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I am not sure that students can learn how to avoid the “mistakes” from this case because it is quite possible that the only purpose Kim had for the company was to enrich himself. If the CEO views the company as a personal piggybank instead of an organization that should serve a variety of stakeholders’ interests, there is little that other managers or workers can do.
This case presents the opportunity to discuss corporate governance in some detail. The case does not present any information about Daewoo’s governance structure, but it seems clear that Kim ran the company as a dictator, with no checks and balances...
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