Corporate Strategy and Governance

This document discusses the importance of corporate governance for an organisation and the challenges faced by Tesla due to inappropriate corporate governance. It also provides recommendations on how Tesla can improve its market performance and brand image using effective corporate strategy.

Corporate Strategy and
Governance
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CONTENTS
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
Background of study....................................................................................................................3
Review of issue faced..................................................................................................................3
Research Aim...............................................................................................................................3
Research Objective......................................................................................................................3
Research question........................................................................................................................4
LITERATURE REVIEW................................................................................................................4
To explore about the importance of Corporate governance for an organisation.........................4
To determine the challenges faced by Tesla due to inappropriate Corporate governance..........5
To identify the relation between ineffective corporate governance and dropping the
performance of Tesla...................................................................................................................7
Recommend ways through which Tesla can improve its market performance and brand image
using effective corporate strategy................................................................................................8
RESEARCH METHODOLOGY....................................................................................................9
DATA ANALYSIS AND DISCUSSION.....................................................................................12
Discussion on the bases of primary data....................................................................................13
Discussion on the basis of Secondary information....................................................................16
RECOMMENDATION AND ACTION PLAN............................................................................17
Recommendation.......................................................................................................................17
Action Plan................................................................................................................................18
CONCLUSION..............................................................................................................................20
REFERENCES..............................................................................................................................22
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INTRODUCTION
Background of study
The Corporate governance consist of set of mechanism or policies which are used by an
organisation in order to manage its operations in effective manner. the main aim of corporate
governance is to look after the operation performed within an organisation while considering the
ethical principles and industrial standards and norms (Puranam and Vanneste, 2016). The
corporate governance support an organisation to create value in front of its stakeholders which
further support in achieving the competitive edge and sustainability at marketplace. For
developing deep understanding about this the study is conducted over an issue of corporate
governance to determine its influence over the organisational performance at marketplace and for
this Tesla is consider. The Tesla Inc. is a electric vehicle and clear energy company which is
specialised in creating the electric vehicle manufacturing, battery energy storage from home grid
scale and also maintain the SolarCity, solar roof and Solar panel manufacturing (Jacoby, 2018).
Review of issue faced
The main issue in which the current research project is based consist of challenges faced due
to inappropriate corporate governance within an orgnisation. Tesla is an American electric
vehicle and clean energy company that is currently facing many challenges due to inappropriate
and ineffective corporate governance that consist of issue of speculation and lack of transparency
and majority among board of directors of Tesla and its CEO (Tesla Board Fails to Pass
Supermajority Measure It Proposed Amid Call for More Oversight, 2019). Thus, the current
investigation is based on evaluation of main challenges encountered by Tesla due to
inappropriate corporate governance along with problems related with ineffective corporate
governance and dropping the performance of Tesla (Tesla, Facing Setbacks and Skeptics, Tries
to Get Back on Course, 2019).
Research Aim
To ascertain the influence of ineffective corporate governance practice on overall
organisational performance at marketplace. A study on Tesla
Research Objective
 To explore about the importance of Corporate governance for an organisation
 To determine the challenges faced by Tesla due to inappropriate Corporate governance
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 To identify the relation between ineffective corporate governance and dropping the
performance of Tesla.
 Recommend ways through which Tesla can improve its market performance and brand
image using effective corporate strategy.
Research question
 What is the importance of Corporate governance for an organisation?
 What are the major challenges faced by Tesla due to inappropriate Corporate
governance?
 Explain about the relation between ineffective corporate governance and dropping the
performance of Tesla?
 What are several ways through which Tesla can improve its market performance and
brand image using effective corporate strategy?
