Reference no: EM132967705

Case:
The Canadian private, technical training business, Gamma Co. (a public company with shares traded on the Toronto Stock Exchange), from 1982 to 2020, was a shining example of a strong business partnership with the Government of Canada. Half of all revenues of Gamma Co. came from the Government of Canada; the other half came from fees paid by students receiving training. Over the last ten years, Gamma Co. trained 5,000 students per year at its facilities across Canada, with high rates of employment for its graduates. Gamma Co. had a consistently growing stock value and was a sought-after firm for Canadian and international investors. From 2005 to 2020, Gamma Co. increasingly invested in international tourism business properties that were making substantial returns before 2020. These investments funds came from its retained earnings and its pension funds for current employees and those who had retired and were receiving pensions from the Gamma Co. In the Fall of 2020 with the onset of the COVID-19 pandemic, Gamma Co. began to experience serious financial issues related to the deterioration of the international tourism market, the pandemic-related travel restrictions, and declines in student enrolment since the technical training they offered could not be delivered online. Even with continued Government of Canada support, including COVID-19-related subsidies, Gamma Co. faced a financial crisis. Early in 2021, Gamma Co., it was unclear whether it could meet the payroll of its employees or the pension payments it is obligated to pay its retirees. Gamma Co. was facing bankruptcy. In the Spring of 2021, the Government of Canada stepped in to keep Gamma Co. financially stable in the short term. Gamma Co. was able to meet its payroll obligations to its employees and pension payments to its retirees. However, Gamma Co. still faced an organizational crisis.

The Questions:

You have been contracted by the Board of the Gamma Co. to provide them with three different approaches to solving its organizational crisis, along with some criteria for forming the new Board and selecting the new Chief Executive Officer (CEO).

You are required to provide:

1. an introduction to the key principles and characteristics of the three approaches that the Board could choose from to resolve the crisis: a. the Neoclassical approach b. the Mixed approach  c. the Radical approach.

2. the overall characteristics and responsibilities members of the Board should have (i.e., legal or otherwise) that are common to all of the three approaches. 3. information for each of the approaches in reorganizing the governance of Gamma Co. related to:

a. the structure of the Board of Directors (its size, overall composition, etc.): i. the Neoclassical approach ii. the Mixed approach iii. the Radical approach

b. the expertise and backgrounds of the members of the Board i. the Neoclassical approach ii. the Mixed approach iii. the Radical approach

c. the criteria (e.g., expertise, experience, background) that the Board could use to select, and compensate, a new Chief Executive Officer (CEO): i. the Neoclassical approach ii. the Mixed approach iii. the Radical approach.