Corporate Governance and Research Methods

The provided assignment is a collection of academic papers, articles, and documents related to corporate governance and research methods. The content includes books, journals, and online resources that cover topics such as corporate governance codes, directors' duties, dual-class stocks, and research methodologies like case study approaches and qualitative psychology. The assignment aims to provide students with a thorough understanding of corporate governance principles and research techniques, enabling them to conduct effective studies in these areas.

Solution Design (Research
Design and Methodology)

Table of Contents
CHAPTER 4: SOLUTION DESIGN..............................................................................................2
4.1 Introduction............................................................................................................................2
4.2 Research philosophy..............................................................................................................2
4.3 Research approach.................................................................................................................2
4.4 Research design.....................................................................................................................2
4.5 Type of research....................................................................................................................3
4.6 Data collection.......................................................................................................................3
4.7 Sampling................................................................................................................................4
4.8 Data analysis..........................................................................................................................4
4.9 Validity and reliability...........................................................................................................4
4.10 Ethical considerations..........................................................................................................5
4.11Research limitations..............................................................................................................5
Probable solution to the issues.....................................................................................................5
CHAPTER 5: SOLUTION EVALUATION.................................................................................19
CHAPTER SIX: CONCLUSION..................................................................................................35
Conclusion.................................................................................................................................35
Implication for both practice and future research......................................................................42
REFERENCES..............................................................................................................................44
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CHAPTER 4: SOLUTION DESIGN
4.1 Introduction
After literature review, solution design is considered to be the most important chapter of
whole dissertation, where, the researcher is able to frame methodology which will be taken into
consideration. It helps in ensuring that appropriate set of design has been used in a manner that
best possible outcomes can be derived out of it. The chapter is responsible for explaining that
how the overall research will be carried out using appropriate methodologies (Neuman, 2013).
4.2 Research philosophy
There are various types of research philosophies that can be use by the researcher. These
are, positivism, interpretivism and realism. Positivism research philosophy helps in providing
adequate justification to the researchers as well as readers. However, in case of interpretivism
philosophy, it is responsible for interpreting various elements of the investigation(Lewis, 2015).
Another type of research philosophy is realism which generally rely on the idea
ofindependence of reality from human mind. There is a greater assumption of scientific approach
for core development of knowledge (Brinkmann, 2014). Hence, in the present research,
pragmatism type of research philosophy has been taken into consideration which has helped in
generating specific picture of overall research. This is most suitable method because this has
supported in focusing on actual research area and finding more practical problems in the
Corinthia group. It has also been able to draw effective conclusion, in broader sense, out of the
research that has been initiated. Realism approach has helped in finding out the reasons of
financial crisis and also its impact on functioning of various other companies.
4.3 Research approach
There are basically two types of research approach. These are, inductive and deductive.
Inductive type of research approach helps in finding out new theory and initiate the content from
specific to generalaspects (Vaioleti, 2016). However, in case of deductive approach, the content
moves from generalto specific aspects. In the present study abductive approach has been used.
This method has supported in combining qualitative and quantitative data in effective manner.
This is significantly able to meet with the entire research objective and finding positive results.
Innovation and sustainability in themethods adopted at the time of financial crisis and after it can
be found out which could have improvedoverall condition of entities. Inductive approach can be
quite helpful in this scenario.
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4.4 Research design
Research design helps in collecting, measuring and analysing data. There are various types
of research designs, such as, descriptive, exploratory and explanatory (Flick, 2015). Descriptive
research refers to describing the characteristics of population based on the phenomenon that has
been studied in subject matter. In exploratory type of research design, study is generally
conducted for a problem which has not been clearly studied in the past research or any addition
in the concept have developed the requirements of researching the concept or subject matter
more. Another type of research design is explanatory research design, where, the ideas are
attempted to be connected in such a manner thatcause and effect relationship of the same can be
studies in order to explain overall crux of the study (BNS and HV, 2013). In the present research
explanatory type of research design will be taken into consideration so as to develop a
relationship between existing as well as new knowledge aspects.
4.5 Type of research
There are basically three types of research. These are,qualitative, quantitative and case
study. Qualitative type of research helps in exploring the issue in a well-defined manner. It also
helps in answering various questions after analysis has been performed and develop sense from
an unstructured data. Hence, it can be stated that, this type of study is suitable in conducting in
depth studies related to subject matter(Panneerselvam, 2014). Quantitative research helps in
calculation of specific results and finding out the outcomes in most systematic manner. Another
type of research is case study, where, case of a particular organization is taken into consideration.
It helps in generation of multi-facetedunderstanding of a particular complex issue which is
present in a real-life context.
In the present research,case study approach will be taken into consideration.
4.6 Data collection
It is considered to be one of the most important aspects of the research which is related to
collection of data in such a manner that overall specific outcomes can be generated out of the
research. There are basically two types of data collection methods that can be used in the
research. These are primary as well as secondary type of research. Primary type of data
collection method helps in collecting first hand data, which has not been adopted by any other
researcher earlier (Smith, 2015).However, in case of secondary type of data collection method,
data that has already been collected by the other researcher is taken into consideration.
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In the present research, both primary as well as secondary type of data collection method
will be used so as to reach to the specific research. It will also be helpful in development of new
theory which may not be derived by the other researchers. To collect secondary data books,
research papers, periodicals, journals, conference papers, directories, research reports, has been
taken into consideration (Gale and et.al., 2013). Also,secondary data has also been collected with
respect to global financial crisis with the help of books and journals.
4.7 Sampling
A sample is a subset of overall population. It is not possible for the research to conduct
research on whole of the population. In this scenario, a sample, as a representation of whole
population, is chosen so as to generate specific results which can thereby be generalised all over
again. In the present research of analysis of factors related to shareholders, a sample of 50
companies will be chosen so as to carry out the research. These companies are listed on FTSE
350 Index which has inclusion of UK’s largest companies. The entities will be selected
randomly.
4.8 Data analysis
Data analysis is one of the most important aspect of the research which helps in preparing
an assessment of what type of data analysis method will be taken into consideration on data that
has been collected for the present research(Reynolds and et.al, 2014).There are basically two
types of data analysis method which can be adopted by the researcher in the present research.
These methods are, qualitative type of data analysis and quantitative type of data analysis.
Qualitative concerns towards obtainingin-depthinsights with respect to the chosen subject matter.
It helps in exploring various aspects of the research which assist in reaching to specific
conclusion as well. However, incomparison to this, quantitative approach helps in drawing out
results by using various statistical tests
4.9 Validity and reliability
When any type of study is initiated, it is important from the part of researcher
thatappropriate types of tools and techniques are taken into consideration. Hence, in this
scenario, it becomes important to consider the concept of validity and reliability aspects while
preparing research. Validity helps in indicating how flawless the overall research has been
conducted. Data collection is the true reflection of validity where it can be ascertained that
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whether the particular data is true reflection of validity phenomenon or not(Nieswiadomy and
Bailey, 2017).
Reliability is another important aspect that is important to be present in the research. It is
an important aspect to measure the overall quality of conducted investigation.The current study
focuses on stakeholders where data will be gathered through authenticated sources only so as to
produce effective results. It has been ensured by the researcher that there is engagement of
minimum biasness and manipulation in the research being conducted by him (Karanikolos,
Mackenbach and McKee, 2013).
4.10 Ethical considerations
In the present research, the researcher hasconsidered the following aspects that are related
to ethics. These factors are mentioned below: Restricted access:The work required to refer certainwebsitesso as to gather information
which is secondary in nature. Some of them do not have access to use them directly. In this
scenario, prior permission has been taken by authors and then only information is collected
from those websites (Vera and Fabian, 2016). Citing work:In certain cases, work of previous scholars has also been included who must
have conducted research on similar topic. Proper citing of work has been done based on
information that has been gathered through various sources.
4.11Research limitations
There are certain limitations that acts a hinderance in providing specific results to the
readers. In the present research as well, there are certain challenges that are faced by the
researcher in presenting the dissertation. Some of the limitations that are linked to it are as
follows: Time consuming process:Conducting a research is a prolonged process as data collection
and analysis taken longer time and thenanalysis aspect is also time taking scenario (The case
study approach, 2011). However, it has been ensured by researcher of present investigation
that all the important aspects of research are properly taken care of and adequate time is
given to each and every aspect of the research. Insufficient secondary information:The present research is based on factors related to
shareholders. The other limitation that has been faced by the researcher is that, all the
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important information related to subject matter is not specifically available to the researcher
which has led to create restrictions on overall results of the research.
Probable solution to the issues
Negative impact of global financial crisis
Global financialcrisis has been able to have long term sustainability impact of
companies.It not only resulted inineffective functioning of companies but had greater impact on
overall shareholder’s value. Entities experienced economic and financialbreakdown in the
company which has affectedoverallgeneration of revenue and even its stability in the market
(Shiller, 2012).The corporations, which used to be high value risk taking companies, have now
become performance concerned. It is detrimental to focus on only profits without analysing
ongoing conditions of share market. It has become important for the management to focus on
various factors that has led to financial crisis and the methods that can be adopted if it tends to
occur again in the financial market. In that scenario, it will be informed risk which can
effectively be managed by the management of company.
A stronger impact of financial crisis has also been propounded on investing behaviour of
investors due to external shock and sudden down experiencedby the market in the year 2008.
Hence, investors tend to take all their decision wiselyand ensure that whether they want to make
investment in a particular company or not. It basically helps in identifying their risk-
takingbehaviourand if the market is at riskor not (Peters and et.al., 2012). A strong relationship
has been developed since then between, actual performanceof the firm and value creation. It
becomes difficult for the management of the company to manage shareholders and performance
of the organizationwith declining returns. It generates the requirement of establishment of
corporate strategy that helps inidentification of risk, it is takes place in near future. So as to
perform this function, it is important to prepare an assessment of condition so thatreason of
global financial crisis can be explored. Effectiveness of leadership and strategic decision making
can help in exploration of the same. It is important for the organization to ensure that the
decision making must be focused and of sustained value for both long as well as short term
(Erkens, Hung and Matos, 2012).
The main aim of strategic managers is to ensure that adequate outcomes have been
achieved without hampering core activities of the business. Financial crisis has led to increase
focus on corporate governance and strategic alignments of the company so that desired outcomes
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can be attained. It was the main reason due to which various companies, such as Enron, failed to
come out successfully from the crisis of 2008 (Taylor, 2013). Ability of companies to have high
level of accountabilityand transparency can also help in ensuring that appropriate strategies of
research have been prepared by the managers.
Another proposed solution for the situation of financial crisis is optimum utilization and
allocation of available resources so that it can be preserved for future requirements. It helps in
ensuring that whenever financial crisis will occur in the market, the company will be able to cope
up with it with the help of accumulated resources. Plan may include, reduction of debt, increase
in number of shareholders, aiding development or expansion plan, etc. It is important to regularly
analyse the performance of business in such a manner that better corrective actions can be taken
by the team incase of sudden crisis (Fratzscher, 2012). Strive to achieve the target, being framed,
as to all the resources and functions can move towards the same direction.Developing
communication with customers and suppliers is the other aspect that must positively be
considered by the team while handling financial crisis in the company. Crisis communication
plan must be prepared beforehand, by the management so that solution can be achieved by
communicating with other stakeholders of the company as well.
The year 2008, case up with various economic experiences for the companies, where they
faced major downturn experienced by America, whose impact was also born by other countries
aswell. Credit melt down led to worldwide reduction in overall spending of
corporations.Common unfavourable aspects of financial crisis are, rise in inflation,
unemployment, negative or very low growth rate, falling prices of assets, reduction in overall
spending of the consumers (Aebi, Sabato and Schmid, 2012). It is not only unfavourable position
for business practices but it is also not effective for conducting business operations. It is difficult
to maintain favourable economic environment all the time, especially when crisis strikes, it can
challenge the well being of company. It is the time, when it is required to taker appropriate
actions that can help or save the organization from sinking. One of the important aspect at that
time is to have positive behaviour andinitiate new ideas among employees which can help in
coping up with the issue the organization must be facing due to economical crisis. Financial
turmoil in the organization may affect overall sales revenue and profits which ultimately affect
overallfunctioning of the company. Cost cutting can improve the performance of the company
(Chodorow-Reich, 2013). However,new and effective set of employees and retrenching the
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ineffective one is another solution that can be available in front of management of company, at
the time of financial crisis. It helps in ensuring smooth operations. However, company may also
face issue related to decrease in overall demand of the products and services, where slowing
down of spending can help in combating the difference.
When there is constant decline in revenues of the company, the same is also reflected in
the entity’s earning reports as well.It ultimately leads to decline in company’s stock prices also.
Dividend may experience sudden fall and can also reach to zero, if condition of crisis is worse.
Shareholders attempt the sell the stock, hold by them, with the fear of loosing money in near
future. It can also have large impact on volatility of stockDemirguc‐Kunt,Detragiache and
Merrouche, 2013 (). Due to sharp fall in stock prices, the company may face financial crisis as
well, ultimately affecting overall investment aspects in various areas as well. Investor mayalso to
hold the stock and may plan to reinvest the same in other company as well. This can further
depress brand image of the company as well.
Impact of financial crisis on firm’s performance and value creation aspect is also quite
common aspect to be experienced by the entity, which is required to eb considered at the time of
decision making as well. Corporate strategies play an important role in it, where, organization
must focus on corporate governance and strategic aspects of the company so that their strategies
can then be aligned to overall positive performance outcomes of the company (Frankeland
Saravelos, 2012). This aspect of the company is generally controlled by themanagers. Corporate
governance strategies ofthe company may help in development of risk assessment and mitigation
outcomes. Having proper planning and team for the same can help in better dealing with risk and
financial crisis that come up in the environment.
Economic context
Corinthia group have been facing lower revenues and profitability aspects due to ongoing
stagnation in the countries where it primarily focusses on. It has led to bring sharp decline I
productivity and thereby revenues and profitability aspects of the entity as well. It also leads to
bring negative impact on investment aspects of the company (Deaton, 2012). It not only
complicate existence of the company but can contribute in losses and ineffective growth of
organization as well. It is the time when it is required for management of the company to bring
changes in its working aspects so that better management strategies can be adopted to generate
adequate amount of profits, at least to pay out the expenses.
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It is important for Corinthia group to focus on functioning of team so that innovative
steps can be undertaken for better results. Increasing roles and responsibilities of every team
member with the aim of generation of high outcomes can twist the approach of
stagnation.Further, development of new goals and objectives in such a manner that expansioncan
be proclaimed without investment activities canhelp in generation of profits. Spending more time
on profitable clients and planning them in better way can prove to be an effective approach at the
time of stagnation. It helps in generation of high revenues for the company (Covitz, Liang and
Suarez, 2013).
Refocusing on products portfolio and planning to focus upon new industries can help in
bringing necessary increase in overall profitability aspects of the company without bringing any
change in pool of resources and adding new experts to the team. It alsohelps in proving more
profitability in the products as it shows that altogether new set of customers will be targeted
based on current resource base of the company. Slight change in team structure andrefocussing
on product portfolio can help in generating adequate revenues for the organization which may
not be possible in the new industry.
Investing in upgraded technology is another option thatis available in front of the
company in order to deal with the condition of stagnation. Skills training can help in ensuring
that all the requirements of thecustomers are fulfilled without delay or failure (Hunter, Kaufman
and Krueger, 2012). Further, providing extra ordinary services to consumers always tend to
attract large amount of profits, even in the situation of stagnation. Allocating budget for
upgrading technology in a manner that essential version of the same can be arranged so that
revenues can be generated. Applying the same on Corinthia group can help in dealing with
stagnation aspect. When the growth is stagnant in one aspect, it becomes important to invest in
the other, so that, better profitability and revenue can be developed by the team for effective
output.
Bringing constant change in the environment and providing the best to the customers
motivate themto purchase goods and services that are actually offered by the organization.
Constantly holding internal brainstorming sessions and creating and collaborating with new and
innovative ideas helps in speeding up efficiency of the business. Analysing, prioritizing and
taking better actions for the management and consumers can help in better productivity. Its
immediate impact on functioning can also be borne by the management so that benefits of the
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same can be realised for longer period. Continuouslychallenging team to bring new ideas with
respect to it can result in measurable growth. It is quite challenging for the company to enhance
its business in the situation of stagnation (Huang, Zhou and Zhu, 2012). Limited opportunities
and low productivity can intensify the operations, resulting in ineffective generation of profit and
revenue. Integration of risk management aspects in day to day operations and creating situation
of risk assessment and mitigation technique can help in creating situation of comfort for the
company.
Stagnation means availability of less amount of money in the hands of customer, which
