Case Study: Vortex Infosys Pvt. Ltd.

One of the principals of corporate governance is to answer the questions of would the management be trusted to run the business in the best interest of the owners? How would they be held accountable for their actions? How would absentee owners keep control over the managers? So in order for corporate governance to take place and to be effective is to make sure that the elected board is doing their job.

This review intends to explain the author’s U.S. corporate governance system. Moreover, it tries to explain the system and rules for making decision of the board of directors, managers, stakeholders, and shareholders. In “A Primer on Corporate Governance”, author Cornelis A. de Kluyver, dean of the University of Oregon, provides an explanation of the American system on corporate governance. De Kluyver writes this book for students and executives who wish to enter the world of management; that includes working or dealing with a board of directions in a corporation. This book intends to expand their knowledge of management and governance. The author starts by giving a summary on the history of the U.S corporate governance system. The first part of the book shows how important it is to keep a balance of power within the corporate governance. The second part of the book focuses on the responsibilities of the board, such as selection of CEO, risk management, strategy development, unexpected events and crises. Its purpose is to inform students and future executives of the importance of corporate governance and the function of the board of directors, because it seems that most people have received little to no formal training in these subjects.

Infosys should consider expanding its operation into other foreign markets and industries. As indicated in the article, Infosys gets over 70% of its revenue from the United States and the majority of its big clients (such as Goldman Sachs, Visa or JC Penny) come from various industries but all of them are very sensitive to changes in the US economy. In order for Infosys to not only maintain but also increase their sales growth in spite of the referenced economic downturn, Infosys has to expand its global account management system along with restructuring its strategic account management. First and foremost Infosys should build a reliable network of foreign intermediaries in Asia and

Corporate governance is the key element of how a company make its decision-making and distribute the

Corporate governance is characterizes a term that refers broadly to the rules, procedures or laws which businesses are operated, regulated, and controlled. The term can refer to internal factors defined by the managers, officers, stockholders or constitution of an enterprise, and also to external factors such as consumer groups, customers and government regulations. It could also be the interaction between different participants in forming corporation’s performance and the way it is continuing towards.

Infosys Technologies Ltd. defines designs and delivers technology-enabled business solutions that help Global 2000 companies win in a Flat World. Infosys also provides a complete range of services by leveraging their domain, business expertise and strategic alliances with leading technology providers. Infosys has a global footprint with 63 offices and development centers in India, China, Australia, the Czech Republic, Poland, UK, Canada and Japan. Infosys and its subsidiaries have 122,468 employees as on September 30, 2011. (Infosys, 2010)

Management and shareholders, a company must necessarily act through individuals. The functions and responsibilities of corporate directors, who are entrusted with its management, arise by virtue of this nature of a company. Company management can only be effective if those who manage are allowed a certain measure of freedom and discretion in the exercise of their function. Contrarily, effective control of management is vital in the interests of the company itself and its various stakeholders.

Corporate governance is the system of rules, practices and processes by which a company is directed and controlled. Corporate governance essentially involves balancing the interests of a company's many stakeholders, such as shareholders, management, customers, suppliers, financiers, government and the community.

Indian companies have finally woken up from their slumber to take cognizance of the stark correlation between managing their succession plan and their financial turnover.

The case focuses on strategies incorporated by Infosys Technologies, a leader in IT solutions provider in India, and their challenges faced to mark their presence in the Consulting domain. Driven by the aspiration of COO Kris Gopalakrishnan to “compete with the best” and to be ranked alongside IBM and Accenture in the business and information consulting industry, Infosys Consulting (ICI) was established in April 2004 as a wholly owned U.S. subsidiary of Infosys Technologies. ICI was headed by five managing partners namely-

Lu Qin founded Keda Industrial Co., Ltd. in 1992. The enterprise manufactures building material machinery and manages of energy resources. The company’s headquarters is located in Shunde, China. After starting as a small business, the company became a world industry leader after surpassing most of its competitors. Various factors such as research and development, coordination, and inventory management influence the success of the company. However, the challenges in business organization, inefficiency, and government pressure forced the firm to reconsider enterprise resource management (ERP) to alleviate some of the issues.

Corporate governance introduces structure where accountability and control of corporations are put in place. It is concerned with how corporate entities are governed as distinct from the way the company is managed. There is both self and legal regulation in the guideline of corporate

A)Corporate Governance is a structure of the company by balancing all the individual, corporation and society interest. It also helps to create relationship between company board, shareholder and stakeholder and have proper functioning of organization to prevent fraud. Board of director in the company is being appointed by the shareholder and was been audit by them if the director managing and operating the business well by reporting or having general meeting. The responsible of the board of director are achieving the company objective, provide leadership and supervising the management and reporting the shareholder about the achievement and problem. All action of the board are subject to laws, regulations and shareholder. There are various theories that underline the development of corporate governance which include Agency theory, Stakeholder theory, Stewardship theory, etc.

Corporate governance can be defined as the process, customs, laws by which the affairs of a company are managed and controlled it also

Governance in the Oxford dictionary is defined as “control or influence”, while corporate is defined as “shared by all members of the group”. Therefore corporate governance refers to the structures and processes for the direction and control of members of a group. It is concerned with holding the balance between economic and social goals and between individual and communal goals. The governance framework is there to encourage the efficient use of resources and equally to require