Assignment on Corporate Governance Sample

ASSESSMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
RATIONAL OF THE COMPANY.................................................................................................1
ISSUE OF THE CASE....................................................................................................................1
DIFFERENT CASE OF TESCO.....................................................................................................3
Tesco settles Aldi trademarks case.........................................................................................3
Enhancement in expectations from the three thousand stores................................................4
Tesco just bought its way out of a legal case. Clearly the economic elite play by a different set
of rules than the rest of us.......................................................................................................4
Tesco's profits crash: the global picture.................................................................................5
Improvement in advertising performance to make high profits.............................................5
THEORY OF CORPORATE GOVERNANCE..............................................................................5
ETHICS THEORIES AND CORPORATE GOVERNANCE........................................................9
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

Illustration Index
Illustration 1: Agency theory...........................................................................................................6
Illustration 2: Steward theory...........................................................................................................7
Illustration 3: Stakeholder theory.....................................................................................................8

INTRODUCTION
The present study is based on the case analysis which determines assessment of issues
that are faced by retail sector business. Corporate governance is the process which has aim to
allocate resources to maximise value for customers and other people as well (Goranova, Abouk
and Soofi, 2017). In the selected business unit Tesco, it holds to evaluate decisions with
transparency to assess problems and issues. Purpose of the present study is to identify impact of
issues on the performances of organisation. In this aspect, corporate governance issues could be
addressed in Tesco unit.
There are various important issues in corporate governance which play a vital role while
encountering problems. In this aspect, issues can be reveals which exists in corporate governance
and perceives with different priorities. In the present study, business unit theory and issues
addressed to develop effective results.
RATIONAL OF THE COMPANY
Tesco is British and multinational grocery retailer which exist in London, UK. It is the
third largest retailer in the world in terms of earning profits and ninth largest retailer in terms of
revenue. It has stores in over 12 nations and it is also grocery market leader in UK. Jack Cohen
who was the son of a Jewish Migrants from Poland founded Tesco in 1919. The company is
continuously expanding its operations and functions with variety of products and services. From
1950, the chosen enterprise growing their operations organically through acquisitions in more
than 800 stores (Audretsch and Lehmann, 2014). Further, the business also introduced loyalty
cards and internet shopping as well, which increased sales of the firm significantly. In July 2001,
Tesco involved internet grocery retailing which obtain 35% stake in the grocery market. In
addition to this, firm also made convenience stores market through purchase of T & S stores
(Ayuso, Rodríguez and Ariño, 2014).
ISSUE OF THE CASE
Tesco comes in term of supermarket giant that shows positive profit report in first time of
three years. Further, the company also forced apologise for the disgraceful that shows domestic
work which being slapped. There are three biggest challenges exists which face in 2016 by Tesco
such as competition, doubts over the share price and sales within the big stores (Tihanyi, Graffin
and George, 2014).
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