Corporate Governance Strategies: Improving Sales in Retail Industry

This report investigates the role of corporate governance practices and strategies in addressing declining sales within the retail sector, using Marks & Spencer as a case study. It explores various corporate governance practices employed for strategic business planning, identifies challenges faced by Marks & Spencer due to ineffective governance, analyzes the impact of these practices on profitability, and recommends strategies for improvement. The research incorporates a literature review covering governance frameworks, documentation, policy alignment, and board reporting. It also examines challenges such as conflicts of interest, oversight issues, unhealthy company culture, accountability problems, transparency concerns, and ethical violations. The report further discusses the role of corporate governance in encouraging positive behavior, reducing capital costs, improving reputation, and assuring internal controls. The study uses both secondary and primary research, including a questionnaire, to provide a comprehensive analysis and offer actionable recommendations and an action plan for Marks & Spencer to enhance organizational profitability. Desklib provides access to this and many other solved assignments for students.

REPORT (SUMMATIVE)

Table of Contents
INTRODUCTION...........................................................................................................................3
Title.........................................................................................................................................3
Aim.........................................................................................................................................3
Objectives...............................................................................................................................3
Questions................................................................................................................................3
Rationale.................................................................................................................................3
Background.............................................................................................................................4
Business problem....................................................................................................................4
LITERATURE REVIEW................................................................................................................5
Corporate governance practices used by an organisation for strategic business planning.....5
Challenges faced by Marks & Spencer in their sales due to ineffective execution of corporate
governance practices..............................................................................................................6
Role of corporate governance practices and strategies in dealing with the issue of decreasing
profitability of Marks & Spencer...........................................................................................7
Recommend strategies used by Marks & Spencer for improving organisational profitability8
DISCUSSION OF THE SECONDARY AND PRIMARY RESEARCH.......................................9
CRITICAL REVIEW OF THE RESULTS OF THE RESEARCH..............................................11
Frequency distribution table.................................................................................................11
Data interpretation................................................................................................................12
Discussion.............................................................................................................................17
RECOMMENDATION AND ACTION PLAN............................................................................18
Recommendation..................................................................................................................18
Action plan...........................................................................................................................19
REFERENCES..............................................................................................................................20
APPENDIX....................................................................................................................................22
Questionnaire........................................................................................................................22

INTRODUCTION
Title
Role of corporate governance practices and strategies in dealing with the issue of decreasing
sales within retail industry.
Aim
To examine the role of corporate governance practices and strategies in dealing with the issue
of decreasing profitability of retail industry. A study on Marks & Spencer
Objectives
 To investigate different corporate governance practices used by an organisation for
strategic business planning
 To determine the challenges faced by Marks & Spencer in their sales due to ineffective
execution of corporate governance practices
 To analyse the role of corporate governance practices and strategies in dealing with the
issue of decreasing profitability of Marks & Spencer
 To recommend the strategies that can be used by Marks & Spencer for improving
organisational profitability
Questions
 What are the different corporate governance practices used by an organisation for
strategic business planning?
 What are the challenges faced by Marks & Spencer in their sales due to ineffective
execution of corporate governance practices?
 What is the role of corporate governance practices and strategies i in dealing with the
issue of decreasing profitability of Marks & Spencer?

 What are the recommended strategies that can be used by Marks & Spencer for
improving organisational profitability?
Rationale
I have undertaken the current current research on the role of corporate governance
practices and strategies in dealing with the issue of decreasing sales within retail industry. It
benefits the organisation in having the detailing review of the research report. It can help the
organization in reviewing the corporate governance practices and challenges related to it along
with the recommendations as well (Solomon, 2020). It will also benefit the investigator also by
acquiring new skills and refining the existing skills as well. Such as research skills and time
management skills along with the cognitive skills and problem solving skills which is followed
by the analytical skills and communication skills and also the business management skills as
well.
Background
Corporate governance is defined as the system through which the entire organization is
controlled and directed. Mainly boards of directors are accountable for the organizational
governance. They majorly focus on the people and processes along with the performance and
purposes. Proper documentation is prepared so that flow of working within the organization
must be systematic in nature (Goworek, Oxborrow, Claxton and Hill, 2020). Organization
chosen here is the Marks and Spencer. It is one of the leading international retail and fashion
company established in 1884 and headquartered in UK. The following discussion is based on
the corporate governance practices and challenges along with the role of corporate governance
practices and strategies and also the recommendations in context of Marks and Spencer.
Business problem
The current research has the business problem related with the retail industry. They are
facing the issue in decrement of sales because of several reasons. Therefore, it is essential to
tackle such issues and deal with it. This can be done by adopting the tactics and strategies of
corporate governance which can help in resolving such problem within retail industry (Okwu
and Tartibu, 2020).

