Corporate Governance and Business Risk

This assignment delves into the crucial relationship between corporate governance and business risk management. Students are expected to demonstrate their understanding of key concepts like agency theory, stakeholder theory, and risk assessment frameworks. The essay requires analysis of how effective corporate governance practices mitigate various types of risks, including financial, operational, and reputational risks. Drawing from academic literature and real-world examples, students should present a well-structured argument highlighting the importance of robust governance structures for sustainable business success.

Corporate Strategy and
Governance

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Background of the study.........................................................................................................1
Review of problem faced by organisation..............................................................................2
Literature Review...................................................................................................................3
Proposed primary and secondary research methods...............................................................3
Gantt chart..............................................................................................................................4
LITERATURE REVIEW ...............................................................................................................5
Primary and secondary research undertaken .................................................................................10
Critical analysis of results..............................................................................................................13
Recommendation and action plan .................................................................................................22
CONCLUSION .............................................................................................................................24
Appendix........................................................................................................................................25
REFERENCES..............................................................................................................................27

INTRODUCTION
Corporate governance is considered as mechanisms, processes and relations through
which the corporations are controlled and directed towards achievement of business operations.
Governance structure and principles tend to identify distribution of rights and responsibilities
among different participants in the corporation (Kraakman and Hansmann, 2017).
This concept has been created by organisation to develop strategic plan for operations. It
also involves systems and procedures, which are designed to structure authority, balance of
responsibilities and providing major accountabilities to stakeholders. Corporate strategy clearly
discussed a long-term vision that organisation develop, seeking to create corporate value and
providing motivation to workforce for implementation of proper actions to attain customer
satisfaction (Stout and Blair, 2017).
Present report is based on analysis of Asda PLC to determine the overall scope and
direction along with the ways in which its various business operations work together to achieve
specific goals and objectives.
ASDA is a British supermarket chain headquartered in West Yorkshire. At present,
company deals in providing wide range of grocery products and service to its customers. This
research is carried out with an aim to determine problems faced by organisation in regulating
corporate strategy and governance.
Background of the study
Corporate strategy and governance is analysed as important techniques which are adopted
by organisation for development of action plan. It is also analysed as important part of business
that create recognition in organisation and also analysed as important for any company its
business operations.
In competitive business environment, it is important for every business to create effective
strategies, which enables them to sustain their position in market (Tricker and Tricker, 2015).
Corporate Governance is analysed as interaction between various participants in shaping
corporation's performance and its proceeding. Moreover, relationship between owners and
managers of an organisation must be positive and there should be no conflict between them too.
In addition to this, corporate governance enables an organisation to carry out business as
per desires of stakeholders. It mainly deals with determining ways in order to take effective
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strategic decisions. It also provides ultimate and effective authorities to organisation to sustain its
position in market and resolving problems (Allen, 2017).
In this research, the scholar has aims to carry out analysis of corporate strategy and
governance in corporation which helps in developing action plan for regulation of business.
ASDA Limited is selected by researcher which is international retail business enterprise has its
operations across various countries.
Various strategic decisions have been taken by managers in Asda to carry out business
operations and appropriate strategies to attain economic growth and development. Research will
also provide clear understanding about problems faced by organisation in regulation of business
operations.
Review of problem faced by organisation
Effective corporate governance requires Board of Directors to have substantial analysis
of company’s policies and practices. Management should have awareness about daily operations
of organisation and ways in which its objectives are being achieved. ASDA is mainly owned and
controlled by Walmart (McCahery, Sautner and Starks, 2016). However, various issues have
been faced by organisation in market which has influenced in business operations and
recognition among customers.
ASDA is named as the worst supermarket in treatment of suppliers. Shareholders have
placed ASDA below Morrisons as it named as worst retailer at complying with its code of
conduct. It has been named as the worst retailer of UK's major supermarkets in its treatment of
suppliers.
However, major oversight issues have been faced by ASDA in its corporate governance
because management does not have information about its operations. With effective business
management, this organisation must understand the requirements of customers. About 12% of
suppliers have stated that, ASDA rarely never complied with the Grocery Supply code of
practice. (Yu and et.al, 2016).
Issues have been raised by various suppliers that company is making incorrect deduction
from invoices without notice, requesting lumps sums to make up profit margins and conducting
abusive forensic audits of suppliers.
2

