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Influence of Corporate Strategy and Governance - ASDA

University: BUCKS NEW UNIVERSITY

  • Unit No: 1
  • Level: Undergraduate/College
  • Pages 13 / Words 7000
  • Paper Type: Assignment
  • Course Code: BM628
  • Downloads: 0
Answer :
Organization Selected : ASDA PLC

INTRODUCTION

Corporate governance is considered as mechanisms, processes and relations through which the corporations are controlled and directed towards achievement of business operations. Governance structure and principles tend to identify distribution of rights and responsibilities among different participants in the corporation (Kraakman and Hansmann, 2017).

This concept has been created by organisation to develop strategic plan for operations. It also involves systems and procedures, which are designed to structure authority, balance of responsibilities and providing major accountabilities to stakeholders. Corporate strategy clearly discussed a long-term vision that organisation develop, seeking to create corporate value and providing motivation to workforce for implementation of proper actions to attain customer satisfaction (Stout and Blair, 2017).

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Present report is based on analysis of Asda PLC to determine the overall scope and direction along with the ways in which its various business operations work together to achieve specific goals and objectives.

ASDA is a British supermarket chain headquartered in West Yorkshire. At present, company deals in providing wide range of grocery products and service to its customers. This research is carried out with an aim to determine problems faced by organisation in regulating corporate strategy and governance.

Background of the study

Corporate strategy and governance is analysed as important techniques which are adopted by organisation for development of action plan. It is also analysed as important part of business that create recognition in organisation and also analysed as important for any company its business operations.

In competitive business environment, it is important for every business to create effective strategies, which enables them to sustain their position in market (Tricker and Tricker, 2015). Corporate Governance is analysed as interaction between various participants in shaping corporation's performance and its proceeding. Moreover, relationship between owners and managers of an organisation must be positive and there should be no conflict between them too.

In addition to this, corporate governance enables an organisation to carry out business as per desires of stakeholders. It mainly deals with determining ways in order to take effective strategic decisions. It also provides ultimate and effective authorities to organisation to sustain its position in market and resolving problems (Allen, 2017).

In this research, the scholar has aims to carry out analysis of corporate strategy and governance in corporation which helps in developing action plan for regulation of business. ASDA Limited is selected by researcher which is international retail business enterprise has its operations across various countries.

Various strategic decisions have been taken by managers in Asda to carry out business operations and appropriate strategies to attain economic growth and development. Research will also provide clear understanding about problems faced by organisation in regulation of business operations.

Review of problem faced by organisation

Effective corporate governance requires Board of Directors to have substantial analysis of company’s policies and practices. Management should have awareness about daily operations of organisation and ways in which its objectives are being achieved. ASDA is mainly owned and controlled by Walmart (McCahery, Sautner and Starks, 2016). However, various issues have been faced by organisation in market which has influenced in business operations and recognition among customers.

ASDA is named as the worst supermarket in treatment of suppliers. Shareholders have placed ASDA below Morrisons as it named as worst retailer at complying with its code of conduct. It has been named as the worst retailer of UK's major supermarkets in its treatment of suppliers.

However, major oversight issues have been faced by ASDA in its corporate governance because management does not have information about its operations. With effective business management, this organisation must understand the requirements of customers. About 12% of suppliers have stated that, ASDA rarely never complied with the Grocery Supply code of practice. (Yu and et.al, 2016).

Issues have been raised by various suppliers that company is making incorrect deduction from invoices without notice, requesting lumps sums to make up profit margins and conducting abusive forensic audits of suppliers.

Literature Review

According to Tricker and Tricker, (2015), corporate governance is analysed as system of rules, practices and processes through which organisation is directed and controlled. It involves balancing the interest of organisation' stakeholders such as shareholders, management, customers suppliers, government, financiers and community etc.

Good corporate governance is considered as important for every business enterprise to sustain its position and recognition in market. However, it encompasses practically every sphere of management from the basis of action plans and internal controls to performance measurement along with corporate disclosure. Yu and et. al., (2016) stated that, corporate strategy is formulated to monitor progress and resolving issues that influence business goodwill and performance in market.

