Managing a Cross-Border Joint Venture

QUESTION

Review the CIBC Mellon: Managing a Cross-Border Joint Venture Case Study found on page 219 in your textbook, Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2013). Strategic Management.Mason: Cengage Learning and respond to the following:

Compare and contrast strategic controls and financial controls.
- Provide specific examples of how each may be used to best serve a corporation.

As a strategic leader, determine if you would feel ethically responsible for developing your firm’s human capital and state why. Discuss whether or not you believe your position is consistent with the majority or minority of today’s strategic leaders.

ANSWER

CIBC Mellon: Managing a Cross-Border Joint Venture

Strategic Controls versus Financial Controls

Strategic controls refer to various criteria that are intended to ascertain whether an organization is utilizing the appropriate strategies to place it at a competitive position or enable it to acquire a competitive advantage. An example of a strategic control would be conducting a SWOT analysis on a company to determine the appropriate actions to improve the performance of its products in the market. The analysis of the competitive forces that an organization faces would also fit as a strategic control. Financial controls are criteria that are used to measure the performance of an organization against its competitors, its previous performances, and the industry averages. Ratios such as return on assets and return on equity are used as financial controls. The value of a firm’s stock may also be compared to the values of the stocks of competitor companies, assisting in the determination of what needs to be done to improve the stock performance of a company.

Strategic Leadership

It is my feeling and belief that a strategic leader should feel ethically responsible for the development of their company’s human capital. A strategic leader is wise and smart, possessing many leadership traits and skills. A strategic leader knows a lot about the company that they lead, including its performance over the years and what needs to be done to improve performance. As such, a strategic leader should do whatever they can to develop their company and improve its performance, which includes developing human capital. Nowadays, ethical strategic leadership is the order of the day. Employees wish to be led by leaders that value their companies and employees. A majority of the strategic leaders that the world has today have a keen focus on developing human capital within their organizations.

Reference

Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2013). Strategic Management.Mason: Cengage Learning. https://www.cengage.com/c/strategic-management-concepts-and-cases-competitiveness-and-globalization-13e-hitt/9780357033838/