Corporate Strategy and Governance

Corporate Strategy and
governance

Table of Contents
TITLE :- "To identify the corporate issues that impact on the future viability of a company. A
case on Small Solar Company Ltd.”................................................................................................1
INTRODUCTION...........................................................................................................................1
Background and significance of of the research.........................................................................1
Research objectives.....................................................................................................................2
Research question........................................................................................................................2
Purpose of the study....................................................................................................................2
REVIEW OF THE LITERATURE.................................................................................................3
Concept of corporate strategy and governance...........................................................................3
Ways through which Small Solar Company Ltd's corporate governance failure could
effectively be revised so that it's performance level can be embraced.......................................5
RESEARCH METHODOLOGY.....................................................................................................8
Research Philosophy...................................................................................................................8
Research Approaches..................................................................................................................9
Research Strategies.....................................................................................................................9
Research choice...........................................................................................................................9
Research Design........................................................................................................................10
Sampling...................................................................................................................................10
Data collection methods............................................................................................................11
Time horizon.............................................................................................................................11
........................................................................................................................................................12
CRITICAL REVIEW OF THE RESULTS OF THE RESEARCH..............................................13
Primary Research......................................................................................................................13
Secondary Research..................................................................................................................23
RECOMMENDATION AND ACTION PLAN............................................................................25
Recommendation.......................................................................................................................25
CONCLUSION..............................................................................................................................28
REFERENCES..............................................................................................................................29
.......................................................................................................................................................32

TITLE :- "To identify the corporate issues that impact on the future viability
of a company. A case on Small Solar Company Ltd.”
INTRODUCTION
Corporate Strategy can be referred to directions which can help a business organisation n
attainment of objectives and goals, in present situation there are many different types of business
strategies which can be developed by a company so that risks can be reduced and various issues
which act as a barrier in overall operations can be minimized. There are many different
methodologies which can be developed in order to concentrate on those aspects which are
necessary to be focused on. There is a requirement that overall Changes are made with time so
that no procedure is outdated. In a corporate system there are many different aspects which has
to be focussed on such as vision, mission, strategic measures, which play a very crucial part in
achievement of overall business objectives (Bain and Band, 2016). There is also a corporate
administration which consists of various partners in organisation such as board, clients,
customers all stakeholders whether internal or external who are related to company directly or
indirectly. Such people have a very strong influence on overall laid down objectives and way in
which those have to be achieved by overall workforce in the company.
Background and significance of of the research
With the passage of time various business organisations especially in countries like
United Kingdom are focusing on pre planning and development of various plans so that they are
able to sustain in market for a longer period of time. Surviving is the most essential factors which
companies are considering. Research is a very important function which helps all organisations
in developing an understanding of overall work and same time this is also helpful in achievement
of any specific target or objective which has been set by the researcher at the time of initiating a
research. This is also a type of investigator sometimes which can be used In case of Small Solar
Company Ltd this is a company which was founded in the year 2006 and after that time this
company is involved in installation of solar heating water systems at affordable prices. This has
helped them in capturing a very large share of market especially they have been able to fulfil the
requirements of those category of customers who are looking for products like these and also at
affordable prices (Berger, Imbierowicz and Rauch, 2016). This company is successfully
operating in London, Hertfordshire, Bedfordshire and Buckinghamshire and is also willing to
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expand in other parts of world. There has been some conflicts such as there has been a conflict in
interest with regards to quality, flat panels, solar cylinders and others. The main issue was related
to a board member who had a ownership of significant stock in company but the representatives
to whom they were serving had a stake in the success of oil industry. Such type of conflicts are
very common in organisation and they have a affect on all the stakeholders in form such as trust
of various shareholders are affected in a negative manner also various policies are affected which
makes the corporation vulnerable to litigation process.
Research objectives
 To understand the concept of Corporate Strategy and Governance.
 To analyse ways through which Small Solar Company Ltd's corporate governance failure
could effectively be revised so that it's performance level can be embraced.
