Role of Corporate Strategy and Governance in Eliminating Accounting Misconduct: A Case Study on Tesco

This document examines the potential role of corporate strategy and governance in eliminating accounting misconduct in organizations, using Tesco as a case study. It provides an overview of the background of the company, the issue faced, a literature review, research methodology, data analysis, and recommendations. The document aims to provide a comprehensive understanding of the topic and offer insights into addressing financial misconduct within organizations.

Corporate Strategy and
Governance
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CONTENTS
Contents...........................................................................................................................................2
Title..................................................................................................................................................3
INTRODUCTION...........................................................................................................................3
Background of company..............................................................................................................3
Background of study....................................................................................................................3
Review of issue faced..................................................................................................................3
LITERATURE REVIEW................................................................................................................5
Concept of corporate governance and strategy or its role in the context of business..................5
Accounting misconduct of Tesco................................................................................................6
Influence of accounting misconduct on the overall performance of Tesco.................................7
Appropriate measures are considered by corporate governance for addressing the financial
misconduct within Tesco.............................................................................................................8
RESEARCH METHODOLOGY....................................................................................................9
DATA ANALYSIS AND DISCUSSION.....................................................................................12
Frequency table..........................................................................................................................12
Discussion of primary investigation..........................................................................................13
Discussion on the basis of secondary data.................................................................................21
RECOMMENDATION AND ACTION PLAN............................................................................22
Recommendation.......................................................................................................................22
Action Plan................................................................................................................................23
CONCLUSION..............................................................................................................................25
REFERENCES..............................................................................................................................26
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Title
To examine the potential role of corporate strategy and governance in eliminating the
accounting misconduct of an organisation. A case study on Tesco
INTRODUCTION
Background of company
TESCO is the UK largest retail store which has strong global presence across the world.
The respective company was incorporated in the year 1919 and is headquartered in Welwyn
Garden City, Hertfordshire, England, and United Kingdom. It is also acknowledged as the third
largest retailer across the world which generates huge revenues (Larcker and Tayan, 2015). The
respective company mainly offers diversified products at market place with the motive of
reaching maximum number of customers towards them. Products range of TESCO includes
books, clothing, electronics, furniture, toys, petrol, software, financial services, telecoms and
internet services. Even though the company is having good market image but still it is required to
take several initiatives and develops certain strategies with which they can easily grab attention
of maximum number of customers and maintain their sales performance in rightful manner.
Background of study
Corporate governance is basically said to be as the group of several rules, systems and
procedures with the help of which business association directs and controls their organisational
activities effectively. The main motive of corporate governance is ensuring that interest of
stakeholders like customer, supplier, shareholder, senior executive, financer and government and
company aligns with one another effectively (Bhasin, 2013). Incorporation of corporate
governance also helps businesses in executing all of their practices in the ethical manner along
with the transparency and accountability. Corporate governance is also supportive for the
businesses as it helps them out in developing strong image at marketplace. The present
investigation is conducted with the motive of including corporate governance in TESCO so that
problem associated with accounting misconduct can be resolved in the timely manner.
Review of issue faced
This investigation would cover one of most essential issue of TESCO associated with the
corporate governance. Here, it has been analyse the company has overstated its profits in the first
half of their financial year. By doing so the main motive of the company to inflates its profits by
simply pulling their payments which are required to be paid to the suppliers for selling their
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products in the retailer’s numerous stores in and outside the UK. It has also been seen that the
TESCO has overstated its profits by almost 263 million pounds. Also, many sources have
revealed that the respective company had been performing similar kind of activities from many
years which have directly developed their negative image among the suppliers with the passing
period of time (Cooper, Dacin and Palmer, 2013). This has directly worsened the organisational
conditions as amount which are required to be paid to suppliers have risen with the passing
period of time. In order to develop detailed information on the same and the usage corporate
governance within the company so that this kind of situation could be avoided in the future, the
top management team of the company have conducted effective investigation. In this regard,
investigator has also developed effective aim and objectives which are specified as below in
detailed manner.
Research Aim
To examine the potential role of corporate strategy and governance in eliminating the
accounting misconduct of an organisation. A case study on Tesco
Research Objectives
 To critically provide understanding about corporate governance and strategy or its role in
the context of business.
 To discuss the accounting misconduct of Tesco.
 To explore recognition in regards to the influence of accounting misconduct over the
overall performance of Tesco.