ultimately decreases their overall personal disposable income make it challenging and emerge
stressful situation for company that whether they will be able to generate adequate profits or not,
without reaching to vulnerable future crisis. The net result can be decreased shareholders value
and capacity of organization toimprove its functioning aspects. In this scenario, it becomes
important for management to clearly identify various internal and external risks involved in
functioning whose risk assessment and mitigation plan can be prepared for better functioning. A
high amount of cash holding is also a positive activity that can be initiated by the enterprise for
growing and positive results.
Due to changes in political aspects of the country have also prove to be quite ineffective
for the company. It has generated the requirement of changing policies due to constant change in
potential laws that are actually being followed by the company currently. Due to constant risk in
political functions, it has generated the requirement of bringing changes in rules and regulations
of the company so that its functions and output can adequately be improved.Bringing stability in
business functions in such a manner that its operations cangenerate high profits can considered to
be one of the important aspect that can bring organizational functions and its profitability under
control. Economic risks in the functions and managing current environment bring changes in the
business functions as well (Haas and Lelyveld, 2014). The only political risk that is involved in
UK is related to “Brexit”, where country is planning to withdraw from European Union. Reforms
and institutional change can help in ensuring that its negative impact can be attracted to the
minimum. The challenge’s and potential risk involved in it is that Corinthia may lose its market
which may be situated outside UK. Impact on political economy can be obstructed with the help
of implementation of effectivelaws, rules and regulations. Further, planning expansion in product
portfolio and entering into new market of UK can prove to be quite useful for the company
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where foregone profits can be managed. Reforming operations and entire environment of the
company canhelp in adequate generation of profits as well revenue. Although, it can have
potential impact on operations of the company,but application of better and effective policy and
brining changes in operations can prove to be quite effective. On the other hand, it can alsolimit
overall value creation of the company as well.
Issues related to organizational context
Role of governance have been on increasing phase in modernorganizations.It is not that
company is only responsible for maximization of shareholder’s value, but its stronger impact can
alsobe ascertained on meeting the requirements of customers at the time of increasing demands.
Applicability of modern governance helps in making the development aspects more effective
where practices tend to become more reliant which can help in generating effective returns.
Although global crisis has led to bring changes in definition of competitive market due to
opportunistic aspects present in the most unethical manner. It is due to ineffective as well as
unethical business practices adopted by the organization, which made them drown at the time of
global financial crisis (Demirguc‐Kunt,Detragiache and Merrouche, 2013). The scandal initiated
byWorldCom and Enron was related to unethical presentation of their financial statements which
showed their profitability. However, the companies were actually running into losses. It is not
only linked to enhancement in value creation aspects of shareholder. But, its actions must also
fulfil ethicalrequirements as well.It is important to adhere to the modern expectations of
stakeholders, that is adequate expansion and generation of profitability and revenue aspects.
Hence, it is advised to Corinthia group as well, that it must avoid all the unethical practices and
legal actions that are attached inpursuit of shareholder’s value.
Another major issue, in organizational context, can be faced by Corinthia groupis to
maintainits solvency for uncountable period. It is considered to be most vitalaspect of the
organization. Corinthia group is involved in constant investment of operating and developing
hotels and resorts. It mikes challenging for the organization to have adequate amount of liquidity
which can backfire at the time of crisis. Since, it is difficult to gather liquid money in the form of
banks and insurer. It is also not the proactive state which helps in defining liquidity and solvency
of the company. It is quite important for the organization to remain financially viable so that all
the core functions canbe performed. In this scenario, constant analysis of solvency and liquidity
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of the company can come handy so that decisions can be made before hand at thetime of crisis
(Karanikolos, Mackenbach and McKee, 2013).
Crisis can be in the form of crash of credit market. At that time, it can be difficult for the
company to manage funds. It is important for the company to maintain a certain ratio of its
resources in liquid format so that it can manage its operating aspects.There are various methods
that can be used by theorganization so as to ensure liquidity. These are, analysis of cash flow
statement, evaluation ofcorporate income inflow, short term and long-term credit liabilities,
changes in asset, etc. These are the important influentialaspects that must be ensured and
calculated time to time by Corinthia group. It helps in ensuring flexibility and adaptability
combined to constant growth of entity as well (Aebi, Sabato and Schmid, 2012).
Due to crisis in the country, it has raised its serious concerns for investors with respect to
theiraccountability and responsiveness of certain companies and board of directorto specific
interest of shareholders. It generally used to result in loss of investor’s confidence. During, that
period, recession boomed and various renowned and large companies took several risks which
could have helped them in constantly falling market (Haas and Lelyveld, 2014). In this scenario,
it becomes important for the management to come up with the strategies that can help them to at
least cover up their working capital. Internal changes in corporate practices ofthe company may
come handy in this scenario. Constantly making decisions and bringing changes in working
practices of the company canhelp in coping up with the fear of crisis. With constant change of
environment and ups and downs in the market portfolio, there is requirement to bring changes in
functional aspects of Corinthia group as well. Crisis have been able to give opportunities to
improve overall governance aspects of the company which canhelp in development of strong
base. It can help in effective dealing with the crisis that canhelp in generation of better output.
Among central cause of financial and economic crisis that cropped up in the year 2008 in United
States, the core reason was failure of corporategovernance of multiple companies. Effective
governance strategies can be quite helpful in dealing with the issue in a well-defined manner.
The anticipated result of the same can be in the form of better profitability or at least reaching to
break-even point at the time of crisis in the market (Hasan and Dridi, 2011).
Solution to the issues related to wider society context
It is inclusive of the requirements of socialstakeholders of the company with fulfilment of
expectations of governments. Postfinancialcrisis have impacted and initiated socialhardships
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which has spoiled relationship of company which is linked to society. It can be inclusive of
reduction in earning, loss of jobs and also raised both unemployment and underemployment of
the society. Another type of criticism, that has been raised, is related toincreasing the burden of
what actions that has been taken by banks and other businesses. It has alsoraised the demand
thatorganization must be able to show their concern and accountability with respect to society for
greater output. Their minimal and unconcerned efforts maylead to bring ineffective change
addressingnegative relationshipwith the society (Mitton, 2012). However, making appropriate
strategies for the same can help in brining potential social impact on demand generated through
business organizations. Looking and addressing the issues faced by the society helps in effective
development of overall aspects of the business. Accountability and willingness to mitigate any
type of social impact can help in bringing change in negative relationship.
Disclosing rules and actions that are related to it responsibility that an organization have
towards the society, the actions canbe in the form of remuneration and executives. Implementing
these rules and implication of operations so as to mend the relationship with society (Gleick,
2013).Business is also required to disclose important information to society so that they are
aware of overall condition of entity and analyse that whether they want to invest in it or not.
Preparing a plan of action which helps in ensuring that all the important aspects are then taken
into consideration by the team which can help in developing effective relationship with the
society. Investing In Corporate social responsibility is another aspect that is available to the
customer, which can ultimately help inpreserving the society and developing positive
relationship with them.
Due to global economic downturn and credit crunch of Corinthia group, it becomes
important to manage the economyand various societal as well as political institutions are actually
responsible for it. Global crisis led the market to reduction in trade finance, cross border lending
and foreign direct investment of the country.Ithas affected overall output that is generated by the
company. It also led various companies, bankrupt. In societal pressure, in the form of failure of
various banks and companies, it has become quite important for the companies to address the
issue and frame policies that can help in better outputs. Further, focussing on foreseeing future
financialcrisis, financialaspects of the country have weakened which restricts organizations from
generating adequate outcomes.Initiating coordination in member and demanding reforms in
overall functions of the company, can help in better outputs. Opportunistic reforms with respect
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to risk management and giving opportunity to the society to grow help in effective and
overalldevelopment resulting in positive growth of society and there by increasing trust and
brand image of organizations linked to it as well (Chor and Manova, 2012).
One of the core concept that is related to society is sustainability. Disclosing positive as
well as negative information in relation with the company can help in better engaging and
substantial rule making aspects with respect to it. Having all the information transferred to
consumers, helps in ensuring that decisions regarding investments have been made considering
all the important aspects, by society members. Bringing appropriate changes inemployment
contractof Corinthia group can also prove to be quite effective in nature. Decliningreal income of
employees have been able to generate its requirements. The concept is directly aligned to
maximizing shareholder’s value. It will help in initiating sustained social pressure. Hence,
development of strategies, analysing requirements of society and building short term and long
term aim and objectivesfor the same can help ineffective delivering of duties. Organization is
required to develop new solutionto the issue rather than transferring certain amount of profits to
the society (Held, Goldblatt and Perraton, 2012).
There are various socialpressures that are present, which canbe in the form of, failure of
the firm and bankruptcy. Making appropriate reforms with respect to particularly,
financialservices, can help in dealing with the issue. Grabbing open window opportunities from
the side of government, where, various options, with respect to the funds, are made available so
as to generate maximum0 profits out of it. Economic coordination with society and assessment
of it within the company canalso help in dealing with in a well-defined manner. Analysing
political requirements and making an assessment of present and future crisis canalsoprove to be
quite helpful in this scenario.It has been noticed that constant changes in fiscal development and
reforms are the key important aspects inmodern societies. Giving efforts in building them can
generate better outcomes. Any development in fiscal stress of the country or in sector can
generate the requirements of development od strategies related to balancing fiscal aspects in the
society or bringing changes in policies and practices of the company which can help inn
stimulating better outcomes (Nolan, 2012). Preventing and presenting future crisis and handling
them inn well defined manner can help in overall better development of company without
hampering any type of requirements of the society.
Solutions to the issues related to competitive context
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A high amount of competition is present in the countrywhich stimulates the organization
to take steps that canhelp in better as well as effective output. Considering competitive context
helps in stating that, global crisis was the result of closure of various organizations which left
entities in smaller volume. It alsoaffected the operations of business in terms of profitability and
financial viability aspect of organization. Enhancement of profits and taking actions to initiate
superior performancecan help in generation of long term valuable profits for enterprises.
Relocating labour and raw material for better profitability aspects and generation of profits can
help in ensuring that company is able to perform its functions. Increased benefits to the company
can be rendered with the help of it. In present scenario, it is indicated that,reallocation of
resources in various activities of the businesscanalsobe helpful in deliveringthe requirements
(Dawar and Pillutla, 2012). It will thereby play an important role in coping up with the crisis and
negative impact that organization must have facedafter global crisis. The hampered performance
and profits can be managed with the help of choosing right kind of management of resources. It
also helps in optimum utilization of raw material and labour as well. Intensive competition
available in the environment can affect profits, negatively, in the long run.The level of
productivity in the long run canalsohave greater impact on profitability aspects of the business,
due to ineffective utilization of available resources. Recession leads to hampering the
performance and profits in short run. However, in the long run, the value and benefits of
involving in contract can be gathered by Corinthia group in later years, in the form of reduced
competition (Ghazoul, 2015).
There is a greater impact on global financialcrisis on condition of market, where there
was sudden downturn in total factor productivity growth in the market. Other aspects were
alsoaffected where, country also experienced low labour rate and low rate of productivity and
thereby sales.It generatesthe requirement of preparing a strategy that can help in coming up
withimproved financialresults.Maintaining amount ofresources and initiating profitability in the
market can help in bringing back lost revenue, ultimately leading to adequate recovery in the
economy. Another important aspect is related to bringing increase in number of small and
medium sized firms in the country. Reactionand responsiveness that is related to financial
aspects is another method that is available to the company. It can initiate the same with the hope
that it will help in increasing financial viability of the company and thereby resulting better
financial performance in comparison to that of competitors (Lomborg, 2014).
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Pricing is another important aspect thatprevails inhigh competitive industry. It is
important for Corinthia group to opt for effective pricing strategy that can help the organization
in remaining competitive in the environment. Ineffective pricing has greater impact
onfunctioning aspects of the organization, as it is not able to generate adequate revenues and
thereby profitability aspectsof entity.It helps in gaining long term advantage where organization
is able to survive in the market for longer period. It is important for Corinthia group tobe
responsive and quick to take decisions whenany challenging situationtends to crop up in the
business environment. Challenging cost and competitive prices have positive impact on
profitability and revenue aspects of the company (Shin, 2017). Reaction and responsiveness in
strategies can drag the company towards challenging prices bracketso that it becomes easy for
the organizationto survive inexisting competitionof corporations.
There are many other factors that have proved to have greater outbreak due to global
financial crisis.A new wave of entrepreneurship has taken place, where various small and
medium sized organizations have cropped up in the environment so as to compete with large
companies. Due to their lower investment and nothing loose aspect, they are able to offer
products and services to the customers at lowest possibleprices. It alsohelps in making them
stand still and growing extremely competitive market. It shakes the standing of bigger companies
due to involvement of high working and operational capital (Shin, 2016). In this scenario, it also
makesdifficult for the companies, to introduce low pricing strategies as it maybecomedifficult for
them to cope up with the cost of operations due high degree of involvement of large number of
people in it.Socialperceptions and prevailing issues also play an important role in it that whether
the company will be able to cope up with competitive aspects in the market or not.
Corinthia group can alsobe advised to expand in a manner that maximum output out of it
canbe generated, where, company canplan to expand in a state or country where it is not present
yet and have less fluctuated market. It plays a substantial role incomping up with greater profits
at least from one area where market condition is not thatbad. Investing in profitable ventures and
bridging the gap between breakeven point and loss can also help in delivering the best (Hanjra
and Qureshi, 2010).Grabbing opportunities in new market canhelp in fulfilling the gaps and
helps in ensuring that the company will be able to generate maximum amount of profits out of
it.New competitive market ventures help in securing finances of the organization.
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Growing influence of innovation is another important aspect, where Corinthia group can
attract large number of customers towards it. Establishing themselves inglobal economy, not
only helps inincreasing presence of organization, but it alsohelps in increasing brand image and
market share of the company.Theonly issue that may crop up in this scenario is lack of
availability of investment which can be solved through proper use of various available sources of
business finances which can help it in its expansion processes (Adrianand Shin, 2013). The level
of competition amongst other firms at different locations also helps in deciding that whether it
will be able to generate adequate amount of revenues in comparison to the investment made. It,
in turn, give proper review of overallmarket share of the organization as well. Use of innovation
resources, in a manner that maximum output can be produced, is another important strategy that
can be adopted by Corinthia group for better profitability and attracting large number of
customers towards it.
Codes of corporate governance
Corporate governance is a system of rules, practices and processes, based on which
overall firm Is directed and controlled. It helps in balancing overall interest of the company
which are actually present in the form of, customers, supplier’s, shareholders, government,
financiers and community. Since, it is the framework that is prepared to attain overall aim and
objective of the company, it is quite important for every organization to inculcate it in working
practices for well-defined output. Corporate governance is practically inculcated in every aspects
of the organization. It starts frominternal control systems and move to performance management
activities and making appropriate corporate disclosures. Board of directors plays the most pivotal
rolein governance activitywhoare responsible for dictating corporate behaviour and introducing
new and innovative aspects in it. They are responsible for preparing and practicing rules and
regulation which canprove to be quite beneficial for the organization. Making all important
decisions for the sake of profitability, introducing executive compensation and dividend policy is
also an important aspect thatis attached to corporate governance (Te Velde and Ingombe, 2017).
In case of large organization, such as, Corinthia group, corporate governance proves to be quite
helpful as it plays pivotal role in dilution of concentration power and aligning the same to aims
and objectives of the business, thereby serving overall interest of shareholdersand other insiders
of the company.
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Bad governance can have greater doubt on obligation, reliability and integrity to
shareholders.It has greater impact on financial health of the organization as the team becomes
incapable of making effective decisions.Tolerance or support to illegal activitiesalso leads to
creating scandals, thereby leading to bring bad brand image to the company. Italso has impacts in
the form of poorly structuredteam and decision makers in the organization. It has also been
revealed by various researchers that it also has greater impact on sales and profitability aspects of
the company. Companies with bad governance are also not able to sufficiently cooperate with
auditors that ultimately leads to presentation of ineffective as well as deviating financial results.
Frauds in accounting and disclosure are quite common at the time of presence of bad corporate
conduct in the organization.
It is advised to Corinthia group to gave effective as well as good corporate conduct,
where, a transparent set of rules and regulations are created to control shareholders, officers and
directors which are aligned to incentives generated in the form of high profitability.It is due to
this reason, majority of the organizations strive to be at high level of corporate governance. It is
not enough for the company to be merely profitablebut it is equally important to reflect good
corporate citizenship to the stakeholders and potential investors. Hence, it important to inculcate
sound corporate governance practices and ethical behaviour in working environment of Corinthia
group. In order to perform this function, it is important for the team to indulge in preparation of
strategies that can ultimately help in better deliverables. Further, reviewing themon time to time
basis with expectation of maximum reward out of it can help in reflecting condition of
organization in front of the stakeholders (Levy-Yeyati and Sturzenegger, 2013).
Corporate governance mechanism is the process which must effectively be adopted by all
the organization for better policy framing and inclusion of better practices in its
functions.Corinthia group must get involved in effective divisionofrights and responsibilities as a
part of corporate affair so that set objectives and aims can be pursued by the team. Further, it is
also advised to it that monitoring the actions that have been taken as a part of corporate
governance alsoplays an important role in ensuring that best practices have been adopted by it.
Fraudand financial aspects of the organization have come out at the time of financialcrisis 2008,
where it became important for the companies to indulge in good as well as effective corporate
governance aspects. The main reason that have come of global financialcrisis is ineffective
corporate governance of companies, which led to failure of various big companies, such as
18

