Proud Essay

There was a clear conflict of interest having the president of Vector not only residing as the board chairman but also the individual responsible for selecting the board members. Another solution would have been for the board members to evaluate each other and the group as a whole to ensure their performance level was up to par and assess improvements that could have been made. Another problem, not mentioned in the case, was the board members themselves. The board members should only be selected by the investors and should have knowledge and management experience in relation to the business it is a board of. Wiegart was not only losing the trust of his board members and employees but also his potential investors. Press enter to begin your search. They were all selected by the founder and president of the corporation, with the exception of Baduraman Dorpi he was appointed by the Indonesian investor per the purchase agreement.

Army Risk VS hazard. They never confronted him formally about his poor management or ill-fated decisions and the board will now have a hard time firing him and not receive some form of legal action taken against them. None of the decisions the board made were in the interests of the investors rather they were made in the interest of keeping a feeling of cohesiveness within the company. However, if Wiegart was to make a comeback with Vector he might want to think about acquiring some management skills as well as business ethics. The board members should have made sure that they were receiving all the information needed prior to the meeting with the Vector executives so that they were able to make solid informed decisions on behalf of the stakeholders and potential investors. How about receiving a customized one? He was even so inclined to add another board member, also another one of his long-time business associates, when he did experience a little resistance with the other board members.

vector aeromotive corporation case study solution

This is a clear example of how the board members chose to ignore other poor actions made by Wiegart in the years that followed. Possibly in hopes of shifting the power back in his favor. A background in real estate would not benefit someone needing knowledge of the exotic sports car industry as in the case of Wiegart selecting Barry Rosengrant as a board member.

Another problem, not mentioned in the case, was the board members themselves.

The board members should only be selected by the investors and should have knowledge and management experience in relation to the business it is a board of. The board members should also have been required to sign a conflict of interest statement, saying that they would only act in the best interest of the business and not profit from his or her service on a board of directors, placing vvector company in jeopardy as Wiegart placed Vector in jeopardy.

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Vector Aeromotive Corporation Case Study Free Essay

corporatin The board members did not challenge Wiegart and try to take control of the situation until the financial position of the company was in dire straits and it was, in a sense, too late. Following this addition, one of the members resigned because Wiegart deliberately lied to the members stating that the investor insisted on there only being four board members.

vector aeromotive corporation case study solution

They never confronted him formally about his poor management or ill-fated decisions and the board will now have a hard time firing him and not receive some form of legal action taken against them.

There were many possible ways in which this could have had a much more favorable outcome.

Vector Aeromotive Corporation Case Study

Generally, the board of directors are responsible for the following duties: Press enter to begin your search. The most obvious one is aeromotivw law set in place that does not allow the president and the board member to be one in the same.

The board members should have made sure that they were receiving all stud information needed prior to the meeting with the Vector executives so that they were able to make solid informed decisions on behalf of the stakeholders and potential investors.

vector aeromotive corporation case study solution

The only board member that was corporwtion personally selected by Wiegart was Dorpi as I mentioned earlieretudy was appointed by the Indonesian investor as indicated in the purchase agreement he had with Vector. There should have also been an uneven number of board members, to avoid ties when making decisions. None of the decisions the board made were in the interests of the investors rather they were made in the interest of keeping a feeling of cohesiveness within the company.

The board members rarely received information prior to their meetings and what information they did receive, just enough was given in order for Wiegart to achieve the conclusion that he wanted. President Wiegart had a great business concept and might have done very well had there been laws in place to dictate the proper duty of care, loyalty, good faith and avoiding deliberate destruction of shareholder value.

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Would you like to get a custom essay? However, the first initial mistake was the president and founder of the company appointing himself as the chair of the board. Another solution would aermotive been for the board members to evaluate each other and the group as a whole to ensure their performance level was up to par and assess improvements that could have been made.

They were all selected by the founder and president of the corporation, with the exception of Baduraman Dorpi he was appointed by the Indonesian investor per the purchase agreement. Wiegart was not only losing the trust of his board members vectpr employees but also his potential investors.

The board would finally acknowledge this was a rather large issue two years later. How about receiving a customized slution He will have a difficult time achieving success with a bad reputation of trying to deceive potential investors and withholding valuable decision making information from board of directors.

The board members also asromotive to notice As mentioned in the class textbook, board members have two main control responsibilities. He was even so inclined to add another board member, also another one evctor his long-time business associates, when he did experience a little resistance with the other board members. Previous Post George Slution.

In conclusion, Vector Aeromotive Corporation has doomed for failure with the initial set up of the board of directors. However, if Wiegart was to make a comeback with Vector he might want to think about acquiring some management skills as well as business ethics. In the meantime, Wiegart continues trying to sell his fabricated business plan with potential investors, losing their trust, and burying the company in a huge financial deficit. There was a clear conflict of interest having the president of Vector not only residing as the board chairman but also the individual responsible for selecting the board members.

The amount of excessive spending that the president was responsible for was noticed as a problem but no action was taken.