Proposed primary and secondary research methods

Sampling: It is considered as process of selection of sample population from the large number of population for collection of data in order to accomplish study in appropriate manner. Sampling techniques have been divided in two categories such as probabilistic and non-probabilistic (Aguilera, Judge and Terjesen, 2018). Simple random sampling will be used by research for selection of sample size, which is considered as part of probabilistic sampling.

Data collection: It is also a process which is used for collection of data from various sources to carry out study on corporate strategies and governance (Armstrong and et.al, 2015). There are two important methods of data collection such as primary and secondary method.

In this research, both primary and secondary methods of data collection are used to collect information on corporate strategies and governance. Questionnaire will be made from collection of information from respondents. Books, journals and articles will also be used in secondary analysis.

Data analysis: It is also analysed as process of interpretation and analysis of results, which is carried out from the data collected on corporate governance and strategies. There are two-methods of data analysis such as Qualitative and Quantitative analysis. In this research, scholar will use thematic analysis method for interpretation of results.

LITERATURE REVIEW

Concept of corporate strategy and governance

According to Klettner, Clarke and Boersma (2014), Corporate governance is mainly regarded as a key driver for organisation performance. It is a concept that emerged from the growth of business enterprises in the 20th century. After the crash of stock market in the year 1929, researcher began to argue for corporate governance mechanism which would allow shareholders to keep in stock.

In latter half 20th Century this continued, corporate governance structures were being introduced to control managers and ensuring that their actions are in line with the interests of stakeholders.

In strategic management, it refers to the set of internal rules and policies that clearly determine how company can be directed. However, corporate strategy is concerned with the ways through which a firm can create its values across different business. Governance essentially involves balancing of interests of an organisation's many stakeholders, such as shareholders, employees, suppliers and management along with government as well as community. These stakeholders have their important roles in developing effective corporate strategies for organisation so that it will be able to create its values in marketplace.

As per the view of Tricker and Tricker (2015), Corporate strategy is aligned with the ways through which companies like retail sector organisations create their values across their competitors in market. For creating a competitive advantage, firms in retail sector needs to make investments in a valuable set of resources, should craft business portfolio and also design structure of organisation, systems and corporate functions in order to share activities or transfer skills across business.

Effective corporate strategy tends to create positive influence on growth of organisation because it provides them competencies to retain their customers, increase sales and sustain its market share. However, presently continuous decline in growth of retail sector clearly points out ineffectiveness of their corporate strategy and governance.

Importance of good corporate strategy and governance in retail sector

According to Shamir (2017), for achievement of growth and sustainability in market, it is essential for every retail sector organisation to create effective corporate strategies. Moreover, appropriate strategies embrace capabilities of organisation in creating values of competitors.

Below given points clearly determine importance of good corporate strategy and governance.

  • Managing and controlling operations: Pechlaner, Volgger and Herntrei (2012) describes that creates good strategies and maintaining appropriate governance plays an important role in controlling business operations. With effective strategy, managers will be delegate and monitor the task performed by employees at workplace. Good corporate governance tends to promote effective leadership, which enables employees to perform their task with appropriate guidelines and achieve support in resolution of issues.
  • Innovative ideas: According to Rothaermel (2015), Organisation's having appropriate control or governance provides importance to their employees and focuses on developing their potential so that they will provide innovative ideas for improvement of existing products and services. Innovative ideas also influence stakeholders in retail sector to provide their support in growth of company.
  • Issues resolutions: As per the view of Morden (2016), development of effective corporate strategy is important for resolving issues like decline in profitability, sales, demands of product, employees participation etc. Issues related to maintaining competitive advantage in market also enables employers to sustain its growth and recognition in market. On contrary to this Du Plessis, Hargovan and Harris (2018), Good governance is also important for resolution of issues like relationship with suppliers, shareholders and performance of organisation in market. It alters the focus of management to protect benefits of its stakeholders along with maximizing profitability.
  • Implementation of business plan: Goal oriented corporate strategy helps the organisation in implementation of business plan effectively and achievement of goals. This view has persisted in retail sector where strategies are conceived as plans to accomplish specific goals. By improving corporate strategy, management will be able to review its business plan timely and analyse its progress. On contrary Fernando, (2012), Good governance and leadership also have extensive importance in implementation of business plan and also monitor its progress.

Corporate governance issues faced by organisation in retail sector.

