MBA402: Assessment 3 - Focus Logistics Case Study Analysis

This case study analyzes Focus Logistics, a private logistics company, addressing its corporate governance, sustainability reporting, and risk management practices. The report identifies and discusses four essential corporate governance practices, including defined roles, strategic alignment, accountability, and ethical behavior. It summarizes the significance, benefits, and challenges of producing a sustainability report, highlighting improvements in corporate reputation, building consumer confidence, and fostering innovation, while also acknowledging challenges like misaligned internal needs, lack of corporate responsibility, and comparability issues. The case study further analyzes key risks faced by Focus Logistics, such as lack of investors, irrelevant management style, and lack of sustainability, and proposes strategies to mitigate these risks, emphasizing the importance of effective management, financial transparency, and sustainable practices. The analysis offers actionable insights for Focus Logistics to improve its performance, address stakeholder concerns, and achieve its goals in a dynamic market.

Assessment 3 Case
Study

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Identifying and discussing four good corporate governance practices that needs to be consider
relevant to this company.............................................................................................................3
Summarising the significance, benefits and challenges of producing a sustainability report for
future logistics.............................................................................................................................5
Analysing the key risks for Focus logistics and explaining what benefits there would be in
minimising risk............................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES:.............................................................................................................................10
Books and Journals...................................................................................................................10

INTRODUCTION
Consultant provides a brief description and address various issues in which the company
is lacking. The main focus is to help the organisation overcome different challenges and enhance
the sales volume in the market. There are various issues which includes sustainability, corporate
governance and other management issues (Mahmood, and et.al 2018). The report aims to analyse
about understanding the corporate government policies relevant to the organisation. On the other
hand, in this report there will be brief discussion various benefits and challenges which the
business might experience in the market. Along with that, there will be evaluation key risks
which could be minimized by following different strategies and approaches. For further instance,
in this report there will be analysation of different opportunities on which the company can
capitalise in the market.
MAIN BODY
Identifying and discussing four good corporate governance practices that needs to be
consider relevant to this company
There are various responsibilities which the organisation can implement in order to
achieve more success in the market. On the other hand, there are different concerns which needs
to be addressed properly. The best practices for the corporate governance is described below:
 Defined Roles and Responsibilities – The organisation leaders needs to understand their
perspective roles and perform their duties and work responsibilities. The best practice of
corporate governance includes the separation of the roles of Board chair and the CEO.
The directors of the organisation needs to fulfil the responsibilities in a systematic way.
There is a distinction between the governance and management roles. In focus logistics
Mr white views she had completely disagrees with the risks of substantiality. There is
inherent duty which needs to be performed by the individual in order to make the
business more better (Hussain, Rigoni, and Orij, 2018). Defining the roles and
responsibilities will help the individual to take the several decisions effectively and the
board can make faster decisions which will be beneficial for the organisation. This will
help them to minimize the risks of the stakeholder which they are addressing for the
organisation. The company can become the top listed company.

 Alignment of the strategies and Goals – The main focus of the business is to achieve
the goals and objectives in the market in an effective manner. In relation to focus logistics
the organisation CFO Mr Rose Gardner son has a different view. There are different areas
in which the company is lacking for example there employees needs to become more
productive and the organisation needs to values their workforce by providing them
various other benefits. There is indeed needs of addressing the climate change issues
which will impact the business of the organisation (Garas, and ElMassah, 2018). Proper
alignment of strategies and goals will help the company to become more effective in
carrying out the operations. They will carry out the operations at a faster pace while
doing the necessary improvements.
 Accountability – Performing the roles and responsibilities is clearly defined by the
directors. There are certain individuals which is help accountable for their operations if
the business face and negative consequences. In relation to Focus logistics the board of
directors managers needs to perform their duties and they need to be held accountable for
managing different operations in the workplace (Naciti, 2019). The organisation needs to
establish a effective structure in the company in order to achieve necessary goals and
objectives in the market. The Ultimate goal for the company is to list in one of the top
company by next year in ASX.
 Commitment to Intergrous and ethical behaviour – The organisation needs to
implement high standards in the workplace. They need to follow the code of conduct and
ethical values in a significant manner. In accordance to focus logistics every individual
needs to understand their responsibility. In order to address the concerns of the
stakeholders they need to follow top notch working standards which could be beneficial
for the organisation (Doh, Tashman, and Benischke, 2019). There are various further
improvements which the company could implement in order to achieve success in the
market and diversify their business operations in different regions. The main goal of the
firm could be fulfilled by following a systematic structure in the workplace. They can
capitalise on different future oriented opportunities in the market.
It has been analysed that from the from the above corporate governance practices the
organisation can improve their overall performance and address different concerns. These issues
is stopping their growth in the market. Focus logistics can even fulfil the demand and supply as