Enron. It has generated the requirements of increasing scope and requirement of corporate
governance so as to generate maximum benefits out of it.
The maingroup of external stakeholders are, customers, suppliers, shareholders,
debtholders and communities, who are badly affected due to presence of bad corporate
governance aspects. Conflicts of interest between them and the other shareholdersgenerates the
requirementscoming up with effective corporate governance strategies that is not only beneficial
for the company, but also helps in serving the interest of stakeholders. Although, there can
bedifference in the interest of conflicts, better strategies can help in mending these gaps and
come up with effective strategies that can help in equal satisfaction of requirements of all
stakeholders.
Corporate governance helps in direct controlling and evaluation of activities that can
prove to be quite beneficial for the corporation.Preparing strategies not only help in expansion of
the company, but also assist in optimum utilization of resources that may be available with it.
Hence, preserving them and taking actions to use them appropriately is another important aspect
thatis related to corporate governance. Corinthia groupcan indulgein preparing strategies for the
same where all the resources, which can be present in the form of labour, material and other
technological aspects can optimally be utilised so that maximum amount of profits can be
generated out of it. For instance, managing IT functions and not governing them, preparation of
accountable strategies and indulging in management functions can be an effective as well as
appropriate aspect that is attached to influencing corporate financial activities, can some of t5he
important aspects that can be adopted by Corinthia group for effective implementation of
corporate governance at the workplace.
CHAPTER 5: SOLUTION EVALUATION
Evaluation of solutions related to global financial crisis
Financial crises have created big trouble for the companies globally. There were any
firms that had to close their business because of economic slowdown. These crises have affected
stability of countries to great extent. Global financial crises not only affected functioning of
entities but also it has decreased value of shareholders as well. Companies were paying more
attention on increasing their profitability but now it has become essential for these firms to
measure risk. By this way these enterprises have taken step to identify root cause of this financial
crisis. They have concentrated on various elements that have led to such situation. This has
19