There are various important issues in corporate governance that play a great role. These problems are interrelated and dependent on each other to be resolved. Amran, Lee and Devi (2014) stated that each issue is connected with the corporate governance and have different priorities and responsibilities in each retail business enterprise. Five main issues of corporate governance are analysed such as conflict of interest, oversight issues, Accountability issues, transparency issues and ethical Violations.

Brammer, Jackson and Matten (2012) stated that, these issues occur within the framework of corporate governance when the managers and other authoritative officers or other controlling members of corporation has the financial interest which directly conflicts within the objectives of organisation. Bad corporate governance tends to create conflicts between teams and employees in interest in business enterprise Phillips & Muir (2016). For example: A board members of solar organisation who own a important amount of stock in an oil company has conflicts of interest as, While the whom they serve on represents the creation of clean energy, they also have financial stake in the success of oil industry, they must have a financial stake within the success of the oil industry.

Grant (2016) stated that, effective and appropriate corporate governance in organisation requires the board of directors to have an appropriate oversight or analysis of organisation's policies, practices and procedures. It is considered as broad term that encompasses the executive staff reporting to the management and the awareness of management of daily operations of company and the way in which objectives have been achieved. Trong Tuan (2012) stated that management needs to protect interest of stakeholders such as Suppliers, shareholders, employees, acting as a check and balance against the executive staff. Without the oversight, Corporate staff organisation might start violating the state or federal law, facing issues, substantial fines from regulatory agencies and suffering the reputation al issues with the public. For example: ASDA is also facing some oversights due to its ineffective corporate governance after being a part of Walmart. It is considered as Worst supermarket chain in treatment of its suppliers. According to Schaltegger, Lüdeke-Freund and Hansen (2012), 12% of suppliers have stated that Walmart owned supply chain rarely never complied with the Grocery Supply code of practice. ASDA is making incorrect deduction from their invoices without notice, requesting lumps sums to make up profit margins and conducting abusive forensic audits of suppliers.

Cheney and et.al (2014) specified that, It is considered as necessary for appropriate and effective corporate governance in every firm. From top management to operational level workers, every level and department of organisation should report and tends to be accountable to another as a framework of checking and balancing. In contrast to this Doppelt (2017), stated that actions of every employee in organisation in accountable to the shareholders and public. Without accountability, they can endanger the success of overall business enterprise or influence stakeholders to lose the desire to continue their financial investment.

In order to be transparent, it is essential for company to report gains and losses accurately and provides these reports to stakeholder or investors of organisation. Moreover, over inflation of profits and minimizing the losses will mainly provide negative influence on relationship of organisation with their stockholders when they recognise that they were enticed to under false pretences. However, lack of transparency in organisation can also expose the organisation to get punishment or fines from regulatory bodies in UK.

According to this Bendell (2017), members of the executive board needs to have ethical duty in order to make decisions and those who invest in their company under false presentness. Moreover, every business enterprise must have an ethical duty to safeguard social welfare of others which are involved in the retail industry. Minimizing the pollution and eschewing manufacturing in organisation which don not adhere to similar labour standards as the US are both considered as major example of corporate governance, ethics and social welfare etc.

Influence of corporate strategy and governance on performance of organisation.

According to Rothaermel (2015), evaluation of performance is based on analysis of leadership and control within enterprise as it provide reflection about strategic decisions and capabilities of management to achieve objective.

Good corporate governance tends to create growth of organisation is market and also enables company to obtain profitability. Further. If decision are taken by participation of employees in organisation then it is considered as effective. It tends to promote corporation and coordination between management as well as employees which tends to attain growth and development.

As per the view of Burns (2016), effective corporate provides positive influence on business performance because it provides opportunities for company to sustain its competitive position in market. Highly productive and goal oriented strategy always influence employees to perform task in such as manner that objectives of company will be accomplished in specified time duration.

Brammer, Jackson and Matten (2012), Business performance related with stability and capabilities of organisation to sustain and maximizing high profitability in market in comparison with stakeholders. Good corporate governance involves participation of employees in formulating corporate strategies and decisions. Effective corporate strategies and governance tends to improve potential and competencies of organisation in market which has increased its performance and competencies. However, bad corporate governance involves authoritative style of leaderships in management does not provide importance to employees in making strategies. They focus upon maximizing high profitability and growth apart from providing emphasis upon the benefit of organisation.