LITERATURE REVIEW
It is a vital section of a research project or dissertation that lead base and framework for
complete investigation through developing better understanding about specific topic and its
objective (Puranam and Vanneste, 2016). To accomplish the objective of current investigation
and have better understanding about chosen topic and its objective various online articles and
authentic journals are reviewed and surveyed, a discussion and brief evaluation of which is
provided below:
To explore about the importance of Corporate governance for an organisation
According to the view point of Prachi Juneja, 2020, Corporate Governance is basically
referred to the way as per a corporation or orgnisation is being governed thus, it is mainly the
technique or tool by which all operations and strategies of companies are directed or managed by
its directors and other members of top authority. Corporate governance is important for an
orgnisation as it lead to carrying out the business operations in such a way that is desired by its
stakeholders in order to satisfy them and meet their expectations. Thus, corporate governance is
basically consists of ways and process that are actually conducted by the board of Directors and
the concerned committees for benefits and supporting needs and desires of companies’
stakeholders thus, corporate governance is all about balancing individual and societal goals along
with leading coordination with overall economic and social goals that need to be meet by an
orgnisation (Jacoby, 2018). Corporate governance is a broad concept that deals with deterring a
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way for effective strategic decision making thus, important for creation of value for stakeholders
through ensuring transparency in business operations which ensures strong and balanced
economic development. Thus, it can be evaluated that Corporate governance is important for an
orgnisation as it ensures that the interests of all shareholders are properly safeguarded and meet
through leading enhanced transparency and accountability in business operations and ensures
that all shareholders fully recognizes their rights and act is most viable way to achieve both
financial and social objective of an orgnisation (Lutsenko, 2018).
Further, as per the information provided by Nicholas J. Price, 2017, it has been evaluated
that corporate governance is vital and important for an orgnisation as it ensures corporate success
and economic growth through maintaining confidences and strong connection with stakeholders
and investors that benefits an orgnisation through supporting raise of capital and finance in a
more efficient and effective way. Further, an effective and string corporate governance also
lowers the capital cost through leading a positive impact on the share price of an organisation.
Beside this, corporate governance is having significant importance for an orgnisation as ensures
that an organization in managed in a best possible manner and way that fits and suitable for
meeting interests of all stakeholders in a best way through proper inducement to the owners as
well as managers in order to set and achieve objectives that are in interests of all shareholders
and overall organization (Wang and Sarkis, 2017). Furthers, corporate governance lead to an
efficient tool for the orgnisation that minimize wastages, risk of corruption, and miss-
management in an orgnisation through leading transparency and accountability in all decision
making and corporate strategy that helps in better brand formation and efficient development of
the organisation. Thus, it can be evaluated that corporate governance is important for an
orgnisation to ensure effective strategy formulation ad decision making that meet expectations of
all stakeholders and overall objectives of organisation along with leading foundation of
transparency, accountability and trust in stakeholders and investors to meet the objectives of
company in more better and viable manner (Singh, and Delios, 2017).
To determine the challenges faced by Tesla due to inappropriate Corporate governance
As per the view point of James McRitchie. 2019, Corporate governance represent a set of
rules, practices and processes that are used by top authority and directors to direct and control a
company. This process of compare governance consists of setting an effective balance
betterment interest of stakeholders of company and overall interest and gaols of an orgnisation.
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Furthers, corporate governance forms a vital part of a company as it is essential for the overall
success and leading sustainability through setting out of rules and processes of governance but an
ineffective corporate governance or its failure could have disastrous consequences for an
organisation. The failure of corporate governance can be lead due to ineffective governance
mechanisms that is due to lack of board committees or committees consisting of few or a single
member. The another reason of failure of corporate governance consists of inadequately un
qualified or audit committee members those are not having appropriate accounting and other
financial qualifications or required experience to analyse key business transactions (Lone, Ali
and Khan, 2016).
As per the view point of Tim Higgins, 2019, the biggest issues encountered by Tesla due to
inappropriate corporate governance consists of failed to pass corporate governance changes at
the electric-car maker that its directors had proposed to give stockholders a greater voice in
company matters. The issues seen in Tesla is mainly associated with Failure of boards of Tesla
over Pass Supermajority Measure It Proposed Amid Call for More Oversight further,
Shareholders also reject measure the proposal of shortening term period of boards to two years
from three. Further issues of speculation and lack of transparency is faced at the Tesla as the
CEO of Tesla, Elon Musk had made an unauthentic statement at Twitter and was unavailable for
a long period that has lead to many consequences for Tesla as the statement was not confirmed
by any of the board member (Naciti, 2019). Thus, lack of transparency and issues of speculation
is the biggest challenge that is lead by inappropriate corporate governance at Tesla.
Further, as per the opinion of Mark Matousek, 2019, the main challenges that are faced by
Tesla due to inappropriate Corporate governance consist of unexpected Layoffs at Tesla that
hampered morale of its employees along with high level of turnover of executive and departure
of talent employees. Beside this, reduction in brand image and a lost Consumer Reports
recommendation along with the SEC accuses Musk of violating their settlement lead to store
closures and investigations into deadly crashes along with enhanced controversial conference
call by its CEO that had lead to overall reduction in brand image and reputations of Tesla that is
creating negative impact on its sales and success of organisation (Kabir and Thai, 2017).