supported in making effective strategies to deal with these problems. In order to deal with this
risk there is requirements to establish corporate strategy (Adrian and Shin, 2013). This is
considered as most effective solution because by making effective strategies entities can identify
level of risk and can prepare contingency plan to minimize consequences of this trouble. In such
situation companies are required to lead their employees well and motivate them so that in
crucial situation these workers give full support to business units. Strategic decision making is
the best way to deal with such type of conditions. Management is required to make such decision
through which entity can meet with its long term and short term goal effectively. This can create
value for investors and they will take more interest in investing money in business.
Strategic managers are responsible to ensure that business is performing well. In order to
deal with financial crisis companies can focus on corporate governance and strategic alignment.
Corporate governance has made various rules and regulations for public companies and it is
essential for these limited firms to follow its guidelines. The main agenda of governance is to
improve management practices and minimize legal or ethical problems in business unit. At the
time of global financial crisis most of the investors do not take interest in investing their money
in the firm. By implementing norms of corporate governance entity can raise brand image of the
firm. By this way more stakeholders and investors will like to work in the organization. This is
the way through which entity can attract lenders by showing financial capabilities to them. But
many times lack of durable corporate governance practices creates difficulty for business. This is
the main reason that implementation of rules of this governance is in formative stage.
Code of corporate governance explains that companies are required to provide
opportunity to shareholders to take their decision and quickly dispose of shares (Aebi, Sabato
and Schmid, 2012). Shareholders have right to join board meetings and they can put their point
of view in front of management. Corporate governance supports in making effective relationship
between controlling power and bodies of management. It reflects that it is necessary to conduct
meetings of board of directors in intervals. In this meeting all people are required to discus on
issues and they should share their innovative ideas to deal with such problems. Another code is
that committee is required to monitor development related to regulatory frameworks. This can
help in identifying effectiveness of this practice and making updating in codes. This will give
positive results because by this way entities can be able to maintain accountability and
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transparency in its operations which will attract more investors towards the brand (Deaton,
2012).
Global financial crisis is considered as most serious problem that can create difficulty for
entities to run their operations successfully. In such critical situation companies may get failed to
perform their work effectively. If companies utilize their resources well and allocate available
resources properly then this can support in minimizing unnecessary cost (Flick, 2015). By this
way firm can be able to preserve its capital for the future and can be able to face such complex
situations in the future effectively. Effective utilization of resource will give positive outcome
because entity would be able to increase its number of shareholders and making expansion plan
by using this money properly. Management needs to make crisis communication plan in advance
but it is not always possible to make such plan because some external factors are uncontrollable
and entity cannot assume what will happen in the future. Thus, if such planning is being made by
management then it would not be worthwhile solution to deal with financial crisis situations.
Financial turmoil can spoil brand image of the company and can impact on its revenues
negatively. Corporate governance strategies are the best solution because this can be beneficial in
assessing risk and mitigating such problems. But ineffective leadership and management can
create difficulty in making proper plan for mitigating such issues (Frankel and Saravelos, 2012).
Evolution of solutions related to economic context
Poor economic performance and lower revenues are the major issue faced by Cornthia.
Due to declining performance of the business investment aspects are giving negative results. In
order to resolve this problem company should make new goals and objectives so that it can
generate profit. If enterprise spends more time on loyal consumers those who buy products
frequently. Then this will help in making them satisfied. By this way they will give positive
reviews to others which will help in attracting more clients (Ghazoul, 2015). This is the way that
can support in increasing sales revenues of business unit.
Refocusing on product portfolio is the best strategy that can give positive results to entity.
Portfolio strategy assists in identifying market demand of various goods. Entity can invest in
such products which has high market share and high growth as well. Changes in portfolio
strategies and investing money in more profitable products can help the organization in raising
its profit. By this way entity will be able to provide satisfactory products to clients. Changes in
structure of team and slight modification in product portfolio will give positive results to
21