According to Grant (2016), Poor governance is related with ineffective strategies and decisions of enterprise that results in decline of their profitability and growth in market. Recently, some enterprises in retail industry have faced issues like decline in sales turnover, recognition, Good will and legal restrictions due to non compliance with laws. These issues highlight continuous decline in business performance of enterprise.

Resolution undertaken by organisation to resolve corporate governance issues.

There are various important resolutions have been analysed such as value based corporate culture, holistic view, compliance with laws, disclosure and accountability and corporate governance and HRM.

According to Sadgrove (2016), for regulation of business operations in effective way, it is required to have some ethics and values. For resolution of these issues, organisation needs to develop an ethical corporate culture within enterprise. Management should provide importance to their employees and protect benefits of its stakeholder to prevent or retail positive business relationship.

This holistic view and religious attitude is more important for regulating business enterprise, however, it is not easier for firm to adopt it, they need to make special efforts and once implemented, it will lead to development of nobility and regulation of positive relationship.

As per the view of Morden (2016), if company in retail sector mainly requires progress, posses ethical values and also have desire to regulate long run business operations, then they should abide and comply with laws such as Grocery Supply code of practice, investment laws, foreign regulation act, competition act, cyber laws and employment regulations etc.

According to Du Plessis, Hargovan and Harris (2018), disclosure and transparency is considered as major aspect of good corporate governance. For resolving the transparency issues, timely and accurate information must be disclosed by business enterprise on the matters like the financial position, performance etc. Moreover, transparency is required to state government should have faith of retail sector enterprise and consequently it reduces the corporate tax rates from 30% today as compared to previous years (Fernando, 2012). However, it can be said that transparency is much needed in the corporate bodies so that due to major competition in the market place, customers generally have various choices that is why they cannot shift another corporate bodies.

As per the view of Amran, Lee and Devi (2014) For the corporate body, the employees and requires are just like family. For resolution of corporate governance issues, Human resource management plays vital role because they both these aspects interrelated with each other. For resolution of issues such as ethical, compliance with laws and conflict of interest, HR department needs to formulate effective strategies. This aids the management in maintaining its position and high business performance in market.

Primary and secondary research undertaken

For undertaking research, it is essential for scholar to analyse and apply appropriate method which helps in collection of data, resolving problems and achievement of aim & objectives in appropriate manner. Research methodology is eventually regarded as term which means the science of how research is being carried scientifically. Further, it is way to systematically and logically resolve issues, and understanding the whole process along with product of research (Trong Tuan, 2012). It also involves analysis of methods in addition with the performance obtained by them in appropriate manner. In this context, study has been carried with an aim to examine the corporate strategy and governance in context of ASDA. Researcher has also carried out analysis on problems faced by ASDA in corporate strategy and governance. Below given are the research methods which are used by researcher such as:

Research Design

It is regarded as systematic approach that a investigator utilized for conducting a scientific study. It involves integration of different research component which are utilized for carrying out study in appropriate manner (McCusker and Gunaydin, 2015). In this context, study has been carried to examine corporate strategy and governance in ASDA PLC along with issues which are faced by organisation in development of strategies. There are mainly two type of research design such as exploratory and descriptive. Both of these are effective and appropriate for research (Mukhopadhyay and Gupta, 2014). Exploratory research design primarily aims to provide final and conclusive answers to research questions and allows scholar to change direction of study.

In this study, scholar has decided to utilize descriptive design which is regarded as statements of affairs as they are at present with scholar having no control over variable. It is effective for scholar to draw analyse corporate governance and draw valid conclusion in appropriate manner. Researcher has become able to achieve its objectives because this design focus upon highlighting current issues and problems faced by ASDA in corporate governance through the process of data collection.

Research Philosophy and approach

This study is related with analysis of corporate strategy and governance in context of ASDA. Research philosophy is selected to get clear direction for undertaking research and achievement of valid outcomes. Increased the part of organisation that they should focus upon implementation of strategies in effective manner (Isaacs, 2014). There are mainly two kinds of research philosophy are utilized by scholar for carrying primary and secondary research such as positivism and interpretivism. In present study, scholar needs to carry out analysis on corporate strategy and governance in ASDA and for this interpretivism philosophy is utilized by scholar. In this, scholar determine the issues and elements of corporate governance which is associated integration of human interest in to study (Neuman, 2016). It helps scholar to identify issues by ASDA in corporate governance and provide support in answering research questions through an effective process of data collection.