Literature Review
According to Tricker and Tricker, (2015), corporate governance is analysed as system of
rules, practices and processes through which organisation is directed and controlled. It involves
balancing the interest of organisation' stakeholders such as shareholders, management, customers
suppliers, government, financiers and community etc.
Good corporate governance is considered as important for every business enterprise to
sustain its position and recognition in market. However, it encompasses practically every sphere
of management from the basis of action plans and internal controls to performance measurement
along with corporate disclosure. Yu and et. al., (2016) stated that, corporate strategy is
formulated to monitor progress and resolving issues that influence business goodwill and
performance in market.
Proposed primary and secondary research methods
Sampling: It is considered as process of selection of sample population from the large number of
population for collection of data in order to accomplish study in appropriate manner. Sampling
techniques have been divided in two categories such as probabilistic and non-probabilistic
(Aguilera, Judge and Terjesen, 2018). Simple random sampling will be used by research for
selection of sample size, which is considered as part of probabilistic sampling.
Data collection: It is also a process which is used for collection of data from various sources to
carry out study on corporate strategies and governance (Armstrong and et.al, 2015). There are
two important methods of data collection such as primary and secondary method.
In this research, both primary and secondary methods of data collection are used to
collect information on corporate strategies and governance. Questionnaire will be made from
collection of information from respondents. Books, journals and articles will also be used in
secondary analysis.
Data analysis: It is also analysed as process of interpretation and analysis of results, which is
carried out from the data collected on corporate governance and strategies. There are two-
methods of data analysis such as Qualitative and Quantitative analysis. In this research, scholar
will use thematic analysis method for interpretation of results.
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Gantt chart
Activities 1st
Wee
k
2nd
Wee
k
3rd
Week
4th
Week
5th
Week
6th
Week
7th
Week
8th
Week
9th
Week
10th
Week
Selection of
research
topic
Aims and
objectives
and
questions
Analysis of
problem
statement
Literature
review
Research
methodolog
ies
Completion
of proposal
Questionnai
re design
and pilot
survey
Documentat
ion of
measures
4

and records
Recommen
dation and
conclusions
Final
editing and
Completion
LITERATURE REVIEW
Concept of corporate strategy and governance
According to Klettner, Clarke and Boersma (2014), Corporate governance is mainly
regarded as a key driver for organisation performance. It is a concept that emerged from the
growth of business enterprises in the 20th century. After the crash of stock market in the year
1929, researcher began to argue for corporate governance mechanism which would allow
shareholders to keep in stock.
In latter half 20th Century this continued, corporate governance structures were being
introduced to control managers and ensuring that their actions are in line with the interests of
stakeholders.
In strategic management, it refers to the set of internal rules and policies that clearly
determine how company can be directed. However, corporate strategy is concerned with the
ways through which a firm can create its values across different business. Governance essentially
involves balancing of interests of an organisation's many stakeholders, such as shareholders,
employees, suppliers and management along with government as well as community. These
stakeholders have their important roles in developing effective corporate strategies for
organisation so that it will be able to create its values in marketplace.
As per the view of Tricker and Tricker (2015), Corporate strategy is aligned with the
ways through which companies like retail sector organisations create their values across their
competitors in market. For creating a competitive advantage, firms in retail sector needs to make
investments in a valuable set of resources, should craft business portfolio and also design
5

