Northwest Security Services Case Study

& Evaluate Bob’s process for establishing the NSS advisory board. What could be improved? Although there are some good points, the process that Bob established the advisory board is generally bad especially in the long run. He apparently formed the strong board members of various background, enough capabilities and credibility, but it need broader range of experts such as legal or information technology, and, at the same time, the contract, responsibility, and other rules should be spelled out. Below, I listed some good and bad points about forming advisory board, and suggested a process to improve. Good points:- Had reasons for forming advisory board; i.e. smooth family transition, third-party opinion- Determined specific requirements such as family business owner, finance specialist, sales and marketing specialist and so forth- Successfully named some compatible candidates from outside and convinced them by himself- Diversified members’ backgrounds and expertise Bad points:- Only Bob engaged in forming advisory board and Rex was not involved much- Bob did not compared any candidates with another - Did not know about members’ professional value, or way of thinking - Two members are referred by same person, financial planner. It may cause biased decision- There were still vacant expertise, such as legal and technology Suggestion: (1) Discussing the objectives and requirements with Rex, which includes “must have” and “nice to have” (2) Looking for candidates from broader base; using head hunter, previous business partner, and other networks. It’s much better if Bob and Rex know working style of a candidate, if not ask someone about their value and way of thinking about jobs. (3) Screening them by criteria that Bob and Rex set in the beginning (4) Appointing members who meet the requirements Who should set dividends in order to avoid conFicts of interest? Create a speci±c policy and method of making dividend decisions. Should non-employee family members be represented in this process? Same as public companies, dividends should be discussed by executive and advisory boards, and determined by owners. However, since the company is family-owned, communication with other family members is required. In this case, dividends plan, such as how much does an entity pay or which entity will pay, should be discussed by Bob, Rex and advisors, and set by all family members who own the entities, including non-employed members, if any. In this case, only Bob and Rex own stocks, they have to set it but they should discuss it in semiannual family meeting. 1 Determining process “Discussed by boards and set by owners” 1

...Group-based casereport Torstar Corporation BUSN81 Theory of Corporate Finance 2011 Autumn 1. Introduction The case of Torstar Corporation suggests the plan and result of repurchasing its Class B shares in December of 1997. Besides this, the situation of its business structure, capital structure and expenditures, future plan are also described in the case. Therefore, the purpose of our case study is to state, analyze and drew to some important conclusions about Torstar Corporation, and try to estimate its power to compete with a new national newspaper. 2. Background Torstar Corporation was incorporated on February 6, 1958 and published Canada’s largest newspaper Toronto Star. It had two main rivals which are Sun Media Corp. and the Globe and Mail. One launching second national newspaper by Southam Inc. would also be one competitor of The Star. Since 1975, by acquisition of domestic and international book publishing and supplementary educational products, Torstar found its three major business, newspapers, book publishing and supplementary education. After the acquisition of Troll in fiscal 1997, it also has one 3-year-time plan to acquire more companies which fit with its core business at the reasonable price. As of March 31, 1998, Torstar share structure included 5 million Class A voting shares and 34 million Class B non-voting shares. Since they believed prevailing Class B stocks...

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