Running head: INNOVATIVE APPROACHES TO CORPORATE MANAGEMENT
Innovative Approaches to Corporate Management
University of Phoenix
Abstract
Year after year the same companies find themselves on the Fortune 500 list. One common
denominator has been their approach to corporate management. In order for a company to
be successful in today market, companies have to have a clear cut vision in the form of a
mission statement and create a corporate culture which moves that vision into a reality.
Companies cannot fear change, but rather embrace it and view it as a way to take their
companies to the next level and become a model for other companies to emulate.
Innovative Approaches to Corporate Management
In 2001, Enron, based in Houston, Texas, was one of the world leading electricity, natural
gas, and communications companies. Fortune Magazine named Enron as one of America
most innovative company for six consecutive years from 1996-2001(Enron, 2006). Enron
was well positioned in the market, and there seemed to be no stopping this powerhouse
corporation. By the end of 2001, Enron had declared bankruptcy and became, arguably, the
biggest corporate failure in American history due to poor corporate management (Epstein,
2006). While Enron Chief Executive Officer, executives, and managers let corruption,
dishonesty, and greed be their mantra for corporate management, successful companies
such as Microsoft were flourishing by taking innovative approaches to their corporate
management policies.
Microsoft was founded in 1975 by Bill Gates and Paul Allen in Albuquerque, New Mexico
and incorporates in 1981 (Microsoft, 2007). Over 30 years later Microsoft has become the
leading software company in the world today thanks to the development of a software
package called Windows (Microsoft, 2007). Windows is found on virtually every home
and office computer in use today. In fiscal year 2006, Microsoft generated over $44 billion
dollars and returned $26 billion to its shareholders (Microsoft, 2007). Currently, Microsoft
employs over 76,000 people in over 100 countries and continues to expand to new markets
(Microsoft, 2007). Microsoft overall success can be attributed to their corporate
management and corporate governance.
In the 1970 and early 1980 companies typically held board meetings, and the executives
sat in the conference room to decide the company fate in their morning meetings. By the
end of the 1980 and the early 1990, companies employed new tactics by hiring so called
visionaries to help take their company into the new millennium, but had trouble
implementing the vision into a working plan, or they faced resistance from the common
