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AES Corporation: Status Quo

Using the article AES Corporation: Rewriting the Rules of Management by Robert M. Grant:

The position you argue for will need to be written from the perspective of you as a director on the Board of Directors trying to convince the other directors that your position should prevail.

1) Status quo â?" You should argue for the founders to be left in place and any changes made will be left up to the founders. No changes will be dictated by the Board.

In addition to the above question, you are required to respond to the following two questions.

1. From strictly a management position, what have been the key policies and procedures that allowed AES to be successful for 25 years?
2. Prior to the current crisis, what have been the key strengths, weaknesses, opportunities and threats that AES has faced?

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The position you argue for will need to be written from the perspective of you as a director on the Board of Directors trying to convince the other directors that your position should prevail.

1) Status quo â?" You should argue for the founders to be left in place and any changes made will be left up to the founders. No changes will be dictated by the Board.

I am in favor of allowing the founders to continue to be in charge. In the past, we have relied upon Bakke and Sant's expertise and vision to guide the company. Now, due to unforeseen calamities, AES's mettle is being tested as never before. We've depended upon the founders in the past and they responded with "almost uninterrupted growth" (Grant, n.d.) and a sharp increase in market valuation, awarding the company with a coveted sport in the S & P 500. Their unique ability to empower employees to enjoy work, coupled with a sense of social responsibility will help shape the company to address the challenges we now face, in light of the current uncertainties internationally, repercussions of less worthy industry competitors, and the California power crisis. It has been a tough year for all, not only in this particular industry, but also for the global economy. In the past, Bakke and Sant have not hesitated to call upon outside expertise to help steer the company. We must expect them to take similar action now. We must depend upon these men to retrench, realizing that a loyal ...

Solution Summary

This solution uses an article regarding AES and tries to convince other members of the Board of Directors that changes should not be made and the founders should be left in place. It also describes key policies and procedures that have allowed AES to be successful, and the key strengths, weaknesses and threats AES has faced in past.

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