Corporate governance Essay Example | Topics and Well Written Essays - 1500 words - 1

Corporate governance - Essay Example Moreover, evidence of working together as a team and the essence of synergy would always ensure sustainable competitive market. This is what is targeted as one of the most principle aspects by investors and its slightest brink make an organization susceptible to tragic downfall incase of scam or misappropriation (Geel 2011). Hawkama, an institute of corporate, being put in place by independent international institutions that teamed up together, was meant to reform good governance by helping the countries that participated in the treaty to have good financial and economic integration amongst them and other countries across the globe. The main mission of the Hawkama treaty was to help the countries involved develop good strategies necessary to improve universally, well integrated corporate governance. Besides, it was meant to enhance efficiency in relation to coordination, designing, planning and actual rolling of proficient corporate governance reforms. Moreover, the institution is eq uipped with the right assessment tools to help in determining the outcome of corporate governance policies at all private sectors. Hawkama article, however, recommended the following as the right governance steps (Bornstein 2005). Demonstrating commitment to good corporate governance For an organization to reap the benefits of good corporate governance, it must demonstrate its willingness of putting the practice to the later. All the stakeholders, which are considered as part and parcel to an organization must show commitment and join hands in working together towards building a single business case of corporate governance. For this to be effectively enacted, managers of the organizations and other leaders should be encouraged to attend talks about institutional good governance. Hypothetically, the article has given an illustration on how the commitment of leaders in an organization can actually motivate the members to produce substantially operational and markets and the higher pro fit results and this would attract more investors into such organizations (International Finance Corporation, Hawkamah 2008). Planning and setting priorities Organizations that expect to bear advantage of good governance, must seek to avail adequate measures that would ensure more attention is given to the important and urgent duties. This success is profusely possible only when an organization is able to make comparative difference between its performance and its competitor as a way of identifying the relevant governing principles. In this case, their right choice of practices is to avert any slightest action considered vise to the relationship of the organization either internally or externally with other stakeholders (International Finance Corporation, Hawkamah 2008). Implementing good board practices Board is considered as the key aspect where issues relating to corporate governance are strategized. In this case, the board plays the role of strategic guidance and oversight manag ement during implementation of corporate governance. Besides, it carries out a mandate of a trustee to the shareholders. Most basically, how the board would fulfill its responsibilities is used as a determinant by investors to assess the potentiality of an organization. If the board is given an authority to run as an independent, professional and most predominantly a vigilant body, then it would ultimately succeed to the achievements of

Wal-Mart's Growth Plan in China Case Study Example | Topics and Well Written Essays - 2000 words

Wal-Mart's Growth Plan in China - Case Study Example The case starts with a brief history of how Wal-Mart was formed and the strategy it employed to grow under the radar of big retailers and never come in direct competition with them. It talks about the reasons of success of wall mart - everyday low prices, customer focus, and relentless cost control, partnership with suppliers and unrivalled distribution and logistics management. After giving details how Wal-Mart become a huge success in USA; the case goes on to describe its China venture. It takes us through the history of retail market in China. It talks about retail being a centrally controlled business to the phase wise opening up of the sector to foreign players. In the end the case talks about many challenges being faced by Wal-Mart in China such as income disparity , local protectionism , infrastructural deficiencies , regulatory restrictions , lack of IT infrastructure and the different consumer behaviour of Chinese consumers than their counterparts in North America. The case makes us ponder over these difficulties being faced by Wal-Mart even after 10 years of starting operations in China. 1) Everyday Low prices -This strategy of Wal-Mart was able to win a large number of customers. It helped in successfully addressing customer's disappointment in constantly changing shelf prices. More important than the promise was Wal-Mart's ability to meet this promise every time. 2) Customer is No.1 - Sam Walton, the founder of Wal-Mart ensured that customer was treated respectfully by his employees and provided great customer service. The company came up with Sam's ten rules which became the corner stone of great customer service at Wal-Mart. 3) Small Town Locations - During the initial growth phase, Wal-Mart grew under the competition's radar. They operated in these towns which were considered as unviable by big retailers at that time. 4) Relentless Cost Control - Saving was given as much importance in Wal-Mart as was creating a sale. Wal-Mart relentlessly tried to cut costs to pass on the benefits to the customer. 5) Partnership With Suppliers - Wal-Mart provided big volumes to its suppliers but extracted a lot from them. It was always trying to push them to cut costs. Many processes being followed by suppliers were modified by Wal-Mart in order to reduce costs. 6)Unrivalled Distribution and Logistics Management - The IT infrastructure of Wal-Mart was connected with its suppliers in order to ensure that constant update on inventory requirements reach the customer. It followed Just in time approach and utilized cross docking method to reduce inventory of its stores. In analysing the Wal-Mart case we have used the long cycle process framework. The case analyses starts with identifying the major issues that Wal-Mart faces and have then gone on to analyse the same and find solutions in the last phase. Issues faced by Wal-Mart in China. 1) Immediate Issues. A) Market Segmentation Large amount of income disparities in China. The coastal regions have very high per capita income of 2117 $ where the inner and western regions have significantly less purchasing power as can be seen