Tab Corp Ltd: Investment Analysis

This assignment requires an analysis of Tab Corp Ltd, focusing on its strengths and weaknesses related to corporate governance and risk. Students must evaluate the company's policies, performance targets, and overall suitability for investment by Tom based on a risk-stability balance.

ANALYSIS OF TABCORP LTD

Table of Contents
SECTION B LETTER OF ADVICE...............................................................................................1
REFERENCES................................................................................................................................4

SECTION B LETTER OF ADVICE
Dear OmM
Subject- Strengths and weakness of corporate governance practices of tab corp. Ltd
This is to inform you that we have received your request in developingregarding development of
clear ideasconcrete business ideas. Further, and your suggestions on related to the critical
business aspect of tab corp. Ltd are very valuable in nature. iIn order to assess its strengths and
weakness regarding their corporatescorporate governance practices of an entity; it is necessary to
develop an understanding of business operations. This The business entity is an Australian listed
shares company which deals in gambling and entertainment services. These services helps the
organization in attracting in order to attract wide variety of customers towards them (Yilmaz,
Cahit and Ali Hakan Buyuklu, 2016). It is also regarded as one of the largest public listed
gambling companies companies that offers which wide range of services in the whole gamble
world. The vVarious kinds of services of this entity willare offered by the organization range
from different streams such as: wagering, gambling, Keno and Media related services. The
income generation ratio is also higher as the wide range of services of this organisation almost
covered larger part of the world as their services are expanded to the major countriessince the
services are delivered across the globe. The corporate governance statements of this
enterpriseTabcorp ltd. has stated certain sets of benefits as well several benefits and weaknesses.
The extracts of these statements are considered to support the decision making process of the
investors. will further help an entity in order to form perfect decisions in order to select the
company. The decision It is through review of annual reports that investors are able to decide
whether to accept of investing it or reject the current proposal proposaland search for another
business concern which suits the personality of the investors. The good points which is to be
covered are highlighted in the corporate governance statements emphasizes on is the business
integrity and strong reputation among the market. This framework will create a new image in the
minds of customers which is proventhat has proved to be effective as the organisation pays
higher position proportion of their overall income in as taxation (Bain, Neville, and David Band,
2016). The monthly and weekly reviewing of thereview of framed policies and procedures will
further help an entity to select the best course of action for future. in order to make good
decisions. . It helps in amending all theall the current policies as per the external market
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changes and expectations of all the stakeholders. The designing and framing of various policies
and procedures that are to which is to be incorporated in the corporate governance statements is
highly crucial in nature. It is essential that the corporate governance statements is to deliver right
information to all the persons who are involved within the are connected to the business
enterprise in one way or another. The preparation of different corporate policies are included in
tThe business unit has included different corporate policies wwith a clear motive in order to
meet all kinds of external obligations and appropriate different quality standard. Delivering good
services by musing all kinds of techniques and different quality standards will be helpful for an
enterprise to comply al sort of standards (McCahery, Joseph, Zacharias Sautner and Laura T.
Starks, 2016). External policies will always rule the overall internal business proceedings
according to them. The main motive is to complied comply with the external goals and
objectives without compromising with their internal business proceedingson internal goals of the
business unit. The current nature of this enterprise is toenterprise is currently provide offering
gambling and entertainment services which will reflect negative signthat has negative impact on
the overall brand reputation of an the entity. The current servicesThe gambling services that are
offered provided by by this company which are normally banned and prohibited in the society.
The overall society perspective needs to get be changed changed for supporting the growth of
business unit in long run. as the support from society is required as these are rationale actors.
These factors will determine the actual business position which can be in success track or can
divert them towards the failure path. The stakeholders need to be satisfied by the distinct services
provided by the business entity as the illegal nature of services will not able to influence more
number of customers (Aggarwal, et.al., 2016). The enterprise needs to follow all the rules and
regulations which are compliedcompiled by the existing business enterprise. The legal and
governmental support will be proveis expected to prove beneficial for this entity in order to
increase the higher compliance of all the legislations which are framed by an enterprise.
Compliance with different legislations is the biggestmajor strength of an entity. The acts that are
need to be followed are as follows: which includes corporations act, Australian securities
Exchange, ASXand ASX corporate governance. The market risk may be generated by the share