business unit because this would support in meeting with expectation of consumers to great
extent. If entity makes changes in team structure then it will help in allocating responsibility to
the employees as per their capabilities. By this way people will feel comfortable in the
organization and they will perform well in order to meet with organizational goal (Haas and
Lelyveld, 2014).
One of the main reasons of declining sales in Corinthia group is that entity is unable to
produce high quality goods and services for consumers that can create value for them. Thus,
clients are moving towards other brand which is offering them satisfactory services. Company
should invest in advance technologies. This is the best solution to deal with problems related to
economic context. Though, investment in technologies can increase cost of the company but it
would be beneficial in raising operational efficiency of the business. Stagnation is the main issue
faced by stagnation; production is very low because of poor technical equipments (Hanjra and
Qureshi, 2010). By investing money in advance equipment so organization can be able to raise
quality of goods that will support in satisfying consumers to great extent. Furthermore, another
solution to deal with this problems is that company needs to provide training to employees so
that they can deal with consumers well and can provide them goods and services as per their
desires. If people are receiving proper training them it would be beneficial for them in raising
their skills. This will positively impact on their performance in workplace. By this way they will
communicate with consumers well and will provide them high quality products and services.
Sometimes training does not give good results because if firm is unable to offer high quality
goods to clients then people will not buy it. Thus, it is essential to improve quality of products in
order to attract more buyers and raising profitability of company. Corinthia group should
improve product portfolio strategy and have to invest in technologies (Hunter, Kaufman and
Krueger, 2012). Both these strategies will be beneficial in effectively dealing with stagnation
issue.
Another solution suggested to deal with economic context issue is organizing internal
brainstorming sessions and collaboration with new innovative ideas. Collaboration is technique
in which entity can and collaborate with people in order to get ideas for improving operational
efficiency of business. Management should priorities work and has to make sound decision
through which it can raise operational performance of company. This can impact on functioning
of the firm immediately (Lewis, 2015). Because prioritization is the way in which entity pay
22

more efforts to most important aspect rather than other activities. This helps in identifying loop
fall in practices and making necessary changes so that overall goal of company can be
accomplished. If entity structure board members and can give voting rights to them. Then it will
give positive results because by this way company can be able to get innovative ideas from board
of members. The reason of poor economic performance of Corinthia group is low productivity
and ineffective operations. That is why it is unable to generate profit recently. Preparing risk
management plan is another solution for resolving these problems. By this way company would
be able to identify level of risk and to what extent it can impact on business unit. This would
support managers in preparing contingency plan so that consequences of risk can be minimized
(Mitton, 2012).
Political condition of nation impacts on performance of organization to great extent. If
there are unstable political parties and fluctuating rues then in such condition it become difficult
for business unit to manage its operations. After Brexit condition of UK got changed, this has
created economic slowdown situation in the country. Previous trade agreement was finished and
companies were struggling to run their operations (Nolan, 2012). That has affected performance
of Corinthia group as well. In order to deal with such issue firm should reform its operations and
have to make changes in its environmental conditions. If it makes changes in its operations then
it will help in smooth functioning of business. This can give positive results to company but it
can also limit value creation as well (Corporate governance code, 2018).
Evaluation of solution related to organizational context
Government plays significant role in the organization. Authorities make effective
legislation that supports in conducting operations in smooth manner. Though entities have to
create value for shareholders but they also have to look upon meeting requirements of consumers
as well (Shin, 2016). Unethical practices are not acceptable in corporate world. If companies are
involved in unethical activities then these firms might get punishment for the same. In order to
minimize organizational issues Corinthia group should avoid unethical practices at workplace.
This is the great way to resolve such issues. Presenting false financial statement can decrease
trust of stakeholders in such condition they will not take interest in firm. Conducting operations
in ethical and legal manner can give positive results because this will minimize chances of
spoiling brand image of business. Entity was facing trouble because it was continuously
investing huge amount in hotels and resorts. Entity was not having liquid money that can be
23

utilize by firm for the development of current business. Company should monitor its solvency
and liquidity position continuously. This will help in making sound investment decision which
will give good return to entity and will help in expanding its business across the world. Due to
financial crisis condition of market gets worst and in such situation it was difficult to get credit
from market. This has created problem in managing funds well. If Corinthia maintain ratios and
do ratio analysis then it would give better results. This will help in identifying liquidity position
of company and it will take invest decision accordingly so that it can manage its funds well.
Furthermore, ratio analysis will support in managing cash flow well and controlling over
unnecessary expenditures (Reynolds and et.al, 2014). This can impact positively on business unit
becase this can ensure flexibility and adaptability capacity of entity.
Making changes in working practices of organization is the best way to deal with fear of crisis. If
entity makes modification in its functional aspects then it would support in running business
smoothly. But this would not be appropriate solution because by this way it will not be able to
deal with crisis situations (Mitton, 2012). Most of the core business fails to run their business
successfully in USA because of financial crisis. Effective government strategies would be
beneficial in dealing with major issues. This will help in improving economic position so that
consumer’s behavior can be changed.
Evaluation of solution related to society context
It is very important for the firm that to fulfill requirements of social stakeholders.
Company should look at issues and try to find out root cause of these problems. This is the way
that can support in managing operations well and creating value for social stakeholders. Making
effective strategies for the same can help organization in generating goods profit and satisfying
needs of consumers (Neuman, 2013). Fulfilling corporate social responsibility is very important
for the company. If company is fulfilling its CSR responsibilities then it would support in
gaining attention of people. By this way entity will be able to develop positive relationship with
society members. Furthermore, entity should disclose all information with shareholders. This
would give positive results because this can enhance engagement of people and will develop
trust among them towards entity. If company is delivering all details to consumers and other
shareholders then it will develop their relationship and they will take interest in business unit. By
making effective reforms related to financial services can be beneficial for the organization. This
would support in dealing with various social issues (Nieswiadomy and Bailey, 2017).
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In addition, constant changes in fiscal development is another strategy, this is effective
approach and can give better outcome. If government is making changes in tax policies and
making tax programs more reliable. Then this can give better results to business unit. Fiscal
stress creates difficulty for entities and they get failed to generate necessary revenues. But if
government makes changes in their existing fiscal policies and makes such effective fiscal norms
so that companies can create value for consumers and can make them satisfied (Panneerselvam,
2014).
Evaluation of solution related to competitive context
In the modern era competition is very high, in such environment it has become difficult
for entity to sustain in market for longer duration. If companies have strong financial capabilities
and high quality products then these firms can be able to sustain in market and gain competitive
advantage a well. Due to high competition many firms had to close their business. This has also
impact negative on their financials and profitability. In order to deal with this issue company
needs to relocate its labour and have to utilize its raw material effectively. This is the way that
can help in minimizing cost and raising profitability of business unit. If entity relocate its labour
and allocate them work as per their capabilities then this will raise their level of performance and
they will perform well in the organization.
Due to high competition Corinthia group is facing huge trouble, this not only affecting its
sales revenues but also impacting on its brand image as well. The main agenda of company is to
offer high quality luxurious services to guests. Initially when Corinthia group has developed five
star hotels at that time it was the only hotel that was providing such high class services to
consumers. But now there are many big hotels that are operating their business globally and offer
luxurious services to consumers (Lewis, 2015). This is changing mind of people and they are
moving towards the brands. In such situation company is facing huge trouble and now it has
become difficult for the brand to attract more consumers. If company reallocate its resources and
make new plan for allocation of resources then it would help in identifying wastage and
unnecessary elements in the business due to which operational cost is increasing in the company.
By this way it will be able to allocate resources properly which will help in increasing its
financial capabilities and gaining competitive advantage as well (Lomborg, 2014). Recently
entity is investing huge amount in hiring more experienced employees but if it looks at the
25

results and makes changes in its investment on recruitment then it would help the organization in
improving its financial capabilities.
Financial crises have created big trouble for Corinthia group, in such condition entity is
unable to run its business smoothly. Low labour rate and low productivity rate creating problem
in sustaining in the market for longer duration (Neuman, 2013). In order to resolve this issue
entity is planning to utilize its resources well. Corinthia group has human, technical, financial
resources that need to be maintained properly. If it utilise its financial resources well and use raw
material in effective manner then it will help in minimizing production rate. This will help in
increasing production capabilities and generating more revenues. This is the best way to deal
with crises situation (Mitton, 2012). But in the financial crises or recession situations entity face
difficulty to attract consumers because such type of circumstances impact on consumers buying
behaviour. In such condition they do not prefer to spend such large amount on luxurious
products. Thus, if Corinthia group starts utilising its resources well then also it might face
difficulty in dealing with crises situation (Lomborg, 2014).
Reaction and responsiveness is another solution to deal with competitive context. This is
the solution that can help in increasing financial viability of business unit. By this way entity will
be able to perform well as compare to its competitors. Changes in pricing strategy is considered
as most effective solution because by this way entity will be able to attract more people towards
the brand that would support in gaining competitive advantage (Neuman, 2013). Corinthia group
requires to implement effective pricing strategy that can gain attention of mass audience and can
make them loyal towards the brand. Recently Corinthia group is providing hospitality services to
its guest at higher prices. If it offers services to customers at affordable rates then it will make
them positive towards the brand and they will take interest to visit the hotel.
Innovation is the key element of success of many companies. There are many companies
those which are making changes in their existing strategies and are implementing innovative
ideas to conduct their operations successfully (Lewis, 2015). If Corinthia group implements
innovative ideas then this will help the organization in increasing its positive presence globally
and creating positive brand image in the mind of consumers as well. It has been analysed that
growing influence of innovation is considered as one of the best solution to raise profit of the
business. This can help in attracting more consumers and making them loyal towards the brand.
The entity is facing the problem where lacks of investors are taking interest in investing their
26

