Core dilemma for corporate governance
Corporate governance is the combination of rules, processes, or laws by which
businesses are operated, regulated, or controlled. The term encompasses the
internal and external factors that affect the interests of a company’s stakeholders,
including shareholders, customers, suppliers, government regulators,
and management. The board of directors is responsible for creating the
framework for corporate governance that best aligns business conduct with
objectives. (Sarah Lewis, 2019)
Marketing Dep
1-The restaurant is smaller than competitors and this point gives them the
advantage to open in a good location with small rent
2-The customer always come because of the high ingredients and quality (brand
Experience and its drive to create loyalty
3-Excellent promotion Efforts
HR Department
1-The management pays above minimum wages to the employees to attract &
motivated the staff
2-Keep the positive brand image and encourage front-line staff increase to their
understanding the restaurant operation and the objective of the company
Operation Department
To get operation efficiency we should develop & empower the people
Financial Department
No Long term obligations
Maintain operating margin at least 10%
Re use the retained earnings in the business cycle
Challenges
2014 fast-casual domestic market grown with many new competitors
High pressure from Wall Street to keep the company’s position with the
expectation of the investors and shareholders
Because the Top management have clear governance and the strategy is clear and
all the manager know the vision and mission so the organization have the ability
to face any challenges in the market and adapt very quickly to any circumstance
Comments on the governance
Stewardship theory
Outsource for Auditing and to give an unbiased opinion and to evaluate the
performance
Mystery Shoppers
A negative experience from any customer will affect on the business
References
Sarah Lewis. (2019). April: [Link]
governance.