structure of organisation, systems and corporate functions in order to share activities or transfer
skills across business.
Effective corporate strategy tends to create positive influence on growth of organisation
because it provides them competencies to retain their customers, increase sales and sustain its
market share. However, presently continuous decline in growth of retail sector clearly points out
ineffectiveness of their corporate strategy and governance.
Importance of good corporate strategy and governance in retail sector
According to Shamir (2017), for achievement of growth and sustainability in market, it
is essential for every retail sector organisation to create effective corporate strategies. Moreover,
appropriate strategies embrace capabilities of organisation in creating values of competitors.
Below given points clearly determine importance of good corporate strategy and governance.
 Managing and controlling operations: Pechlaner, Volgger and Herntrei (2012)
describes that creates good strategies and maintaining appropriate governance plays an
important role in controlling business operations. With effective strategy, managers will
be delegate and monitor the task performed by employees at workplace. Good corporate
governance tends to promote effective leadership, which enables employees to perform
their task with appropriate guidelines and achieve support in resolution of issues.
 Innovative ideas: According to Rothaermel (2015), Organisation's having appropriate
control or governance provides importance to their employees and focuses on developing
their potential so that they will provide innovative ideas for improvement of existing
products and services. Innovative ideas also influence stakeholders in retail sector to
provide their support in growth of company.
 Issues resolutions: As per the view of Morden (2016), development of effective
corporate strategy is important for resolving issues like decline in profitability, sales,
demands of product, employees participation etc. Issues related to maintaining
competitive advantage in market also enables employers to sustain its growth and
recognition in market. On contrary to this Du Plessis, Hargovan and Harris (2018), Good
governance is also important for resolution of issues like relationship with suppliers,
shareholders and performance of organisation in market. It alters the focus of
management to protect benefits of its stakeholders along with maximizing profitability.
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 Implementation of business plan: Goal oriented corporate strategy helps the
organisation in implementation of business plan effectively and achievement of goals.
This view has persisted in retail sector where strategies are conceived as plans to
accomplish specific goals. By improving corporate strategy, management will be able to
review its business plan timely and analyse its progress. On contrary Fernando, (2012),
Good governance and leadership also have extensive importance in implementation of
business plan and also monitor its progress.
Corporate governance issues faced by organisation in retail sector.
There are various important issues in corporate governance that play a great role. These
problems are interrelated and dependent on each other to be resolved. Amran, Lee and Devi
(2014) stated that each issue is connected with the corporate governance and have different
priorities and responsibilities in each retail business enterprise. Five main issues of corporate
governance are analysed such as conflict of interest, oversight issues, Accountability issues,
transparency issues and ethical Violations.
Brammer, Jackson and Matten (2012) stated that, these issues occur within the
framework of corporate governance when the managers and other authoritative officers or other
controlling members of corporation has the financial interest which directly conflicts within the
objectives of organisation. Bad corporate governance tends to create conflicts between teams
and employees in interest in business enterprise Phillips & Muir (2016). For example: A board
members of solar organisation who own a important amount of stock in an oil company has
conflicts of interest as, While the whom they serve on represents the creation of clean energy,
they also have financial stake in the success of oil industry, they must have a financial stake
within the success of the oil industry.
Grant (2016) stated that, effective and appropriate corporate governance in organisation
requires the board of directors to have an appropriate oversight or analysis of organisation's
policies, practices and procedures. It is considered as broad term that encompasses the executive
staff reporting to the management and the awareness of management of daily operations of
company and the way in which objectives have been achieved. Trong Tuan (2012) stated that
management needs to protect interest of stakeholders such as Suppliers, shareholders, employees,
acting as a check and balance against the executive staff. Without the oversight, Corporate staff
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organisation might start violating the state or federal law, facing issues, substantial fines from
regulatory agencies and suffering the reputation al issues with the public. For example: ASDA is
also facing some oversights due to its ineffective corporate governance after being a part of
Walmart. It is considered as Worst supermarket chain in treatment of its suppliers. According to
Schaltegger, Lüdeke-Freund and Hansen (2012), 12% of suppliers have stated that Walmart
owned supply chain rarely never complied with the Grocery Supply code of practice. ASDA is
making incorrect deduction from their invoices without notice, requesting lumps sums to make
up profit margins and conducting abusive forensic audits of suppliers.
Cheney and et.al (2014) specified that, It is considered as necessary for appropriate and
effective corporate governance in every firm. From top management to operational level
workers, every level and department of organisation should report and tends to be accountable
to another as a framework of checking and balancing. In contrast to this Doppelt (2017), stated
that actions of every employee in organisation in accountable to the shareholders and public.
Without accountability, they can endanger the success of overall business enterprise or influence
stakeholders to lose the desire to continue their financial investment.
In order to be transparent, it is essential for company to report gains and losses
accurately and provides these reports to stakeholder or investors of organisation. Moreover,
over inflation of profits and minimizing the losses will mainly provide negative influence on
relationship of organisation with their stockholders when they recognise that they were enticed
to under false pretences. However, lack of transparency in organisation can also expose the
organisation to get punishment or fines from regulatory bodies in UK.
According to this Bendell (2017), members of the executive board needs to have ethical
duty in order to make decisions and those who invest in their company under false presentness.
Moreover, every business enterprise must have an ethical duty to safeguard social welfare of
others which are involved in the retail industry. Minimizing the pollution and eschewing
manufacturing in organisation which don not adhere to similar labour standards as the US are
both considered as major example of corporate governance, ethics and social welfare etc.
Influence of corporate strategy and governance on performance of organisation.
According to Rothaermel (2015), evaluation of performance is based on analysis of
leadership and control within enterprise as it provide reflection about strategic decisions and
capabilities of management to achieve objective.
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Good corporate governance tends to create growth of organisation is market and also
enables company to obtain profitability. Further. If decision are taken by participation of
employees in organisation then it is considered as effective. It tends to promote corporation and
coordination between management as well as employees which tends to attain growth and
development.
As per the view of Burns (2016), effective corporate provides positive influence on
business performance because it provides opportunities for company to sustain its competitive
position in market. Highly productive and goal oriented strategy always influence employees to
perform task in such as manner that objectives of company will be accomplished in specified
time duration.
Brammer, Jackson and Matten (2012), Business performance related with stability and
capabilities of organisation to sustain and maximizing high profitability in market in comparison
with stakeholders. Good corporate governance involves participation of employees in
formulating corporate strategies and decisions. Effective corporate strategies and governance
tends to improve potential and competencies of organisation in market which has increased its
performance and competencies. However, bad corporate governance involves authoritative style
of leaderships in management does not provide importance to employees in making strategies.
They focus upon maximizing high profitability and growth apart from providing emphasis upon
the benefit of organisation.
According to Grant (2016), Poor governance is related with ineffective strategies and
decisions of enterprise that results in decline of their profitability and growth in market.
Recently, some enterprises in retail industry have faced issues like decline in sales turnover,
recognition, Good will and legal restrictions due to non compliance with laws. These issues
highlight continuous decline in business performance of enterprise.
Resolution undertaken by organisation to resolve corporate governance issues.
There are various important resolutions have been analysed such as value based corporate
culture, holistic view, compliance with laws, disclosure and accountability and corporate
governance and HRM.
According to Sadgrove (2016), for regulation of business operations in effective way, it is
required to have some ethics and values. For resolution of these issues, organisation needs to
develop an ethical corporate culture within enterprise. Management should provide importance
9

