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Jack Wright Case 7

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Submitted By AMill26
Words 840
Pages 4
Trent Dewberry
Corporate Governance
Case 7
September 11, 2012
The Board-Management Relationship
After almost a full year as a member of the Mega Corporation Board of Directors, Jack Wright felt confident in his assessment of the functionality of the organization. Wright found that the company had a strong balance sheet, several successfully operating businesses, and some other businesses that could be sold. Yet Wright also found that there were several issues that were not being addressed. Wright found that somehow Sam Bigger was keeping John Rock from changing the governance structure of Mega. Bigger’s control of the company is the first barrier towards Mega’s progress as a company.
The situation with Sam Bigger is a very common one with entrepreneurs. Sam Bigger started the company many years ago and has experienced a great deal of success. It is a difficult thing for a well accomplished business man to admit that the ways things have always been done are no longer effective. It has become evident that changes are needed in order to stimulate growth and improve business operations. Sam Bigger has so much control of the company that he is a hindrance to Mega and its operations moving forward. The question now is what action should John Wright take in order to break through the entrenchment of Sam Bigger?
There are a few options that Jack Wright could take in this situation. Wright considered going directly to Bigger for a face-to-face discussion. Wright chose not to go that because he felt he did not understand his motives well enough. I believe that Wright should have done this first. He may have been able to get insight regarding his motives by speaking with him. Wright proceeded forward anyhow without knowing these motives. A face-to-face discussion would have been beneficial for Wright to state his intentions as well. He could have made clear to Bigger

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