What is corporate governance

Corporate governance refers to a system that enables us to control and direct organisations. The IUFC defines corporate governance as â€Å"the relationships among the management, Board of Directors, controlling shareholders, minority shareholders, and other shareholders† (IFC 1).Advertising We will write a custom essay sample on What is corporate governance? specifically for you for only $16.05 $11/page Learn More While the traditional definition of corporate governance recognizes the existence and significance of the terms â€Å"other stakeholders†, however, there is still a lot of debate on the kind of relationship between on the one hand, self-serving managers and on the other hand, disconnected owners (Applied Corporate Governance para. 2). Corporate governance consists of two key components: The long-term relationship between the management and owners of a firm and the incentives for managers, checks and balances, as well as communic ation between investors and the management; Transactional relationships that include issues of authority and disclosure. What the above two elements appears to suggest is that business owners are suspicious of the activities of their managers, as explained by the need for checks and balances. In addition, both the management and investors share an adversarial relationship. Corporate governance consists of five components that are worth of consideration by both investors and the management. They include the long-term strategic goals of an organisation, customers, the environment, employees, and regulatory/legal compliance (Applied Corporate Governance para. 5). As such, corporate governance can be thought of as a culture that is founded on strong business ethics. Corporate governance enables managers of a firm to fulfill the long-term strategic goals of the shareholders. In the process of fulfilling such goals, there is need to also consider that the expectations of the various stak eholders of the organisation (Kirkpatrick 6). Therefore, the past, present and future interests of employees at the firm need to be addressed. In addition, the management should endevour to enhance excellent relationships with both suppliers and customers. At the same time, the needs and interests of the local community should also be fulfilled. Importance of corporate governance Globalisation has seen organisations becoming more complex as most of them have increased in terms of size and scale of trade. As a result, most organisations have ended up with a very bureaucratic structure as they try to manage the emerging complexity (Applied Corporate Governance para. 5). This has led to an augmentation of the importance of internal regulation and corporate governance owing to the increased difficulty of regulating organisations externally.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Many o rganisations view corporate governance as an important undertaking when it comes to the issue of integrity. Shareholders and the general public would want to be associated with an organisation that is led by leaders with integrity (Kirkpatrick 9). In this respect, corporate governance acts as a vital tool for measuring, encouraging, and projecting integrity within the organisation. Corporate governance in an organisation is also important in as far as the bonus culture is concerned. The recent financial crisis helped to reveal the system of remuneration and bonuses operated by many financial institutions. There is a widely held argument that this system of remuneration and bonuses encouraged irresponsible lending and excessive risk taking by financial institutions, thereby triggering the global financial crisis (Applied Corporate Governance para. 6). Ideally, the existence of a better checks and balances system would have sounded warning bells before it was too late. A number of fin ancial experts outside the financial systems who were privy to the dangerous levels of lending practiced by many financial institutions had tried to raise an alarm but in the absence of a sound system of corporate governance, it was hard to ascertain these allegations. In this case, sound corporate governance practices would have helped to contain the situation. Indeed, weaknesses and failures in corporate governance arrangements played a key role in the financial crisis experienced by financial institutions. Good corporate governance offers the right incentives for both the management and the Board of Directors to pursue the goals that are in the best interest of shareholders and the organisations at large (Tricker and Tricker 27). In addition, good corporate governance also facilitates effective monitoring, thereby making it easy to detect deviations from the accepted norm and practices. Consequently, remedial measures can be taken before it is too late. Corporate governance resul ts in better regulatory framework within the organisation. What this means is that corporate governance leads to sound management of the organisation (Applied Corporate Governance para. 7). In the same way, when governance within a corporation fails, the management is deemed to have failed as well. In the recent global financial crisis, many financial institutions were rewarding their CEOs with hefty pension and bonus packages, even as the government struggled to bail out failing firms. This is a reflection of poor management because it does not make financial sense to award a CEO a hefty package to leave office while the organisation is in financial limbo. In the financial markets, good corporate governance requires the right balance between on the one hand, customer choice and innovation and on the other hand, implementing basic standards. This may require organisations to change their corporate culture but in the end, the ensuing rewards are worth the sacrifice.Advertising W e will write a custom essay sample on What is corporate governance? specifically for you for only $16.05 $11/page Learn More Corporate governance is also important to an organisation when it comes to the issue of training the directors. Following the collapse of such organisations as WorldCom and Enron in the past decade, questions have been raised on the need to re-assess the qualifications of directors. In the past, there has never been any formal yardstick with which to assess the qualifications of the senior people who run an organisation (Applied Corporate Governance para. 8). From a practical point of view, majority of the large and well run corporations seek for the most fitting qualifications from among their senior staff; however, an increasingly larger number of organisations are now offering selection services and training to non-executive directors. The collapse of the above mentioned firms and a dozen others has seen more professionals reassessi ng the role of direction as a discipline or professionals that demands specific forms of training and development. In this case, corporate governance has played a crucial role in efforts to re-evaluate the qualifications of directors charged with the responsibility of overseeing the operations of organisations (Tricker and Tricker 33). Some MBA courses now include corporate governance as part of their course content. Such a trend should be encouraged so that the true importance of corporate governance can get the recognition it deserves. Conclusion In summary, corporate governance refers to the system that ensures the control and management of organisations. It enshrines the components of the long-term relationship between the owners of an organisation and the management. A sound corporate governance system should take into account the interests of the firms, the shareholders, the employees, suppliers, and the local community as well. Corporate governance is important to an organisa tion with regard to the issue of integrity because shareholders and the general public would want to be associated with an organisation that has integrity. Also, corporate governance helps to contain the bonus culture within organizations. It also leads to better regulatory framework, as well as in the training of directors. Works Cited Applied Corporate Governance. The importance of corporate governance. 2009. Web.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More IFC. Corporate Governance. 2005. Web. Kirkpatrick, Grant. The Corporate Governance Lessons from the Financial Crisis. 2009. Web. Tricker, Robert and Tricker, Bob. Corporate Governance: Principles, Policies and Practices. Oxford, UK: Oxford University Press, 2009. Print. This essay on What is corporate governance? was written and submitted by user Braylon Cannon to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

