Impact of Corporate Governance on Sustainability

Corporate Strategy and
Governance

Table of Contents
TITLE: Impact of corporate governance on sustainability and profitability of an organisation....1
INTRODUCTION...........................................................................................................................1
Background of House of Fraser..............................................................................................1
Purpose and Significance of the research...............................................................................2
Research Aims........................................................................................................................2
Research Objectives...............................................................................................................2
Research Questions................................................................................................................3
LITERATURE REVIEW................................................................................................................3
Corporate governance.............................................................................................................3
Different factors which influence sustainability and profitability of company......................4
Corporate governance affects profitability and sustainability of organisation.......................6
RESEARCH METHODOLOGY.....................................................................................................7
CRITICAL REVIEW OF THE RESEARCH................................................................................11
Analysis on the basis of primary data...................................................................................11
Analysis on the basis of secondary data...............................................................................17
Gantt Chart ....................................................................................................................................19
........................................................................................................................................................20
RECOMMENDATION.................................................................................................................20
CONCLUSION..............................................................................................................................21
REFERENCES..............................................................................................................................22

TITLE: Impact of corporate governance on sustainability and profitability of
an organisation
INTRODUCTION
Corporate strategy is considered as the business strategy which provides direction and
guidance to company through which it can maximise sustainability of company. The concept
also helps company in improving its brand image at market place in less period of time. It also
fulfils basic requirement of business organisation and its stakeholders in effective manner
(Tricker, 2015). The current research is based on House of Fraser, a UK based large scale retail
store. This company holds good position in UK and other operating country but due to some
issues and lack activeness in adoption new strategy and technology, this company have faced
many problems that negatively affected its profitability and sustainability at market place. Apart
from that, organization had not made effective corporate governance strategies which had
resulted in a conflict at the workplace. Corporate governance has a lot of importance at the
workplace. It provides strategies, policies, legislations and rules to make the environment of the
organization suitable for the workplace. This allows the companies to increase the productivity
and profitability of its employees. Thus, it can gain sustainability and profitability in the
organization.
Background of House of Fraser
House of Fraser is a popular retail store of United and was incorporated in 1849,
Scotland, UK. It is one of the fastest growing company of United Kingdom which owe around 55
stores on different locations of UK and Ireland. It has been analysed that lack management
practices and ineffective corporate governance have resulted in decline of profits and
sustainability of company (Armstrong and et. al., 2015). Major issue with House of Fraser was
that management team of this company have adopted e-commerce platform very late. This have
provided opportunity to their rival companies like John Lewis in grabbing attention of customers
from online sites effectively. In this regard, top management team have planned to conduct
research so that they can enhance their knowledge on corporate governance which will help them
in improving their sustainability and profitability effectively at market place. In order to make
the strategies effective to the organization so that it can increase its profitability and
sustainability, the company should try to improve the corporate governance strategies. These
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strategies will help the company in providing a suitable working environment at the workplace.
Apart from that, it also motivates other employees to work effectively and positively. Thus
increasing the performance of the employees and sustainability and profitability also increases
for the organization.
Purpose and Significance of the research
The main purpose of choosing this issue is to identify lack of management practices in
House of Fraser which have affected sales and also resulted negatively on sustainability as well
as profitability. This issue is highly important as it will help House of Fraser and other
companies belonging to similar field and facing some what same issue in improving their deficit
areas (Armstrong, and et. al., 2015). The purpose of this research is also important because its
will help them to prepare effective strategies for them so that they can handle any type of harsh
situation easily. In order to overcome the harsh conditions, the company should prepare all the
possibilities which can help them to get rid out of that. These strategies will help the organization
to improve their working environment and follow all of the laws and legislations easily. The
main purpose of this research also includes to understand the concept of corporate governance
within an organizational context. This type of governance allow the organization to make an
effective working environment (Cai, J., and et. al., 2015). Apart from that, this report also
includes the factors through which House of Fraser will improve its corporate strategy and will
gain sustainability and profitability. This research also includes the influence of such strategies
and policies so that its affect will also help the organizations of the same profession. Apart from
that, the impact of corporate governance on increasing the sustainability and profitability of the
organization is also discussed in details. This will help the industries to prepare effective
strategies and make their organization will good working environment.
Research Aims
The research aim for current study is “To analyse the impact of corporate governance on
sustainability and profitability of an organisation” A case study on House of Fraser.
Research Objectives
 To understand concept of corporate governance
 To evaluate different factors which influence sustainability and profitability of House of
Fraser.
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 To identify influence of corporate governance on profitability and sustainability of House
of Fraser.
Research Questions
 What is corporate governance?
 What are the different factors which influence sustainability and profitability of House of
Fraser?
 How corporate governance affects profitability and sustainability of House of Fraser?
LITERATURE REVIEW
A literature review is the writing of scholarly articles which have efficient knowledge in
the chosen area of subject. This is about the search and evaluation of the available literatures
written by the number of writers. Apart from that, further research in the same field also includes
literature review.
Corporate governance
According to the thoughts of James Chen (2019), corporate governance refers to the set
of rules and regulations through which companies are managed and controlled. It includes
management and leadership practices that helps company in obtaining goals and objectives by
balancing interest of all stakeholders like customers, government, financier shareholders and
management team. It also help the organization in achieving its aims and objectives. It also allow
the organization to implement the actions plans effectively so that controls will be measured and
objectives can be achieved easily. Corporate governance is the set of rules, policies and
frameworks which are helpful or an organisation to run its business smoothly. There are proxy
advisors and shareholders who have a great influence over the corporate governance but still the
main power of making such policies and frameworks is in the hands of Board of Directors of the
company. In case of House of Fraser, the board of directors of the company will make the
policies and frameworks for it. This will help them to state stableness within the organization.
Communication is the best way through which a corporate governance strategy can be
implemented within an organization. In case of House of Frazer, there is lack of communication
among the top management and the employees. This has imposed to be carelessness among the
employees and decreasing their capabilities. Communication will help the employees to work
effectively. The employees can discuss various strategies and polices which could help them to
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