handling and operation of their business services. However, the services whichare are regarded
as safe as their monitoring is done by the Australian share and securities exchange board. This
board assures an individual regarding the validity and reliability of different sources to
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investors. The legal support from the various entities institutional bodies who are regulating the
performance of an entity is regarded as good and beneficial for an enterprise. The business
operation of this enterprise are properly checked and monitored at every point of time. This in
turn provides which gives assurance to the external person.stakeholders. The decision regarding
investment is the backbone support that is provided by the recognised legal entity which are
provided by the legal entity which are recognised enterprise in the whole world (Arora and ,
et.al, 2016). The shares dealing entity is always covered with exposed to high amount of risk;
however, dealing in varied range of services is expected to assist but the handling of various
services will help that the venture to in operatinge their business successfully with the higher
level of flexibility. This flexibility level will help an enterprise in order to move ahead of by
beating all kinds of competitors who exists in the existing business enterprise. All the
applicable standards are prescribed in these acts which are on the entity who are recognised in
the external market by using these regulations. It is one of the learning objectives and aim s
which will provide different directions to an entity in order to operate in a single direction to
achieve its objectives within a given time span (Dignam, Alan and Michael Galanis, 2016). The
aims and objectives are further modified according to the legislations and prescriptions given by
the government authority. An entity can heal their current positions in order to reach exact
destination. Different principles are also developed by the corporate governance in the form of
guidance notes which will further help an entity to move in a perfect direction. An enterprise can
play safe in external market without getting affected with the external changes in order to
concentratedconcentrate on their main aim to reach a perfect destination.
StakeholdersStakeholders’ satisfaction is major factor for attracting large number of stakeholders
that is all the customers, shareholders, owners, society. The business firm should complete all
their societal obligations as one of the iron law responsibility which further helps an entity to
consider all the elements into key considerations (ArAs and GülEr, 2016). The key points of
ASX council updated different external agents to be enclosed in a sealed package as their main
motive is to work according to their societies by considering their needs and expectations in the
products or services designed by an entity.
Apart from several benefits and recognition an entity possess some weaknesses which
needs to be removes as this will create barriers and trade obstacles for an enterprise in order to
interact with their society members (Yilmaz, Cahit and Ali Hakan Buyuklu, 2016). The one of
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the deficiency of the practices currently adopted by an enterprise is that they are confined to
within the national boundaries without getting exposed topto the international level. The
practices and policies framed such as anti-corruption procedures are designed as per the standard
situations. These regulations will not exist in the real life situations as this limitation is not
reflecting good position of an entity. The unaccepted of these policies is due to the illegal nature
of business will impose this requirement on this business is to form anti corruptionanti-
corruption practices as per the business nature of an enterprise. Another deficiency is that it
oversees its performance targets and objectives by comparing them as per the real life situations
as fair decision makers.
From the above comparison of various strengths and some weaknesses of this entity that
is tab corp. Ltd, it has been observed that the ratio of strengths possespossess by this enterprise
are higher than as compared to all the weakness discovered in the real time (McCahery, Joseph
Zacharias Sautner and Laura T. Starks, 2016). The current organisation of thisis the best suitable
which that needs to be included in the portfolio of Tom. as this enterprise. It is a mixture of risk
and stability as this is the major factor of anfor the organisation in order to move ahead by
investing with the same.
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REFERENCES
McCahery, Joseph A., Zacharias Sautner, and Laura T. Starks. “Behind the scenes: The
corporate governance preferences of institutional investors.”The Journal of Finance.
(2016).
Berger, Allen N., Björn Imbierowicz, and Christian Rauch. "The roles of corporate governance
in bank failures during the recent financial crisis."Journal of Money, Credit and
Banking.48, no. 4 (2016): 729-770.
Yilmaz, Cahit, and Ali Hakan Buyuklu. "Impacts of Corporate Governance on Firm
Performance: Turkey Case with a Panel Data Analysis."Eurasian Journal of Economics
and Finance. 4, no. 1 (2016): 56-72.
Bain, Neville, and David Band. Winning ways through corporate governance. Springer, 2016.
Aggarwal, Reena, Jason D. Schloetzer, and Rohan Williamson. "Do corporate governance
mandates impact long-term firm value and governance culture?."Journal of Corporate
Finance (2016).
ArAs, GülEr. A handbook of corporate governance and social responsibility. CRC Press, 2016.
Arora, Akshita, Akshita Arora, Chandan Sharma, and Chandan Sharma. "Corporate governance
and firm performance in developing countries: evidence from India."Corporate
Governance.16, no. 2 (2016): 420-436.
Dignam, Alan, and Michael Galanis.The globalization of corporate governance. Routledge,
2016.
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