Role of Corporate Governance Practices and Strategies in Dealing with Decreasing Sales within Retail Industry: A Study on Marks & Spencer

REPORT (SUMMATIVE)

Table of Contents
INTRODUCTION...........................................................................................................................3
Title.........................................................................................................................................3
Aim.........................................................................................................................................3
Objectives...............................................................................................................................3
Questions................................................................................................................................3
Rationale.................................................................................................................................3
Background.............................................................................................................................4
Business problem....................................................................................................................4
LITERATURE REVIEW................................................................................................................5
Corporate governance practices used by an organisation for strategic business planning.....5
Challenges faced by Marks & Spencer in their sales due to ineffective execution of corporate
governance practices..............................................................................................................6
Role of corporate governance practices and strategies in dealing with the issue of decreasing
profitability of Marks & Spencer...........................................................................................7
Recommend strategies used by Marks & Spencer for improving organisational profitability8
DISCUSSION OF THE SECONDARY AND PRIMARY RESEARCH.......................................9
CRITICAL REVIEW OF THE RESULTS OF THE RESEARCH..............................................11
Frequency distribution table.................................................................................................11
Data interpretation................................................................................................................12
Discussion.............................................................................................................................17
RECOMMENDATION AND ACTION PLAN............................................................................18
Recommendation..................................................................................................................18
Action plan...........................................................................................................................19
REFERENCES..............................................................................................................................20
APPENDIX....................................................................................................................................22
Questionnaire........................................................................................................................22

INTRODUCTION
Title
Role of corporate governance practices and strategies in dealing with the issue of decreasing
sales within retail industry.
Aim
To examine the role of corporate governance practices and strategies in dealing with the issue
of decreasing profitability of retail industry. A study on Marks & Spencer
Objectives
 To investigate different corporate governance practices used by an organisation for
strategic business planning
 To determine the challenges faced by Marks & Spencer in their sales due to ineffective
execution of corporate governance practices
 To analyse the role of corporate governance practices and strategies in dealing with the
issue of decreasing profitability of Marks & Spencer
 To recommend the strategies that can be used by Marks & Spencer for improving
organisational profitability
Questions
 What are the different corporate governance practices used by an organisation for
strategic business planning?
 What are the challenges faced by Marks & Spencer in their sales due to ineffective
execution of corporate governance practices?
 What is the role of corporate governance practices and strategies i in dealing with the
issue of decreasing profitability of Marks & Spencer?

 What are the recommended strategies that can be used by Marks & Spencer for
improving organisational profitability?
Rationale
I have undertaken the current current research on the role of corporate governance
practices and strategies in dealing with the issue of decreasing sales within retail industry. It
benefits the organisation in having the detailing review of the research report. It can help the
organization in reviewing the corporate governance practices and challenges related to it along
with the recommendations as well (Solomon, 2020). It will also benefit the investigator also by
acquiring new skills and refining the existing skills as well. Such as research skills and time
management skills along with the cognitive skills and problem solving skills which is followed
by the analytical skills and communication skills and also the business management skills as
well.
Background
Corporate governance is defined as the system through which the entire organization is
controlled and directed. Mainly boards of directors are accountable for the organizational
governance. They majorly focus on the people and processes along with the performance and
purposes. Proper documentation is prepared so that flow of working within the organization
must be systematic in nature (Goworek, Oxborrow, Claxton and Hill, 2020). Organization
chosen here is the Marks and Spencer. It is one of the leading international retail and fashion
company established in 1884 and headquartered in UK. The following discussion is based on
the corporate governance practices and challenges along with the role of corporate governance
practices and strategies and also the recommendations in context of Marks and Spencer.
Business problem
The current research has the business problem related with the retail industry. They are
facing the issue in decrement of sales because of several reasons. Therefore, it is essential to
tackle such issues and deal with it. This can be done by adopting the tactics and strategies of
corporate governance which can help in resolving such problem within retail industry (Okwu
and Tartibu, 2020).

LITERATURE REVIEW
Corporate governance practices used by an organisation for strategic business planning
According to Brennan, Subramaniam and Van Staden, (2019), There are several
practices of corporate governance which is used by the organization for strategic business
planning. Such as governance frameworks is one of the practice of corporate governance used
for strategic business planning. It is important to formulate the frameworks of governance as it
includes the effective boards and transparency around roles and responsibility along with the
accountability and engagement with stakeholders and also the driving of the business
sustainable practices. All such inclusion helps in the planning for the conducting of the strategic
businesses. Governance documentation is an another practice of corporate governance used
for strategic business planning. It is essential to content out all the necessary details about the
corporate governance so that the proper documents can be developed. This further assist in the
systematic planning and implementation of the business practices in tactical manner.
As per the view of Van Greuning and Bratanovic, (2020), other practices includes
policies aligned with laws and applicable regulations is one of the practice of corporate
governance used for strategic business planning. It is necessary to align all the policies with the
laws so that corporate social responsibility can be maintained with proper ethics and applicable
regulations. This aids in figuring out an appropriate planning of the business strategy.
Documentation processes and procedures is an another practice of corporate governance
used for strategic business planning. It is significant to follow up the proper process of
documentation so that planning process of the business strategy can be made as per the targets
and objectives of the company. Planning highly requires the feasibility study also which is
documented in the corporate governance. Effective board reporting is also an another practice
of corporate governance used for strategic business planning. It is crucial to conduct the board
meetings on the frequent basis so that the effective ideas can be exchanged using the corporate
governance policies and planning can be performed in order to execute the strategies for the
businesses.
According to Li, Terjesen and Umans, (2020), some of the other practices includes are
the agenda and minutes is one of the practice of corporate governance used for strategic

business planning. It is vital to conduct the agenda and minutes because it includes the key
points of discussion and decisions along with the agreed actions and many more related points.
Such discussion helps in the strategic business planning using the policies of corporate
governance. Director training and board evaluations is an another practice of corporate
governance used for strategic business planning. It is imperative conduct the sessions for
training and development about how to incorporate the corporate governance so that the
business planning can be initiated in a strategic manner. Subsidiary governance policies is
also an another practice of corporate governance used for strategic business planning. It
includes the establishment of subsidiary governance frameworks and setting out the rules along
with the provision of guidance regarding decision making and execution which supports in the
planning of strategies within the business. This is because such policies provides the direction
and systematic way of planning and attainment of the business objectives in an ethical manner.
Challenges faced by Marks & Spencer in their sales due to ineffective execution of corporate
governance practices
As per the view of Naciti, (2019), there are several challenges faced by Marks &
Spencer in their sales due to ineffective execution of corporate governance practices. Conflicts
of interest is one of the challenge faced due to ineffective execution of corporate governance
practices. Sales is highly affected because of the major conflicts as it lowered down and it
negatively impacts the productivity and profits as well. Oversight issues is an another
challenge faced due to ineffective execution of corporate governance practices. Sales
supervision is important and if it will only have the issue then it can lower the sales in a large
basis. Unhealthy company culture is also one of the challenge faced due to ineffective
execution of corporate governance practices. Due to lower down of the sales, company will feel
highly pressurised which will result in the unhealthy culture within the firm. Systematic
failures and economic distress is also an another challenge faced due to ineffective execution
of corporate governance practices. Lack of corporate governance practice leads to the poor
economic conditions and failures of systems as well which ultimately results in the negative
number of sales.
According to Flammer, Hong and Minor, (2019), other challenges are such that
accountability issues is one of the challenge faced due to ineffective execution of corporate