The case study, a company of Ministry of Sound (MOS), tells us a story about its operation from start-up to maturity in 12 years. And the Business founder James Palumbo makes it from the scratch to flourish in the beginning 10 years. Two years later, Palumbo has quit as chief executive and the ministry of sound is looking for a new strategic direction. With regard to the analysis of case study, three literatures are used and deliver several hints to us of its ownership and governance.
Literature of “Stages of corporate citizenship” explains the corporate citizenship at different stage for an organization. And there are five stages, from the bottom up, elementary stage, engaged stage, innovation stage, integrated stage, and transforming stage. Accordingly, the firm gains value from the relevant stages of corporate citizenship, more value comes from the upper stage, vice versa.
Literature of “A governance perspective” gives a suggestion to threshold firms to transit from founder management to professional management to obtain the resources needed to surmount the threshold. It reveals the capabilities and disabilities of FMF (Founder Managed Firms), and FMFs are less well suited to exploit opportunities in complex environments, organizational and ecological evolutionary forces can propel the successful FMF, and changes to an organization’s resources, processes, values and culture cause the challenges faced by threshold firms.
Literature of “Stages of corporate citizenship” explains the corporate citizenship at different stage for an organization. And there are five stages, from the bottom up, elementary stage, engaged stage, innovation stage, integrated stage, and transforming stage. Accordingly, the firm gains value from the relevant stages of corporate citizenship, more value comes from the upper stage, vice versa.
Literature of “A governance perspective” gives a suggestion to threshold firms to transit from founder management to professional management to obtain the resources needed to surmount the threshold. It reveals the capabilities and disabilities of FMF (Founder Managed Firms), and FMFs are less well suited to exploit opportunities in complex environments, organizational and ecological evolutionary forces can propel the successful FMF, and changes to an organization’s resources, processes, values and culture cause the challenges faced by threshold firms.
The chapter of strategic purpose identifies the three components of the governance chain of an organization (corporate governance, stakeholder expectation and social responsibility and ethics), two different governance structures across the world and their advantages and disadvantages, shareholder model of governance and stakeholder model. In shareholder model, it is believed that the management should focus on maximizing benefits on maximizing shareholders and it in turn will benefit the other stakeholder as well. The stakeholder model not only focuses on the wealth maximization to shareholders and stakeholders but also look at the long term development. The chapter also expresses the strategic purpose of an organization in terms of statement of values, vision, mission or objectives.
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