 To identify appropriate measures considered by corporate governance for addressing the
financial misconduct within Tesco.
Research Questions
 What is the concept of corporate governance and strategy or its role in the context of
business?
 What is the accounting misconduct of Tesco?
 Which kind of influence accounting misconduct has over the overall performance of
Tesco?
 What appropriate measures are considered by corporate governance for addressing the
financial misconduct within Tesco?
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LITERATURE REVIEW
Literature review is defined as the significant procedure inside of an examination since it
helps in developing theoretical framework via the help of using secondary sources, for example,
articles, books, magazines, distribution exploration, journals and numerous different sources
pertinent to a specific subject area. Therefore, literature review is effective in providing indepth
analysis to assist the whole investigation in right direction to reaching at suitable results.
Principle reason and witticism of literature review is to discover research holes in past
investigations (Shi, Connelly and Hoskisson, 2017). In this present investigation work based on
analysing the potential role of corporate strategy and governance in eliminating the accounting
misconduct of an organisation, literature review is effective in providing in-sight out in regards
to the investigation area and provides opportunity to the individual learner and investigator to
explore their recognition about the similar area of study. This is a principle hole of ebb and flow
study and so as to survive or decrease this hole, research inquiries of the investigation will be
trailed by analyst. The purpose of this study is to analyze business strategies and good corporate
governance, both partially and simultaneously affect the company’s performance. This will help
them in achieving of examination aim and objectives just as conquering the exploration hole
deliberately and successfully. This section mainly encompasses over research question and the
detailed analysis of this investigation is associated as under:
Concept of corporate governance and strategy or its role in the context of business
As per the views expressed by Margaret Rouse, 2020, corporate strategy and governance
are two important aspect which are significant to provide suitable guidance to the business to
execute their operations in valuable manner to gain progression. Corporate governance is defined
as the combination of rules; procedure or the laws through that organisation are operated,
regulated and controlled (Bhasin, 2015). Therefore, the term also relay over internal and external
aspects that are influences the interest of business stakeholders which involves customers,
suppliers, shareholders, and management and government regulators. As per the evaluation of
Wendel Clark, 2017, corporate governance is also termed as the imperative aspect of strategic
management which can improve business performance. In addition to this, corporate governance
in the term of strategy management defined to the set of internal ethics and norms which are
analysed how a business is directed and operatied within the competitive business scenario.
Thus, Strategic management is evaluated as an important business management concept, which
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state strategy and explains the key concepts in strategic management; strategic vision, objectives,
strategy formulation, strategy implementation, evaluation and initiating corrective action. In an
operating environment that is dynamic and highly competitive, business organizations need to
appreciate the importance of crafting and effectively executing strategies that can help the
business in developing effective and sustainable competitive edge. In another words, Strategy
also defined as the aspect which drives decisions in business and through helping businesses
identify their strengths and weaknesses, an effective strategy will help the business effectively in
taking initiate decisions that are in favour of business and drives the operations in the manner to
attaining higher growth and success (Carcello, Hermanson and Ye, 2011). As per the views
expressed by Danielle Smyth, 2019, corporate strategy and governance are the two imperative
aspect which plays effective role in providing systematic direction to the business and provide a
way to resolve conflicts among the stakeholders in the business. In addition to this, the corporate
governance framework needs to ensure the business to take decisions that are made under ethical
practices, regulations and laws. In addition to this, corporate governance has also performs viatal
role in managing corporate social responsibility as it is efficient for the business in attaining
growth via enhancing brand reputation. Therefore, In general purpose of an organisation is to
look for the highest profit. An increase in profits shows the company’s performance is good, thus
it also ensure that the company’s performance is good; it must be supported by a business
strategy and good corporate governance.