Research question
 What is the concept of Corporate Strategy and Governance ?
 What are the ways through which Small Solar Company Ltd's corporate governance
failure could effectively be revised so that it's performance level can be embraced ?
Purpose of the study
Main purpose of this research is conducting the research so as to reduce all the conflicts
which is having a negative impact on shareholders, public and all other stakeholders which can
lead to litigations.
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REVIEW OF THE LITERATURE
It is scholarly paper that includes the current knowledge and the substantive findings to
particular area. This gives direction to conduct research regarding corporate issues that impact on
the future viability of a company. This gives proper direction for conduct a research to the
particular area. For conducting this investigation, secondary source of data collection includes
such as articles, magazines, books etc. On the other hand, opinions of the various researchers has
been considered in collection of data and providing answers of research questions for getting the
positive outcomes (Bottomley, 2016).
Concept of corporate strategy and governance
According to view points of Tom Wright (2019) Corporate governance has become a
very popular topic nowadays for various business corporations such as this is a procedure or a
system which is used by Companies so that they are able to adhere to all rules and procedures
which have been made to be followed compulsorily by all the companies. It refers to the way
organisation are governed nowadays. This is a technique which is used by companies in
managing their all the Operations. This is a process which is mostly adopted by top management
in companies and such practises are then followed in all other departments to ensure smooth
functioning for achievement of overall objectives. There are many benefits of corporate
governance such as this helps in enhancement of share prices, establishment of goodwill,
lowering down of capital cost, enhancing growth of the organisation, earning of confidence if
various investors and many other related benefits. A good corporate governance also helps in
giving assistance to managers and owners of company in achievement of interest of government
support and also support of various shareholders in the company. Brand development and
formation is also a very big benefit which can be derive with the help of effective
implementation of corporate governance in companies. A strong good will is very necessary for
companies in ensuring their survival for a longer period of time in external environment. Apart
from this corporate strategy also plays a very effective role as this plays a part in giving
organisations a direction and way in which all further work has to be done by employees. Small
Solar Company Ltd has also adopted in this company which can help them in achievement of
their objectives. This is a company which adopted all the practises so that they can survive in
long run as there is presence of many competitors which can have a negative effect on sales and
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growth of company. A good corporate governance and good Strategy are the two most important
pillars which can helps a company in achieving their laid down objectives. For having a
differentiation advantage and a competitive advantage it has become very necessary for
companies that hey are adopting such practises which is beneficial both for the organisation and
people working in the company (Cuomo, Mallin and Zattoni, 2016). There are many practises
which can be adopted by companies which are related to good corporate strategy and corporate
governance which can prove to be beneficial for the company in long duration.
Report is enclosed with three different objectives and these are mentioned underneath:
According to Schaltegger and Wagner, (2017), corporate strategy and governance can be
defined as number of internal rules and policies, which helps a company in directing itself
towards enhancing the performance level. On the other hand, corporate governance decides, and
helps in strategic decisions can be decided by managers and which decisions must be decided by
the board of directors or shareholders.
On the other hand, it is stated by Walls, Berrone and Phan, (2012), a company dealing
within the Solar industry, can easily enhance the performance level, through motivating seniors
towards ethics.
GOVERNANCE AND CONFLICTS OF INTEREST
Governance is explained as structure that designed to assure about transparency,
accountability, broad- based participation and empowerment. This is process of the decision
making and interaction among stakeholders which included in collective issue that can lead to
creation, reproduction of the social norms and rules. This is way that actions and rules are
regulated, sustained and structured. The Small Solar company is MNC accredited and install the
affordable solar heating system. This company fit the high quality, solar cylinders and the tube
panels (Davies, 2016).
The conflict of interest is situation under which person is included in many interest and
also serving the one interest that can include working against other. This is concerned to the
situation under which personal interest of individual or company adversely impact duty owned to
make the effective decision for benefit of third party. Under this, conflict of interest arise when
the Board member of The Small Solar company owned significant shares in oil company. For the
Small solar company, it is an unethical activity. But the representatives to whom board member
serving to the development of clean energy, they have the financial stake in success of oil sector.
