on Accreditation of Healthcare Organizations (JCAHO) are mandating that institutions prove, without question, that they are delivering health care of the highest quality. The essential key to attaining these goals is cooperative private practitioners.     

The state of private sector strategic planning in Canada

This paper examines Canadian strategic planning expertise from a number of different aspects. It evaluates the relative sophistication of Canadian and American management consultants and points out that the U.S. expertise is still particularly good and preferred. It is perhaps a pertinent comment that the view of many is that ‘The U.S. people have … defined their products in such a way as clients can use them’. Analysis of the stimuli for strategic planning is an appropriate focus, particularly since it concludes that it is rare that a visionary cheif executive is responsible! Most companies appear to pursue strategic planning through fear rather than enlightenment. The quality of input to the planning process varies widely, with extrapolation from the past a major preoccupation. There appears to be a lack of environmental analysis. The author analyses a number of important issues and concludes that a bolder embrace of strategic planning would serve Canadian management well in responding to the extensive challenge facing their country's economy in the next 10 years.     

The prediction of corporate failures

The prediction of corporate failures has received widespread attention over the past 15 years. Numerous articles on the subject in accounting and financial journals attest to this fact, stating that the failure of a business organization often has significant economic effects for its owners, creditors and employees. Past efforts have been quite successful in classifying firms as bankrupt or non-bankrupt ex-post, but much remains to be done in terms of developing better predictive models. This paper is intended to review the literature and to focus on some problems where research seems likely to yield improved models. It starts with a comprehensive, though not exhaustive, guided tour of the bibliography. It then discusses some recent attempts to improve the effectiveness of these models. Finally it points to some promising areas for future research.     

Subsidiary company boards reconsidered

The boards of subsidiary companies are an underexploited resource for global companies. While many executives feel that these boards should exist only on paper, the authors demonstrate that the boards of subsidiary companies offer real opportunities for adding value. A range of roles are described for four types of boards: nominal, paper, devolved and partnership. Many pressures will take boards toward the more robust roles. Companies should establish mandates and structure the membership of the boards of these subsidiary companies consistent with their potential contribution to the bottom line.     

Politics,government and company planning: The new perspective

This paper looks at the developing scene in the U.K., with gloom at home and turmoil overseas: and with a new government committed to non-intervention in industry; to exposure of labour and of products to market forces and to avoidance of detailed economic planning. It examines the reality of party stances over the general field of government/industry relations and over cuts in public expenditure in both central and local government.Finally it examines the role of the professional planner at times of maximum uncertainty: and concludes that given a clear mind and a cool head the planner may be a unique stabilising influence at the heart of the company's affairs.     

Financing the smaller company

This paper examines the relative importance of the different sources and forms of finance required by the smaller company. The author examines the extent of reliance on external and internal funding and the role of the Industrial and Commercial Finance Corporation, as well as the National Research and Development Corporation. The conclusions reached are important in ensuring the continuing health of this vital sector of Britain's economy.     

The private life of CEOs; A strategic leadership perspective

Major events in the private lives of CEOs have been a source of fascination for decades. However, despite gaining traction, studies on the relevant phenomena (e.g., marriage, divorce, parenthood, illness) remain scattered in parallel across disciplines. We thematically review the interdisciplinary evidence on the fast-emerging literature on CEO private life events (72 unique studies) to consolidate our understanding of how private life events can become reflected in the professional domains of CEO influence. Through this approach, we comprehensively intersect empirical progress on CEO life events with key strategic leadership outcomes (i.e., performance, strategy, socio-ethical issues, innovation, governance), allowing us to identify key gaps and highlight inconsistencies. We then propose several research opportunities and challenges to move the field from phenomenon-driven standalone studies to a more coherent research program on the blurred boundaries between the private and professional lives of CEOs.     

The communication of control in an international company: Methods of investigation

This article describes the methodology developed for the objective analysis of communication, in terms of its control content, in one international company. The research project examined detailed aspects of control and communication practices in the firm with some comparative material from other companies. This article is intended as a contribution both to the understanding of a complex communication system, and to the measurement of control in an international group of companies. For reasons of space an account of the mechanics of the analysis has been omitted.     

Becoming a company person.

Physicians face a management challenge in adjusting to being part of a larger organization. By nature, physicians are not "company people." For physician executives, whose instincts can still lean toward being ferociously independent and individualistic--therein lies the struggle. Here are a few suggestions to help physician executives make the adjustments that are required of a "company person": (1) Be in the right place; (2) abandon critical/negative thinking; (3) focus on the issues; (4) maintain solidarity; and (5) make your boss look good.     

Planning in German steel company

Planning, in the past, often discredited in Germany as a device of an authoritarian government, is today an accepted and imprtant management tool, useful in managing a large, multi-divisional company wiht a great degree of delegation of responsibility. This article describes the corporate planning system of one of Germany's major steel companies.     

The moderating effects of value similarity and company philosophy on the climate-commitment relationship

The present study examines the moderating effects of two components of culture (value similarity and company philosophy) on the relationship between organizational climate and commitment. Moderator regression analyses reveal that value similarity has a direct effect on levels of commitment but does not moderate the climate-commitment relationship. In contrast, company philosophy is found to affect commitment directly but also to moderate the relationship between the reward and consideration dimensions of climate and organizational commitment. The results provide support for a culture-based explanation of commitment and offer some insights into the linkage between climate and organizational culture.     

Variable precision rough set theory and data discretisation: an application to corporate failure prediction

Since the seminal work of Pawlak (International Journal of Information and Computer Science, 11 (1982) 341–356) rough set theory (RST) has evolved into a rule-based decision-making technique. To date, however, relatively little empirical research has been conducted on the efficacy of the rough set approach in the context of business and finance applications. This paper extends previous research by employing a development of RST, namely the variable precision rough sets (VPRS) model, in an experiment to predict between failed and non-failed UK companies. It also utilizes the FUSINTER discretisation method which neglates the influence of an ‘expert’ opinion. The results of the VPRS analysis are compared to those generated by the classical logit and multivariate discriminant analysis, together with more closely related non-parametric decision tree methods. It is concluded that VPRS is a promising addition to existing methods in that it is a practical tool, which generates explicit probabilistic rules from a given information system, with the rules offering the decision maker informative insights into classification problems.     

An investigation of company product decision making

This article is concerned with an investigation of the approaches taken by companies in making product decisions. The first part is concerned with a review of the range of product decisions as presented within the literature. This range is established within the context of corporate planning, with a major split between long term strategic planning product decisions, and short term operational planning product decisions. The second part of the article is concerned with the results of a survey that was designed to investigate the criteria that companies use within their product decision making. These criteria included those applicable to strategic planning, but also incorporated a range of criteria applicable to short term operational planning, as proposed in a recent article by Greenley [8]. The overall conclusion to the survey results was that a common and universal approach to product decision making cannot be identified within this sample of companies. A low level of agreement as to the relative degree of importance of the criteria was evident, and, little attention to differentiating product decisions with time was also evident. The results also challenge the importance given by the literature to the concepts of product life cycle, portfolio analysis and synergy. Finally, the author suggests two implications as a consequence of these results.