The Milky Way Galaxy essays

The Milky Way Galaxy essays One of the most intriguing parts of the universe is our knowledge of the Milky Way. The hazy band of white light that one can often see in the night sky has been proven to be the home of our Solar System. There are so many different aspects that make the Milky Way so incredible, and it is important to become knowledgeable about these different aspects. Its structure, its age, its surrounding galaxies and clusters, its mythology, the existence of life throughout it, and even its future are all important components of what makes the Milky Way so inconceivable. Focusing on its structure, the Milky Way is the immense, spiral galaxy which is the home of our Solar System with around 400 billion other stars and their planets, and thousands of nebulae and clusters. It is a giant, as its mass is probably between 750 billion and one trillion solar masses, and its diameter is about 100,000 light years. It is arranged into three main components as shown in the diagram at the end of the paper. The first component is the disk, where our solar system resides. The disk of the Milky Way has four spiral arms and is made up primarily of Population I stars which tend to be blue and are reasonably young. They span an age range between a million and ten billion years. The second component is the bulge, which is at the center of the galaxy. This is a high-density region where Population II stars dominate the region. These are stars which tend to be very old, at around 10 billion years old, with a reddish color. It is said that there is a gigantic b lack hole at its center, which is "an invisible object whose gravitational pull is so great that not even light can escape from it" (Nat. Geographic 551). Our sun is over 27,000 light years from the center of the galactic galaxy. "All stars and star clusters in the Milky Way orbit the center of the Galaxy, much as the planets in our solar system orbit the sun" (551). The third component is known...