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DISCUSS APPROACHES TO STRATEGY
Under this, management of conflict of interest many be approached from various models.
The conflict of arise occur when board member had ownership of significant stock in company
but representatives to whom they were serving had stake in the success of oil industry. It
develops the negative impact on the business and stakeholders. In order to overcome from the
issue related to conflict of interest, there are some approaches mention below:
Prohibition model- It discourages any kind of arrangement mainly financial that develop
conflict of the interest unless that gives the countervailing the social benefit sufficiently.
According to case, conflict of interest is related to buying share of other company and it is
unethical for the Small Solar company Ltd. In context to this, executing this kind of approach
needs that those advocate this establish framework that certain conflict of the interest can be
acceptable (De Haan and Vlahu, 2016). Within this kind of framework, main consideration is
activity that presenting conflict of the interest has redeeming the social value. Process is
necessary for prohibit an activity and conflict of the interest.
Disclosure and Peer Review Model- This model holds the conflict of interest
unavoidable and only the conflicts of interest are only visible and also perhaps dangerous. Under
this, acknowledging the potential source of the bias promote awarenesses of various viewpoints
and also possibility of creating balance. This model include the strong review of the peer about
board of director and conflict of interest.
Ways through which Small Solar Company Ltd's corporate governance failure could effectively
be revised so that it's performance level can be embraced
According to view point of Nicholas J. Price (2019) Corporate governance is
combination of processes and rules through which the businesses are regulated and operated.
This encompasses internal and external factors which impact interest of stakeholders of an
organisation like government regulators, consumers, shareholders etc. The specific process can
be outlined in the corporate governance consists performance measurement, action plans,
dividend policies, performance measurement etc. In context to this, corporate governance is
based on the principles like conducting business with all the fairness, being transparent with the
regard to all the transaction, complying with all laws of land. Under this, corporate governance
of Small Solar Company Ltd's failure and it is necessary to be revise for making the better
performance of company. Main role of the governance is to help all the directors which start to
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understand role in a better manner. Some of the effective ways given below to overcome from
the corporate governance challenge:
Appoint the Competent Board Members- Nominating committee of Small Solar
Company Ltd's should be devote necessary time to determine the board of members which have
competencies and knowledge about sector to help board. Under this, there should be balance
among those broad members which know company and also have expertise knowledge. Board
candidate should be examined on interpersonal competencies since board relationships and
interactions will be necessary to the performance of board (DHU and HBP, 2019).
Prioritize Risk Management- Each board should be develop effective system for the risk
management. It is not be confined to the compliance risk. This incorporates all risk to Small
Solar Company Ltd's such as global warming, financial risk and some others outside compliance
with the requirements of policy. The better risk management leads to the positive decision
making and the risk reward decisions.
Assure Timely Management- The timely information result in taking the positive
decision making. In this, senior management has to give the information in proper time period to
assure wider direction and supervision. There is balance that requires to be attained among
required and accurate information. The interactions among board and senior managers are
necessary to assuring that the information is given to board.
Measure Board Performance- Under this, board should be willing to analyse own
strengths and the weaknesses. On regular basis, board of Small Solar Company Ltd's should be
conduct the process of self- evaluation consisting performance level of the directors. It is
necessary that process of evaluation should be used to determine the weaknesses in performance
of boards and also adopt the reforms required to make improvement. This is essential that
evaluation should be wider and also consist interactions of the senior management with board
members (Jain and Jamali, 2016).
Build and maintain effective governance infrastructure- In this, board is responsible for
all actions as well as decisions of company, this will require to have in the place particular
policies for guiding the organisational behaviour. To assure that responsibility line among the
management and boards should be delineated clearly. In context to this, the poor internal
procedures and process can be lead to inadequate information access, uninformed decision
making and the poor communication that result in high dissatisfaction level between directors. In
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