Corporate Governance Analysis: Mainfreight Company Report, 2019

This report offers a comprehensive analysis of the corporate governance practices of Mainfreight Limited, a prominent New Zealand logistics and transport company. It begins with a definition of corporate governance and its significance, examining the roles of stakeholders, including investors, clients, and regulators. The report then delves into Mainfreight's specific governance procedures, such as activity plans, performance measurement, and ethical considerations. It explores the company's commitment to treating all investors fairly and maintaining transparency. The report also addresses ethical issues in international business operations and decision-making, outlining steps taken by Mainfreight to overcome these challenges. Furthermore, the report identifies key management techniques, including internal and external environment analyses using SWOT analysis and PESTLE analysis, respectively, followed by a strategic analysis employing the BCG matrix to evaluate Mainfreight's business portfolio. The report concludes with a bibliography of the sources used.

Corporate Governance
Questions and Answers -Mainfreight company
Student Details
7/6/2019

CORPORATE GOVERNANCE
Contents
Answer a..........................................................................................................................................3
Answer b..........................................................................................................................................3
Answer c..........................................................................................................................................4
Answer d..........................................................................................................................................6
Identification of Management Techniques......................................................................................7
Internal Environment Analysis....................................................................................................7
External Environment Analysis...................................................................................................8
Strategic Analysis (BCG Matrix).................................................................................................9
Bibliography..................................................................................................................................10
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Corporate Governance
Answer a
Corporate governance is the mix of principles, procedures or laws by which organizations are
worked, managed or controlled. The term envelops the inward and outside variables that
influence the interests of an organization's partners, including investors, clients, providers,
government controllers, and executives (Tricker & Tricker, 2015). The investors' job in
administration is to select the chiefs and the inspectors and to fulfill themselves that a suitable
administration structure is set up. The corporate governance of Mainfreight limited is identified
and analyzed here.
Mainfreight Limited is a New Zealand logistics and transport organization, which is
headquartered in Auckland. Mainfreight started activities in Auckland in 1978 and is one of the
biggest cargo organizations in New Zealand (Mainfreight, 2019). Explicit procedures that can be
identified in corporate governance of Mainfreight limited incorporate such activities like activity
plans, execution estimation, divulgence rehearses, official pay choices, profit arrangements,
systems for accommodating irreconcilable circumstances and express or understood contracts
between the organization and partners. The company is following effective corporate governance
as it has a well-characterized and upheld structure that works to help everybody worried by
guaranteeing that the undertaking holds fast to acknowledged moral principles, best practices,
and formal laws.
Answer b
Mainfreight is a logistics specialist service provider upheld by an incredible worldwide system
for client explicit and ideally incorporated warehousing, transport, and dispersion arrangements.
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Bruce Plested established the organization in 1978, has formed into the main production network
coordination supplier in New Zealand and Australia. In order to ensure effective governance of
their corporation the company tends to take the following steps (Leipziger, 2017):
 All investors of Mainfreight organization must be dealt with similarity and reasonability.
The organization should ensure investors know about their rights and how to practice
them.
 In Mainfreight organization Legal, authoritative and social commitments to non-investor
partners must be maintained. This incorporates continually conveying appropriate data to
representatives, financial specialists, sellers, and individuals from the network.
 The top managerial staff of Mainfreight Limited must keep up a promise to guarantee
responsibility, decency, assorted variety, and straightforwardness inside corporate
governance. Board individuals should likewise have sufficient aptitudes important to
audit the board rehearses.
 Mainfreight Organization ought to characterize a set of principles for board individuals
and officials, possibly naming new people on the off chance that they satisfy that
guideline.
 All corporate administration arrangements and methodology of Mainfreight Limited
ought to be straightforward or unveiled to applicable partners.
Answer c
Moral and Ethical decisions are applicable inside core business techniques that the board of the
company seeks after and the manner in which that direct the business overall to accomplish them
broadly and universally (Behnke & Bullock, 2010). Mainfreight Limited can face numerous
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moral issues in terms of international strategies, operations, and decision making while doing
their business.
Ethical issues that can be faced by Mainfreight Limited while conducting their business