capital in the business. By making positive innovation in the business company can attract these
people and can make them ready to invest in the company. This will be beneficial in fulfilling
financial needs of the Corinthia group (Shin, 2017). Profit generated by the firm is highly
depended upon the investment decision of the entity. If company is utilising its innovative
resources in effective manner then this will help the business in maximising output. This is the
strategy that would support in gaining competitive advantage and sustaining in the market for
longer duration.
Corinthia Background and history
Corinthia group came into existence in the year 1962. Initially group has started business
with fine- dining restaurants in Attard, Malta. Now company is managing 20 big hotels in 10
countries. Corinthia group is engaged in real estate development, project management etc. It is
the first firm that has build five star hotel in Malta. Till 1968 entity has improved facilities in its
hotels and has started providing additional amenities to guests such as conference hall, gym etc
(Board of directors, 2018). The main agenda of entity is to provide high quality services to
consumers so that they retain in hotel for longer duration. Company implements forward-
thinking strategy that supports the enterprise in continuous development and conducting
operations as per the market requirements.
Annual turnover of Corinthia group is around 185 Million and it has employed approx
3400 people. Entity hires people on the bases of their skills and abilities. It looks at their
experiences and educational aspect and accordingly selects the candidates for working in
organization. Corinthia group is collection of hotel, it is the family business (About Corinthia,
2018). Corinthia group operates its business son principles of honesty and discreet services.
Recently all the hotels those who are part of Corinthia group are providing extensive luxurious
facilities to guests. Because of presence of such high quality facilities Corinthia group has
become brand name in Malta and rest other countries. In the year 2006, Corinthia group was
incorporated with National real estate co of Kuwait in which it was having stake of 50%. All
hotels that are part of Corinthia group are managed by Corinthia hotels limited; it is the operating
arm of international hotel investment (IHI) Plc.IHI is publicly traded company of Malta (Board
of directors, 2018). Mission of Corinthia group is to offer “Craftsmanship of care” to guests.
Gradually Corinthia group has started growing in Malta and other international nations.
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In order to undertake business acquisitions and manage other Corinthia brands group was
established as publicly traded holding company in the year 2000.
Justification for listing IHI in Malta Stock Exchange
Company’s shares are listed in stock exchange that is why it is publically traded company.
The main reason of listing under Malta’s stock exchange is that it has supported IHI in raising its
funds. It supports in spreading risk of business among all shareholders (Benefits of Listing.
2018). By this it has become to attract more investors and have developed its brand image in the
market. Publically traded companies have benefit of market exposure; if entities are listed under
the stock exchange then it can explore its market in other nations as well. That is the reason that
IHI has listed its shares under the Malta stock exchange. This has also supported the firm in
getting preferential tax benefit. IHI was facing the issue of poor sales and declining profitability
thus, it has made decision to list the entity under Malta stock exchange. This has helped in
attracting more investors towards the brand and enhancing corporate value in the market
(Benefits of Listing. 2018).
Company Law of Malta, UK and UE
Malta
Company act 1995 is corporate law of Malta. Every Maltese company has to follow this law
and its principles. According to this law an entity is required to have minimum share capital of
€16469. It is essential for Maltese companies to pay tax in their own reporting currency and Tax
refund will be in the same currency. This law explains that it is essential to have registered office
of firm in Malta (Malta companies: A summary of Maltese company law & Malta’s corporate
tax system, 2014). There should be minimum one director and one company‘s secretary.
Recently Malta corporate tax rate is 35%.Imputation system is being followed in Malta. Chapter
386of company act of Malta regulates all public companies. Issue share capital of entity must not
be less than €46588.
UK
Company law of UK is regulates by company act 2006. This act explains that publically
limited firms are such enterprises that are limited by shares. Section 171 explains act within the
power. It describes that shareholders are responsible to make any decision in business unit.
Section 172 promotes success of company (Board of directors, 2018). Section 173 explains that
28

director has to make independent decision and individual cannot change their judgement in
influence of others.
EU
European corporate law is concern with formation, operation if companies in European
Union (Dual Class Stock, 2018). This act has been made to encourage business to expand
operations in other EU countries. Corporate governance frameworks creates positive situation for
EU companies and give them chance to conduct their operations worldwide. Article 16 explains
that each firm has freedom to run their business anywhere.
Code of corporate governance
Corporate governance codes are such standards that help the firms in conducting their
business smoothly. These are related with development, remuneration, audit, accountability etc.
It is essential for each listed company that to follow these standards in order to avoid
consequences. Corporate governance term is related with variety of activities that helps in
managing operations well (Malta companies: A summary of Maltese company law & Malta’s
corporate tax system, 2014). These codes help in improving economic performance of business
and enhancing growth opportunities for companies. These codes are able to protect rights and
interest of shareholders. Transparency is one of the most important codes of corporate
governance. This explains that it is essential for CEO and directors that to maintain transparency.
All information needs to be circulated to all shareholders in appropriate manner and they should
not hide anything with them. As Corinthia group is publically traded firm thus, it is very
important for the business that to follow this code and take care of interest of public as well.
Accountability is another code of practice of corporate governance. Fairness needs to be
maintained and all people need to get equal benefit (Board of directors, 2018). In addition, ethics
are essential code of corporate governance in which company should run its operations in ethical
manner there should not be any activity that is unethical.
These codes ensure smooth working of enterprises. Leadership principle of corporate
governance ensures that there should be effective board that can make correct decision for the
success of company. Board members should divide responsibilities all involved persons equally
and they have to look upon capabilities of each person before allotting them responsibilities in
organization. All these codes were announced in 2002 (Dual Class Stock, 2018). These codes
mainly focus on three major elements: management, accounts and audit. Appointment of chief
29

financial officer under listed company needs to be done by CEO. It is essential to prepare
financial statements properly and there is necessary to add to information that is important for
stakeholder in making their decisions. They should follow international accounting standards
while preparing statement (About Corinthia, 2018). There is necessary to conduct audit in
intervals.
Corporate governance codes have been introduced by the concern authorities at the end
of 2005. All these codes have been classified as per the legal system of particular nation.
Countries are classified by different legal regime. UK is come under common law system ,
whereas Malta is under the French civil law system.
Figure 1revision of European corporate governance codes
Source: (Analysing the similarities between OECD principles versus European corporate
governance codes –an internal audit perspective, 2013)
Corporate governance guidelines are different in each country. Company’s act 1995 is
considered as primary source for the Maltese companies. Maltese laws play the role of sourcing
element for all corporate governance matters. Corporate entities can be in form of private or
public. Companies those which are listed under the Malta stock exchange they have to follow
these guidelines. Malta’s corporate governance codes explain that it is essential for the entities to
fulfil their corporate responsibilities (Corporate governance and directors' duties in Malta:
overview, 2018). Under the Maltese law it is described that board of director is having all
powers. Directors have to work in such manner so that they can add value to the business. They
are responsible to raise stakeholder’s value. All directors have to direct companies so that it can
improve its performance. It is optional for the companies of Malta that to conduct internal audit
in the supervision of audit committee. In the nation, director of the publically traded companies
are responsible for the growth of business, they have to take all necessary decisions for the
30

growth of business unit (Analysing the similarities between OECD principles versus European
corporate governance codes –an internal audit perspective, 2013). As in the case of Corinthia
group entity is facing shareholder issue after the crises has taken place. By following corporate
governance laws strictly enterprise can add value to the shareholders and can make them
satisfied towards the brand. It has been analysed that stock market performance of entity is
getting down due to which firm is facing economic problems. Shareholder value creation is the
responsibility of director. Thus, individual will have to work to create value for the shareholders
so that company can offer more satisfactory benefits to these people.
UK corporate governance codes give more power to chairman. According to this
principle chairman has power to give report in annual statement (Corporate governance and
directors' duties in Malta: overview, 2018). UK is the country where stewardship code is being
followed. This code aims to enhance engagement between investors and investees of entities. As
per this code or principle institutional shareholders have rights to speak ion the matters of
business. Director’s duty in the UK is codified by company’s act 2006. Internal audit is
considered as one of the most important functions of corporate governance in UK. It is very
important for the companies to conduct internal audit b. They have to present a proof of key
elements that firm is following all frameworks in effective manner.
On other hand internal audit in European corporate government is quite different from the
codes of UK. In the EU codes of corporate governance authorities have given special attention to
internal audit. It has been recommendation that it is essential for each listed firm that to conduct
internal audit under the guidance of audit committee (Analysing the similarities between OECD
principles versus European corporate governance codes –an internal audit perspective, 2013).
Audit committee has to ensure effectiveness of this audit function and have to give evidences
that entity is performing as per the given guidelines. They have to monitor that company’s all
transactions and control system have been designed as per the given guidelines. European
confederation of institutes of internal audit (ECIIA) gives necessary consultancies to companies
so that they can improve their working practices. European governance codes of EU are based on
“comply or explain” principles that have been given to European directive 2006/46/CE
(Lomborg, 2014). Each listed firm is required to submit a record to the concern authorities to
show that these firms are following principles effectively. In the case of EU corporate
governance codes related to stock exchange are different from other nations. In Belgium in the
31

year 1999 approx 75000 employees of publically traded companies have received stock option.
In France there are only 50% quoted companies those which have introduced stock option plan
(Mitton, 2012).
Financial crises have changed the scenario of entire country at that time it was difficult
for the companies to run business successfully. Use of corporate governance of codes of different
nations is helpful in conducting operations smoothly. Conducting audit can support in
forecasting the future issues that can be faced by companies. Audit committee can give proper
advice through which companies can resolve these problems and can enhance performance of
business units (Lewis, 2015). Publically traded firms were affected by the economic problems.
These codes can be beneficial in order to manage their practices and improving efficiency level
of operations. The organization for economic corporation and development (OECD) has
prepared some norms in order to promote specific policies in EU so that companies can raise
their economic values and can perform well for social welfare. OECD principles are being
implemented in both OECD and non OECD countries. But in the year 1999 there were many
companies those which were facing lower confidence of investors because they were unable to
create values for them. In the year 2002 OECD has proposed some changes in these frameworks
so that financial and economic crises situations faced by publically traded companies can be
resolved effectively. These new principles have paid attention on equitable treatment of
shareholders and managing their rights in the publically traded companies (Lomborg, 2014).
Board members have given specific responsibilities. They have to ensure that firm perform well.
They have to give clear direction to these enterprises and have to monitor their performance.
This can supports Maltese companies to sustain in the market for longer duration.
Company details
Board of directors are known as important persons that oversee activities of entire
business. Mr Alfred Pisani is the chairman in Corinthia group. He is working as chief executive
officer and chairman since 1962. Individual is responsible to make all essential decision for the
growth of organization. Ahmed Wahedi is director in the company. Individual is responsible for
asset management activities of business. Joseph Pisani is another director in the corporation;
person monitors working of all subsidiaries and control over its activities (About Corinthia,
2018). There are total 6 directors, one chairman and one company secretary. As per the Malates
company act 1995 directors are responsible for ensuring preparation of all financial statements as
32