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To identify the relation between ineffective corporate governance and dropping the performance
of Tesla.
As per the view point of Neal E. Boudette, 2019, the ineffective corporate governance has
lead to a big setback for Tesla that lead to dropping of performance of this company. The issues
of speculation and lack of transparency faced by Tesla due to an ineffective corporate
governance. The issues of speculation is mainly associated with act of conducting a financial
transaction that has substantial risk of losing value but also holds the expectation of a significant
gain or other major value. Thus, it can be evaluated the issue of speculation is the situation when
the risk of loss is more than the possibility of a substantial gain as in case of Tesla false
statement has been made by the CEO Elon Musk that was not confirmed by any other
stakeholders has lead to more risk and authentic information for investigator that is due to lack of
majority among directors as a result of inappropriate corporate governance. It could be evaluated
that this act of Tesla had lead to breach of trust in investors who could and wrong decisions due
to unauthentic information lead by CEO of Tesla and lack of majority at among board directors
(Ocasio and Radoynovska, 2016). Thus, the ineffective corporate governance of Tesla has
resulted in bad brand reputation and break of trust of its major stakeholders that is biggest set of
for this orgnisation and also lead to reduction in its performance.
Furthers, as per the opinion of Hilton Holloway. 2019, the issue of lack of transparency in
the corporate governance of Tesla has lead to many difficulty and challenges for this orgnisation
that negatively impacted its performance and business reputation. The issue of lack of
transparency has affected the ability of boards and top authority to take suitable strategies for
betterment of Tesla and further lack of majority among broad of directors is also seen in
corporate governance of Tesla that lead to enhanced issues of inappropriate direction and
framework for overall orgnisation and its stakeholders that affect viability and success level of
Tesla. Further, an ineffective corporate governance lead to bad reputation among stakeholders
and customers that would ultimately affects the performance and productivity level of Tesla
(Grennan, 2019). Thus, it can be evaluated that issue of speculation lead to conscious choices by
stakeholders and lack of trust in them thus, lead to unjust result of uncontrollable circumstances
that is hazardous for the overall performance of Tesla. Further, lack of transparency and majority
among board of directors has made formulation of strategic policies more complicate and
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enhance difficulty in their implication thus, hampers the overall performance and viability of
Tesla (Schmidt and Fahlenbrach, 2017).
Recommend ways through which Tesla can improve its market performance and brand image
using effective corporate strategy.
As per the opinion of Nousrath Bhugeloo, 2020, effective corporate governance plays a vital
role in improving market performance and brand image through leading more effective strategy
formulation and decision making that meets the expectations and desires of all stakeholders
along with leading majority of all board directors thus, lead to enhancement in brand position
and market performance. The vital ways that could be adopted by and recommended for Tesla
for having more effective corporate strategic in order to improve its market performance and
brand image are evaluated below:
Leading transparency and accountability in decision making process- The foremost
recommended way for Tesla to improve its market performance and brand image using effective
corporate strategy consist of brining transparency and enhanced accountability in its corporate
governance so that effective strategic can be formulated (Puranam and Vanneste, 2016).
Transparency is the core competent of corporate governance that transparency ensures that all
actions and operation of board of directors and other authority member should be checked at
must given time by an outside observer and clearly stated towards all stakeholders to provide a
clear answer to expectations of stakeholders. Accountability is also recommended for Tesla as
corporate accountability brings a high level of obligation and responsibility in order to give an
explanation or reason for all actions taken and operations conducted by company. A high level of
transparency and accountability in the corporate governance also ensures more effective
communication of board with stakeholders at a regular intervals so that a more fair, balanced and
understandable assessment about companies actions and operations can be provided in order to
specify how the company is going to achieve its business purpose and desired expectations of
stakeholders.
Regular evaluation of board and directors performance- It is also recommended for
Tesla to keep a check on performance and efficiency of its board and other directors to ensure
effective decision making and strategy formulation for success and better performance of overall
orgnisation (Jacoby, 2018). A regular check and monitoring to evaluate whether the board
members and directors are competent and properly skilled or not to take decisions and from
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strategy as per current market scenario is vital for Tesla to have better brand image and enhanced
market position.