Solid Work Simulation Essay Example | Topics and Well Written Essays - 1000 words

Solid Work Simulation - Essay Example The concept of this analysis lies in the fact that the elements have the nods which would behave in the same way under different load conditions, thus it would be possible analyzing the three degrees of freedom of every nod can be fully translated by notation. Here probably, need to know how different load types will relate to the bending moments. The relationship between moment and loads. Since it is a look out for the build up towards the analysis methods, there is a need to explore the different load conditions. The different load conditions can be a) Moment Load, b) Point Load, c) Uniformly Distributed Load and d) Patch Load (Cprani C 2008). Solid Works Simulation writes the equations governing the behavior of each element taking into consideration its connectivity to other elements (Harmanto D 2008). The method brings up the results from hundreds of thousands of equations which relate the unknown to the knowns. Those functions which would be integrated just like any ordinary function. Then finally the solver finds the degree of freedom in every element at every nod. A number of simulation techniques have been developed to model a... Nonlinear Analysis-The stress-strain relationship of the material is not linear. -Induced displacements are large enough to change the stiffness. -Boundary conditions vary during loading (as in problems with contact) (Cprani C 2008). Buckling Analysis-this is conducted to predict critical loads and tests failure due to buckling.Frequency AnalysisThermal and Thermal Stress Analysis Optimization Analysis One can possibly make mistake in accessing a broad range of physical models and capabilities. -One should let SolidWorks Flow Simulation find the best dimensions or inlet and outletconditions that satisfy goals, such as force, pressure drop, or velocity (ProductDiscription 2009) In clearly understanding the effects of temperature changes in parts and assembles. In performing dynamic analysis on parts and assembles, it will require making a number of different studies (Product Discription 2009) The Use of Mesh Size and ShapeA number of simulation techniques have been developed to model and analyze different processes and to help decision- makers Halppin 1977). Cell-based modeling has been investigated in simulation (Zhang et al. 2005, Zhang et al. 2006). A subdivision of model during the analysis becomes necessary for the mathematical simulation. This task of subdividing is normally called to be the Meshing. Meshing helps to come up with more accurate results, at the same time it will require more computer resources. One can always make use of the mesh control to reduce the size of the element in order to improve the accuracy of the results.

Drug War Essay Example | Topics and Well Written Essays - 2000 words

Drug War - Essay Example Her life changes when she mixes herself with very scary gangsters. The gangsters tend to take a shine on Laura. The gangsters arrange how Laura will do the unexpected, especially in this corrupt competition. Laura was focused on the sale of clothes which was her source of livelihood. The gangs understood that Laura does few errands and can also use her celebrity to their advantage.   She turns out to be in an ironic position in that seemed to deserve the beauty queen crown that ended up being tarnished by the drug war that came on her way. Laura eventually becomes a victim in the whole drug war context in this movie (Bradshaw 1).She was also determined to improve the life of her brother. She was on the lookout for anything that would promise her a better life. This is the main reason Laura was struggling for this pageant. Laura is closely followed by the drug gang up to the pageant audition. She, however, met her friend in the pageant by the name Suzu. Laura ends up being accepted as a contestant. Laura tried to look for her friend in the club that evening throbbing with dancers and music (Malkin 1). Laura starts staring at figures that were placed against the theatre’s wall. She realized that that the stage evoked a visual sense from the dimmed theater wings to the lighted stage.At some point, there is a creepy scene whereby the drug cartel invaded the club. They started shooting people in the club and killed many the partying drug execution agents inclusive. Laura finally manages to escape.

Research paper on Europeans in America Example | Topics and Well Written Essays - 2000 words