Accounting misconduct of Tesco
Tesco is one of the most leading multinational grocery and general merchandising retailer
firm which has its operations all over the world and the business is operated since 1919 by the
potential efforts made by Jack Cohen. Therefore the company is having effective marketing
reputation, thus in the year of 2014 the reputation and the success of the company were shamed
through an accounting scandal. However, the TESCO has announced an overstatement of £250
million of its expected profit for the half year, eventually for the reason of accelerated gratitude
of commercial growth and downfall accrual of costs (Cowen and Marcel, 2011). Therefore the
investigation over the giant food retailer company has been stated that, the board believes that
the direction issued on 29 August 2014 for the Group proceeds for the six months to 23 August
2014 was overstated through an overall estimation of around £250 million, thus the some of this
effect involves in year timing differences. Despite from this, in this same time duration, the
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evaluation were determine the aspect that “the misstatement is mainly encompasses to Tesco’s
financial arrangements through suppliers, that mainly render liberal credit terms to big grocers in
order to win contracts. After that, the top management and CEO Dave Lewis has asked Deloitte
to conduct an effective and comprehensive independent examination in relation to these
accounting issues, that are working closely with Fresh fields, the with the support of suitable
adviser (Bell, Moore and Filatotchev, 2012). However, this misconduct has influences the
operations of TESCO and ruined their brand reputation and affects the overall growth and
functions of the business. Therefore, the major reason behind the issues is encounter as the non
appropriate management of business operations.
Influence of accounting misconduct on the overall performance of Tesco
As per the views expressed by Gianmarco Persiani, 2017, finance and accounting are
termed to be the most important and considered aspect of business which needs to be recognised
by the business and its management for the intention of executing systematic business operations
in imperative manner. The accounting scandal related with the overstatement of profit has had an
effective influence over the operations and progression of TESCO, Therefore, the shares of
company has immediately declined and closed the day around 6.5% down after the issue was
encountered and announced globally (Chen, 2012). In addition to this, there is a rapid downfall
arises in the profit of TESCO in the year of 2014, thus the downfall in profit were estimated of
around 91.9 percent to £112 million versus £1.3 billion a year earlier. The final salary pension
scheme of the company has also been congested which defined that new staff will obtain
eventually lower pension, therefore, this also influences the operations of TESCO adversely. The
scandal has also affect the financial performance of the business and impacted over the
productivity of the business. Thus, this creates lower profitability which result of extreme
operating costs and inadequate revenue for the reason of quick recognition of commercial
income and deferred accrual of costs, that had a wider influence on financial statement of 2015.
Despite from this, the scandal has also affected the revenue of the business, relationship suppliers
as the company has lost customers trust which also turns as the key reason of decreasing sales of
TESCo. However, the accounting miss conduct affects the overall functionality and operations of
the business and these needs to be addressed by the business in the manner of generating higher
profitability and revenue (Armstrong, Guay, Mehran and Weber, 2015).
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Appropriate measures are considered by corporate governance for addressing the financial
misconduct within Tesco
According to the views expressed by Nicholas J. Price, 2018, in today’s modern business
environment the key motive of each small as well as large business enterprises is to attaining
higher growth and success, thus the businesses are concern over following best corporate
practices for the purpose of conducting effective business practices to gain growth and success.
In another words, corporate governance or the board governance is defined as the standards of
norms which allows a business to ensure that they are serving the needs of their stakeholders,
shareholder, buyers, suppliers, management efficiently and responsibly (Cuganesan, Dunford
and Palmer, 2012). TESCO is a large retailer business which plays a vital role in the progression
of UK economy, thus the brand reputation of the company got affected by its accounting scandal
in the year of 2014, thus the company has concern over implementing assorted measures like
building a competent board, therefore, the Boards needs to have an appropriate composition
which incorporates all of the required abilities and recognitions to build an effective business
decisions for the productive operations, even when the company is having long debts. The study
stated that, TESCO has making alternation in their business structure and also hire new
employees and management team to lead the business operations in right manner to gain growth
and success. The business should align the strategies which leads the development of business,
thus an appropriate strategy with the end goal of growth helps the business in improvising their
operations for generating more profitability and revenue (Pope and Lee, 2013). Tesco also needs
to hire best advisor who are having suitable experience in the entire corporate e field, thus this
helps the business in attaining higher development via the effective implementation of the
business.
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RESEARCH METHODOLOGY
Research methodology is mainly referred to as the essential part of every investigation as it
simply helps individuals or the researcher in carrying out whole research in rightful manner.
Here, it can be said that research methodology section is basically consist of several tools and
techniques which are adopted by the investigator according to the core nature of the investigation
as its topic (Tricker and Tricker, 2015). Also, the respective section provides appropriate
knowledge to the readers about the validity and authenticity of the research effectively. With
reference to the current research conducted on accounting misconduct case of TESCO and usage
of corporate governance in order to address this problem. For this, investigator has made use of
the primary and secondary type of investigation which is stated as below:
Primary Research: -
Primary research is acknowledged as the effective method in which main focus of
investigator is on gathering information on the proposed topic by having personal interaction
with the respondents (Balachandran and Faff, 2015). This directly contributes in gathering the
present data in rightful manner. The main sources of primary methods are survey, questionnaire,
interview, focused group etc. This is generally acknowledged as the time consuming method but
simply provides completely free and raw data to the investigator with which they can easily draw
valid research outcome.
