Corporate Governance, Leadership, and Entrepreneurship Report for N&Z

This report provides a comprehensive analysis of corporate governance, leadership, and strategic entrepreneurship within N&Z Company, a new dairy product seller in New Zealand. It examines the company's code of ethics, including honesty, integrity, and confidentiality, and proposes a matrix organizational structure to implement cost leadership and differentiation strategies. The report details strategic and financial control mechanisms, strategic leadership approaches, and a management succession plan to retain skilled employees. Furthermore, it explores strategies for building external social capital, fostering innovation, and maintaining an ethical culture. Finally, the report discusses strategic entrepreneurship, resource constraints, and international entrepreneurship strategies, offering recommendations for sustainable competitive advantage and market analysis. The analysis includes practical recommendations for the company's strategic development and future expansion.

Corporate governance
Corporate governance is the rules and principles that a company sets for its organization
through which it can control the processes. The main aim of corporate governance is to maintain
a balance between various stakeholders of the company (Tricker&Tricker, 2015). The
governance of N&Z Company consists of board of members such as the directors of the
company, employees of the company, all the shareholders of the company and CEO of the
company. The board is responsible for all the strategic and operational decision of the company.
However, the board fails to fulfill its duties sometimes and fails to oversight the risk.
The organization has their own code of ethics in the corporate governance that they need
to maintain to make the processes successful (By & Dawson, 2014). Code of ethics is also
principles that an organization needs to maintain as a responsibility towards its board and
stakeholders. N&Z Company is a new entity in New Zealand selling dairy products to the
consumers. It is necessary that the company maintain a certain amount of code of ethics among
its members and customers. The code of ethics of ethics will keep the employees and customers
motivated towards the company.
The code of conduct also includes the CEO and the financial officer of the company. Any
person that is related with the company, directly or indirectly,needs to comply with the code of
ethics Dimopoulos& Wagner, 2016).
Code of conducts:
1. Honesty and integrity
It is the duty of the directors and the employees of the company to maintain and observe
highest amount of honesty and integrity in the business. Thus, it is important that the employees
maintain honest relation with the external stakeholders and customers.
2. Conflicts between the members
Directors and employees of the company need to control the conflict outside as well as
within the corporation. This makes it necessary that the company maintains minimum tolerance

level for any kind of conflict within the business and directors are expected to avoid themselves
to be in a position that may create a conflict.
3. Corporate opportunities
The employees are not supposed to use their position or information of the company for any
of their personal gains. To reduce this risk the employees and directors are not allowed to use the
name of the company such as N&Z Limited or N&Z for their personal use or any external
business.
4. Confidentiality
Directors and employees are deemed to maintain the confidentiality about the customers and
the suppliers.This makes it necessary that the information about the management that are
confidential are not to be give to any one should be maintained within the premise of the
business.
5. Environment
Directors, employees and other members of the company are responsible for maintaining a
healthy environment in the company.
The company is best at maintaining good values through honesty and integrity and strict
confidentiality of data. Even though with such strong ethics, yet the company sometimes fails to
maintain certain codes among them that lead to conflicts among the employees and higher
authorities. Thus it is necessary that N&Z maintain a organized business structure between
different departments.
Organizational Structure and Control
Organizational Structure to implement Cost Leadership and Differentiated Strategy
Organizational structure is a system by which tasks are allocated and flow within the
organization (Rothaermel, 2015). N&Z Company will maintain a Matrix Structure.

CEO
Business analyst
manager
Development
manager Quality Assurance
manager
Condensed product
Manager Business Analyst Developer Tester
Fermentation Milk
Product Manager
Shakes and chocolates
Manager
Business Analyst Developer Tester
Business Analyst Developer Tester
Figure 1: Matrix Organizational Structure for N&Z Limited
Source: Author’s creation
Matrix organizational structure will be beneficial in implementing the cost leadership and
differentiated strategy within the organization (Egelhoff& Wolf, 2017). This is because it helps
in sharing the responsibilities of the business between projects and functions. This makes the
business easier to carry out innovation and customize the product accordingly (Egelhoff& Wolf,
2017). However, N&Z Company offers various types of products within the organization, which
is difficult to manage. Thus, sharing the responsibility among three different broad product
divisions will help them to reduce cost on products and specialize in some of the products due to
different product division.