per the current market rules and regulation. With the implementation of ethical code of conduct
and values they can dominate and acquire a huge share in the market (Scherer, and Voegtlin,
2020). They need to maintain a healthy relationship with the stakeholders while addressing all
the concerns. With the new digital ways they can improve the infrastructure and carry out the
operations in a significant manner. The directors managers and the board needs to take the
decisions effectively which could help the organisation to become more profitable in the market.
Summarising the significance, benefits and challenges of producing a sustainability report
for future logistics
Sustainability report is the disclosure of various factors which includes environmental,
social and environmental goals. It can help the organisation to measure their progress towards
the component. There are different key elements which needs to included while preparing the
report. It includes the stakeholders engagement, ensuring transparency, benchmarking and
progress etc. There are various benefits and challenges when the organisation producing a
sustainability reports it is as follows:
Benefits of preparing sustainability report
 Improvement in corporate reputation – The organisation can produce a corporate
report to improve the reputation in the market. Focus logistics needs to prepare the report
to understand the motive of sustainability (Dionisio, and de Vargas, 2020). There are
various challenges and conflicts which might be indulge. There is various perspectives of
different individuals in the organisation.
 Building the consumer confidence – The organisation can achieve a positive brand
integrity in the market. They can provide better products and services to the consumer. In
focus logistics there are various improvements which the organisation needs to
implement. The sustainability report help them to evaluate the areas in which they are
lacking and improve the customer confidence towards to the brand. There are different
key elements which needs to included while preparing the report. They need to attain
maximum customer satisfaction ion order to achieve the necessary goals and objectives in
the industry.
 Increased innovation – With the help of substantiality report the organisation can
innovate new ideas to improve the areas in which they are lacking (Bae, and et.al 2018).
They are able to achieve great results in the future with the attainment of sustainable

performance. Future logistics can improve the areas in certain ways. They can implement
new strategies and approaches in order to become more profitable in the market. They
could achieve their goal by fulfilling the responsibilities of different individuals. The
technological aspects could help them to achieve their goal at a faster pace in the
industry. There are different new opportunities in the market in which they can
capitalised in a significant manner.
Challenges
Sustainability report is published by an organization about their environmental,
economical and social impact which are caused by their regular activities. It helps organisation in
commencing their operations in transparent manner so that they can improve their sustainability.
Future logistics involve all their stakeholders so that they can carry out information but
sometimes it get difficult for them. There are various challenges of sustainability report which
are as follows:
 Misaligned with internal needs: One of the main problem of sustainability report is that
it can not understand the internal procedures. Balance between environmental and social
factors which affect their performance on regular basis. Internal procedures of every
organisation varies from each other at different level which is difficult to manage
(Solomon, 2020). Focus logistics face challenges in commencing smooth operations
because of sustainability report.
 Lack of corporate responsibility: Due to sustainability reporting it becomes difficult for
organisations to fulfill various corporate social responsibilities which affect their
profitability. There are various activities of Focus logistics which get delayed because of
sustainability reporting. In order to sustain for longer period of time it is important to
focus on various environmental and social responsibilities.
 Lack of comparability: Performance of organisations can not effectively compared with
their previous years which is difficult for organisations. It results in poor decision making
which affect the profitability of an organisation (Van Greuning, and Bratanovic, 2020).
Focus logistics uses different standards and metrics for their planning and decisions
which are affected because of sustainability reporting in longer run.

