Analyzing Corporate Governance: A Case Study on Strategic Management

This case study delves into the complexities of corporate governance, focusing on the challenges faced by a Japanese company. It analyzes the role of the board of directors, the influence of institutional investors, and the impact of governance flaws. The assignment explores the need for independent directors, the pressures from investors, and the importance of addressing cultural and personal aspects within the company. The solution highlights the significance of strategic management, the need for adapting to changing attitudes within the boardroom, and the potential for consulting and mentoring to improve governance practices. The study emphasizes the importance of energy security and independence, and climate change as key issues that need to be addressed. The case study examines the need to appreciate personal and cultural aspects of the situation, along with the idea of replacing the board with independent directors, and the absence of tradition for independent directors, and the pressures from the institutional investors to resign. The provided solution also cites relevant academic sources to support the analysis.

CASE STUDY

Contents
Answer 1:.........................................................................................................................................2
Answer 2:.........................................................................................................................................2
Answer 3:.........................................................................................................................................2

Answer 1:
As per the case study, it is seen that the board was large, where the executives were any lacking
any sense of independence. This is one of the scenario in any of the Japanese company, typically.
There are attempts which were made by the government for the international institutional
investors mainly like US CalPers who are largely seen to be failing the changing attitudes in the
boardroom (Tricker, 2015). The case exemplifies about how the company will be focusing on the
different governance flaws which has led to a problem of catastrophe. Here, the attempts have to
be made for handling the changing attitudes and where the power should reside.
Answer 2:
The company did not find it accurate to accept any of the major significance which related to the
professional governance thinking, but it went through the different motions for satisfying the
regulators and the stock market investors (MissingSky101, 2016). The company needs to
understand and ensure about the corporate governance challenge to go against the normative
generalization about how the boards need to be constituted and how the directors are going to
behave. The company should work on the energy security and independence and climate change
which are considered to be the major issues which needs to be handled and taken care of.
Answer 3:
According to the case study, there is a need to encourage the students to appreciate any type of
the personal and cultural aspects for the situation. The replacing of board with the independent
directors is not a better solution (Tricker, 2015). Along with this, there is no tradition for the
independent directors which runs contrary to the other top beliefs as well. With this, there are

pressures from the other institutional investors who might to resign but there needs a replacement
as well (Tricker, 2015). The consulting advice, mentoring and the attitude changing activities are
helpful for experiencing on other boards which could be one of the best ideas, suggested.

References
MissingSky101 (2016). “Fukushima 3/2/16:Ex-TEPCO Execs Indicted; Failure To Follow
Meltdown Manual; Population Decline”. Available at:<https://www.youtube.com/watch?
v=qXXc6eT1cPo&feature=youtu.be>
Tricker, B. (2015). Corporate governance: Principles, policies, and practices. Oxford University
Press, USA.