 Research method: - In order to gather desired information, investigator focus on using
quantitative method among both the qualitative and quantitative methods. The main
reason behind selecting quantitative method is that it includes numerical data which
contributes in accomplishing research outcome effectively as per the research aim and
objectives. In order to carry out this, deductive research approach has been used by the
investigator with the motive of completing it properly along with the accurate research
outcome (Wang, Kung and Byrd, 2018).
 Data collection tool: - For gathering primary information investigator could go for
several sources such as interview, questionnaire, focused group, survey, case study etc.
Among them all questionnaire method has been selected by the investigator in order to
gather maximum information from the respondents within the limited period of time.
The questionnaire for current investigation is stated below:
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QUESTIONNAIRE
Q1 Do you have knowledge about accounting misconduct of TESCO?
a) Yes
b) No
Q 2) Have you ever heard about the concept of corporate governance?
a) Yes
b) No
Q 3) Do you think, incorporation of corporate governance would help TESCO regaining its
brand name back after accounting misconduct?
a) Agree
b) Disagree
Q 4) According to you viewpoint, which one among the below stated is the main benefits that
TESCO would get with effective incorporation of corporate governance within the business
entity?
a) Decline in corporate risk
b) Maintains transparency in the business
c) Develops positive image at global scale
Q 5) In your viewpoint, What would be the main challenge that TESCO could have faced while
implementing corporate governance activities at workplace with the motive of developing their
positive image back after incident of accounting misconduct?
a) Decline in profitability
b) Low shareholder return
c) Influencing employees interest
Q 6) In what manner, accounting misconduct has influenced the overall performance of Tesco?
a) Increase in employees’ turnover
b) Reduction in sales performance
c) Increase in government audits
Q 7) Among the below stated options, which one is the best measure considered by corporate
governance for addressing the financial misconduct within Tesco?
a) Conducting regular based internal audit
b) Regular evaluation of BOD performance
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c) Enhancing awareness of ethical practices among employees.
 Sampling technique: - Sampling is basically considered as the effective method through
which investigator selects sample size from the overall population with the motive of
gathering required information on the proposed topic by having direct conversation with
the individuals (Kranacher and Riley, 2019). Sampling is mainly done with the usage of
two methods such as probabilistic or non-probabilistic method. For conducting present
research investigator have made use of random sampling method that comes under
probabilistic method. The main reason behind selecting this method is that it provides
equivalent opportunity to sample population. For this research total 40 respondents have
been selected as the sample size from which information would be gathered on topic “To
examine the potential role of corporate strategy and governance in eliminating the
accounting misconduct of TESCO”.
Ethical issues: - At the time of conducting every investigation researcher are required to
focus following all kind of ethical norms so that they does not indulge into any sort of legal
obligations in the near future. Also, it can be said that if the researcher does not follows into
ethical practices that then it might directly create problem for the investigator in the form of
reliability and validity of the research outcome (Vasconcelos, 2015). For doing this effectively
investigator focuses on ensuring that whatever data that has been taken by the respondents would
remain confidentiality with the safety and security purpose of the respondents. Also, complete
access to data would be only given to the authorised person so that it does not get misused by
anyone else.
Secondary Research: -
In this type of research, the main focus of investigator is on gathering information from the
several sources where they can easily approach authenticating data. This simply includes states
that the used information for the research is not raw as it is collected from the already conducted
research (Davidson, Dey and Smith, 2015). The main reason behind using these methods is that
it allows investigator is including several views perception and aspects in the study so that most
reliable outcome on the research topic can be attained. Also, the respective method is highly
feasible for the research where time is very less for conducting the research. The main sources of
secondary research are books, articles, journals, company record, media etc.
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Research method: - While carrying out secondary research, the main focus of investigator is
on qualitative research method in order to analyse it in detailed manner (Rodgers, Söderbom and
Guiral, 2015). In addition to this, here, the main focus of investigator is on using inductive
research approach with the motive of considering theoretical framework for it so that new theory
can be developed for the same.