per the guidelines of international accounting standards. They have to select appropriate
accounting principles so that future consequences related to accounting can be minimized. All
the directors in Corinthia group are responsible for maintaining internal control and avoiding
misstatements. They have to monitor working of assets and have to take action for safeguarding
of these assets (Lomborg, 2014).
Section 47 of company’s act of Malta describes voting rights in the publically traded
company. Each shareholder has right to vote on each aspect related to company. Corinthia gives
rights to all its stakeholders those who have interest in organization to give their valuable votes.
Shareholders own 51% rights in the organization thus, they have more power. Corinthia is the
firm in which ownership and voting rights held by group members only. Shareholders have
power to give their votes for the matters related to policies or any other financial decisions. They
can give their vote through email, directly etc (Lewis, 2015). In the Corinthia group shareholders
use their power to elect directors and these persons give their votes on any matter.
Dual class shares can be defined as issuing of various shares by the organization. These
are classified as A and B shares. They are differed from each others in term of voting rights and
dividend payment (Mitton, 2012). Corinthia issue multiple shares as it is the publically traded
holding company thus, it has to issue share in stock exchange for public trading. Entity offer
once share class to public and other is offered to executives, family members and founders. The
shares that are offered to public have limited voting rights whereas the shares that are offered to
founders and other executives have more power (Neuman, 2013).
Corinthia group gives more privileges shares to founders, they have more power and take
all gives vote of business matters. In the organization all class B shares are reserved for founders
and family members whereas ordinary shares A are for public.
Market for managers
Managers play significant role in the organization. Mangers are responsible to monitor
business activities and are responsible for growth of the organization. Malta is the place where
managers are the most important person in companies. Maltese firms always pay attention on
their managers. Corinthia group gives respect to its managers and give them power to take their
decision (Shin, 2016). But if new skilled and ore talented candidate enter into the organization
then there is danger for the managers of replacement. Higher authorities of the entity can easily
replace the existing managers if they are finding more appropriate person for the Job. That is
33

why managers have to put their hard efforts to show their capabilities. If they are unable to
perform well then authorities can replace these persons easily without any concern.
Running a business is the dangerous activity because any wrong decision can cause
difficulty for the managers (Taylor, 2013). Corinthia group always aims to enhance its revenues
but it is very important for the entity that to be monitored properly. This is the duty of managers
those who monitor business activities and always ensure to get best results. Maltese companies
have to face many issues due to high competition, in such condition if there is such managers
those who are unable to manage activities then firm may find difficulty to run operations
successfully. Thereare30% employees in the Corinthia group those who are working in the
organization since longer duration but rest workers get replaced with the new staff members.
Entity always looks at the best candidates those who can contribute well in accomplishing goal
of the business unit (Vaioleti, 2016). There are many people those who are taking high salaries
but are unable to perform well. In such condition high authorities easily replace these people
with new one.
Engagement of employees is highly associated with the satisfaction with the job. Though
entity replaces the candidates but still there are many employees those who are not satisfied with
the working practices of Corinthia group. In such condition they always search for the new job
and leave job soon (The case study approach, 2011). That is why enterprise has limited number
of staff members those who are performing in the organization from longer duration. It is
believed of Corinthia group is that if managers stay in the organization then they will build
strong connection with the employees. And if such manager leaves the job then it can create
negative impact in the mind of existing workers. In such condition Maltese companies always
ensure to keep distance between workers and managers (Nolan, 2012). That is why they replace
their managers with the new manages so that staff members listen the views of other candidate
and be in control. This helps the organization in maintaining decorum in the workplace and
minimizing conflict issues due to leaving of one person. This strategy is not only apply with
manages but also higher authorities implement the same strategy with employees as well. There
are less bonding between workers and they just perform their own work. Due to danger of
replacement they do not build personal relationship with any existing staff members (Reynolds
and et.al., 2014).
34

Managers always have to make decision for the company. They look at the advantage and
disadvantage of particular strategy before implementing it at the workplace. But if their decision
causes negative reaction then high authorities of Corinthia group can easily replace them because
they find that managers do not have adequacy to deal with complex situation. Thus, there is high
danger of replace of manager in the organization (Shin, 2016).
Managers for shares
Free float method is considered as technique in which companies calculate equity price
and multiple is with the total available shares. On the bases of this calculation they decide the
shares that need to be market. Free float is generally is related with the shares that are in the hand
of investors. Corinthia group follows the company act of Malta and market the shares as per the
guidelines given in this act (Mitton, 2012). Section 97 of this act explains that no publically
traded company can market its shares unless there is specific subscription and paid in cash.
Corinthia group keeps maximum shares in own hand or allot it to family members and rest shares
are being marketed for the public and other investors. Section 386 of company act law of Malta
explains that public limited firms are not typically restricted to market their shares and transfer
their shares to others. Free float shares of the company are being marketed on the bases of
company act but still entity keeps more profitable shares for family members (Huang, Zhou and
Zhu, 2012).
CHAPTER SIX: CONCLUSION
Conclusion
From the above study it can be concluded that financial crises is the critical situation that
impact on the business and the consumers to great extent. Corporate accountability gets affected
badly by crisis situation to great extent. In the highly competitive environment it has become
very difficult for the companies that to retain its consumers for the longer duration. In such
condition entities are required to make frequent changes in their operational activities in a
manner so that enterprise can meet with the needs of consumers. This is the way that can support
companies in facing crisis situation and sustain in the market for longer duration. The entire
research was based on major factors that are influencing share prices and market capitalisation of
the company. All these elements are considered as most essential element that impact on
revenues of the organization to great extent. Above study can be summarised as global financial
crises is the most crucial issue because in the condition of global crises entire industry get
35

affected badly. Financial crises also impact on the investors as well, in such condition investors
do not take much interest in the business unit and they do not invest their capital. This creates
difficulty for the business managers to run their operations smoothly. Implementation of
effective leadership and strategic decision making solutions are considered as most essential
aspects. This aids in making employees loyal towards the brand. By this way these loyal workers
put their hard efforts to enhance revenues of the business. This is the great way that can help
companies in sustaining in market for longer duration in the global crisis situation. Strategic
decision making supports management in forecasting risk and taking appropriate action to
resolve such problems. Strategic managers are responsible for ensuring adequate outcome and
meeting with the organizational objectives.
Global financial crisis is the critical condition that impacts on the investment decision of
the business. In such condition effective utilisation of resources is the great solution. This can
support in controlling over unnecessary expenditures and minimising cost as well. This is the
ways that can help the entity in investing their money at the right place from where it can
generate sufficient revenues. Due to financial crisis company is unable to offer attractive
dividend to its stakeholder which creates negative image in the mind of all important
stakeholder. Financial crises can greatly impact on stock prices, volatility of stock etc. In such
condition investors and other shareholders prefer to sell their stock which impacts negative on
the brand image. But effective implementation of corporate governance strategies is the great
solution to deal with this problem. This is the best way to assess risk and prepare strategy to
mitigate with this risk.
From the above research it can be concluded that economic issues face by Corinthia
group. Entity is unable to generate profit due to ongoing stagnation in many other countries.
This is very serious issue because if the firm is unable to generate necessary revenues then it
would get failed to sustain in the market for longer duration. In order to resolve such problem
managers have to take appropriate action. If managers make changes in existing working
practices then it would be beneficial in order to generate profit and providing satisfactory goods
and services to consumers. Paying close attention on team functioning is the good solution of this
issue, if all team members perform their work effectively then entity can become able to attract
more consumers and generating more profit in business unit. Above study has focused on issues
and solutions related to economic context. Refocusing on products portfolio is the best solution
36

for resolving economic issue in the Corinthia group. One of major reason of poor sales
performance in the company is that entity is unable to offer satisfactory goods and services to
consumers. That is the reason that consumers are not satisfied and they are moving towards other
brands. By this way company is losing number of consumers that is affecting its overall
economic performance. In order to resolve such problem changes in portfolio strategies is the
great solution.
Corinthia group has to pay more attention on such products which are having high market
share and growth. Then it will be able to attract more people and raising profitability of the
organization. Above study can be summarised as implementation of advance technologies are the
good solution because use of high tech machineries can help business in minimizing operational
errors and improving quality of products and services. Enterprise needs to allocate budget for
implementation of advance technologies. This is the way that can raise profit of business unit can
support the firm in increasing satisfaction level of consumers. From the above research it is
identified that investment in high tech machineries increase cost of the business. Technologies
get changed frequently and every time it is not possible for the company to implement new
technologies. Because it has to invest high amount in implementation and have to give training to
staff members as well. Both these factors are considered as major components due to which
Corinthia group can get failed to implement advance technologies and raising profitability of the
company.
From the above research it can be concluded that there are various theories and models
that can assist in improving shareholder value. TARP actions are the most effective solutions to
maximise shareholder values. Capital repayment may impact positively on the financial health of
the business. By this way entity can reduce bank risk and can improve financial stability.
Corinthia group needs to follow codes of corporate governance seriously. This is the way that
can assist in minimizing the negative impact ad strengthen the firm. Brining continuous changes
in the internal environment is the good solution because this supports in brining innovation in
business. By this way company can offer best services to consumers which can aid in improving
economic performance of the organization to great extent.
Corinthia group is running its business from1962, initially company has started its
business at small scale, it was just a restaurant business in Attard but now entity is managing big
chain of big hotels. It has employed many skilled employees those who are contributing well in
37

raising performance of the organization. The main principle of entity is to maintain honesty and
provide true information to all stakeholders. Above study can be summarised as that company
law of different countries are different from other nations. Malta is the country where all Maltese
companies have to pay tax in the reporting currency. Codes of corporate governance are the
principles that are essential to be followed by each publically traded company significantly. All
these codes are helpful for the companies to manage operations well. These principles suggest
companies about the ethical way to carry out business .Each firm are responsible to maintain
transparency in the organization. These entities can’t hide any information related to business
with the shareholders. On the bases of these details stakeholders make their decision.
Accountability is considered as most essential principle of corporate governance. It is
very important for companies that they maintain fairness and run operations in ethical manner.
Companies those which are listed under the publically traded companies they have to fulfil their
corporate responsibilities. It is the fact that Maltese companies scan replace their managers if
they are finding suitable candidate for the organization. Employees and managers have to work
in danger because their jobs are not secure. Corinthia group always prefer to hire most talented
candidates in the organization. If existing person is unable to work better in the entity then these
firms replace such employees with the new one. Maltese companies prefer to maintain distance
between managers and workers because if strong relationship gets build between both then it
might be possible that managers influence the staff members. In such condition they will not be
loyal towards the brand and will not perform their duties well. Thus, these enterprise always
ensure to replace their manager after the certain period so that all employees can perform their
duties with loyalty.
From the above study it can be concluded that Corinthia group is facing many issues
related to organizational context. It is very important for the business that to identify the root
cause of such problems and take appropriate action to resolve such issues. Higher authorities of
Corinthia group are required to ensure that entity do not participate in any kind of unethical
practices. If company gets engaged in such type of practices then it might create difficulty for the
organization and it will decrease trust of stakeholders as well. Thus, by avoiding unethical
practices enterprise can resolve its issues. One of the major reason that has been identified from
the above study is that is company is presenting false statement to the investors then it might
decrease their trust. By this way they will not spend money in the organization. Entity always has
38

