CompuSoluciones: Corporate Governance
(4 pages of text)
CompuSoluciones, based in Guadalajara, Mexico, was a value-added distributor of information technology hardware, software, and services that grew from its origins as a reseller for Hewlett-Packard to become the second-largest distributor in Mexico. The company was best described as a collection of team-based businesses. It had 18 independent business units—each of which managed its own supply chain and produced its own profit-and-loss statements—and over 415 employees spread out over three offices. It was also governed by multiple consultative and representative boards. The company relied on the advice, insights, and experiences of these key advisory groups to improve the quality of its decision making and inform strategic decisions. At the same time, it had a policy to achieve consensus on major strategic decisions. In January 2017, the chairman of CompuSoluciones was reviewing his company’s corporate governance policies and practices. Given the independent nature of the individual business units, he wondered whether a consensus-based model of management was still the best way to lead the firm forward and whether the current corporate governance structure was optimal for managing this particular business.
This case has been designed for use at both the undergraduate and graduate levels for courses in strategy, corporate governance, international business, and entrepreneurship. It is possible to use this case in a variety of places in a course. Specifically, it can be used to explore firms’ approaches to the challenge of corporate governance, corporate governance in an international context, and methods for using corporate governance to improve a business’s strategic decision making. Following the discussion of the case, students will have developed their ability to
- assess a firm’s corporate governance processes;
- identify the advantages and disadvantages inherent in a firm’s current corporate governance system;
- discuss how improvements can be made to the current governance system; and
- understand the limitations of transferring best practices from one firm to another.
Information, Media & Telecommunications
Mexico, Large, 2017
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