to their employees and protect benefits of its stakeholder to prevent or retail positive business
relationship.
This holistic view and religious attitude is more important for regulating business
enterprise, however, it is not easier for firm to adopt it, they need to make special efforts and
once implemented, it will lead to development of nobility and regulation of positive
relationship.
As per the view of Morden (2016), if company in retail sector mainly requires progress,
posses ethical values and also have desire to regulate long run business operations, then they
should abide and comply with laws such as Grocery Supply code of practice, investment laws,
foreign regulation act, competition act, cyber laws and employment regulations etc.
According to Du Plessis, Hargovan and Harris (2018), disclosure and transparency is
considered as major aspect of good corporate governance. For resolving the transparency issues,
timely and accurate information must be disclosed by business enterprise on the matters like the
financial position, performance etc. Moreover, transparency is required to state government
should have faith of retail sector enterprise and consequently it reduces the corporate tax rates
from 30% today as compared to previous years (Fernando, 2012). However, it can be said that
transparency is much needed in the corporate bodies so that due to major competition in the
market place, customers generally have various choices that is why they cannot shift another
corporate bodies.
As per the view of Amran, Lee and Devi (2014) For the corporate body, the employees
and requires are just like family. For resolution of corporate governance issues, Human resource
management plays vital role because they both these aspects interrelated with each other. For
resolution of issues such as ethical, compliance with laws and conflict of interest, HR department
needs to formulate effective strategies. This aids the management in maintaining its position and
high business performance in market.
Primary and secondary research undertaken
For undertaking research, it is essential for scholar to analyse and apply appropriate
method which helps in collection of data, resolving problems and achievement of aim &
objectives in appropriate manner. Research methodology is eventually regarded as term which
means the science of how research is being carried scientifically. Further, it is way to
systematically and logically resolve issues, and understanding the whole process along with
10