LITERATURE REVIEW
Corporate governance practices used by an organisation for strategic business planning
According to Brennan, Subramaniam and Van Staden, (2019), There are several
practices of corporate governance which is used by the organization for strategic business
planning. Such as governance frameworks is one of the practice of corporate governance used
for strategic business planning. It is important to formulate the frameworks of governance as it
includes the effective boards and transparency around roles and responsibility along with the
accountability and engagement with stakeholders and also the driving of the business
sustainable practices. All such inclusion helps in the planning for the conducting of the strategic
businesses. Governance documentation is an another practice of corporate governance used
for strategic business planning. It is essential to content out all the necessary details about the
corporate governance so that the proper documents can be developed. This further assist in the
systematic planning and implementation of the business practices in tactical manner.
As per the view of Van Greuning and Bratanovic, (2020), other practices includes
policies aligned with laws and applicable regulations is one of the practice of corporate
governance used for strategic business planning. It is necessary to align all the policies with the
laws so that corporate social responsibility can be maintained with proper ethics and applicable
regulations. This aids in figuring out an appropriate planning of the business strategy.
Documentation processes and procedures is an another practice of corporate governance
used for strategic business planning. It is significant to follow up the proper process of
documentation so that planning process of the business strategy can be made as per the targets
and objectives of the company. Planning highly requires the feasibility study also which is
documented in the corporate governance. Effective board reporting is also an another practice
of corporate governance used for strategic business planning. It is crucial to conduct the board
meetings on the frequent basis so that the effective ideas can be exchanged using the corporate
governance policies and planning can be performed in order to execute the strategies for the
businesses.
According to Li, Terjesen and Umans, (2020), some of the other practices includes are
the agenda and minutes is one of the practice of corporate governance used for strategic

business planning. It is vital to conduct the agenda and minutes because it includes the key
points of discussion and decisions along with the agreed actions and many more related points.
Such discussion helps in the strategic business planning using the policies of corporate
governance. Director training and board evaluations is an another practice of corporate
governance used for strategic business planning. It is imperative conduct the sessions for
training and development about how to incorporate the corporate governance so that the
business planning can be initiated in a strategic manner. Subsidiary governance policies is
also an another practice of corporate governance used for strategic business planning. It
includes the establishment of subsidiary governance frameworks and setting out the rules along
with the provision of guidance regarding decision making and execution which supports in the
planning of strategies within the business. This is because such policies provides the direction
and systematic way of planning and attainment of the business objectives in an ethical manner.
Challenges faced by Marks & Spencer in their sales due to ineffective execution of corporate
governance practices
As per the view of Naciti, (2019), there are several challenges faced by Marks &
Spencer in their sales due to ineffective execution of corporate governance practices. Conflicts
of interest is one of the challenge faced due to ineffective execution of corporate governance
practices. Sales is highly affected because of the major conflicts as it lowered down and it
negatively impacts the productivity and profits as well. Oversight issues is an another
challenge faced due to ineffective execution of corporate governance practices. Sales
supervision is important and if it will only have the issue then it can lower the sales in a large
basis. Unhealthy company culture is also one of the challenge faced due to ineffective
execution of corporate governance practices. Due to lower down of the sales, company will feel
highly pressurised which will result in the unhealthy culture within the firm. Systematic
failures and economic distress is also an another challenge faced due to ineffective execution
of corporate governance practices. Lack of corporate governance practice leads to the poor
economic conditions and failures of systems as well which ultimately results in the negative
number of sales.
According to Flammer, Hong and Minor, (2019), other challenges are such that
accountability issues is one of the challenge faced due to ineffective execution of corporate

governance practices. Poor corporate governance practices generally leads to the problems in
responsibilities assigned to each and every employee that results in the confusion in executing
of the sales activities. Transparency issues is an another challenge faced due to ineffective
execution of corporate governance practices. Corporate governance facilitates with the
transparency but if is lacks then it can create the problem in customer interaction at the time of
sales. Risk blindness is also one of the challenge faced due to ineffective execution of
corporate governance practices. Corporate governance helps in the risks mitigations but its poor
execution can result in high risks of sales and revenue generations. Ethics violations is also an
another challenge faced due to ineffective execution of corporate governance practices.
Corporate governance policies usually have the ethics regulations mentioned in the
documentation but its poor implementation can result in violations of ethics during interaction
with the customer at the time of sales.
As per the view of Aguilera, Marano and Haxhi, (2019), some other challenges are also
included such as corruption and fraud is one of the challenge faced due to ineffective
execution of corporate governance practices. There are many sales people who are unaware of
the policies of ethics and corporate governance which results in the practices of corruption and
fraud with the products and services also with the customers as well. Lack of effective board is
an another challenge faced due to ineffective execution of corporate governance practices. If the
board of directors do not conduct frequent meetings then it can directly affect the sales and
profits of the organization. Complexity is also one of the challenge faced due to ineffective
execution of corporate governance practices. Poor corporate governance practices reflects on
the complication in the operations and management of the firm that negatively impacts the sales
of the company. Poor communication is also an another challenge faced due to ineffective
execution of corporate governance practices. There is an ineffective flow of communication if
the practices of corporate governance is not executed properly that leads to the poor sales.
Role of corporate governance practices and strategies in dealing with the issue of decreasing
profitability of Marks & Spencer
According to Fenwick, McCahery and Vermeulen, (2019), there are various roles of
corporate governance practices and strategies in dealing with the issue of decreasing
profitability of Marks & Spencer. Such as Encouraging positive behaviour is one of the role

