Corporate Governance Assignment Case Study
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Added on 2020-06-04
Corporate Governance Assignment Case Study
Added on 2020-06-04
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ContentsSECTION 1- CASE STUDY...........................................................................................................1INTRODUCTION...........................................................................................................................1BACKGROUND.............................................................................................................................1DESCRIPTION OF KEY EVENTS................................................................................................3Governance Issue.........................................................................................................................3SECTION 2- CASE ANALYSIS....................................................................................................5Company information..................................................................................................................5Organisation Audit of Toshiba....................................................................................................6Environmental audit.....................................................................................................................8Stakeholder analysis..................................................................................................................10Company Issues Identification..................................................................................................11Analysis of Alternative strategies..............................................................................................12Justification for choosing strategies...........................................................................................14Resources which needs to be taken care....................................................................................14RECOMMENDATIONS...............................................................................................................15CONCLUSION..............................................................................................................................16REFERNCES.................................................................................................................................17
SECTION 1- CASE STUDY INTRODUCTIONCorporate governance is stated to be a system that is developed on the basis of rules andprocesses that are controlled by organisation directly and indirectly. It is a concept that isconcerned with balancing each and every aspect that concerns a company’s stakeholders likeshareholders, suppliers, customer’s government, community and financiers. It acts as aframework that allows an organisation in attaining its objectives in a desired manner. Itencompasses each and every sphere of management, from action plan to internal performancecontrol variables as well as disclosure of corporate. It is vital for the implementation of rightplans and policies within organisation so that they can attain their goals and objectives in astipulated time frame (Yang, 2017). This report is being prepared with an aim of understandingissues and problems that are faced by companies in managing their operations and resources. Forthis assignment, Toshiba has been chosen as an organisation on which whole study will beconducted. It is one of the leading electronic and hardware companies that is having a highlydiversified product offerings in the market. This report will be discussing the way in whichvarious issues and problems have their impact upon organisation’s success and failure. It willassist individuals as well as management in analysing all the aspects that are needed to beanalysed and changed for improving performance. BACKGROUNDToshiba is a multinational organisation which is based in Tokyo, Japan. It is a Japaneseconglomerate that has a massive product range. It deals in information technology,communication equipment, electronic components, materials, power systems, industrial andsocial infrastructure, consumer and household appliances, medical and office items as well as inthe field of logistics (He, Páez and Liu, 2017). Company was established in 1939 when a mergertook place between two organisations (Shibaura Seisaku-sho and Tokyo Denki). In the year1978, its name was officially changed to Toshiba Corporation. It is an organisation that has madenumerous acquisition in their entire history to boost capabilities and market influence. Companyis formally divided into 4 different parts which are:Digital product groupElectronic devices group1
Home appliances groupSocial infrastructure groupThe company is listed on Tokyo Stock Exchange where it is a part of Nikkei 225 andTOPIX indices as well as Osaka Securities Exchange and Nagoya Stock exchange. It is a publiccompany operating since 142 years. The area which it serves is worldwide with few exceptionssuch as North Korea and Cuba. It is also one of the biggest employers in world as it has aworkforce of 187,809 individuals. Company is very famous due to its engagement in each andevery field. It is also known for its corporate social responsibility where it focuses on enhancingthe standard of living of people. There have been many reasons behind its expansion and growth and one of them iscompany focus on organic growth while also driving on acquiring the blue-chip. It had boughtheavy engineering technologies in their primary industry organisations which has boostedcapability of manufacturing more products (Das, 2017). It also holds the tag of being inventor ofthings that were not being sold commercially before such as Radar, TAC digital computer,transistor television, microwave oven, colour video phone, Pc and laptop, NAND EEPROM,DVD, Notebooks, MRI systems, etc. Although in the past there had been few controversies related to organisation and out ofall the infamous accounting scandal has made the headlines, where company bears allegations ofrevising and presenting false profits and financial reports (Berlin, Berglund and Lindskog, 2017).Due to this, Toshiba had to face severe damages in its brand value, market position and damagesto financial condition. The second issue which was the US nuclear construction liabilities thatwas there on its subsidiary Westinghouse. This was there due to changes in laws and corporateenvironment that led to cost overrun and delays. Company is focusing on controlling their financial flow of resources so that they canreduce its reliance on shareholders and external funding. They are trying to clear losses byenhancing efficiency and overhauling their business model as per the requirements (Liu and et.al., 2017). This is the reason; they are investing on R&D units which are 39 in numbers. The aimbehind this investment is to ensure that each factor is properly managed. Also, they are trying todevelop Corporate Governance that will enable them in establishing a framework that can beused for enhancing organisation’s effectiveness. Any type of variance that exists in the system isbeing removed by using the stated concept and better level of productivity is attained as well. It2
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