Week 9: Chapter 9 Discussion
- hearwood5
- Mar 29
- 1 min read
Chapter 9 of Strategic Management: Creating Competitive Advantages discusses strategic control and corporate governance. In particular, it outlines the value of corporations utilizing effective control systems, such as traditional or contemporary, when implementing various corporate strategies. Traditional control systems rely upon authority of the company’s leadership, so that once the leadership sets goals, strategies to achieve the goals are implemented, and the company’s performance is judged against the set goals. Contemporary control systems allow for significant interactions to take place between the strategy formulation, implementation, and control activities. Most modern companies utilize contemporary control systems, as they are more flexible and allow for dynamic adjustments in competitive environments. Corporate governance is determined by the shareholders, management, and board of directors. Grainger’s corporate governance strategy is clearly stated on its corporate governance website(1). Grainger uses a highly rigorous, compliance-driven approach that is built around oversight and accountability, strict ethical requirements, transparency, and clear avenues for submitting concerns. Grainger’s board has the ability to monitor and provide counsel to the company’s management team. Grainger’s corporate governance strategy defines the business’s conduct guidelines, supplier code of ethics, human rights principles, and many other ethical requirements that Grainger adheres to. Grainger also provides transparent communications to its shareholders, by publicly posting its governance documents. Grainger also provides clear avenues for shareholders to contact directors, and Grainger has a formal process for reporting concerns. Grainger’s corporate governance strategy is established to protect long-term shareholder value through robust internal controls, ethical conduct, and disciplined management behavior.
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