helps in dealing with the issue. If the employees will be positive in their working then they will
perform their tasks effectively which results in the profits for the organization. Reducing cost
of capital is an another role helps in dealing with the issue. If capital cost is decreased and
selling is increased according to the worth of the product then it will lead to profits. Good
reputation is also one of the role helps in dealing with the issue. Organization is benefited if
they receive good amount of profits because it further results in the good reputation in the
marketplace. Clarity is also an another role helps in dealing with the issue. Clarity in the goals
of the firm assist the employees with the direction in their performances which leads to the
increasing profits.
As per the view of Jia, Huang and Man Zhang, (2019), other roles are such that
improving top level decision making is one of the role helps in dealing with the issue. If the
decision making is made strategic in nature by the top level people, then it can lead to huge
profits. Assuring internal controls is an another role helps in dealing with the issue. If the
internal processes is monitored and guided in an appropriate basis then profit making can be
easy for the organization. Effective response to external environment is also one of the role
helps in dealing with the issue. If the external environment of the business is responded
properly by tackling the threats and grabbing the opportunities then the firm will gain the
profits. Enabling better strategic planning is also an another role helps in dealing with the
issue. Such planning covers the process from the analysis and requirements along with the
feasibility study to the execution and monitoring of it leads to the profit making.
According to Smallwood, (2019), some of the other roles includes are attracting
talented directors is one of the role helps in dealing with the issue. It helps in the strategic
hiring of the top level employees for better decision making where they decide to make profits.
Improved productivity is an another role helps in dealing with the issue. Enhancement in
productivity results in the large number of sales and revenue generation the it ultimately leads
to the profits. Efficient processes is also one of the role helps in dealing with the issue.
Corporate governance assist in the procedures in an efficient manner which saves cost and time
and increases the profits. Visibility of errors is also an another role helps in dealing with the
issue. Corporate governance supports in realising the errors on time so that the rectification can
be done on an earlier basis.

Recommend strategies used by Marks & Spencer for improving organisational profitability
As per the view of Jacoby, Liu, Wang and Zhang, (2019), it is recommended that the
company must facilitate the team contributions so that skills and talents can be effectively
utilised in terms of human resource management. It is suggested that the firm must conduct the
market research so that financial statements can analysed accordingly for investments. It is
advised that the firm must eliminate the non-essential processes in order to focus on the
essential ones. It is recommended that the firm must focus on the decrement of wastages for
efficient operations by also reorganising the physical spaces. It is suggested that the firm must
create the budgets with the motive of innovation and also to conduct the extensive training
while developing the relationships with vendors. It is advised that the firm must emphasise
on the marketing and branding of the company as well.
According to George, Walker and Monster, (2019), it is recommended that the company
must increase the sale prices but according to the worth of the product. It is suggested to
retain the high performing team members and also to reduce the fixed overhead as well. It
is advised to make use of the cash back business credits and focus on the profitable customers
while expanding the market in order to create the long term relationship with the
customers with loyalty towards the brand. It is recommended to reduce the volume of stock
and increase the conversion rates. It is suggested to remove the unprofitable product lines
and also to re-evaluate the pricing. It is advised conduct the feasibility study of the future
projects and also to dedicate the time to train to new hires while fostering engagement
among the employees.
As per the view of Jacoby, Liu, Wang and Zhang, (2019), it is recommended that the
organization must make use of the human resources in a potential manner. It is suggested to
focus on the education and growth of the employees for better skill development and
improved performance within the business. It is advised to work on the qualitative services
and products while using the advanced technology and adopting the automation for the
internal processes of the company.