Formation of audit committee- The other way or measure recommended for having more
effective corporate governance for Tesla consists of leading and formulating an audit committee
in order to lead better check on its board operations and actions taken by them. Formulation of
audit committee is recommended for Tesla as it is an effective means and tool to enhance
efficiency of corporate governance through reducing the expected potential and chance for
fraudulent financial reporting and other corruption and unauthentic acts to maintain the good
brands image through better check on financial statement and business position (Lutsenko,
2018). Further, Audit committees is also vital for Tesla as it oversee the overall management of
an organisation through leading internal and external auditors to protect and preserve the equity,
interests and expectation of stakeholders in a more effective and better way thus, ensures better
brand image and market position for Tesla.
RESEARCH METHODOLOGY
Research methodology consider to be that section of a research which put emphases
toward describing set of tools, approaches, techniques and methods that are used by the
investigator in order to perform investigation effectively. This section act as a guide for the
researcher by providing them direction to the researcher about how the data must be collected,
arrange, presented and interpreted to the best possible so that aporop0raite information can be
presented. This section also represented the validity and reliability of the whole investigation by
presenting detail about eth methods used. The presented research is based on both the primary as
well as secondary research and method used for conducting this investigation is mentioned
below:
Secondary Research: -
The secondary investigation is mainly performed over the information which is already
investigated and published with related topic. In secondary research the information about a
particular area of study is collected with the relevant information by collecting the view point
presented by several scholars or authors through their studies. Hence with the help of this
investigation the information is provided from the prospects of other researcher who published
their investigated material rom several different sources such as books, journals, articles,
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company record, media records etc. This investigation is performed for developing an
understanding regarding the nature of study.
 Research approach: - In order to perform secondary research the qualitative research
approach is taken into consideration as it help in gathering and arranging the information
in more detailed manner by providing in depth understanding of data in more meaningful
manner. Despite of this in order to analyse the secondary information the inductive
approach will be used which support in evaluating the information and also work toward
creating a new theory which is based on existing one which provide a base to extend the
knowledge and current understanding.
 Research strategy: - In order to perform secondary research more effectively the
competent analysis method will be used where the gathered information is explai8ned by
providing a theme that provide an idea about what next is to be discussed. This provide
an idea to the reader about the thing over which the discussion is going to be made in
order to make it more explanatory.
Primary Research: -
In this type of investigation the researcher collecte the first hand information which is not yet
been collected by any other person before. This kind of information is result into whole new
information which is not present before. The primary information is mainly collected with the
help of tools like survey, questionnaire, interview, focused group etc. The information collected
through the primary research is consider to be valid and more reliable as compare to secondary.
This is so because it is a data which remain without any kind of filtration.
 Data collection method: - In order to perform the primary information the method used
for gathering data is either qualitative or quantitative method. Among these two methods
the quantitative method of investigation is used within this study as it help in presenting
the information with numerical facts or figures which help in presenting the accurate
information and results into more specific outcomes/.
 Data collection tool: - For gathering primary information there are number of tools that
represent to assist the researcher such as interview, questionnaire, focused group, survey,
case study etc. But for the current study the information will be gathered with the help of
questionnaire which allows investigator to collect larger amount of information in
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stipulated time period by approaching more and more people at a time. The questionnaire
prepared for presented study is mentioned below:
QUESTIONNAIRE
Q 1 Are you aware about role of corporate governance within an organisation?
a) Yes
b) No
Q2 Do you this that Corporate governance support a business in achieving sustainability and
marketplace?
a) Yes
b) No
Q3 According to you what is the importance of corporate governance for an organisation?
a) Maintain work ethics
b) Accountable for Economic development
c) Safeguard interest of stakeholder
Q4 Do you think that, inappropriate corporate governance was the major cause behind this issue
of volatility in stock of Tesla?
a) Yes
b) No
Q5 What challenges does Tesla faced due to this case of inappropriate corporate governance?
a) Negative publicity of brand
b) Drop in stock
c) Mechanical issue with cars
Q6 According to you what actions must be undertaken by Tesla in order to minimise this effect
and improve brand image?
a) Develop an audit committee
b) Maintain transparency with BOD
c) Regular interact with community
 Administration: - The information that will be gathered for this study will be
administrated using email as it is most confinement source for presenting the appropriate
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information to the respondents along with the questionnaire form. This will saves time
and cost, as well as also support in keeping the information safe.