Strategic control for N&Z Limited:
Strategic control is the way by which the company defines its prime objective ad way to
fulfill it. The objective of the company is to be one of the known dairy product-
manufacturingfirms in New Zealand and abroad. This allows the company to set the target of
expanding their business to five new countries in the next three months. Specifically the
company has the target of getting at least five new product in the country they are planning to
enter. The new target of the company is achievable as the company is new and has always
focused in innovations with their products (Stacey, 2016). The product expansion strategy is
planned by the business so that it can increase its present in a different way in new regions. For
the purpose the company needs to form a new division of product management that could
manage the development of new products altogether with new strategy. This strategic control
will help the organization to follow other product development strategy it plans in future
(Drucker, 2017). However, these objective needs financial support and needs to be fulfilled by
financial control strategies.
Financial control
The process to control the financials is:
Adopt knowledgeable executive that can deal with the suppliers correctly and maintain their
orders
Knowledgeable accounting personal should be appointed for maintaining the internal accounting
records.
CEO and CFO of the company should be appointed to carry out an accurate financial statement
for the company.
The CEO and CFO of the company should offer operating Metrics accurately.
Company should carry out audits to see that the general ledger, invoice, accounts and other
financial records are in place.
Financial duties should be segregated among account manager, accountants and Chief financial
officer (Drucker, 2017).

Strategic Leadership
Strategic Leadership is a way by which an organization influences someone to tak decisions
voluntarily for the organization (LEADERSHIP, 2015). However, various barriers that make it
difficult for the leaders to take correct decision-making are time pressure, capabilities of the
teams and others.
a) Strategies that N&Z Limited can use to improve or maximize the decision
makingdiscretion of its managers are:
 Offer timely training to the managers on the way that they should use or act while making
decision
 Advice the managers to make any decision based on evidence in order to make their
justification clear in front of the people
 The managers should take advice from everyone such as the employees, the customers
and others; however, they should act according to their own perspective.
 The company should higher managers that are keen to take risk in the business and while
taking decision in the business (Proctor, 2014).
These strategies will help the managers of the company to improve their approach towards a
situation and act appropriately depending on the need of the issue (Anderson, et al., 2015).
Taking risk and including other members of the organization in the decision making process is
essential strategy for a manager.
b) N&Z Company should follow the five steps Management Succession Plan in the
organization in order to retain their skilled employees that can prove to be good leader’s
are managers in future. The succession plan has been discussed for both in the internal as
well as external environment and for the managers. This is because the overall factors
whether inside or outside the industry affects the success of the business.
Step one: indentifying key areas

N&Z Company should train their capable employees for departments like operations such
as production process and product distribution areas. This is because they are crucial for the
business growth.
Step two:Identification of skills and for determined key areas
It is necessary that the person required for the above-mentioned position such as
operations manager or marketing manager should be calm and patience, have management
knowledge and should be a risk taker. This will help the business to reach its goals at desired
time.
Step three:identification of interested employees
The vacant position will be conveyed to the employees of the company through meetings
and the skills required getting onto those position. The interested candidates are supposed to
mail their interest to the higher authorities by mentioning their skills, present position in that
company and qualifications.
Step four: Develop plan for succession
The selected employees from N&Z Company will be given training on leadership
responsibility required for their position. Trainings will be given on task management, time
management and others.
Step five: Evaluate Effectiveness
The company will evaluate the succession plan by discussing about it in the meeting
through presentation. The preset managers can discuss the plan with their teams and motivate
them try for the offered position (Northouse, 2015).
c) The company should build external social capital for quick expansion of business.
External Social Capital is a way by which company develop their external ties and
relationships for productive benefits (Colombo, Franzoni & Rossi‐Lamastra, 2015).
Strategies by leaders to build external social capital are:
 Leaders of N&Z Company can train their leaders to create effective bonds with the
customers as they are the most important capital a company can form

 Leaders of the company should be true to their commitment as
fulfillmentofcommitments will help the company to form bonds with external
partners
d) Leadership strategies are plans that a leader develops for communicating a vision of the
organization. Leadership strategies that can facilitate innovation and new venture in N&Z
Company:
 Managers of the company should trust their ideas and the ideas of their team members
for taking innovation
 Collaboration is the best strategy they can use between different production lines to
reach a single innovative decision
 Manager should be able to motivate their teammates to take risk and think critically
for continuous improvement in the organization (Northouse, 2015).
e) Leadership strategies to maintain ethical culture in N&Z company are :
 The managers of the company should design a compliance program for their team
members in different product lines, as it will prevent unlawful conduct.
 Managers should take up investigation process every month to know the issues faced in
the organization. This will help them the issues that need to be addressed within time
(Northouse, 2015).
Strategic entrepreneurship
Strategic entrepreneurship is a program that is developed by a company or managers to improve
their entrepreneurial effectiveness (Agarwal, et al., 2017).
a) Strategies by which N&Z Company can overcome their resource constraints and exploit
opportunities are:
 The company can use recruitment strategy to recruit talented people from their rivals or
outside to meet the product constraint
 They can use technology development strategy by which they can introduce new
technology in the organization which will help them to use their resources effectively
 Internationalization will also help the company to use the buildup resourcesKlein, P. G.,
(Mahoney, McGahan, &Pitelis, 2013).