Research strategy: - In order to carry out secondary investigation, the main focus of
investigator is on using competent analysis method so that investigator can easily explain the
gather information in rightful manner that contribute in drawing valid outcome towards the same.
In addition to this, it also help in making the information clearer and explanatory (Ge,
Matsumoto and Zhang, 2011).
DATA ANALYSIS AND DISCUSSION
Data analysis is comprehensively said to be as the core process of analyzing overall gathered
information from different sources in order to give it the meaning and provide better outcome to
the readers (Post and Byron, 2015). With reference to the current investigation, researcher have
made use of content analysis in which several themes are developed by the investigator which
would definitely make it easier for every reader to draw better output associated with the core
research problem. In this regard frequency table have been developed by investigator with the
motive of clearly showing primary data collection. The respective frequency table have been
specified as below:
Frequency table
Q 1) Do you have knowledge about accounting misconduct of
TESCO?
Frequency
a) Yes 35
b) No 5
Q 2) Have you ever heard about the concept of corporate
governance?
Frequency
a) Yes 32
b) No 8
Q 3) Do you think, incorporation of corporate governance would
help TESCO regaining its brand name back after accounting
Frequency
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misconduct?
a) Agree 30
b) Disagree 10
Q 4) According to you viewpoint, which one among the below stated
is the main benefits that TESCO would get with effective
incorporation of corporate governance within the business entity?
Frequency
a) Decline in corporate risk 12
b) Maintains transparency in the business 15
c) Develops positive image at global scale 18
Q 5) In your viewpoint, What would be the main challenge that
TESCO could have faced while implementing corporate governance
activities at workplace with the motive of developing their positive
image back after incident of accounting misconduct?
Frequency
a) Decline in profitability 15
b) Low shareholder return 15
c) Influencing employees interest 10
Q 6) In what manner, accounting misconduct has influenced the
overall performance of Tesco?
Frequency
a) Increase in employees’ turnover 14
b) Reduction in sales performance 16
c) Increase in government audits 10
Q 7) Among the below stated options, which one is the best measure
considered by corporate governance for addressing the financial
misconduct within Tesco?
Frequency
a) Conducting regular based internal audit 10
b) Regular evaluation of BOD performance 13
c) Enhancing awareness of ethical practices among employees. 17
Discussion of primary investigation
Theme 1: Accounting misconduct of TESCO
Q 1) Do you have knowledge about accounting misconduct of Frequency
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TESCO?
a) Yes 35
b) No 5
Interpretation: According to the information specified in the above graph, it has been
seen that 35 people are having knowledge about the accounting misconduct of TESCO as that
time these people were socially active. On the other hand, the leftover 5 people have declined
with the same as they have not heard about it.
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Theme 2: Concept of corporate governance
Q 2) Have you ever heard about the concept of corporate
governance?
Frequency
a) Yes 32
b) No 8
Interpretation: The above stated graph explains that from the total of 40 people 32 are
having core knowledge about concept of corporate governance as their company is following it
very strictly. On the other hand, remaining 8 respondents have said that this completely new
concept for them as they have recently started their professional career and do not have much
knowledge about the same.
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Theme 3: Incorporation of corporate governance would help TESCO regaining its brand
name back after accounting misconduct
Q 3) Do you think, incorporation of corporate governance would
help TESCO regaining its brand name back after accounting
misconduct?
Frequency
a) Agree 30
b) Disagree 10
Interpretation: According to the pie chart, it can be said that 30 people believes that yes
incorporation of corporate governance would help TESCO regaining its brand name back after
accounting misconduct whereas the leftover 10 people have denied to the same as according to
them it cannot support them in convincing people about their good practices.
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Theme 4: Main benefits that TESCO would get with effective incorporation of corporate
governance within the business entity
Q 4) According to you viewpoint, which one among the below stated
is the main benefits that TESCO would get with effective
incorporation of corporate governance within the business entity?
Frequency
a) Decline in corporate risk 12
b) Maintains transparency in the business 15
c) Develops positive image at global scale 18
Interpretation: This graph shows that 12 people believes that corporate governance will
provide benefit to TESCO in the form of Decline in corporate risk, whereas other 15 thinks that
its supports in maintaining transparency in the business, the leftover 18 respondents that is
maximum from the total proportion have expressed that incorporation of corporate governance
directly helps them developing positive image at global level.