On Europeans in America - Research Paper Example In around 1000 A.D., Leif Eriksson is said to have discovered North America (Ingstad, 2000, p.1). The early European explorers were trying to identify sea routes, which would lead them to Asia. The first officially known explorer of these routes was Christopher Columbus who undertook his sailing by order of the monarch of Spain in 1492. He made three expeditions before his death in 1506 and was able to identify the Caribbean Islands in the Bahamas. After his death, the Spanish continued the further explorations of new lands. In 1499, Italian navigators Amerigo Vespucci and Alonso de Ojeda sailed to the northern coast of South America and referred to the newly found land as a new continent. The European mapmakers named the new continent America in honor of Amerigo and Alonso de Ojeda. In 1513, a Spanish explorer Vans co Nunez de Balboa crossed the Isthmus of Panama and became the first European explorer to see the Pacific Ocean. In the same year, Juan Ponce de Leon explored the Bahama s and Florida in search of the Fountain of Youth (Space and Warren, 2011 p.4). In 1497, John Cabot, a navigator from England, traveled to the new world. French explorers Giovanni da Verrazano and Jacques Cartier explored the Atlantic coast of the present US in 1524 and 1534. As European explorers continued to look for the shortest sea routes to Asia, they also thought of colonizing the newly found land. As a result, Spain by hands of Hernan Cortes invaded Mexico in 1519 and Francisco Pizarro invaded Peru in 1532. The Early Settlement in America-New Spain Of all the European nations, Spain was the pioneering one to the colonization of America. Cortes invaded Mexico and defeated the Aztec Empire in the period 1519-1521. By 1533, Pizarro had conquered the Incas of Peru. The Spanish in their search for rumored piles of gold and silver in America sent expeditions to Kansas and Colorado under Francisco Vasquez de Coronado, Hernando de Soto and Alvar Nunez Cabeza de Vaca. These early explo rers were searching for cities made of gold and silver, but they did not find them. Instead, in 1545 they discovered silver at Potosi, in what is presently Bolivia, as well as in Mexico in the same year. The new American gold and silver mines remained a powerful base for Spain’s wealth and power for a century. After the Spanish conquest in the new world, the Spanish Jesuits attempted to convert the Native Americans to Christianity. Mission centers were established in the new empire, in Florida, in New Mexico and in Virginia. After defeating the Native Americans, the Spanish established a system of forced labor known as ecomienda which was later abandoned after the Spanish religious and government authorities witnessed the brutality of the system. The Spaniards, therefore, started establishing large estates of land known as haciendas. In the beginning of the 17 century, the Dutch, Swedish, French and English colonists started arriving in the New World. By then, the Spanish col onies in New Granada (Colombia), Caribbean, New Spain (Mexico) were a century old. The colonies were a major source of power for Spain and became the main source of jealously from other European nations. French Settlement in New World By the year 1530, the French explorers had navigated the coast of America from newly found lands to Carolinas; a French explorer Samuel de Champlain had build a foundation of what came to be known as French Canada (New France) in

