Corporate Governance Assignment - (Doc)
Added on - 21 Apr 2020
Corporate governanceCorporate governance is the rules and principles that a company sets for its organizationthrough which it can control the processes.The main aim of corporate governance is to maintaina balance between various stakeholders of the company (Tricker&Tricker, 2015). Thegovernance of N&Z Company consists of board of members such as the directors of thecompany, employees of the company, all the shareholders of the company and CEO of thecompany.The board is responsible for all the strategic and operational decision of the company.However, the board fails to fulfill its duties sometimes and fails to oversight the risk.The organization has their own code of ethics in the corporate governance that they needto maintain to make the processes successful (By & Dawson, 2014). Code of ethics is alsoprinciples that an organization needs to maintain as a responsibility towards its board andstakeholders. N&Z Company is a new entity in New Zealand selling dairy products to theconsumers. It is necessary that the company maintain a certain amount of code of ethics amongits members and customers. The code of ethics of ethics will keep the employees and customersmotivated towards the company.The code of conduct also includes the CEO and the financial officer of the company. Anyperson that is related with the company, directly or indirectly,needs to comply with the code ofethicsDimopoulos& Wagner, 2016).Code of conducts:1.Honesty and integrityIt is the duty of the directors and the employees of the company to maintain and observehighest amount of honesty and integrity in the business. Thus, it is important that the employeesmaintain honest relation with the external stakeholders and customers.2.Conflicts between the membersDirectors and employees of the company need to control the conflict outside as well aswithin the corporation. This makes it necessary that the company maintains minimum tolerance
level for any kind of conflict within the business and directors are expected to avoid themselvesto be in a position that may create a conflict.3.Corporate opportunitiesThe employees are not supposed to use their position or information of the company for anyof their personal gains. To reduce this risk the employees and directors are not allowed to use thename of the company such as N&Z Limited or N&Z for their personal use or any externalbusiness.4.ConfidentialityDirectors and employees are deemed to maintain the confidentiality about the customers andthe suppliers.This makes it necessary that the information about the management that areconfidential are not to be give to any one should be maintained within the premise of thebusiness.5.EnvironmentDirectors, employees and other members of the company are responsible for maintaining ahealthy environment in the company.The company is best at maintaining good values through honesty and integrity and strictconfidentiality of data.Even though with such strong ethics, yet the company sometimes fails tomaintain certain codes among them that lead to conflicts among the employees and higherauthorities. Thus it is necessary that N&Z maintain a organized business structure betweendifferent departments.Organizational Structure and ControlOrganizational Structure to implement Cost Leadership and Differentiated StrategyOrganizational structure is a system by which tasks are allocated and flow within theorganization (Rothaermel, 2015). N&Z Company will maintain a Matrix Structure.
CEOBusiness analyst managerDevelopment managerQuality Assurance managerCondensed productManagerBusiness AnalystDeveloperTesterFermentation MilkProduct ManagerShakes and chocolatesManagerBusiness AnalystDeveloperTesterBusiness AnalystDeveloperTesterFigure 1: Matrix Organizational Structure for N&Z LimitedSource: Author’s creationMatrix organizational structure will be beneficial in implementing the cost leadership anddifferentiated strategy within the organization (Egelhoff& Wolf, 2017). This is because it helpsin sharing the responsibilities of the business between projects and functions. This makes thebusiness easier to carry out innovation and customize the product accordingly (Egelhoff& Wolf,2017). However, N&Z Company offers various types of products within the organization, whichis difficult to manage. Thus, sharing the responsibility among three different broad productdivisions will help them to reduce cost on products and specialize in some of the products due todifferent product division.
Strategic control for N&Z Limited:Strategic control is the way by which the company defines its prime objective ad way tofulfill it. The objective of the company is to be one of the known dairy product-manufacturingfirms in New Zealand and abroad. This allows the company to set the target ofexpanding their business to five new countries in the next three months. Specifically thecompany has the target of getting at least five new product in the country they are planning toenter. The new target of the company is achievable as the company is new and has alwaysfocused in innovations with their products (Stacey, 2016). The product expansion strategy isplanned by the business so that it can increase its present in a different way in new regions. Forthe purpose the company needs to form a new division of product management that couldmanage the development of new products altogether with new strategy. This strategic controlwill help the organization to follow other product development strategy it plans in future(Drucker, 2017). However, these objective needs financial support and needs to be fulfilled byfinancial control strategies.Financial controlThe process to control the financials is:Adopt knowledgeable executive that can deal with the suppliers correctly and maintain theirordersKnowledgeable accounting personal should be appointed for maintaining the internal accountingrecords.CEO and CFO of the company should be appointed to carry out an accurate financial statementfor the company.The CEO and CFO of the company should offer operating Metrics accurately.Company should carry out audits to see that the general ledger, invoice, accounts and otherfinancial records are in place.Financial duties should be segregated among account manager, accountants and Chief financialofficer (Drucker, 2017).