Corporate Governance Law Assignment Example | Topics and Well Written Essays - 3000 words

Corporate Governance Law - Assignment Example According to Turnbull (1999, p. 189), corporate governance is defined as executive procedures and structural organization that is used to manage and direct business towards ensuring financial stability and achievement of objectives. Corporate governance is concerned with the relationship among the Board of Directors, minority shareholders, controlling shareholders, and the management. The history of corporate governance dates back to the nineteenth century when there was increasing emergence of limited liability companies in Europe and America (Klapper and Love, 2003, p. 28). Since then, the system has increased in prominence in many countries across the world because it has proved to contribute to sustainable economic development and the performance of companies. Minow (2002, p. 16) notes that the principles of corporate governance provide the framework for the following: disclosure and transparency, the role of non- financial stakeholders, the Board of Directors responsibilities, r ights of shareholders and other stakeholders and their equal treatment. OECD (2005) states that corporate governance law is at the core of corporate governance and further argue that it provides basis for various aspects of corporate governance hence making it effective. Corporate governance law provides framework for intellectual property, litigation, mergers and acquisitions, and other vital decisions that relate to corporate governance (Minnow, 2002, p. 71). ... Importance of Corporate Governance Before comparing and contrasting Anglo- American model and European model of corporate governance, it is crucial to understand why corporate governance is important and relevant to countries and companies. According to Bhagat and Bolton (2008, p. 260), numerous studies have shown that corporate governance plays an important role in facilitating and guiding the development processes of countries and organizations towards achievement of their objectives. Klapper and Love (2003, p. 33) argue that even though corporate governance is important for all the countries regardless of their social and economic status, the concept is more crucial in achieving public policy objectives in emerging market countries. Good corporate governance is essential in reducing the vulnerability of emerging market to financial crises, contributes to capital market development, reduces cost of capital and transaction costs, and reinforces property rights (La Rocca, 2007, p. 31 2). Basically, corporate governance is critical in addressing the issue of integrity especially regarding how the management and board of companies are discharging their duties. Apart from that, corporate governance provides the basis for setting up regulatory entity; it allows an organization to introduce regulation and oversee the proper implementation of the regulation. Additionally, this concept is vital in enhancing the institutions’ remunerations and financial policies which enable institutions to make profits and prevent the institutions from effects of financial crises (OECD, 2005). According to Minow (2002, p. 30), strong corporate governance practices significantly increase productivity,

Hotel Chocolat Essay Example | Topics and Well Written Essays - 4000 words

Hotel Chocolat - Essay Example Then the company started expanding in its domestic land and opened almost 43 stores in the UK and 23 stores inside John Lewis outlets. Hotel Chocolat mainly aims at making fresh chocolates which are way more adventurous in terms of taste. It produces chocolates using less sugar and more of cocoa, very different from the chocolates made by other companies. It follows originality and ethics in its services (Hotel Chocolat, 2010). In order to learn cocoa plantation the company decided to work with the local communities of Ghana. After achieving success in the production of chocolates, the company started many new projects. The company opened a restaurant called Boucan at its cocoa estate located in Saint Lucia. After its expansion in the domestic land, the company is now aiming at internationalisation. For this, the company needs an internationalisation strategy. According to Tyndall, Cameron and Taggart (1990), companies should achieve control over the business operation of both international and foreign market in order to achieve their strategic objectives. The next section of the study will discuss strategic options for the chosen company. In the first part it will be shown how the company will move towards diversification of products in the niche market and also show its internationalisation strategy, by using strategy clock and Ansoff’s matrix. In the second part, using suitability, feasibility and acceptability analysis model an analysis will be done to see whether or not the strategic options selected for the company in the first part is justified. In the third part, recommendation is to be provided, which is based on the directions and methods of strategic development which is appropriate for the organisation for the next 3 to 5 years. Finally, a conclusion will be drawn on the entire project. At first it has to be decided, which strategy out of the three strategies of