Corporate Governance: Analysis of Baby Bunting Group Company Limited

This report provides an analysis of the corporate governance practices of Baby Bunting Group Company Limited. It examines the crucial role of corporate governance in directing and controlling an organization, emphasizing the importance of an effective corporate governance policy that addresses aspects like human resource management and expansion strategies. The report focuses on the roles and responsibilities of the board of directors in ensuring smooth organizational functionality. It also assesses key performance indicators (KPIs) to determine the business's performance, highlighting discrepancies between the company's financial reports and external financial data, and the importance of using alternative sources for data collection. The report also explores the significance of internal control procedures, suggesting the need for supply chain specialists to improve efficiency and compliance. Finally, it discusses the principles behind auditing and internal control, emphasizing their role in measuring, managing, and improving organizational performance.

12/2/2017
Student Name
Corporate governance - Baby Bunting Group Company Limited

The role of corporate governance and roles and responsibilities of the board of directors
Corporate governance plays a huge role towards how an organization is controlled and directed.
The organizations must develop an effective corporate governance policy which will address the
different aspects linked to the businesses which involved the human resource management
operations and expansions strategies. All these aspects play a huge role towards an organization
smooth functionality and the board of directors has a direct role with this which makes it
important for the businesses to develop an effective corporate governance policy (FERNANDO,
2012). The directors and management have a direct role to play in the organization's
performance and operations as they are responsible for developing effective policies which
address consider and staff needs. Having an effective corporate governance policy is critical
towards the businesses growth and expansions thus making it important for Baby Bunting Group
Company Limited to also develop an effective corporate governance policy.
Assessing key performance indicators to determine the businesses performance
It is important to use key performance indicators so as to evaluate a business’s performance. But
in many situations, it’s advisable to avoid limiting one’s self to the information and data being
published by the organization which may be portraying a different picture from the
organization's actual performance. The same applies to Baby Bunting Group Company Limited
which reports a high success rate on its annual financial report but external financial reports
portray a different picture. Performing an in-depth research related to the organization's
performance but collecting information from different sources is the only way an organization
can collect important data to help advice on improvements in the future and investment prospects
(Parmenter, 2015). To properly compare the reports and determine the businesses performance
it’s critical to compare two financial reports once offered on the businesses annual financial
report as well as another showing the brands stock performance over the past three years.

While both charts deliver considerably different information which cannot be directly linked to
the organization performance, they do deliver important indicators which can be reviewed to
determine the brand's performance.
According to Baby Bunting Group Company Limited, the organization has been registering a
30+% growths and increase in the case during the past three years. With such a high profit and
growth margin the businesses should have attracted considerable investor attention which should
have technically resulted in the organization share price to gradually increase at a range close to
the organization growth rate. But a closer review of the report reveals the organization has
actually been registering a reduced share price which indicates investors are avoiding investing
in the brand. This analysis helps identify important trends which can be used to help identify
important indicators which could be used to better analyse the businesses performance. It is
critical to use alternative sources of information which can help the research locate important
data which can be used to map an organizations performance in a better manner.
Ensuring compliance with internal control procedures
Performance has proven to diminish at the organization which has been linked to the
organization's supply chain. This clearly demonstrates the organization has failed to develop an
effective corporate governance policy which addresses all needs. With the organization already
in businesses and likely to register more losses it’s important for the organization to consider
contracting and supply chain specialist who would be placed responsibilities for supplying the
products to the consumers. This would help separate the division from the organization
management and place the contractor directly responsible for their performance (Hightower,
2008). This will help realign the Baby Bunting Group Company Limited efficiency towards
supplying products to its customer after which the organization can consider reorganizing their
own operations and restating once they have a manager, staff, and equipment which can be used
to monitor the supplies.
The principle behind Auditing and internal control
This refers to measuring and managing an organizations performance and identifying areas the
organization may require further improvement. It is critical for the organization to put in place
auditors in every department who would be responsible for reviewing and highlighting issues

which could have been avoided. This plays an important role towards maintaining brand quality
but at the same time, it also helps monitor the staff’s performance (Graham, 2015). Auditing
allows the organization determine important areas which may require improvement thus
allowing the businesses to make the required changes and improve their performance.

Bibliography
FERNANDO, A. (2012). Corporate Governance: Principles, Polices and Practices, 2/e. Pearson Education
India.
Graham, L. (2015). Internal Control Audit and Compliance: Documentation and Testing Under the New
COSO Framework. John Wiley & Sons.
Hightower, R. (2008). Internal Controls Policies and Procedures. John Wiley & Sons.
Parmenter, D. (2015). Key Performance Indicators: Developing, Implementing, and Using Winning KPIs.
John Wiley & Sons.