DISCUSSION OF THE SECONDARY AND PRIMARY RESEARCH
Research methodology is considered as set of such methods and techniques which are used
within the research for executing whole the process of research in such a man that data can be
analysed determine and selected in appropriate manner (Purdon and Thornton, 2019). For the
current research they are various research methodologies which will be used and some of these
are elaborated as under:
Research Philosophy: Research philosophy is defined as a set of believes in values
which are used within the research in order to align the research along with nature of reality.
Using research for philosophy in appropriate manner values and principles of the research can
be accumulated and the same can be carried forward within the research in order to acquire
research objective in desired manner (Ørngreen and Levinsen, 2017). Research philosophy is
divided into three types such as ontology, epistemology and axiology. Ontology is associated
with examining the nature of reality so that investigation can be aligned with surrounding and
Society. Whereas axiology is related with the explanation in which self-analysis can be made
and at last epistemology is considered as one of the most significant and scientific step which
helps in solving all the issues within the research. By analysing the need of the current research
the researcher has selected epistemology. Epistemology is further divided into two types which
is interpretivism and positivism so that the researcher has selected positivism as this will lead
the researcher to conduct the research in given time period with collecting numeric information.
Research Approach: Research approach is defined as one of the significant dimension
of research onion which is important for the researcher to execute the research. Research
approach is the plans and processes which are used by the researcher during conducting the
research so that to create a path for the research and to attain research objectives. This is
significant for the researcher to choose appropriate research approach so that significant
decisions can be taken within the research and path can be created to manage research
objectives. There are three types of research approaches such as deductive, abductive and
inductive. By analysing the requirements of the current research the researcher has selected
deductive approach as this will help in evaluating quantitative information in numerical manner
(King and Mackey, 2016). Using deductive research approach all the research processes can be

managed in systematic manner so that researcher can acquire their overall objectives in timely
manner.
Research Strategy: Research strategy is the process which is helpful for the researcher
in order to maintain their focus over research information and work. With the help of research
strategy authentic and appropriate data can be taken so that in systematic manner the research
can be executed. There are various methods that are added with him research strategy such as
case study experimental research, grounded theory and many others. By examining the
requirements of the current research it has been analysed that survey research strategy would be
highly beneficial for the researcher to manage the research and align the same with deductive
approach (Kothari, 2017). Survey is an economic method which is highly reliable in nature and
would assist the researcher in attaining their research objectives full stop this research is
strategy would help in collecting information in numeric manner as researcher is executing the
result in quantitative memory hence service strategy is one of the most significant and efficient
method that would help the research and taking all the capabilities in such a manner that in
convenient manner the research can be executed.
Research Choice: Research choice is one of the significant research methodologies that
is helpful for the researcher to collect information in desired manner. A research choice is of
two types such as qualitative and quantitative. In the context of quantitative research choice all
the information are acquired in statistical or numerical manner so that clear examination can be
made of research topic (Sahu and Singh, 2016). Whereas in terms of qualitative research choice
in –depth examination of the research topic is made in which all the detailed information are
taken. By examining the requirements of the current research this has been analysed that
research choice is a great use for the researcher as this will develop practical insight within the
research and acquire statistical information.
Data Collection: Data Collection is considered as the process which is related with
measuring, analysing research information using differential technique. Data Collection is
divided into two types such as primary and secondary methods. By examining the need of the
current research the researcher has undertaken both the methods such as primary and secondary.
Under the primary method respondents are undertaken by using questionnaire as research
instrument (Rix and et. al., 2019). On the other hand, in the context of secondary data collection

methods various articles, books and journals are used. Primary data collection methods are
considered as highly authentic and reliable whereas secondary data are considered as time
saving method.
Sampling: Sampling is considered as the method which is associated with acquiring
samples out of the population in order to manage the research in appropriate manner. This will
assist the researcher in analysing the information in appropriate manner. Sampling is the
technique in which is associated with different characteristic are added so that process of
research can be executed (Viehof and Winner, 2018). There are two types of sampling process
such as probabilistic and non-probabilistic sampling method. For the current research
probabilistic sampling is taken so that equal opportunity of selection can be given. Under this
20 respondents are selected which are managers of Marks & Spencer.
Time Horizon: Time horizon is considered as the time limit which is taken by the
researcher in order to finish the research. There are two types of time Horizon such as
longitudinal and cross sectional. By analysing the requirements of the current dissertation this
has been analysed that cross sectional time Horizon would be highly significant for the
researcher (Patkar, 2018). Cross sectional time horizontal is having multi-dimension which
means that at a single stage of time different activities can be executed which helps in attaining
the research objective in timely and early manner
CRITICAL REVIEW OF THE RESULTS OF THE RESEARCH
Frequency distribution table
Q.1. Do you know regarding corporate governance practices
followed within your organisation?
Frequency
a) Yes 15
b) No 5
Q.2. Do you think that corporate governance practices helps the
business to develop strategic planning?
Frequency
a) Yes 17
b) No 3