OS week 3

Do you think doctors should be able to become shareholders at their hospitals?

• Yes

• No

Who holds the top position in a Top-Management Hierarchy?

• The CEO

• The board of directors

• The COO

• The shareholders

Should CEOs and top managers be allowed to earn exorbitant salaries and bonuses while front-line employees are paid low wages?

• Yes

• No

What does the Top management team do?

• They report to the CEO + COO, and help the CEO set the company’s strategy.

• Manage the job and salaries of top managers in a company

• Represent the CEO +COO in business meetings.

• Use sales, marketing and performance data in order to decide the companies long term goals.

Is it morally ok for MAC cosmetics to test their products on animals, since it guarantees that their products are safe for human skin?

• Yes

• No

Keiretsu refers to...

• An agreement that commits two or more companies to share their resources to develop a new joint business opportunity

• A cluster of different organizations whose actions are coordinated by contracts and agreements rather than through a formal hierarchy of authority.

• A group of organizations, each of which owns shares in the other organizations in the group, that work together to further the group’s interests

• A strategic alliance among two or more organizations that agree to jointly establish and share the ownership of a new business.

1. What is the agency problem? What steps can be taken to solve it?

What interorganizational strategy does Mcdonalds famously use when opening new international locations?

• Outsourcing

• Franchising

• Minority Ownership

• Merger and takeover

1. According to resource dependence theory, what motivates organizations to form interorganizational linkages?

Should countries that have no child labour laws/an abundance of underpaid workers receive international pressure to change this? Consider how this will effect their economy, and the prices of the goods they produce.

• Yes

• No