worldwide are some basic moral issues in business incorporate promoting behavior dependent on
uprightness and that engenders trust. Other complex issues incorporate accommodation of
diversity, sympathetic based leadership, and consistency in administration with an organization's
basic beliefs. Some steps that Mainfreight organization has adopted in overcoming ethical issues
in their corporate governance regarding the conduct of operations, decision-making and
strategies internationally are:
 Prevailing ethical issues identification in Mainfreight organization by analyzing the core
activities of the organization
 Assemble important information like included parties, witnesses, and so on regarding
respective ethical issues.
 Contrast the issue with a particular guideline in established or followed Code of Ethics of
Mainfreight association. Decide whether principles of the Code of Ethics apply to
selected ethical issues.
 Solve Ethical Issue by Collective Bargaining by convincing involved parties for coming
up to a solution.
 Bring issue in front of the expert in power and control if not taken care by Collective
Bargaining
 Take Corrective Actions by imposing final orders of authority in charge
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Answer d
Corporate governance statement is basically the overview of the complete process through which
a company is directed in overall. The meaning of corporate governance is to govern the
behaviour as well as working of an organization on the corporate level. This all is done with the
help of a written statement that act as the document proof for various happenings of corporate
governance in an organization. Mainfreight Company also have its corporate governance
statement that helps the company in dealing with the process of accountability as well as
responsibility of the organization. This statement contains all the necessary elements of corporate
governance of Mainfreight Company (Nini et al., 2012).
Identification of Management Techniques
Some management techniques can help Mainfreight Limited organization in making corporate
decisions in an effective and efficient manner (Lehmann, 2016). These techniques are widely
divided into the following parts:
Internal Environment Analysis
The internal environment of Mainfreight organization consists of employees, management,
policies, objective, functions, etc. In order to analyze it SWOT analysis will is used:
Strength: The company has strong support from some famous courier services. It serves in
around 240 locations and has been a market player since 1996 after it was listed on NZX.
Weakness: Gradually increased competition with the local and other logistics companies. The
brand presence is also low in this company as there are other leading players also in the market.
Opportunity: Presence in all types of market makes this company pick offers more than other
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companies.
Threat: Increase in fuel rates leads to an increase in the rate of transportation and logistics of
different products.
External Environment Analysis
The external environment of Mainfreight organization consists of every external factor like
political, economic, social, technological, environmental and legal. These are discussed in detail
below:
Political: Deals with political factors of Mainfreight Company like a contract among trading
partners, export and import tax and regulations, transportation regulations, wage and salary
legislations, safety legislation, etc.
Economical: Deals with prevailing economic policies and interests, which can influence the
working of Mainfreight Company like growth rate, employment rate, inflation or deflation,
financial market efficiency, etc.
Social: In this, the social factors that can affect the functions of Mainfreight Company are
discussed such as population skill level, education level as per standards of the company,
environmental issues, etc.
Technological: Mainfreight Company, the impact of Countries technological advancement on a
company’s productivity, competitive use of technology, etc influences these factors from the
technological point of views such as recent use and development of technology.
Environmental: It includes issues related to the green concept of functioning of Mainfreight
Company. Other environmental factors are climate change conditions, renewable energy
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contribution, etc.
Legal: The rules and regulations that are taken care of by the legislation of the company as well
as of the country in which the company is working.
Strategic Analysis (BCG Matrix)
Source: BCG Matrix for Strategic Analysis (Mohajan, 2017)
BCG matrix can help an organization in identifying the right type of strategy of carrying out
business as a market player or an initiator. This is done with the help of a matrix that has two
rating scales that are the market growth rate and market share. They conclude the business
among four elements that are question marks, stars, dogs and cash cows. One can understand
there division and intensity from the matrix given above.
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Bibliography
Behnke, S. & Bullock, M., 2010. Ethics Within, Across, and Beyond Borders: A Commentary.
Ethics & Behavior, 20(3-4), pp.297-310.
Lehmann, C.F., 2016. Strategy and Business Process Management: Techniques for Improving
Execution, Adaptability, and Consistency. 1st ed. New York: Auerbach Publications.
Leipziger, D., 2017. The Corporate Responsibility Code Book. 1st ed. London: Routledge.
Mainfreight, 2019. Home Page. [Online] Available at:
https://www.mainfreight.com/global/en/global-home.aspx [Accessed 8 July 2019].
Mohajan, H.K., 2017. An Analysis on BCG Growth Sharing Matrix. Noble International Journal
of Business and Management Research, 2(1), pp.1-6.
Nini, G., Smith, D.C. & Sufi, A., 2012. Creditor Control Rights, Corporate Governance, and
Firm Value. The Review of Financial Studies, 25(6), pp.1713-61.
Tricker, R.I.(. & Tricker, R.I., 2015. Corporate Governance: Principles, Policies, and Practices.
3rd ed. Oxford University Press.
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