Economic forces

Technological forces

Political-legal forces

Socialcultural forces

Elements or groups that directly affect a corporation and are affected by it

Never knows what to do, if anything no degree of involvement

Permits officers to make all decisions.
It votes as the officers recommended on action issues

Formally reviews selected issues that officers bring to it's attention

Involved to a limited degree in the performance or review of selected key decisions, indicators, or programs of management

Approves, question, and makes final decisions on mission, strategy, policies, and objectives.
Has active board committees.
Performs fiscal and management audits.

Takes the leading role in establishing and modifying the mission, strategy, objectives, and policies.
It has a very active strategy committee.

Owners & agents risk assessment in conflict

Objectives of owners & agents in conflict

Difficult for owners to verify agent performance

Direct interlocking & indirect interlocking

Reason for existence

What results to accomplish by when

Plan to achieve the mission & objectives

Broad guidelines for decision making

Activities needed to accomplish a plan

Cost of the programs