Morgan Corporation is at a crossroad in its 50 year existence. All 9 of the people who started the company, and are on the Board of Directors, are in their 70’s.The next five (5) years are crucial – either it will advance into a new phase or die out. They have interviewed some new management candidates. Some of them are highly experienced because they have been with Morgan’s competitor for the last thirty (30) years. Some of them are recent honors graduates from a nearby graduate school. Morgan Corporation also needs new capital, if it is to grow. The new investors appear to have new ideas on how the company should be run. Accordingly, some of them want to be on the Board of Directors.
The founders of the company are concerned that radical change will ruin the company’s long established reputation and run off long time customers. But they also recognize that some change could be beneficial, and that the Board could use some “new blood”.
You have been hired to provide Morgan Corporation with advice on its future.
1) (a) What issues should Morgan Corporation consider when deciding on the next management team? (b) What advice would you give them on selecting the next team?
2) (a) What issues should Morgan Corporation consider when thinking about bringing on new investors? (b) What suggestions might you make about bringing in the new investors?