product of research (Trong Tuan, 2012). It also involves analysis of methods in addition with the
performance obtained by them in appropriate manner. In this context, study has been carried with
an aim to examine the corporate strategy and governance in context of ASDA. Researcher has
also carried out analysis on problems faced by ASDA in corporate strategy and governance.
Below given are the research methods which are used by researcher such as:
Research Design
It is regarded as systematic approach that a investigator utilized for conducting a
scientific study. It involves integration of different research component which are utilized for
carrying out study in appropriate manner (McCusker and Gunaydin, 2015). In this context, study
has been carried to examine corporate strategy and governance in ASDA PLC along with issues
which are faced by organisation in development of strategies. There are mainly two type of
research design such as exploratory and descriptive. Both of these are effective and appropriate
for research (Mukhopadhyay and Gupta, 2014). Exploratory research design primarily aims to
provide final and conclusive answers to research questions and allows scholar to change
direction of study.
In this study, scholar has decided to utilize descriptive design which is regarded as
statements of affairs as they are at present with scholar having no control over variable. It is
effective for scholar to draw analyse corporate governance and draw valid conclusion in
appropriate manner. Researcher has become able to achieve its objectives because this design
focus upon highlighting current issues and problems faced by ASDA in corporate governance
through the process of data collection.
Research Philosophy and approach
This study is related with analysis of corporate strategy and governance in context of
ASDA. Research philosophy is selected to get clear direction for undertaking research and
achievement of valid outcomes. Increased the part of organisation that they should focus upon
implementation of strategies in effective manner (Isaacs, 2014). There are mainly two kinds of
research philosophy are utilized by scholar for carrying primary and secondary research such as
positivism and interpretivism. In present study, scholar needs to carry out analysis on corporate
strategy and governance in ASDA and for this interpretivism philosophy is utilized by scholar. In
this, scholar determine the issues and elements of corporate governance which is associated
integration of human interest in to study (Neuman, 2016). It helps scholar to identify issues by
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ASDA in corporate governance and provide support in answering research questions through an
effective process of data collection.
In addition, there are mainly two kinds of approaches such as deductive and inductive
which are used for testing hypothesis and assumption taken by scholar to complete research.
Inductive approach focus on collection of data through observation and theories which are
proposed towards the end of research process as the outcomes of research (Alvesson and
Sköldberg, 2017). Deductive research is concerned with creation of hypothesis and also based
on existing theory and then designing a research strategy to test the hypothesis.
Data collection
It is considered as process that is used for gathering and measuring information on
targeted variables in systematic fashion which then enables one to answer relevant questions and
evaluation of outcomes (VanPatten and Williams, 2014). In this research, scholar needs to carry
out analysis on corporate strategies created by organisation for carrying out business operations
and other important. There are mainly two kinds of data collection methods such as primary and
secondary data collection (Harper, 2012). Primary data collection can be divided in to two
groups quantitative and qualitative data. Secondary data is a kind of data which has already
been published in books, newspaper, magazines, journals, online portals etc. Scholar in this
study has utilized both the primary and secondary methods for data collection. This aids the
scholar in making research more reliable and accurate which tends to create emphasis on
development of research more effective.
Sampling
It can be explained as specific principle which is used for selection of member of
population that needs to be included in the study. It has been analysed that as many populations
of interest are too large to work with directly, techniques of sampling have been created in order
to obtain samples which are taken from larger populations (Wiek and Lang, 2016). Techniques
of sampling have been classified in two categories such as probabilistic and non probabilistic.
As study is qualitative in nature, simple random sampling is used by scholar which is part
probabilistic sampling. Simple random is the purest and most straight forward probability
sampling strategy (Sahu, 2013). The logic behind selection of simple random sampling is that
reduce chances of biasses from the process of selection and will result in representative samples.
In this research, Scholar has taken sample size of 10 respondents from higher management team
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which involves board members and directors of ASDA. It is beneficial for scholar to carry out
research on small sample size and collection of relevant data.
Data analysis
It is analysed as process which implies to transformation of data gathered from
different sources and presentation of findings of research (McGivern, 2013). It helps the users to
analyse outcomes of research and understanding the issues involved in research. There are
mainly two methods of data analysis such as qualitative and quantitative. Both these methods are
appropriate for analysis of data and interpretation of results (Clarke and Fujimura, 2014). As this
research is qualitative in nature, thematic analysis method is used by scholar for analysis of data
gathered by using questionnaire. Themes are made for interpretation of results of research on
corporate strategies and governance. Representation of graph, charts and table helps to make
research more clear and reliable for users.
Critical analysis of results
Theme 1: To the extent Asda follow code of corporate governance seriously in the workplace
To great extent 3 30%
To some extent 6 60%
Don’t follow 1 10%
Interpretation: From the above study it is identified that 6 out of 10 respondents have replied
that Asda follows code of corporate governance to some extent only. There are many practices
which are against the principles. On other hand 3 out of 10 answerers have viewed that entity
13