Analysing the key risks for Focus logistics and explaining what benefits there would be in
minimising risk
It is seen that the nature of business environment is dynamic and there is need of
analysing the risk present. There is need of working in such a manner that all the risk can be
minimised and company is able to work effectively. The various risk that are being faced by
Focus logistics are as follows:
No investors: One of the major risk faced by Focus logistics is related to money. The
company has prepared the expansion plan but they are unable to get the investors. The company
will not be able to enhance the operations (Purvis, Mao and Robinson, 2019). The monetary
requirements of the business are not fulfilled because the investors are not ready to invest in the
company. This makes it risky for Focus logistics to expand their business in case of lack of
money.
Irrelevant management style: The Focus Logistics is working as a big company and the
management is family owned. There is need of working in such a manner that the best
management style is being followed. This is one of the challenge due to which the company is
not able to get a successful position in the market. There is need of working as per the
management of the company.
Lack of sustainability: The company do not follow the sustainable practices and it is one
of the major reason that can make the business unsuccessful. It is seen that the regular changes in
the market demand sustainability so that the company is able to gain brand image. There is need
of reducing the carbon footprints in order o deal with the situation in effective manner (Scoones
and et.al., 2020). This is a challenge that is being faced by Focus logistics.
These are some of the challenges that are bing faced by Focus logistics and there is need
of following the various actions as they will help to overcome the situation of challenges and
take advantage of the benefits. They are as follows:
 The company must first of all work on the management style and understand the
importance of proper management. The use of effective management helps the company
to achieve the goals and objectives on time. By hiring professionals the business
organisation is able to enhance the brand image and work in effective manner.
 The company must present all the effective actions taken by them in the report. It helps
the company to manage the work in effective manner and get proper finances. There is

need of having all the departments that can handle the work as it enhances ease in
working and get investors to invest money in the business organisation.
 There is need of taking necessary sustainability actions by the company. The must work
to reduce carbon footprints as this will enhance brand image of the company.

CONCLUSION
From the above report, it is concluded that there is key role of sustainability in the
business organisation. In this report, the corporate governance practices important for a business
organisation are mentioned. The significance, benefits and challenges are important part of this
report. The risk that can be faced by business are mentioned with the actions to overcome them.

REFERENCES:
Books and Journals
Bae, and et.al 2018. A cross-country investigation of corporate governance and corporate
sustainability disclosure: A signaling theory perspective. Sustainability, 10(8), p.2611.
Dionisio, M. and de Vargas, E.R., 2020. Corporate social innovation: A systematic literature
review. International business review, 29(2), p.101641.
Doh, J.P., Tashman, P. and Benischke, M.H., 2019. Adapting to grand environmental challenges
through collective entrepreneurship. Academy of Management Perspectives, 33(4),
pp.450-468.
Garas, S. and ElMassah, S., 2018. Corporate governance and corporate social responsibility
disclosures: The case of GCC countries. Critical perspectives on international business.
Hussain, N., Rigoni, U. and Orij, R.P., 2018. Corporate governance and sustainability
performance: Analysis of triple bottom line performance. Journal of business
ethics, 149(2), pp.411-432.
Mahmood, and et.al 2018. Does corporate governance affect sustainability disclosure? A mixed
methods study. Sustainability, 10(1), p.207.
Naciti, V., 2019. Corporate governance and board of directors: The effect of a board composition
on firm sustainability performance. Journal of Cleaner Production, 237, p.117727.
Purvis, B., Mao, Y. and Robinson, D., 2019. Three pillars of sustainability: in search of
conceptual origins. Sustainability science, 14(3), pp.681-695.
Scherer, A.G. and Voegtlin, C., 2020. Corporate governance for responsible innovation:
Approaches to corporate governance and their implications for sustainable
development. Academy of Management Perspectives, 34(2), pp.182-208.
Scoones, I and et.al., 2020. Transformations to sustainability: combining structural, systemic and
enabling approaches. Current Opinion in Environmental Sustainability, 42, pp.65-75.
Solomon, J., 2020. Corporate governance and accountability. John Wiley & Sons.
Van Greuning, H. and Bratanovic, S.B., 2020. Analyzing banking risk: a framework for assessing
corporate governance and risk management. World Bank Publications.