Corporate restructuring: a symptom of poor governance or a solution to past managerial mistakes?

Article Abstract:

A new theory to explain corporate restructuring challenges the popular agency explanation. The new explanation, which is supported by empirical evidence from 132 US firms, suggests that restructuring is necessitated by inappropriate internal controls allowing managerial mistakes, which result in misfits between organisational structures and corporate strategy, rather than by poor governance permitting managerial excesses, as put forward in the agency theory. The recommended remedy for the organizational misfit is a change of strategy, rather than a change of structure.

Evaluation, Causes of, Business planning, Corporate reorganizations

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Strategy as making choices: a discussion with John Bachmann, managing principal of Edward Jones

Article Abstract:

St Louis-based Edward Jones, capitalized at $465 million, is one of the most profitable brokerage firms in the US and has over 2,500 partners, compared with just eight in 1981. John Bachmann, the company's managing principal, says that its success is due to its marketing strategy. The firm never targets its products at institutional investors and establishes itself in areas where there is a sense of community, while the partnership structure encourages people to be loyal to the firm.

Security brokers and dealers, Securities Brokerage, Stock Brokerage, Stockbrokers, Securities industry, Interview, Bachmann, John, Ernest Jones

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It's a whole new ball-game

Article Abstract:

One of the biggest challenges facing modern business enterprises is the growth of information technology, which will change the way they must operate in the 21st century. The information revolution has the power to reverse the prototypical characteristics of 20th century society and successful firms must harness it to help them gain a better understanding of themselves and their customers.

Information technology, Technology

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