to prepare statements as per the international accounting standards and there should not be any
kind of false information. By this way company will be able to gain trust of investors and will be
able to change their decisions as well.
There are many external factors that can impact on the overall performance of business
unit to great extent. If firm does not have adequate financial resources then it would be difficult
for the entity to face such external forces. By monitoring solvency and liquidity position entity
can manage its resources well and can become able to face any critical situation easily. Effective
monitoring of solvency and liquidity position is beneficial for the business in making sound
investment decision. Ratio analysis is the best solution for managing cash flow in the business
unit. This is the best way through which entity can minimize its unnecessary expenditures and
can enhance its cash revenues. Implementation of effective government strategies are considered
as most effective solutions because it helps business in dealing with major issues and minimizing
consequences. CSR is considered one of the most important concerns of business units. Each
organization is required to fulfil its corporate responsibilities. There are many social issues that
are faced by Corinthia group. But entity can deal with these problems through fiscal
development. Fiscal development is considered as one of the most effective approach that can
support in gaining better output. If authorities concentrate on making effective tax policies then it
would be better for the entities to get positive results. This would be better option for creating
value for the consumers and making them satisfied towards the brand.
High competition is the major issues for the Corinthia group, due to high competitive era
entities get fail to sustain in the market for longer duration. Such competition enhances
expectation of customers as well. In order to resolve such problem it is essential for the company
that to raise quality of its products and services. Enterprise is required to offer luxurious hotel
services to its consumers. This will help in making them feel happy, by this way guests will
come to the location frequently. From the above research it can be concluded that reallocation of
resources and effective monitoring of all task are the good solution that can aid in minimizing
wastage and gaining competitive advantage to the business. Recently enterprise is facing issue of
low sales volume, due to this issue it is unable to plan for the future development. In order to
resolve such trouble it is essential for the company that to increase production capabilities and
meet with the demand of consumers. In order to resolve issue of poor sales volume Corinthia
group is required to conduct market research and have to identify needs of consumers. If
39

company give proper response to guests as per their requirements then it will be beneficial for
the organization in order to attract more customers towards the business. Above study can be
summarised as that in order to deal with various issues and for minimizing financial problem of
the organization, it is very important for the business that to make effective pricing strategies. If
enterprise is offering high quality goods and services to consumers at affordable rates then it will
be beneficial for the firm in retaining its guests in the hotel for longer duration. This will make
them loyal and they will experience services of the hotel frequently.
From the above study it can be concluded that innovation is the key of success. Corinthia
group needs to make positive changes in its process and strategies. By implementing innovative
ideas it will be able to increase its positive presence globally. Recently Corinthia group is
operating many hotels; innovative ideas can raise sales of each hotel chain that would ultimately
enhance profit of the company. It can be articulated that company act 1995 is Malta’s corporate
law that gives guideline to the Maltese companies about running their businesses. Law of Malta
is far differed from the UK law. UK corporate law defines that director is the independent
decision maker in the organization and individual can take decision for the growth of enterprise.
Code of corporate governance of each country is different from each others. These codes are
helpful in running operations smoothly and minimizing economic issues of the organization.
This code explains that it is essential for the Maltese companies that to maintain transparency in
their operations. They have to declare all information to all its share holders. Corinthia group is
the Maltese company and it is essential for the enterprise to follow such principles. Publically
traded companies cannot hide detail about profit, loss, expenditures with their investors and other
stakeholders. Accountability is another code of corporate governance. It is most important aspect
that define that it is essential for the companies to maintain fairness and give equal rights and
opportunities to all stakeholders. Malta and UK both have different corporate governance laws,
in Malta director gets more power to make decision for the growth of company whereas in UK
chairman holds more power. According to Malta’s law it is essential for the director that to
consumer internal audit in order to ensure smooths functioning of the company.
IHI has listed its shared under the Malta stock exchange. Now it has become the
publically traded company. One of the main benefits of listing under the stock exchange is that
this helps the entity in attracting more consumers towards the brand. It helps in creating value for
the investors and making them loyal towards the brand. Corinthia group issue its shares in the
40

market as per the guidelines of Malta’s corporate law. Above research can be summarised as that
Corinthia group should adopt innovative ideas that can raise efficiency of its operations.
Recently the major issue in the business unit is that its sales are declining regularly. That is the
reason that entity does not have adequate financial resources and it is unable to run its business
effectively. In order to minimize this problem company defiantly have to implement some
unique ideas that can support in attracting more consumers and retaining them in the business
unit for longer duration. From the above research paper it can be concluded that lack of
availability of financial resources can be resolved through improving investment decision. If
entity is applying effective strategy for improving its investment decision then it would be
beneficial for the company to enhance trust of investors because investors will get more return
over their total investment. It is articulated that illegal activities leads to scandals that hamper
brand image of the enterprise. Companies those which are not following code of corporate
governance are unable to run their business successfully in the global market. These codes are
helpful in expansion of the firm and enhancing trust of stakeholders as well. Corporate
governance mechanism is required to be implemented effective in the workplace. These
practices are effective for framing accurate polices and designing correct practices that can help
the firm in raising profitability and productivity of the entity.
There are many stakeholders in the organization such as customers, suppliers, employees,
investors etc. All they contribute well in order to raise performance of the company. Code of
corporate governance supports business in making effective control over activities and gives
correct direction so that consequences can be minimized. It can be articulated that increasing role
and responsibilities are the beneficial tool that supports in gaining high output. Development of
new goal and objectives are the approaches that can raise confidence of employees and they can
perform well in the workplace. Corinthia group is facing financial problems due to which it is
currently unable to run its operations successfully. Improving portfolio strategies is the best
solution to minimize financial problems. If Corinthia group improves its portfolio management
tactics then it will help in paying more focus on such products which has good market share and
are growing well. This will be beneficial in raising performance of the firm and gaining
competitive advantage as well. It can be concluded that implementation of advance technologies
and giving sufficient training to staff members are the great options through which Corinthia
group can improve its profitability and can improve its market position. If enterprise is using
41

advance technologies in its working practices then it would help in minimizing errors and
enhancing production abilities. That would be beneficial in raising efficiency of services and
satisfying consumers as well.
Above study can be summarised as that political condition gets changed any time thus, it
is essential for the companies that to forecast things and prepare contingency plan in advance so
that it can face complicated situation easily. Market analysis and reforming operations are the
tools that are helpful in dealing with any kind of critical situation and overcoming from such
conditions. Businesses have to fulfil its corporate responsibilities. Changes in employment
contract and maximising shareholder’s value are techniques that can help in raising business
performance and sustaining in the market for longer duration. There are various social pressures
that entity has to bear, which can be in the form of, failure of the firm and bankruptcy. Making
appropriate reforms with respect to particularly, financial services can help in dealing with the
issue. Grabbing open window opportunities from the side of government, where, various options,
with respect to the funds, are made available so as to generate maximum profits out of it.
Economic coordination with society and assessment of it within the company is beneficial in
dealing with in a well-defined manner. Analysing political requirements and making an
assessment of present and future crisis can also prove to be quite helpful in this scenario. It has
been noticed that constant changes in fiscal development and reforms are the key important
aspects in modern societies.
Implication for both practice and future research
Above research is all about on the main factors that influence share prices and market
capitalisation of the company. Above study has involved different models and theories related to
shareholder value and financial accounting measures of the company. Furthermore, it has also
paid attention on the manager’s responsibilities and their existence in the business unit. All these
factors that are covered in this dissertation are helpful in conducting study in the future as well.
Scholar can carry out investigation specific on different factors that influence share prices. Other
scholars will get brief idea about the number of component that can impact on performance of
business unit and share prices as well. This study will be beneficial for them to expand these
factors and relate it with the business performance.
Furthermore, this research paper is beneficial for the companies those which are
operating in the same industry. It will help these enterprises in improving their performance and
42

practices in order to grow well. There are many companies those which are facing the issues of
poor sales performance. This dissertation will be beneficial for these companies in identifying
root cause of declining revenues and ways to improve their economic performance. This study
describes about code of corporate governance, internal audit , regular monitoring process etc. All
these things are effective in order to minimise issues of the organization and raising their
financial performance to great extent. Authorities have given effective guidelines through which
entity can raise its economic performance and can gain competitive advantage. Research paper
has highlighted various economic, social, competitive issues that are faced by entity due to which
it feel unable to run its operations smoothly. But for various issues different solutions have been
provided. If any organization is facing such problems and implement such solution in the
workplace then it would be beneficial for the firm to gain more profit and deal with these
problems effectively. Scholars can conduct investigation on various solutions that can improve
working efficiency of the business unit. This study can raise their knowledge and understanding
about UK, EU, Malta company law and corporate governance codes. They can carry out research
on these regulations and can compare these codes in the future researches. Scholars can explore
theories related to shareholder value creation, working practices, manager’s role in the firm etc.
All these aspects will help in preparing an impact full thesis in the future.
Above research will be beneficial for the enterprises in demonstrating trends and
techniques that can help in maximising value and financial performance of the company. By
following these techniques an entity can gain competitive advantage. In the future researchers
can use these technologies and practices and can prepare entire study specific on these modern
trends. Researcher has included various tools of research methodology. All these approaches are
helpful in carrying out an investigation in effective manner. Present study has given justification
for all selected methods and defined its suitability as well. Thus, by looking at these justifications
other scholar can get benefit of conducting research by taking support of suitable research
methods.
43

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