Posted: September 16th, 2017

Equal Exchange Case

Equal Exchange Case

Overview
Good corporate governance helps to limit the power of individuals (including the top managers) from extracting value from the company at the expense of its owners. To

understand the difficulty of enacting good corporate governance, you need to understand the agency problem and how it can be applied to several different situations.

The purpose of this discussion is to help you to develop an understanding of the agency problem and then to apply your knowledge to the Equal Exchange case.
•    What external forces and industry conditions have had an impact on Equal Exchange’s performance over the years?
•    How did the internal organization and culture at Equal Exchange influence its performance?
•    How has Equal Exchange strategically responded to its competitive environment and internal capabilities?
•    Identify the causes and consequences of success which relate to Equal Exchange’s governance approach.
•    What maneuvers were made and should be made by Equal Exchange leadership to ensure that the necessary culture was fostered within the company?
Evaluation Criteria
By participating in this discussion, you can earn discussion points toward your final grade. Participation involves actively and intelligently discussing the course

concepts with your class mates. As a reminder, to earn full discussion points, you will need to actively and intelligently participate in all course topics

discussions.

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