This assessment will cover the following questions:
- Overview of research
- Elaborating corporate governance policies and practices
- Explaining the action plan
Chapter 1: INTRODUCTION
1.1 Overview of research
An issue related to the corporate governance is a term that describe the mutual balance between the participants in the organization. There are different participants interested towards the business operations and functions such as shareholders, community staff member and executive staff etc.(Werani, 2018). A Corporate governance practices directly impact on the business profit and reputation of the organization and having the poor policies that can expose the firms to loss of capital investment, reputation damage etc. This research mainly defined concept of corporate governance and its role in maintaining relationship among workers.
1.2 Overview of organisation
Marks and Spencer is a famous British multinational retailer that came into existence in middle of 1884. It was established by Sir Michael Marks and Thomas Spencer. This retailer company in UK is listed one of the biggest brand which has run more than 980 stores in near about 57 countries, in London Stock Exchange. But from last performances, it has analyzed that M&S faces some issues related to retain interest of its stakeholders within business. It is arisen due to costly restructuring the corporate strategy for maintaining sustainability at marketplace. This led management of M&S to think twice on decision-making process which are concerning mainly upon future (M&S still feeling the heat as winter approaches,2019). Any such type of decisions and CG policies are majorly depended on whether this firm is able to create changes in business. This would spread various negative rumors about Marks and Spencer which adversely disrupted its image as well.
In this regard, it has been evaluated that every step which is taken by respective firm for restructuring its business went wrong. This would lead to decrease market share of this company more adversely. Along with this, it has also analyzed that idea of restructuring the infrastructure has led M&S to face various issues. It includes near about sixty-two percent fall in profitability of business annually. Due to this issue, respective company also fails to gain interest of stakeholders and their financial support in implementation of further project.
1.3 Problem Statement
Corporate Governance reflects relationship among Board of Directors, Management, Shareholders, Employees and other stakeholders in a company. It deals with the ways by which suppliers or investors who finance in corporations assure themselves, to get high return on their investment (Quinlan and et.al., 2019). The issues of corporate governance will impact on the financial performance of organization and also measure the accountability of different entities in terms of policies, activities and operations. The researcher will find out the strong relationship between the corporate governance practices and impact on the financial performance of organization. In context with Marks and Spencer, as this company faces related to failure of corporate governance. Therefore, this research will help in determining factors that is impacting on following of CG practices of M&S. It will help in taking effective measures to minimize impact and increase profits through CG practices. It also identifies ways by effective CG practices can be implemented within business, by taking consideration the overall interest of stakeholders.
1.4 Research Aim and Objectives
In order to conduct a research, the most essential task for researchers is to formulate proper aims and objectives. The overall result and success of a project depends on both of these aspects. It provides guidelines to research-team related to identify issues and address the main objectives of research. In this regard, main aim and objective of present case study which is based on Corporate Governance of M&S, are described as beneath:
“To investigate the impact of stakeholder relationship on financial per