 Sampling technique: - The sampling is defined as the process of selecting group of
people out of whole population who are witness of a particular situation or holds
information about it so that appropriate data can be gathered to assist the primary
investigation for getting better outcome. The sampling is mainly performed with the help
of two methods such as probabilistic and non-probabilistic. Among these two the
probabilistic sampling method has been taken into consideration within this study as it
provide equal opportunity to the people within the population to get selected as a
respondents that will be selected using random sampling method. Hence, in current
project the sampling will be performed using random sampling under the probabilistic
method where the respondents would be 50 employees of Tesla.
 Ethical issues: - While collecting the primary information there are several kind of
ethical issues that a researcher have to face. In order to avoid such kind of ethical issue
there are certain ethical consideration that researcher will follow such as informed
consent where the respondents are provided with a chance to become a part of
investigation voluntarily by disclosing the main aim behind this study. Other than this the
confidentiality principle of ethics will also be followed where the confidential and
personal information of the respondents will be kept secret
DATA ANALYSIS AND DISCUSSION
Data analysis refers to the process of analysing the gathered data in order to convert it into
meaningful information so that appropriate conclusion can be extract out as per the set objectives
of the study. There are several tools that are used for performing eth data analysis in effective
manner such as thematic analysis, content analysis etc. For this study the content analysis will be
used where themes are created for giving zest about upcoming discussion. The frequency table
regarding gathering of primary data is discussed below:
Q 1 Are you aware about role of corporate governance within an
organisation?
Frequency
a) Yes 50
b) No 0
Q2 Do you this that Corporate governance support a business in Frequency
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achieving sustainability and marketplace?
a) Yes 40
b) No 10
Q3 According to you what is the importance of corporate governance
for an organisation?
Frequency
a) Maintain work ethics 10
b) Accountable for Economic development 10
c) Safeguard interest of stakeholder 30
Q4 Do you think that, inappropriate corporate governance was the
major cause behind this issue of volatility in stock of Tesla?
Frequency
a) Yes 45
b) No 5
Q5 What challenges does Tesla faced due to this case of
inappropriate corporate governance?
Frequency
a) Negative publicity of brand 30
b) Drop in stock 10
c) Mechanical issue with cars 10
Q6 According to you what actions must be undertaken by Tesla in
order to minimise this effect and improve brand image?
Frequency
a) Develop an audit committee 10
b) Maintain transparency with BOD 30
c) Regular interact with community 10
Discussion on the bases of primary data
Theme 1: role of corporate governance within an organisation
Q 1 Are you aware about role of corporate governance within an
organisation?
Frequency
a) Yes 50
b) No 0
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Interpretation: - Corporate governance is one of the major concerns which each
organisation is follow in order to operates business ethically. For determining that respondents
have understanding about the corporate governance, this investigation is performed from which
it has been identified that the total of respondent’s area ware about the role of corporate
governance within an organisation. As the large MNC’s have to indulge in corporate governance
practices which ensure that each operations get executed and align within the moral principles as
well as legal laws.
Theme 2: Corporate governance support a business in achieving sustainability and
marketplace
Q2 Do you think that Corporate governance support a business
in achieving sustainability and marketplace?
Frequency
a) Yes 40
b) No 10
Interpretation: - Corporate governance plays a crucial role in managing the business and
its performance at marketplace. From the information mentioned above it has been identified that
around 40 out of 50 respondents said that corporate governance supports a business in achieving
sustainability at marketplace. On the other side, 10 respondents said no that corporate
governance is not helpful in managing sustainability. By analysing the data it has been found that
corporate governance is helpful in achieving sustainability as it help in guiding and managing the
operations of the organisation in right direction which in turn help in creating value among
stakeholders and hence support in achieving sustainability.
Theme 3: importance of corporate governance for an organisation
Q3 According to you what is the importance of corporate
governance for an organisation?
