Corporate Strategy and Governance - Owl Finance Proposal

This report presents a proposal for corporate strategy and governance, focusing on the challenges faced by Owl Finance Ltd. The introduction highlights the importance of corporate governance and its impact on stakeholder interests, followed by a discussion of issues in corporate governance, particularly in the context of the UK's economic fluctuations and Brexit. The report includes a literature review that examines the role of corporate governance and its effect on financial performance and stakeholder trust. It also outlines the data collection methods, using both primary (surveys) and secondary (journals and articles) approaches, and provides a Gantt chart illustrating the project timeline. The proposal aims to analyze the issues, propose solutions, and enhance the company's financial growth and stakeholder relationships. References to relevant academic sources are provided.

Corporate Strategy and
Governance - Proposal

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Literature review- ............................................................................................................................2
Data collection methods..............................................................................................................3
Gannt chart .................................................................................................................................3
REFERENCES ...............................................................................................................................5

INTRODUCTION
Every business must follow the rules and regulations that are imposed by government. It
helps them to operate in different countries. Corporate governance is related to those rules and
regulations that creates a system of process through which business practices are controlled and
monitored. Generally, corporate governance includes stakeholders of company such as
customers, suppliers, management, etc. they all distribute the rights and responsibility of each
other (Flammer, 2015). Company should always work in the interest of stakeholder as it will
help them to provide support and grow in different markets. If company work against the interest
then it can affect its market value.
Importance of corporate governance-
Business operates according to the policies and process that is developed. It is because it
provides a framework through which process and policies are developed. It also helps in
maintaining relationship with management. Moreover, a good corporate governance will help in
developing better and positive organisation structure. Organisation develops strategies according
to process that is mentioned in corporate governance. They both are interrelated to each other.
Strategies are developed as per the interest of stakeholder. It also helps in building a positive
image. Companies focus on this as it related with their interest.
Issues in corporate governance- In recent times there is rise in issues related to corporate
governance. It is because many companies are working against the interest of stakeholder. Along
with this, change in rules and regulations of government has forced organisation to follow a
specific process. The major changes have occurred financial sector. It is because of Brexit. This
has affected UK economy to a great extent. Owl finance provides variety of finance related
services to their customers. But due to change in several factors, Owl finance ltd. is not able to
earn enough profits. It is having capabilities to develop services to expand their product
portfolio. Also, the economic condition of UK is fluctuating. Owl finance ltd. is also facing
issues due to Brexit (Martin, Farndale and Stiles, 2016). They are not able to operate in
different countries. This has affected their relations with other clients. Moreover, customer and
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clients are having issues related to accounts. It has been observed that Owl finance ltd. is not
providing proper investment amount to them. This issue is important as it reflects on providing
fair return to customers as well as investors. Also, it states that Owl finance ltd. must deal and
trade in fair ways to gain trust of people. They must solve this issue as it can affect their financial
growth. Moreover, it can lead to huge loss or Owl finance ltd. may not be able to retain their
customers. Alongside, the stakeholder may take legal action against company. Therefore,
research is conducted in order to analyse issues and find out solution to overcome them.
Literature review-
According to Aguilera and Lee, 2015 corporate governance in organisation plays a
crucial role in organisation. Business environment is changing due to internal and external
factors. So this has forced organisation to make change in their way of doing business. In today's
changing environment companies has focused on increasing their role in corporate governance.
Fluctuation in economy of UK has also forced organisation to widen their range of services. As
said by Flammer, 2015 research conducted by companies has provided them solution to
overcome issues. It has laid emphasis on creating a positive image in society. This has enabled
business to contribute in CSR activities. There has been negative impact on customers mind if
they do not get proper amount of return on investment. This affects company profits as well.
Accountability issues are commonly increasing. It is because of poor management and control on
activities. In the view of Martin, Farndale and Stiles, 2016 effective strategies are developed to
solve them. In this audits are conducted that has reduced issues. Also, the report of audits has
provided guidance to business on how they should contribute towards society. It has reflected the
overall financial position to stakeholders. This has resulted in gaining their trust to survive for
long term. Furthermore, there has been rise in issues related to accountability. It is because
companies are not able to perform well due to economic environment of UK. They are highly
engaged in earning profits from illegal sources. Also, there has been decline in contribution in
CSR activities. As per the view of McCahery, Sautner and Starks, 2016 business are not
coordinating with stakeholder. It is the reason why issues are rising. Also, strategies developed
are getting failed as issues are not solved. Due to this stakeholder are affected. They have
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imposed some regulations on business that is restricting them to grow. It is the main reason why
they have to show annual report.
As elucidated by Tricker and Tricker, 2015 a proper financial mechanism developed by
management has provided a base through which strategies are developed. Also, they are properly
implemented that has allowed business to expand their operation. Moreover, different strategies
are developed according to change in economic conditions. This has resulted in reduction in
complaints and issues related to accountability. It has been said by Flammer, 2015 financial
experts are hired by companies to help in controlling financial activities.
Data collection methods
Primary method- It refers to collecting data for first time. In this research data will be collected
by doing survey. For this researcher will develop a questionnaire through which survey will be
done. In this both open and close ended questions will be mentioned.
Secondary method – It means analysing the data from previous research conducted. In context
to present study, researcher will collect data from journals and articles. It will help in interpreting
data in effective manner.
Gannt chart
Activities 1st
Week
2nd
Week
3rd
Week
4th
Week
5th
Week
6th
Week
7th
Week
8th
Week
9th
week
10th
Week
Formation of
the research
proposal
Making the
objectives
and aim
Developing
research
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questions
Identifying
and selecting
method of
data
collection
Literature
review
Designing
Research
Methodology
Collecting
primary
data
Data
analysis
Finding of
collected data
Recommenda
tions and
conclusion
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REFERENCES
Books and Journals
Aguilera, R.V. and Lee, J.H., 2015. Connecting the dots: Bringing external corporate governance
into the corporate governance puzzle. The Academy of Management Annals, 9(1), pp.483-
573.
Flammer, C., 2015. Does corporate social responsibility lead to superior financial performance?
A regression discontinuity approach. Management Science, 61(11), pp.2549-2568.
Martin, G., Farndale, E. and Stiles, P.G., 2016. Corporate governance and strategic human
resource management: Four archetypes and proposals for a new approach to corporate
sustainability. European Management Journal, 34(1), pp.22-35.
McCahery, J.A., Sautner, Z. and Starks, L.T., 2016. Behind the scenes: The corporate
governance preferences of institutional investors. The Journal of Finance, 71(6),
pp.2905-2932.
Tricker, R.B. and Tricker, R.I., 2015. Corporate governance: Principles, policies, and practices.
Oxford University Press, USA.
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