As we know that ownership and governance actually influence the process and content of business creation and growth. And, ownership and government are interrelated. How do managers handle business depends on the governance structure under which they operate and the stance taken on corporate responsibility. Before proceeding with the organizational strategic purpose, an important managerial task is to express its strategic purpose through statement of clarified corporate values, mission and statements because these factors will influence the overall purpose of an organization. We analyze the case from several aspects of its organization strategic purpose.
Firstly, we start with checking the corporate values, mission and statements. In the case from the interview with the present chief executive Mark Rodol, he says over years, they have pursued a number of opportunities that they shouldn’t have done. They spent too much time in examining what the core of Ministry of Sound actually is. It shows the business doesn’t have a clear picture of its corporate values, mission and statement before the strategic purpose. Therefore, their corresponding strategic purpose equally departures the right tracks. From the chapter 4 we know that strategic purpose is the purpose of an organization and its strategy for the benefit of stakeholders. And the purpose of organization will be influenced by the expectations of its stakeholders, governance structure, and social responsibility and ethics. Without an explicit corporate value, mission and statements, it will directly influence the strategic purpose and further harms its stakeholders.
Secondly, discuss the governance structure in Ministry of Sound. Palumbo is the business founder and he works as the chief executive in the board, and also member of top management. He keeps the controlling position in the company. Therefore, the firm is largely conditioned by the coupling the ownership and control in the hands of Palumbo. Palumbo has largely unchallenged discretion to share with trusted associates. It is suggested that wide discretion from expertise and professional employees promotes the organization agility to exploit versatile resources and unmet market needs (Gedajlovic, Lubatkin and Schulze).
Firstly, we start with checking the corporate values, mission and statements. In the case from the interview with the present chief executive Mark Rodol, he says over years, they have pursued a number of opportunities that they shouldn’t have done. They spent too much time in examining what the core of Ministry of Sound actually is. It shows the business doesn’t have a clear picture of its corporate values, mission and statement before the strategic purpose. Therefore, their corresponding strategic purpose equally departures the right tracks. From the chapter 4 we know that strategic purpose is the purpose of an organization and its strategy for the benefit of stakeholders. And the purpose of organization will be influenced by the expectations of its stakeholders, governance structure, and social responsibility and ethics. Without an explicit corporate value, mission and statements, it will directly influence the strategic purpose and further harms its stakeholders.
Secondly, discuss the governance structure in Ministry of Sound. Palumbo is the business founder and he works as the chief executive in the board, and also member of top management. He keeps the controlling position in the company. Therefore, the firm is largely conditioned by the coupling the ownership and control in the hands of Palumbo. Palumbo has largely unchallenged discretion to share with trusted associates. It is suggested that wide discretion from expertise and professional employees promotes the organization agility to exploit versatile resources and unmet market needs (Gedajlovic, Lubatkin and Schulze).
Thirdly, social responsibility and ethics are the purposes an organization should fulfill. And strategic purpose of the organization whether should be determined in the expectation of stakeholders is the paper discussed. With the growth of dance club, its social responsibility consistently changed, especially the mode that ranging from defensive situation to reactive to outside pressure. Meanwhile, as the club aims to form long-term relationship brands Philip and Bacardio, the stakeholder relationship gradually become to the partner style.
Fourthly, strategic purpose is influenced by stakeholders’ expectations. Manager has to point out the key players and people with low interest but high power. The business developed in many directions before Palumbo’s quit. Such as magazine, radio, touring, super-club opened in Bangkok and Taipei, etc. Its stakeholders are spread over the world. Palumbo has too much parties to think about and it make company lose core products. Especially for such young companies, in the end the companies have to develop some core values which become the basis of their existence for external stakeholders.
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