Frequency
a) Maintain work ethics 10
b) Accountable for Economic development 10
c) Safeguard interest of stakeholder 30
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Interpretation: - From the information mentioned above it has bene identified that around
10 respondents out of 50 said that the main importance of corporate governance is that it help in
miniating the work ethics. On the other side 10 respondents said that effective management
provide ana accountability for the economic development. Despite of this 30 respondents said
that it allows the safeguarding interest of stakeholder. From analysis it has been determined that
majority of people are in favour of safeguarding interest of stakeholder. This is so because the
corporate governance keep an eye over the operations executing within the organisation in order
to ensure that each action must get perform while concerning a mutual benefit.
Theme 4: inappropriate corporate governance was the major cause behind this issue of
volatility in stock of Tesla
Q4 Do you think that, inappropriate corporate governance was
the major cause behind this issue of volatility in stock of Tesla?
Frequency
a) Yes 45
b) No 5
Interpretation: - According to the information mentioned above it has been identified that
around 45 respondents said yes that inappropriate corporate governance was the major cause
behind this issue of volatility in stock of Tesla as the CEO of company perform the speculation
practices by misleading the investors which remains the cause behind it. While on other side 5
respondents said no to this as according to them the issue was lies within the capital market.
Theme 5: challenges that Tesla faced due to this case of inappropriate corporate governance
Q5 What challenges does Tesla faced due to this case of
inappropriate corporate governance?
Frequency
a) Negative publicity of brand 30
b) Drop in stock 10
c) Mechanical issue with cars 10
Interpretation: - This inappropriate corporate governance practices brings up a lot of
challenges in front of the Tesla. From the information mentioned above it has been identified that
around 30 people said that negative publicity of brand is the major challenges that Tesla faced.
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While on th other side the 10 respondents said that drop of stock is the major issues that Tesla
has faced after this case. Despite of all this the another 10 respondents said that the mechanical
issues with car is the main issuers that affected Tesla a lot. From the analysis of data it has been
found that negative publicity was the major cause, as due to misleading practices of CEO to the
investor affect their trust toward the company. Other than this such conduct also get a huge
media coverage which leads to negative publicity.
Theme 6: Actions must be undertaken by Tesla in order to minimise this effect and improve
brand image
Q6 According to you what actions must be undertaken by Tesla
in order to minimise this effect and improve brand image?
Frequency
a) Develop an audit committee 10
b) Maintain transparency with BOD 30
c) Regular interact with community 10
Interpretation: - The inappropriate corporate governance bring up a huge impact over the
Tesla its performance and brand image in marketplace. So, to determine the actions that can be
taken to deal with minimising the impact the investigation is performed and from this it has been
identified that around 10 out of 50 employees said that developing an audit committee will be
effective. While 30 respondents said that maintain transparency with BOD will be effective, but
10 respondents said that regular interaction with community will be effective. From the overall
evaluation of the study it has been identified that maintaining transparency will be effective e has
it help in providing clear information about each and every action taken which maintain a surety
that these are performed ethically and right manner.
Discussion on the basis of Secondary information
With respect to current investigation it has been evaluated that Corporate governance is
associated with the way as per a company being governed and denotes the process of decision
making and strategy formulation by board of directors and other stakeholders. Corporate
governance is having significant importance for an organisation as it lead to creation of value for
stakeholders through keeping a balance between expectations and desires of stakeholders and
overall goal of success and targets of organisation. Corporate governance brings clarity and
transparency in decision making and performance thus, build better connection and commitment
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with investors and other stakeholders to enhance viability and success of orgnisation. Further,
many challenges are faced by an orgnisation due to lack of ineffective corporate governance that
consist of inadequately un qualified board members and lack of majority and transparency
among them that lead to may challenges for an orgnisation as enhance the complexities in
strategy formulation for betterment of organisation. Further, challenge of high turnover of
executives and talented employees is also faced due to ineffective corporate governance.
Beside this, it has been also observed from current investigation that a close relationship
between relation between ineffective corporate governance and dropping the performance of
orgnisation is there as ineffective corporate governance lead to reduction in brand reputation and
hamper trust and bonding among stakeholders and investors due to lack of transparency and
majority among broads along with transmission of unauthentic information that hamper
performance of an organisation. Finally it has been find out with current research work that
leading more transparency and accountability in decision making along with regular check and
evaluation of efficiency and performance of Board members is an effective way to lead more
effective corporate governance in order to improve the brand image and market position of an
orgnisation. Further formulation of audit committee is also viable for an orgnisation as it lead to
better control and check of fraudulent operations and action in order to enhance viability and
success of an orgnisation.