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Theme 5: The main challenge that TESCO could have faced while implementing corporate
governance activities at workplace with the motive of developing their positive image back
after incident of accounting misconduct
Q 5) In your viewpoint, What would be the main challenge that
TESCO could have faced while implementing corporate governance
activities at workplace with the motive of developing their positive
image back after incident of accounting misconduct?
Frequency
a) Decline in profitability 15
b) Low shareholder return 15
c) Influencing employees interest 10
Interpretation: incorporation of corporate governance is not at all easier for the
businesses as it includes range of challenges that are faced by the businesses. According to the
above mentioned graph, it can be said that 15 people believes that the main challenge associated
with this is decline in productivity whereas 15 respondents stated that it low shareholder return
might also be seen as the core challenge. The leftover 10 respondents from the total of 40 thinks
that it would difficult for TESCO in influencing employees interest towards the implementation
of corporate governance.
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Theme 6: Accounting misconduct has influenced the overall performance of Tesco
Q 6) In what manner, accounting misconduct has influenced the
overall performance of Tesco?
Frequency
a) Increase in employees’ turnover 14
b) Reduction in sales performance 16
c) Increase in government audits 10
Interpretation: Accounting misconduct has influenced overall performance of the
TESCO, the above shown pie chart depicts that as per 14 people influence can be seen in the
form of increase in employees’ turnover, whereas other 16 said that it reduces sales performance
of the company. And the leftover 10 people think that main influence of accounting misconduct
is increase in number of government audit which directly hampers overall performance of the
company.
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Theme 7: Best measure considered by corporate governance for addressing the financial
misconduct within Tesco
Q 7) Among the below stated options, which one is the best measure
considered by corporate governance for addressing the financial
misconduct within Tesco?
Frequency
a) Conducting regular based internal audit 10
b) Regular evaluation of BOD performance 13
c) Enhancing awareness of ethical practices among employees. 17
Interpretation: Accounting misconduct of TESCO could be easily addressed by
incorporating several measures. From the graph, it has been analysed that 10 people believes that
it can be handled by conducting regular based internal audit, other 13 thinks that regular
evaluation of BOD performance can manage it properly whereas the leftover 17 respondents
thinks that accounting misconduct can be easily addressed by enhancing awareness of ethical
practices among employees.
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Discussion on the basis of secondary data
This defined to be the most imperative area of an investigation as in this evaluation is
based on analysing the perception of authors and writers (Davis and Pesch, 2013). Therefore, this
section is mainly encompasses over secondary study as in this interpretation has been done over
the literature review in which the project is being discussed in descriptive theoretical manner.
However, this are helps the investigator in providing summary over the detailed investigation
which has been executed in literature review.
From the descriptive evaluation of authors opinion based on the area of examine the
potential role of corporate strategy and governance in eliminating the accounting misconduct of
an organisation, it has been discussed that, corporate strategy and governance are two crucial
aspect which plays an effective role in leading business operations in the right manner to gain
growth and development, Therefore, Corporate governance is all about enabling business to
achieve their goals, control risks and assuring compliance. Good corporate governance plays
effective role in setting up of rules which evaluate the relationship among stakeholders,
management and the board of directors of a company and influence how the company is
operating. Thus, corporate strategy provides a systematic direction to the business to execute all
the operations in effective manner to attain higher growth and success. As per the detailed
evaluation of authors perspective it has also been evaluated that TESCO is a large supermarket
china which has its operations all around the world and generate higher profitability and revenue.
Thus, Tesco has been found to have flashy it profits through £263 million which represents
higher difference in their profitability, Therfore, after revenue recognition irregularities were
spotted in its half-year results, with regulators involving the Financial Conduct Authority set to
take actions in against of the firm and make suitable decision of punishment. However, The
supermarket is initially predicted its half-year trading revenue would be around £1.1bn, but this
figure has now been cut back by £263 million – originally £250 million. Tesco has subsequently
launched a review of the figures to find out why its first half profit prediction was so inflated.
Therefore, after rcognition the issue, the business has taken up effective actions regarding
reimplementation of their business structure to attain development via the suitable execution of
business operations. From the evaluation of the authors opinion it has also been discussed that,
corporate strategy and governance are two imperative aspect which are needs to be managed by
the business for the intention of executing the business operations under government and ethical
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practices to avoided issue and conflicts that influences the operations of the business. However,
for avoiding mismanagement, good corporate governance is necessary to enable companies
operate more efficiently, to improve access to capital, mitigate risk and safeguard stakeholders. It
also makes companies more accountable and transparent to investors so as to minimize
expropriation and unfairness for shareholders.