PESTLE and SWOT Analysis of McDonalds

PESTLE and SWOT Analysis of McDonalds Executive Summary In this report entitles about the external analysis of fast food restaurant and internal analysis of McDonalds cooperation by SWOT analysis and constructing of TWOS matrix that give us the future strategies of MC Donalds. The vital results of external analysis are the there is wide competition with the competitors because it is perfect competition between the firms. The customers are more oriented about the organic food, and also about health issues such as obesity. Such as increasing the organic food is also opportunity and at the same time it will increase the cost, so they should more concentrate pricing of the product. From the internal analysis the firm is stronger in financial position and supply chain and also strong brand image. By combining these elements the firm should go for the research in terms of the health issues and also they can extend the new stores to attract the customers. They should also increase the benefits to the employee s that should decrease the turnover ratio. This report is prepared for the CEO of McDonalds cooperation for taking decision on future strategy Terms of Reference This report is prepared for the internal use only and prepared as the assignment for the strategic management in the course of MBA. The use of this is primarily for accessing the understanding and awarding grades Introduction McDonalds is the one of the biggest fast food chain restaurant having more than 32000 restaurants in 199 countries whole over the world. McDonalds is selling majorly soft drinks and fast food items like fries, chicken, burgers, salads and ice creams. The restraints of mc Donalds are operated such as an affiliate, franchisee, or the corporation itself. In term of long term goals of the mc Donald is satisfaction of customer and loyalty to their brand. Brand image and the unique brand logo are one key success factor for the McDonalds. This is report prearranged in a certain manner that is in the first discussion about the external analysis of the organization by PESTLE and PORTERS five force model for the analysis in industry level. In the internal analysis part discuss about the tangible assets, key success factors ,supply chain, SWOT analysis and formulate the TWOS matrix for the future analysis for future strategies and in the conclusion part entitled about the recommendations and long term strategies. EXTERNAL ANALYSIS In this section deals with the considerate the factors that effect the organization by the external environment. These are forces that the organization would take steps to reduce the effects but could not avoid it totally (Strategic Management Process 2000) Macro environment: The analysis of macro environment is can be done by PESTLE analysis and also other factors like competitors, suppliers, customers. The complete analysis of PESTLE is given in the appendix and some key factors is given in the table 1 The important factors like obesity and other competition is more in the fast food chain, and mc Donalds is also concentrating on the green, price to have competitive edge on competitors, menu based upon the region such as in India Mc Donalds introduced MAC ALLU and O fat items are planning in the menu for attracting the customers more oriented about obesity. Porters five force model Porters five force model is used for the analysis in the industry level; complete analysis of five porters is given in appendix and summarized is given below In the case of MC Donalds from the five porter analysis new entry is very high due to less regulation in fast food industry, substitute threat is low, where as competition and rivalry among the firm are very high so McDonalds pricing is very important. Supply power is low unless the main ingredient of the product is not readily available Opportunities and threats The external audit can be done by using opportunities and threats, the whole Opportunities and threats are explained in the appendix. The opportunities for the mc Donalds such as low cost menu will gain competitive advantage and attract more customers and also such as people also more oriented about the health so McDonalds concretes more on healthier goods o attract the customers. They have main threats like obesity, the relationship with the franchiser, quality also decreasing due to the lack of proper control on the franchising, such as American brand appeal act as threat in some anti American countries, Global recession and fluctuating foreign currencies Key success factors Mc Donalds one of the success factors is franchising with the local suppliers, uniqueness in the brand image, pricing of the meal with the best price, store location in maximum places and easy access to the customers, turnover rate per chair in the McDonalds is high as compare to the restaurants, attracting the customers based upon the kids menu and toys .introduction of breakfast menu and coffee in the menu, localization of their menu like introduction MAC ALLU and mutton in India. Appearance of the restaurant more focus on their values and productivity, Promotion and a continuing focus on building brand loyalty Internal Analysis of McDonalds Internal analysis of McDonalds can be done based upon the tangible assets and intangible assets, strength and weakness, supply chain. These are the factor on which firm has control as they can be alter based upon available resources and increase capabilities. Tangible assets and intangible assets: The vital tangible assets of McDonalds comprise of resources such as financial resources, and also resources in terms physical elements location of restaurants in city, airports and in all happening locations, the trade secret of their recipes, innovative production processes etc and resources in terms of organizational such as efficient strategic planning processes, control systems and excellent evaluation. The vital intangible assets of McDonalds are unique brand identity and their logo. The capabilities of the organizational also important such as satisfaction of the customers are high, product innovativeness and excellent product development capabilities (see appendix). Strengths and weaknesses The strength and weakness are explained in the appendix. The strength of McDonalds is the brand image, their innovative products, uniqueness in their products, strong finical position, more in terms of their stores in the main cities, employee training such as mangers get training in Hamburger University, segmentation of their product such as kid meal, happy meal etc. more concentrate about the customers, turnover per chair is more in McDonalds, strong advertisement campings to attract the more customers, kids offers to attract more customers. Weakness of mc Donalds such as No clear strategic direction, obsolete facilities, higher overall costs than rivals, subpar profits, Falling behind in RD, Too narrow product line. High Staff Turnover including Top management, Unhealthy food image, Uses HCFC-22 to make polystyrene that is contributing to ozone depletion TWOS Matrix: TWOS matrix is build based upon the internal and external factors by using strength, weakness, opportunities and threats. It is constructed based upon comparing of each factor with the other factors of SWOT. The complete TWOS matrix is given in the appendix. In this based upon the TWOS matrix explain about the differ combination as possible. Strengths and Opportunities Because of strong financial position and their unique brand image McDonald can extend their stores and attract new customers. Due to their unique brand image they can advantage over their suppliers. Due to the strong financial position they can invest more on the Research and development example in term of decreasing the fat in the food. Strengths and threats Mc Donalds can take more control on the franchise dealers to maintain the quality and reputation. They can offer novel product and keep the innovation to attract the new customers and existing customers. Weaknesses and Opportunities By creating product in a greener such as decreasing HCFC-22, product quality can be increased and also plan for the healthy meal. By Increase stores in different locating that increases the market penetration. Weaknesses and Threats Applying 0 grams Trans fat that increase the customers who are more oriented about the obesity By changing HCFC -22 in to the carbon free HFC (hydro fluorocarbon) which is not harm to environment. Future Strategy Based upon the different analysis of the firm and by comparing the different analysis the future strategies can be planned. The strategies in term they can be broadly classified in to two broad sections such as business and corporate strategies. The recommendation of the firm based upon the analysis is listed in following section. Business level strategy Such as differentiation of their product to gain competitive advantage, increase in the research to develop food with low fat content that can be decrease the obesity, focusing more on the customers to increase the customer loyalty to the brand. They can also concentrate about the organic food, Labor turn rate should be decreased by giving different bonuses and effective salaries. Corporate Level Strategy Due to the strong financial they can penetrate into new market by increase their store in different locations. And also they go for back ward integration with the suppliers to get the quality goods for low price. Conclusion In this report entitled about the different external and internal environment of mc Donalds and by constructing the PESTLE analysis, SWOT analysis and also prepare the TWOS analysis for the long term strategy in the future.mc Donalds increased their stores about 50 percent in last five years but there is only less increase in the sales about 2percent only so McDonalds is planning to change their strategies to attract the more new customer and planning to increase the customer life time value such that the sales can be increased they should consider about the following factors such as health issues they can increase the organic food, they can also by employing and also proper planning of the queues that can decrease the queuing time and also increase the turn over. Price is also one of the important factor because bargain power is low they can be shift to the other company, so pricing can be properly planned. They can be plan for the deli burger which cost low that will give price adv antage whereas they also keep the organic burger in their menu to attract the health oriented customers and also they can be focus on o fat food that can also attract who concrete about diet. They should plan to decrease the employee turnover ratio. Limitation and Recommendation The limitation would be that the current strategies that are practiced currently have not been reviewed in depth; the future research can be done on analyzing the current strategy of mc Donalds and see how these can be amended to formulate the future strategy.