RECOMMENDATION AND ACTION PLAN
Recommendation
By performing this investigation it has been identified that corporate governance plays a
significant role in ensuring that each and every action performed within an organisation get
executed in ethical manner and comply with all the legal formalities. Due to absence of
appropriate corporate governance the Tesla has to face numerous of issues such as its brand
image get affected in market, the investors of company get dissatisfied, negative publicity ion
community, mechanical issues in car etc. These all bring up a huge influence over the
performance of the organisation at marketplace and also lead it a step behind the competitors
present in market by affecting its goodwill. Hence, following recommendation is provided to
Tesla so that it can cope up with the impact of this issue,
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 The board of directors must create a audit committee within some uneven interval time so
that they can have a check over the organisational activities and find out the intruding
practices if going any within the organisation without being in notice of people in fault.
This in identifying the true facts or issues that are going on and remain unnoticed, so that
when such things get caught and presented in front of BOD or shareholders then it bring
more transparency and trust among key members.
 In order to improve its brand image the Tesla must focuses toward regularly interacting
with its customers using several media channels in order to circulate messages or
information hat help in presenting the positive image of company in front of its target
market. For this it can present short video messages, statements etc. This will help in
improving eth goodwill of company.
 The Tesla must also focuses toward maintain the transparency of information among its
board of directors by presenting the true information about the financial reporting of the
company at the closing so that they have an idea regarding the cash inflows and outflows
along with various investment and divestment decisions made by management.
Action Plan
The action plan is consists of set of activities that are performed by an investigator in order
to perform the research appropriately. In order to ensure the effective implementation for
corporate governance as per the policies and practices of the organisation the top management of
Tesla must consider the actions that are presented below:
Activities Procedures
Problem identification For improving the business operations, the
corporate governance committee of Tesla is
required to first identify the areas where issue
lies due to which this volatility in stock of
Tesla occurs and area where the changes are
actually demanded for improving future
practices.
Development of aims and objectives Once the area of improvement has been
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identified the next is to formulating aims and
objectives regarding the improvement to be
made which provide a direction about the
actions to be adopted for brining particular
change.
Literature review After formulating the aims and objectives the
next step is to conduct the secondary study by
assessing eths sources where information
regarding this issue of Tesla is already
presented by several people. This information
is collected and critically reviewed which help
in determining the pattern of issues which is
involve within event so that evaluation of data
help in formulating effective strategies.
Research Methodologies For further proceeding with the work in order
to determine the solution of this issue faced by
Tesla, it is crucial to choose some tools or
methods to gathered primary information. The
selection of this method will support in
presenting eth guidance about further actions to
be taken and manner in which desired outcome
to be achieved.
Collection of suitable data In order to collect the appropriate information
about the issue the primary information will be
collected based on the secondary information
which is gathered previously. Hence
forgathering the primary information
questionnaire tool will be used which support
in gathering the view point of several people at
a time. Once the data is collected it then
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analysed effectively so that it can be further
converted in more meaningful information that
can be presented in form of solution to issue
Tesla currently confronting.
Conclusion and recommendation After analysing all the information and
interpreted it effectively the next step to be
taken by investigator is to conclude the final
outcome on the basis of findings. After
concluding the information the appropriate
recommendations will be presented so that
issues find out through this study can be
resolved.
Submission of final report This is the last stage of work within action plan
in which the strategies which are formulated
will be implemented effectively in order to
resolve the issues.
CONCLUSION
From the information gathered about it can be conclude that corporate governance is
consider to be a most crucial factor for an organisation as it help in governing or managing the
range of activities performed within an organisation and directing it in a direction of ethics so
that mutual benefit can be earned from execution of such activities. The corporate governance
plays a significant role in providing an organisation with opportunities to achieve competitive
edge by ensuring that actions must be performed by considering the ethics and laws crucial for
particular area of business which in turn help in creating value in front of stakeholders. Despite
of all this it also help a business in aligning the work and efforts of employees with the
organisational goals and developing eth accountability among them so that any issues or
misconduct performed by any person get easily be identified and corrective actions can be taken
on timely manner. From this study it has bene identified that in order to implement the Corporate
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governance practices within an organisation, firstly a committee is required to be formed
specially for this role. This committee mainly regulate the operations performed by the
management and executed within eth organisation so that ethics can be maintained.
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