In addition, there are mainly two kinds of approaches such as deductive and inductive which are used for testing hypothesis and assumption taken by scholar to complete research. Inductive approach focus on collection of data through observation and theories which are proposed towards the end of research process as the outcomes of research (Alvesson and Sköldberg, 2017). Deductive research is concerned with creation of hypothesis and also based on existing theory and then designing a research strategy to test the hypothesis.

Data collection

It is considered as process that is used for gathering and measuring information on targeted variables in systematic fashion which then enables one to answer relevant questions and evaluation of outcomes (VanPatten and Williams, 2014). In this research, scholar needs to carry out analysis on corporate strategies created by organisation for carrying out business operations and other important. There are mainly two kinds of data collection methods such as primary and secondary data collection (Harper, 2012). Primary data collection can be divided in to two groups quantitative and qualitative data. Secondary data is a kind of data which has already been published in books, newspaper, magazines, journals, online portals etc. Scholar in this study has utilized both the primary and secondary methods for data collection. This aids the scholar in making research more reliable and accurate which tends to create emphasis on development of research more effective.

Sampling

It can be explained as specific principle which is used for selection of member of population that needs to be included in the study. It has been analysed that as many populations of interest are too large to work with directly, techniques of sampling have been created in order to obtain samples which are taken from larger populations (Wiek and Lang, 2016). Techniques of sampling have been classified in two categories such as probabilistic and non probabilistic. As study is qualitative in nature, simple random sampling is used by scholar which is part probabilistic sampling. Simple random is the purest and most straight forward probability sampling strategy (Sahu, 2013). The logic behind selection of simple random sampling is that reduce chances of biasses from the process of selection and will result in representative samples. In this research, Scholar has taken sample size of 10 respondents from higher management team which involves board members and directors of ASDA. It is beneficial for scholar to carry out research on small sample size and collection of relevant data.

Data analysis

It is analysed as process which implies to transformation of data gathered from different sources and presentation of findings of research (McGivern, 2013). It helps the users to analyse outcomes of research and understanding the issues involved in research. There are mainly two methods of data analysis such as qualitative and quantitative. Both these methods are appropriate for analysis of data and interpretation of results (Clarke and Fujimura, 2014). As this research is qualitative in nature, thematic analysis method is used by scholar for analysis of data gathered by using questionnaire. Themes are made for interpretation of results of research on corporate strategies and governance. Representation of graph, charts and table helps to make research more clear and reliable for users.

Critical analysis of results

Theme 1: To the extent Asda follow code of corporate governance seriously in the workplace

To great extent

3

30%

To some extent

6

60%

Don’t follow

1

10%

Interpretation: From the above study it is identified that 6 out of 10 respondents have replied that Asda follows code of corporate governance to some extent only. There are many practices which are against the principles. On other hand 3 out of 10 answerers have viewed that entity follows these codes seriously. From the above data it can be interpreted that maximum people have viewed that firm has issues in its corporate strategies and it does not follow corporate governance norms strictly. That is why enterprise is unable to create value for its shareholders and unable to satisfy their needs.

Theme 2: applicable principles of corporate governance are been incorporated in the firm effectively and are these codes are creating value for stakeholders

Yes

8

80%

No

2

20%

Interpretation: from the above study it is identified that 80% of participants have replied that Asda does not incorporate corporate governance principles in practices efficiently. All codes that follow by the firm are unable to create value for the shareholders. On other hand 20% respondents have viewed that no applicable principles of corporate governance are been incorporated in the business unit effectively and these codes are able to create value for stakeholders. From the above data it can be interpreted that Asda is definitely required to make changes in its corporate strategies and have to work in such manner so that it can satisfy its shareholders such as investors, customers, suppliers etc. so that they can retain in the firm for longer duration.