An Analysis of Chinua Achebes Things Fall Apart :: Things Fall Apart essays

The Importance of Things Fall Apart The novel "Things Fall Apart", by Chinua Achebe, was an eye-opening account of the life and eventual extinction of an African tribe called the Ibo. It focuses on one character, Okonkwo, who at a very early age set out on a quest of self-perfection. Coming from a family ruled by a man who was lazy and inconsistent with everything he did, Okonkwo vowed to never accept the fate of his father. Okonkwo and his family suffered through many hard times in their lives, but usually managed to come out on top. Through terrible crop seasons and bad judgement calls, Okonkwo usually prevailed, until the day came when he was faced with a situation that could not be resolved by his strength and character alone. This novel also provided a very detailed, and seemingly accurate, account of the lives of the Ibo. The Ibo were an extremely spiritual people who answered to their gods daily. A hardworking people who based their personal worth on their community and crop achievements. Their yam crops were the backbone of the community and he who possessed the largest crops were usually respected by all in the community. The Ibo were a very gendered people. The men normally made all the rules and the woman were taught to respect their husbands decisions. In particular, Okonkwo ruled his household with an iron fist. He often beat his wives for small reasons and felt little to no remorse for doing so. While it was not uncommon for the men of the Ibo tribe to beat their wives if they disobeyed orders, Okonkwo was a character that oftentimes took it too far. In one point in the novel he badly beat one of his wives, Ojiugo, during the sacred week. During this time no one in the tribe is to com mit such acts, as it is a time for peace. By beating his wife, he defied the gods and was forced to offer up animal sacrifices and payment to them. This one of Okonkwo's major character flaws, he is stubborn and self-righteous, and wishes to answer to nobody but himself. This even leads to eventual fate, when he refuses to join the Christians when most everyone else of the tribe gave in to their ideas.