follows these codes seriously. From the above data it can be interpreted that maximum people
have viewed that firm has issues in its corporate strategies and it does not follow corporate
governance norms strictly. That is why enterprise is unable to create value for its shareholders
and unable to satisfy their needs.
Theme 2: applicable principles of corporate governance are been incorporated in the firm
effectively and are these codes are creating value for stakeholders
Yes 8 80%
No 2 20%
Interpretation: from the above study it is identified that 80% of participants have replied that
Asda does not incorporate corporate governance principles in practices efficiently. All codes that
follow by the firm are unable to create value for the shareholders. On other hand 20%
respondents have viewed that no applicable principles of corporate governance are been
incorporated in the business unit effectively and these codes are able to create value for
stakeholders. From the above data it can be interpreted that Asda is definitely required to make
changes in its corporate strategies and have to work in such manner so that it can satisfy its
shareholders such as investors, customers, suppliers etc. so that they can retain in the firm for
longer duration.
Theme 3: Major corporate governance and strategically issues in the Asda
Oversight issues 6 60%
Accountability issues 2 20%
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Transparency issue 1 10%
Ethical violations 1 10%
Interpretation: From the above data it is identified that 60% of respondents have viewed that
oversight issue is considered as one of the most crucial strategic issue in the Asda. Due to which
company is unable to satisfy its suppliers. On other hand 20% answerers have replied that
accountability is the major corporate governance issue in the firm. Whereas 10% answerers have
replied that ethical violations create problem for the enterprise due to which it is unable to run its
business effectively in the market. From the above study it can be interpreted that oversight issue
is major problem in the firm. Most of its suppliers are not satisfied with the practices of the entity
because company deduct their invoices without informing them. That is the reason that suppliers
are unhappy and company is unable to create value for them.
Theme 4: Asda is following grocery supply code of practices
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Yes 8 80.00%
No 2 20.00%
Interpretation: Questionnaire survey method is used by scholar for collection of data
from selected 10 employees of ASDA from top level management such as directors and board
members to analyse that whether company use grocery supply code of practice. In this case, 8
respondents have clearly stated “YES” as they feel that ASDA follows grocery supply code of
practice whereas only 2 respondents have denied this statement. Hence, it can be said that
ASDA supermarket chain has adopted grocery supply code of practice. It needs to improve its
recognition towards development sustainable relationship with its suppliers for resolving issues
related to corporate governance and strategy.
Theme 5: Entity is creating values for its suppliers
Agree 3 30.00%
Strongly agree 1 10.00%
Disagree 5 50.00%
Strongly disagree 1 10.00%
16
Yes No
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
80.00%
20.00%
Column B

Interpretation: Survey techniques is used by scholar for collection of primary in which a
questionnaire has been made to determine that whether ASDA is creating value for its suppliers
or not. In this analysis, 30% of respondents are “Agree” with the statement that ASDA is
creating values for its suppliers. 10% respondents are “Strong Agree” with this, 50%
respondents are “Disagree” and 10% respondents are “Strongly disagreed” with this statement.
In this analysis, it is interpreted that ASDA is not creating values for its suppliers in marketing
which is considered as major corporate governance issues which is faced by organisation in
appropriate manner.
Theme 6: Strategies to minimize issues related to corporate strategies in Asda
17
Agree Strongly agree Disagree Strongly disagree
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
0.45
0.5
30.00%
10.00%
50.00%
10.00%
Column B

Value based corporate culture 2 20.00%
Holistic view 1 10.00%
Compliance with laws 3 30.00%
Internal audit in supervision
of audit committee
4 40.00%
Interpretation: In order to carry out primary analysis, scholar has questionnaire survey
method for collection of data on solutions take by ASDA to minimize related to corporate
strategies in ASDA. Questionnaire was provided to selected 10 respondents of top level
management. From sample population, 20% of respondents have stated that Value based
corporate culture is developed by ASDA to minimize issues related to corporate strategies and
governance. 10% have viewed that organisation is taking a holistic view to resolve its issues,
30% respondents have specified that company tends to comply with laws for regulation of
business operations and resolving its issue with suppliers. 40% respondents are mutually agreed
that internal audit of suppliers will be done in supervision of audit committee. From this analysis,
it can be interpreted that ASDA has adopted strategy of conducting internal audit of suppliers in
supervision of Audit committee for resolving issues.
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Value based corporate culture
Holistic view
Compliance with laws
Internal audit in supervision of audit committee
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
20.00%
10.00%
30.00%
40.00%
Column B

Theme 7:Participation of employees is required for formulation of appropriate corporate
strategies
Agree 5 50.00%
Strongly agree 2 20.00%
Disagree 3 30.00%
Strongly disagree 1 10.00%
Interpretation and analysis: In this task, questionnaire survey methods is used by scholar to
carry out research on analysis of need of participation of employees in development of corporate
strategies and governance. Survey of 10 selected respondents from top management of ASDA is
done for gathering relevant data. From the above table, it is clear that 50% respondents are
“Agree” and 20% are “Strongly Agree” that participation of employees is required for
development effective corporate strategies. 30% respondents are “disagree” and 10% are
“strongly disagree” with this statement. However, it is interpreted that ASDA needs to involve
their employees for development of Good corporate governance in company.
Theme 8: Challenges management have faced in managing relationship with suppliers
19
Agree Strongly agree Disagree Strongly disagree
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
0.45
0.5
50.00%
20.00%
30.00%
10.00%
Column B

