The Need for Corporate Governance

May 29th, 2015
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Arcadia University
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Good corporate governance is key to the integrity of corporations, financial institutions and markets, and central to the health of our economies and their stability. Corporate governance has become talk of the day in the corporate world, especially when there is financial crisis originated in the U.S.A. and some other countries due to poor governance of financial institutions. Therefore, now days corporate governance which is a mechanism to mitigate the clash of interests among the stakeholders of a corporation, has achieved further focus from regulatory groups. Corporate governance is concerned with the resolution of collective action problems among dispersed investors and the reconciliation of conflicts of interest between various corporate claimholders.

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Components of a Business Model In Chapter 3 we explored those properties of the Internet that could transform the competitive landscape in many industries. The question now is, How can a firm take advantage of these properties to gain and maintain a competitive advantage? That is, how can a firm use the Internet to be more profitable than its competitors over the long term? How a firm plans to make money long term using the Internet is detailed in its Internet business model. In this chapter, we explore the components of an Internet business model and the linkages between these components; we will begin with a definition of business models. We will then examine the components of a business model and the linkages between them, paying particular attention to the role of the properties of the Internet that we explored in Chapter 3. The dynamics of business models and their appraisal will be discussed in Chapter 5. INTERNET BUSINESS MODEL Each firm that exploits the Internet should have an Internet business model how it plans to make money long term using the Internet. This is a set of Internet- and non-Internet-related activities-planned or evolving-that allows a firm to make money using the Internet and to keep the money coming. If well formulated, a firm's business model gives it a competitive advantage in its industry, enabling the firm to earn greater profits than its competitors. Whether implicit or explicit in a firm's actions, a business model should include answers to

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