b) Entrepreneurial mind set principles for sustainable competitive advantage:
 It is necessary that the managers of the company are self-motivated and inspires other to
take challenges for accomplishing a particular task. They should build relationship with
anticipation and consideration for enabling competitive advantage in the company
 It is important that the company have positive relationship with their employees,
suppliers, distributors so that they are able to gain a competitive advantage in their
operation techniques.
 The company should give way to continuous innovation in every strategy that they design
for future (Hill, Jones, & Schilling, 2014).
c) International entrepreneurship strategies for N&Z Company:
 An entrepreneurshould use marketing analysis strategy in which it should analyze
their customer segment and opportunities it is offering. The eating habits, preference
and lifestyle of the people is crucial factor to analyze.
 The entrepreneur should carry out environmental analysis to analyze the income
opportunity and technology opportunity the country is offering
 The entrepreneur should also analyze their entrant policies before entering the
country.
 An entrepreneur of the company can take up innovation and risk proactively when
necessary(Mahoney, McGahan, &Pitelis, 2013).
d) Strategies that will help N&ZCompany’s research and development activities to induce
incremental and radical innovations for gaining competitive advantage in the market are:
 The research and development team should carry out market analysis about the type
of dairy products their competitors are following in order to develop new product for
their business.
 The company should also engage research on the existing product quality in which they
should compare their product with those of their competitors. This will help them to
improve their quality in places in which they lack (Hill, Jones, & Schilling, 2014).
e) Strategies to develop sustainable value in N&Z Company:
 The company can develop framework by which it develop plans for recycling its
products and reduce environmental impacts.

 The company can acquire a company that has been already involved in social work or
sustainable activity. Acquiring an animal NGO will be the best option for the
company to carry out operation that is valuable to the environment.
 One of the best entrepreneurship strategies that the company can employ is by
altering their packaging strategy and using environmental friendly packaging system.
it will help them to gain competitive advantage over other dairy companies(Mahoney,
McGahan, &Pitelis, 2013).
Monitoring strategic Performance
Balance Scorecard Framework
The company to analyze their performance over the years and the factors that could be
beneficial for them to accomplish further strategies and motives uses Balance Scorecard
Framework. It is a way by which a company can reach its goals affectively (Ibrahim, & Lucky,
2014).
Financial The Financial
performance of
the company will
be increased by
increasing sales
The company
targets to increase
the revenue of the
company by 15
percent in the next
1 year
It will
increase its
promotional
and pricing
strategies to
increase its
sales.
Customer The company
wants to
follows a high
quality
production for
the customers
To increase the
product lines in
the organization
manufacturing
sectors
For the
purpose the
company will
built quality
testing units
and new
product
development

plan.
Internal process The company
wants to
maintains a
strong quality
assurance team
to analyze the
quality of the
product
The target of
the company is
to introduce
environmental
friendly
technology.
It will set a
new
recycling
unit for the
purpose
Organizational Learning and Growth The company
will take human
capita
development
measures and
Infrastructure
development by
the company
It aims to expand
their venture in
other economies.
The company
will take
expansion
strategies.
The performance of the company has been good over the years and their performance
shown in the BSF model help in controlling the strategies that has been formed above in order to
gain competitive advantage. The performance of the company can be further extended in order
tofight competition effectively. The financial strength of the company helps them to take
international expansion strategies mentioned above. Moreover, the financial strength of the
company will also help them to take up product development strategy in a sustainable method
that they have planned (Ibrahim, & Lucky, 2014). This will help the company to grow in a
different manner and in a different field. Such kinds of strategies will help the company to form
competitive advantage over their competitors in dairy industry.
Conclusion
From the above discussion, it can be concluded that the company needs to have a strong
entrepreneurship strategies through which it can succeed in future by performing nicely. The
strategies that the company has followed over the years and the strategies that have been
formulated for the company for their leaders, mangers and others will help the company to
develop sustainably. This will help the organization to take a hand over its competitors.

Strategies has been suggested on strategic leadership and strategic entrepreneurship that the
company can use to improve its competitive advantage and approach the market in a sustainable
manner. One of the major strategies proposed for the organization is to develop sustainable
operational structure that is valuable to the environment. Moreover, Balance Scorecard
Framework will help the company to measure their performance on four variables such as
financial, consumer, operations and organizational long-term growth. It defines the potential that
an organization has to grow in long term. It helps to show the resources that the company has in
the company that can be used for further expansion and progress in other ventures. Thus with a
strong corporate governance, code of ethics and efficient strategies that company will be able to
growth in any sector it wants.

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