Analysis Format and Evaluation Form - Case Study Example

The stakeholders particularly the shareholders of the company should be responsible for ensuring that the company has the most effective board possible. To achieve this, the board members should be freely elected by the shareholders based on their experience and competencies. 2. Tim Harrington’s efforts to manage the board of directors and investors are worthless given that he does not influence them.

In the first place, he does not want any interference from them which puts him in a difficult corner. He may not be able to influence their decisions since there is a division that already exists between the two. Tim is hard-headed since he thinks that he can make decisions without the input of the members of the board which is quite impossible. The management should have reviewed the business strategy to see if it can turn around the fortunes of the company by venturing into another lucrative form of business. Tim’s view of “better to ask for forgiveness than beg for permission shows that he has pride. He thinks he is above the situation in all respects in the company. He thinks that he cannot seek permission from the board to implement certain decisions which are not supposed to be the case.

The venture capital decision is favorable to the people who belong to the group since it reflects their interests. Being the major shareholders in the company, selling the company is a viable strategy that can prevent losses in the long run since the financial crisis witnessed is unpredictable.

In most cases, the factors obtained on the ground in the real economic situation are beyond the control of many organizations. When there have been signs of bad things to come, it would be wise to dispose of the company while there is still time. This can help to salvage the money invested in the company. Other Additional InformationThe board of directors in a public company should be composed of independent people who have interests of the company and the other shareholders at heart.

People with direct interests in the company are likely to portray their interests as more important than the company and the other shareholders at large. The other important aspect that should be taken into consideration in the selection of the board of directors is related to experience and expertise in the area. As shown in the case of Fogdog, the board members lacked experience and this impacted negatively the execution of their mandate in the company.