Corporate Governance in China Essay Example | Topics and Well Written Essays - 1500 words

Corporate Governance in China - Essay Example In china, corporate governance has received much attention in the recent years and there have been debates on how china can develop an effective corporate governance system that can improve the number of listed companies in the country. The issue of corporate governance finds its roots and effect in the stock market which is responsible for listing companies. Before a company is listed in the stock market, it usually undergoes a rigorous process of scrutiny on issue of corporate governance. (Berle and Mean 2003, p. 286) This paper will look closely at the corporate governance in china and relate the practices to one of the company, Sainsbury PLC to see how it can adopt such measure and to look at the extent in which it has been able to integrate such measures in its operation. It will first start by looking at the corporate governance in china and later look at Sainsbury PLC and how the aspect of corporate governance can be implemented in the company. Let us first look at the corporate governance landscape in china. The mandate to improve corporate governance in china has been one of the aims of the government for along time. It started with the making of the stock market which came into being after the opening of the economy about one and a half decade ago. The need to improve the corporate governance landscape has been one of the mandates that the government has taken in developing a financial market that serves the country and the business community alike. In recent past, china has made great strides towards the issue of corporate governance which has been through the relationship of the government and the players in the private sector. Government agencies that have been handling this issue have given various laws, rules, regulation and standard that are aimed at putting in place a firm foundation and a framework for corporate governance in the country. (Kim and Giles 2003, P. 51) In order to understand practice of corporate governance in china, we have to accept that china has been undergoing through a transition process which has seen the development of market-oriented economy from a planned economy although this pace of transition has varied with various sectors. But the biggest challenge that the country has been facing has been on the ground that it has taken to development of the concept when most of the important functioning financial market structures like a well defined legal system, regulatory agencies and others have not been put in place or have not been functioning to the required standards. (Clarke 2003, p. 53) Reports coming from survey on Corporate governance (CG ) in the country shows that there have been marked willingness by many companies in china and many businessmen to develop accepted standard of CG not only for the domestic market but also they have been casting their sights higher than the domestic market. They have shown willingness to improve CG practices like shareholder rights, environmental control, improved level of transparency, empowering of boards, and other practices which are aimed at improving the business landscape of the country. There has been a general recognition that improved CG makes an organization more attractive to the investors and more profitable. Let us look at some of CG practices in china and the recent efforts by

Strategic management Essay Example | Topics and Well Written Essays - 2500 words - 10

Strategic management - Essay Example These three important statements serve as a track or guideline and assist each and every individual to work in a way that not only conforms to what organization is intended to do and has stated, but also leads toward successful completion of tasks in a distinctive way. Before getting into the discussion of strategic development it is important to understand the meaning of strategy. According to Dobson et al (2004), it is about achieving competitive advantage through distinctiveness- delivering a unique value addition to the customers, and having a clear view of how to position yourself uniquely in your industry. In order to make the concept clear I will shed light on Red Bull; a famous energy drink on which a lot of work was done in order to tactically develop proper and advantageous market strategies. To tailor this product according to the diverse needs of individuals, they positioned the drink as an energy drink coupled with adventurous advertisements and sponsorship of famous sports known as formula 1 (F1). Whenever an organization plans to make any strategy, it needs to carry out an analysis in a way that not only takes into account the strength and weaknesses of the organization but also the environmental factors that might act as a stimulator or may hinder their performance (Joyce and Woods 2001). This analysis is very much useful and is mandatory to be carried out. Red Bull saw growth potential in western markets and launched their product by making changes in the old THAI product. However, while launching their product they had to face few limitations as well. There was a huge criticism regarding the Red Bull energy drink in terms of its ingredients. When the product was first launched it took about 3 years for the approval of its sales in Austria, however, Hungary became its first foreign market in 1992. The exotic nature of its ingredients was one of the reasons