Theme 3: Major corporate governance and strategically issues in the Asda

Oversight issues

6

60%

Accountability issues

2

20%

Transparency issue

1

10%

Ethical violations

1

10%

Interpretation: From the above data it is identified that 60% of respondents have viewed that oversight issue is considered as one of the most crucial strategic issue in the Asda. Due to which company is unable to satisfy its suppliers. On other hand 20% answerers have replied that accountability is the major corporate governance issue in the firm. Whereas 10% answerers have replied that ethical violations create problem for the enterprise due to which it is unable to run its business effectively in the market. From the above study it can be interpreted that oversight issue is major problem in the firm. Most of its suppliers are not satisfied with the practices of the entity because company deduct their invoices without informing them. That is the reason that suppliers are unhappy and company is unable to create value for them.

Theme 4: Asda is following grocery supply code of practices

Yes

8

80.00%

No

2

20.00%

Interpretation: Questionnaire survey method is used by scholar for collection of data from selected 10 employees of ASDA from top level management such as directors and board members to analyse that whether company use grocery supply code of practice. In this case, 8 respondents have clearly stated “YES” as they feel that ASDA follows grocery supply code of practice whereas only 2 respondents have denied this statement. Hence, it can be said that ASDA supermarket chain has adopted grocery supply code of practice. It needs to improve its recognition towards development sustainable relationship with its suppliers for resolving issues related to corporate governance and strategy.

Theme 5: Entity is creating values for its suppliers

Agree

3

30.00%

Strongly agree

1

10.00%

Disagree

5

50.00%

Strongly disagree

1

10.00%

Interpretation: Survey techniques is used by scholar for collection of primary in which a questionnaire has been made to determine that whether ASDA is creating value for its suppliers or not. In this analysis, 30% of respondents are “Agree” with the statement that ASDA is creating values for its suppliers. 10% respondents are “Strong Agree” with this, 50% respondents are “Disagree” and 10% respondents are “Strongly disagreed” with this statement. In this analysis, it is interpreted that ASDA is not creating values for its suppliers in marketing which is considered as major corporate governance issues which is faced by organisation in appropriate manner.

Theme 6: Strategies to minimize issues related to corporate strategies in Asda

Value based corporate culture

2

20.00%

Holistic view

1

10.00%

Compliance with laws

3

30.00%

Internal audit in supervision of audit committee

4

40.00%

Interpretation: In order to carry out primary analysis, scholar has questionnaire survey method for collection of data on solutions take by ASDA to minimize related to corporate strategies in ASDA. Questionnaire was provided to selected 10 respondents of top level management. From sample population, 20% of respondents have stated that Value based corporate culture is developed by ASDA to minimize issues related to corporate strategies and governance. 10% have viewed that organisation is taking a holistic view to resolve its issues, 30% respondents have specified that company tends to comply with laws for regulation of business operations and resolving its issue with suppliers. 40% respondents are mutually agreed that internal audit of suppliers will be done in supervision of audit committee. From this analysis, it can be interpreted that ASDA has adopted strategy of conducting internal audit of suppliers in supervision of Audit committee for resolving issues.

Theme 7: Participation of employees is required for formulation of appropriate corporate strategies

Agree

5

50.00%

Strongly agree

2

20.00%

Disagree

3

30.00%

Strongly disagree

1

10.00%

Interpretation and analysis: In this task, questionnaire survey methods is used by scholar to carry out research on analysis of need of participation of employees in development of corporate strategies and governance. Survey of 10 selected respondents from top management of ASDA is done for gathering relevant data. From the above table, it is clear that 50% respondents are “Agree” and 20% are “Strongly Agree” that participation of employees is required for development effective corporate strategies. 30% respondents are “disagree” and 10% are “strongly disagree” with this statement. However, it is interpreted that ASDA needs to involve their employees for development of Good corporate governance in company.

Theme 8: Challenges management have faced in managing relationship with suppliers

Demand of high prices

6

60.00%

Internal Audit

2

20.00%

Lackof faith

3

30.00%

Communication Gap

1

10.00%


Interpretation and analysis: Survey is conducted by scholar to analyse the challenges faced by top management in managing relationship with suppliers. Sample of 10 respondents provides understanding that, 60% have viewed that demanding high prices for products by supplier is the main issues faced by company in managing relations with suppliers. 20% respondents have internal audit of suppliers was issue, 30% have view that lack of faith between suppliers and management has created issues. 10% have viewed that communication Gap between suppliers and management was major challenge which is faced by management in developing positive relationship with suppliers. However, it can be interpreted that Demand of high prices for products by suppliers was major challenge which is faced by management in creating positive relationship.

