Corporate Governance Challenges in Retail

Corporate governance is the combination of the process, law and rules by which the entrepreneurs are able to run the business efficiently and regulate the whole organisational process by suitable legislation and practice. The internal control process and the performance of the organisation in the market have effective impacts on the stakeholders of the business including the shareholders, customers and suppliers, social communities, government as well as the employees of the company and management team members, who are paying important role to support the organisational activities can achieve future success (Ansari, Gul and Ahmad, 2017). The organisation Tesco is one of the famous retail firm in the UK which is also expanded in the international market due to is capabilities and financial strength. The organisation is also efficient to play crucial role in the stock market as well as it has strong employee base and colleagues to serve the customers with high quality products and services. However, in the recent era of globalisation, the company suffers from managing its corporate governance and through this study, it is possible to demonstrate the existing issues and identify the strategy of corporate governance for better practice and management. The study explores the internal weakness of the company and mismanagement in the control system for which Tesco is suffering to manage their corporate governance successfully (Nurunnabi, 2017).

Institutional investor’s intervention

There are many institutional investors who try to engage with the corporate firm where they have invested for getting better return on their investment and thus they have the right to be empowered in the organisation and share their opinion to develop a particular decision collaboratively. In the recent era of globalisation, Tesco is facing competitive threats due to its loss in the market and reduction in their sales volume where Aldi and Lidl are playing efficiently and grabbing the market share over the period of time. whereas, Tesco looses it market share and £2.1bn is wiped from stock market value of the Britain’s great super market chain Tesco and thus it is a high concern to identify the situations where the institutional investors have the tight to attempt to intervene directly in the organisational management team in order to influence the decision making behaviour as well as analyse the existing issues for managing the business profitably (Nurunnabi, 2017).

Consequences of bad corporate governance at Tesco and suggested recommendations

Weaknesses in TESCO Company’s internal control system

Critical Reflection

The module is good for me to improve my skill in the field of corporate governance where the organisational stewardship is also there to understand the ethical code of conduct and organisational practice to run the business legally. I try to analyse the business case and the existing issues as well as apply the ethical code and business legislation for better understanding and recommending some suitable suggestion to the firm for maintaining ethical code of practice and good corporate governance. Through this module, I try to improve my leadership skill, problem solving and critical analysis skill in order to evaluate the collected data and information on corporate governance as well as propose better strategy for the firm after effective analysis and evaluation. I also faced challenge to understand the exact organisational issues and internal control system due to lack of skill and first hand data. However, I try to improve my experience through gathering such data and analyse the issue efficiently.

Reference List

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