Demand of high prices 6 60.00%
Internal Audit 2 20.00%
Lackof faith 3 30.00%
Communication Gap 1 10.00%
Interpretation and analysis: Survey is conducted by scholar to analyse the challenges faced by
top management in managing relationship with suppliers. Sample of 10 respondents provides
understanding that, 60% have viewed that demanding high prices for products by supplier is the
main issues faced by company in managing relations with suppliers. 20% respondents have
internal audit of suppliers was issue, 30% have view that lack of faith between suppliers and
management has created issues. 10% have viewed that communication Gap between suppliers
and management was major challenge which is faced by management in developing positive
relationship with suppliers. However, it can be interpreted that Demand of high prices for
products by suppliers was major challenge which is faced by management in creating positive
relationship.
Theme 9: Good corporate strategies and governance enhance the performance of your
company in retail sector.
20
60.00%
20.00%
30.00%
10.00%
Demand of high prices
Internal Audit
Lack faith
Communication Gap

Agree 5 50.00%
Strongly agree 3 30.00%
Disagree 2 20.00%
Strongly disagree 1 10.00%
Interpretation: In this research, scholar has utilized questionnaire as a tool for collection of
relevant data on influence of good corporate strategies and governance on enhancing the
performance of ASDA in market. From the sample of 10 respondents, 50% are “agree” that
good corporate strategy and governance enhance the performance of ASDA in retail sector. 30%
are “strongly agree” that with the statement, 20% are disagreed and 10% respondents are
strongly disagreed with this. From this analysis, it can be said that ASDA needs to create good
corporate strategies and their should be good governance in organisation as it helps in increasing
performance in organisation in retail sector.
Theme 10: Payment of Agreed prices is the most appropriate strategy for development of
positive relationship with suppliers.
21
Agree Strongly agree Disagree Strongly disagree
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
0.45
0.5
50.00%
30.00%
20.00%
10.00%
Column B

Discussion 1 10.00%
Fair treatment 2 20.00%
Payment of Agreed prices 6 60.00%
Resolving issues 1 10.00%
Interpretation and discussion: In this research, questionnaire is made by scholar to analyse
appropriate strategy for development of positive relationship with suppliers. From the sample of
10 respondents, 10% have views that discussion strategy is most effective for retention of
positive relationship with suppliers. 20% respondents have viewed that fair treatment is the most
appropriate strategy, 60% stated that management should agreed price of products to sustain
relationship whereas 10% respondents specified that management must provide resolution to
suppliers for resolving issues. However, it can be stated management is required to pay agreed
prices of products to resolve issues and sustain positive relationship with suppliers.
22
Discussion
Fair treatment
Payment of Agreed prices
Resolving issues
0
0.1
0.2
0.3
0.4
0.5
0.6
10.00%
20.00%
60.00%
10.00%
Column B

Recommendation and action plan
Maintaining the governance standards needs sense of responsibility by all employees
working at top level of management in a firm. It has been recommended to operation manager in
Asda to ensure that business entity is complying with the laws formulated by government. As
this strategy will assist business entity in increasing sustainability. The other advice to Asda that,
management in an enterprise should formulate as well as strict rules in context of business
operations. Human resources' manager is required to take high initiatives for developing an
ethical corporate culture within a company. In addition to this manager in an enterprise is
required to bring improvement in its corporate strategies and have to work in such manner so that
firm can provide high level of satisfaction to all stakeholders. Employees in an organisation
should be allowed to participate in decision making process. In addition to this, manager need to
establish clear objectives and require sharing the same with employees, as this strategy will
enable employees to make their significant contribution in resolving the issues related to
corporate governance. Manager in an organisation should Establish a clear and documented
segregation between the roles and responsibilities of shareholders. It is required by human
resource manager in an enterprise to provide education as well as training to workers, as this
tactic will assist workers in developing the skills and will enable employees to keep themselves
update with corporate governance practices and regulatory frameworks.
The other advice given to management is that, manager in a company should disclose as
well as share important information with employees. As this strategy will support management in
identifying the new techniques in order to deal with corporate issues. In addition to this, Asda
company has been given advice to develop corporate compliance committee.
Corporate governance audit should be conducted by special committee at specific time
internal and report is required to be submitted to top level management. As this tactic with
support business entity in eliminating the issues related to corporate governance.
Manager in Asda company needs to develop suitable strategies in order to rebuilt their
relationship with suppliers. There are different actions required to be taken by management such
effective communication with suppliers. Transparency is required to be maintain between
company and suppliers.
It has been recommended to Asda , to create stakeholder grievance committee, as this is
considered to be as good corporate practice. Development of create stakeholder grievance
23