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Theme 9: Good corporate strategies and governance enhance the performance of your company in retail sector.

Agree

5

50.00%

Strongly agree

3

30.00%

Disagree

2

20.00%

Strongly disagree

1

10.00%

Interpretation: In this research, scholar has utilized questionnaire as a tool for collection of relevant data on influence of good corporate strategies and governance on enhancing the performance of ASDA in market. From the sample of 10 respondents, 50% are “agree” that good corporate strategy and governance enhance the performance of ASDA in retail sector. 30% are “strongly agree” that with the statement, 20% are disagreed and 10% respondents are strongly disagreed with this. From this analysis, it can be said that ASDA needs to create good corporate strategies and their should be good governance in organisation as it helps in increasing performance in organisation in retail sector.

Theme 10: Payment of Agreed prices is the most appropriate strategy for development of positive relationship with suppliers.

Discussion

1

10.00%

Fair treatment

2

20.00%

Payment of Agreed prices

6

60.00%

Resolving issues

1

10.00%

Interpretation and discussion: In this research, questionnaire is made by scholar to analyse appropriate strategy for development of positive relationship with suppliers. From the sample of 10 respondents, 10% have views that discussion strategy is most effective for retention of positive relationship with suppliers. 20% respondents have viewed that fair treatment is the most appropriate strategy, 60% stated that management should agreed price of products to sustain relationship whereas 10% respondents specified that management must provide resolution to suppliers for resolving issues. However, it can be stated management is required to pay agreed prices of products to resolve issues and sustain positive relationship with suppliers.

Recommendation and action plan

Maintaining the governance standards needs sense of responsibility by all employees working at top level of management in a firm. It has been recommended to operation manager in Asda to ensure that business entity is complying with the laws formulated by government. As this strategy will assist business entity in increasing sustainability. The other advice to Asda that, management in an enterprise should formulate as well as strict rules in context of business operations. Human resources' manager is required to take high initiatives for developing an ethical corporate culture within a company. In addition to this manager in an enterprise is required to bring improvement in its corporate strategies and have to work in such manner so that firm can provide high level of satisfaction to all stakeholders. Employees in an organisation should be allowed to participate in decision making process. In addition to this, manager need to establish clear objectives and require sharing the same with employees, as this strategy will enable employees to make their significant contribution in resolving the issues related to corporate governance. Manager in an organisation should Establish a clear and documented segregation between the roles and responsibilities of shareholders. It is required by human resource manager in an enterprise to provide education as well as training to workers, as this tactic will assist workers in developing the skills and will enable employees to keep themselves update with corporate governance practices and regulatory frameworks.

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The other advice given to management is that, manager in a company should disclose as well as share important information with employees. As this strategy will support management in identifying the new techniques in order to deal with corporate issues. In addition to this, Asda company has been given advice to develop corporate compliance committee.

Corporate governance audit should be conducted by special committee at specific time internal and report is required to be submitted to top level management. As this tactic with support business entity in eliminating the issues related to corporate governance.

Manager in Asda company needs to develop suitable strategies in order to rebuilt their relationship with suppliers. There are different actions required to be taken by management such effective communication with suppliers. Transparency is required to be maintain between company and suppliers.

It has been recommended to Asda , to create stakeholder grievance committee, as this is considered to be as good corporate practice. Development of create stakeholder grievance committee will assist management in providing high level of satisfaction to workers. In addition to this it will help manager in developing as well as strong relationship with stakeholders.

The another suggestion given to Asda is that manager to develop clear remuneration policies. Timely meeting are required to be conducted, where all the issues should be discussed by employees with top level management, as this strategy will help employees in keeping themselves update with business strategies as well as objectives.

It has been advice to the manager in Asda to have strict control on business activities. As strict control plays crucial role in prevent as well as identifying the frauds. The strict punishment are to be given to people involved in fraud.

The systematic procedure which are required to be created. For instance, manager in an enterprise should establish a guideline that.

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