Right Sizing and Shoaling: ALCOA to split into two separate publicly traded companies
ALCOA Another company to join the stream of companies doing right sizing and shoaling form of corporate governance. Metals firm Alcoa said on Monday it would split into two publicly traded entities, acknowledging that its legacy aluminum operations and higher-value and automotive businesses were diverging and no longer compatible. New York-based Alcoa's traditional smelting business has been hurt by a ballooning surplus of aluminum, which has caused prices to sink and deepene
Financial Markets, Corporate Governance and Efficiency or lack thereof
The untenable volatility of financial markets and fleeting nature of stock ownership on one side and corporate scandals, high-risk managerial whims and empire building attitudes of corporate managers on the other have rekindled a three-decade old debate on whether financial markets, especially stock markets hold efficient mechanisms for investment and resource allocation (Economist, October: 2003; Khachaturyan, 2003; Vitols, 2008; Coffee, 2005). And the recent Nobel prize (fo
Mini-Stock Exchanges & Disaggregation of Economy: Need of the Hour
Given the volatility and inefficiency in large stock markets, and investment risk exacerbated by widening price-earning ratios and price-book ratios, this article proposes creation of several regional stock exchanges and disaggregation of larger economies. The mini stock exchange model proposed is not the replication of major national exchanges listing the same set of firms listed elsewhere; rather it is an attempt to extend the financial capital markets to local, small and r
Get Ready for Shoaling: Action framework for School of Fish Strategy
Action Framework for SOFS Execution Prepare your organization for Team Spirit, Shared sense of supremacy, Competitive Orientation, Sense of empowerment & ownership. Get your organization members ready for a challenge – to challenge themselves; emphasizing the importance of stretching energy and resources at individual, group and unit levels. Training for team spirit: Let everyone put on a Jersey with a strategy slogan that will channel the members’ energy and commitment towar