committee will assist management in providing high level of satisfaction to workers. In addition
to this it will help manager in developing as well as strong relationship with stakeholders.
The another suggestion given to Asda is that manager to develop clear remuneration
policies. Timely meeting are required to be conducted, where all the issues should be discussed
by employees with top level management, as this strategy will help employees in keeping
themselves update with business strategies as well as objectives.
It has been advice to the manager in Asda to have strict control on business activities. As
strict control plays crucial role in prevent as well as identifying the frauds. The strict punishment
are to be given to people involved in fraud.
The systematic procedure which are required to be created. For instance, manager in an
enterprise should establish a guideline that if a corporate fraud is more than a certain amount of
its equity, then the internal control function would report to the audit committee. This special
committee will conduct investigation for identifying the fraud as well as accessing the people
involved in same. As this strategy will aid management in controlling the activities as well as
eliminating the chances of fraud.
The other recommendation is that, management in Asda needs to take high initiatives to
develop as well as maintain an effective governance infrastructure. It is very much essential for
manager to develop policies in relation to delegation.
It has been advice to manager in Asda to determine the most appropriate and effective
corporate governance structure. As this strategy will support management in ensuring that
business entity will be conducted in correspondent to all social responsibilities, legal and ethical
aspects.
It has been recommended to Asda that company should give value to all its stakeholders
such as employees, investors, customers, suppliers etc. Business entity is provided with
suggestion to align their corporate governance approach with business objectives.
It has been advices manager in Asda to conduct risk assessment at regular interval of time
or develop an effective risk management system. As this solution or suggestion will help
management in assessing risks outside the compliance with law and policy requirements. It
supports manager in making suitable as well as important business decisions. The another
suggestion given to top level management in Asda is that the board should conduct a self-
evaluation process, including the performance.
24

CONCLUSION
From the above research, it is clear that good corporate governance helps the organisation
in resolving issues and achievement of growth in business operations. Corporate strategy is
concerned with the ways through which a firm can create its values across different business.
Governance essentially involves balancing of interests of an organisation's many stakeholders,
such as shareholders, employees, suppliers and management along with government as well as
community. Findings of survey provide clear understanding that management of ASDA needs to
provide its focus upon create effective leadership and governance in organisation which tends to
improve their relationship with suppliers. Director of Asda should also keep the information
about daily operations of organisation to resolve their issues. Company needs to increase
motivation employees so that they will provide support in achievement of goals and objectives.
However, organisation needs to maintain its relationship with other employees at
workplace. Company also needs to conduct an internal audit of supplier on the approval audit
committee to identify problems. They also need to provide prior information to supplier before
reduction from invoices and should not undertake any kind of forensic audit on its suppliers.
Discussion strategy can also be applied by director to remove all issues and obstacles between
supplier to maintain good corporate governance. Effective corporate strategies will also enable
ASDA to sustain its competitive advantage in market. It is also essential for ASDA to comply
with laws related with supplier code of practice. For removing restriction of suppliers on
business, company needs to comply with all laws and regulations so that business will achieve
growth in retail industry.
25

Appendix
To what extent Asda follow code of corporate governance seriously in the workplace?
 To great extent
 To some extent
 Don’t follow
Have applicable principles of corporate governance been incorporated in the firm effectively and
are these codes are creating value for stakeholders?
 Yes
 No
What are the major corporate governance and strategically issues in the Asda?
 Oversight issues
 Accountability issues
 Transparency issue
 Ethical violations
Does Asda is following grocery supply code of practices?
 Yes
 No
Do you agree that entity is creating values for its suppliers?
 Agree
 Strongly agree
 Disagree
 Strongly disagree
What are the strategies to minimize issues related to corporate strategies in Asda?
 Value based corporate culture
 Holistic view
 Compliance with laws
 Internal audit in supervision of audit committee
Do you think participation of employees is required for formulation of appropriate corporate
strategies?
 Agree
 Strongly agree
26

 Disagree
 Strongly disagree
What challenges you have faced in managing relationship with suppliers?
 Demand of high prices
 Internal Audit
 Lack faith
 Communication Gap
Do you think that, Good corporate strategies and governance enhance the performance of your
company in retail sector?
 Agree
 Strongly agree
 Disagree
 Strongly disagree
Which is the most appropriate strategy for ASDA to develop effective relationship with
suppliers?
 Discussion
 Fair treatment
 Payment of Agreed prices
 Resolving issues
27

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