RECOMMENDATION AND ACTION PLAN
Recommendation
With reference to the current investigation it can be said that accounting misconduct have
directly developed negative image of the company among customers as well as its other
stakeholders. This has directly affected sales performance of TESCO. In order to tackle this, few
recommendations are provided to the management of TESCO with which they can regain its lost
image at marketplace. These recommendations in form of measure are specified as below:
 At first, it is advised to management of TESCO to emphasise on developing separate
committee which would be responsible for checking that all activities within the company
are performed as per norms or not. Also, the committee would also conduct few surprise
inspection at workplace with the motive of finding out culprits at same time.
 At next it is suggested to the management team of TESCO to hire effective PR manager
so that they can easily develop positive image of the company its customers with their
effective skills. This would directly contribute in attracting maximum number of
customers towards them in raising their sales performance in lucrative form.
 From the evaluation of the project, it has also been recommended to TESCO, that
company should implement suitable corporate policies in under which the execution of
financial activities are held in suitable manner, therefore, this may leads the business in
right direction to attaining higher growth and success in better implementation of
financial activities.
 In addition to this, it has also been suggested to TESCO to hire an experienced financial
execute to managing better execution of financial operations and also provide suitable
suggestion to the business to adhere the issues related with financial misconduct. Thus,
suitable management guidance may help the business in executing their operations in
effective manner to attain higher growth and success.
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 At next is advised to the management of TESCO to conduct regular internal audit as it
helps the business in finalising the issues which are occurs due to financial miss conduct
and helps the business in resolving any issue related with financial aspects or financial
management.
 As per the descriptive evaluation of the project it has also been suggested to TESCO that
company should create suitable change in their business structure whi0c0h0 involving the
management team, cost prices, capital spending and so on, therefore, this would be0
effective for the business in better execution of business operations in attaining higher
growth and success.
Action Plan
Action plan is comprehensively said to be as the set of activities that are performed by
investigator with the motive of executing all activities associated with the research in appropriate
manner. In order to ensure that all corporate governance associated activities must be
incorporated within the TESCO, the top management team of this company makes use of
effective action plan which is stated as below along with its essential steps.
Activities Procedures
Problem identification With the motive of developing operations the
main focus of corporate government committee
of TESCO is to develop their understanding
towards the core issues which is affected the
performance of the company. This directly
contributes in providing the business entity
time to take required actions towards the same.
Development of aims and objectives After determining specific problem, the next
step of the action plan is to develop effective
aim and objectives so that it can be effective
adopted by the investigator for initiating the
investigation in effective manner.
Literature review In this step, the respective authority
emphasizes in gathering information on the
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proposed topic with the usage of secondary
sources. The developed section with this study
contributes in developing effective strategies
for the future with which problem could be
rectified or handled effectively.
Research Methodologies This step is very essential for the action plan as
in this management of TESCO decides which
tools and techniques of methodology section
could provide them better results and supports
them in executing it effectively with the
reliability and validity.
Collection of suitable data After finalising research methods the main
focus of researcher is on gathering information
with the usage both the primary and secondary
method of data collection so that maximum
information could be specified on the same
issue. Usage of both the methods contributes
ingathering huge information within the
provided time limit without compromising
with its authenticity. All of the collected
information is further analysed by the
investigator with which findings are drawn in
order to attain possible solutions related to the
issue identified in TESCO.
Conclusion and recommendation At this step of action, overall analysed
information is represented in the concluding
format which clearly specifies the overall
findings and results of the study. Along with
this, the respective authority also mentions the
recommendations with which TESCO can
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easily resolve the problem with which they are
going through.
Submission of final report This is the last stage of action plan where the
developed strategies would be incorporated.
This ultimately contributes in resolve the
issues related with the corporate governance.
CONCLUSION
On the basis of overall information specified in whole investigation, it can be said that
incorporation of corporate governance is highly important for the businesses as it simply helps
them out in developing their positive image at marketplace which improvises their overall
performance in rightful manner. Apart from this, it has been later determined that incorporation
of the corporate governance brings range of benefits for the company which simply includes
reduction in the corporate cries risk, providing better access to global market by creating the
positive image of company and brining more transparency within the work.
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