CASE ANALYSIS: Far East Optic Cable Inc. VIEWPOINT: Mr. K. Fourex, Chairman of the Board of FEOCI TIME CONTEXT: April 2005 I. PROBLEM STATEMENT: How can FEOCI be rehabilitate in order to retain its business profitability? II. STATEMENTS OF THE OBJECTIVE: 1. To be able to recover from its liabilities, capital deficiencies and debts. 2. To be able to rebuild the shareholder’s trust and confidence. III. AREAS OF CONSIDERATION: Strengths: • FEOCI was incorporated in 1996 in the Philippines with BOI incentives, with a Manila office, and a modern plant in Mactan, Cebu. • FEOCI Philippines had hired 6 Filipino electronic and mechanical engineers who had acquired the technical …show more content…
Only a group of leaders working together can successfully foresee market changes and prepare the company to meet them ahead of time, while also managing the company in the here and now. • Access to Capital - The better corporate governance a company has, the more easily it can access outside capital that the business can use to fund its projects. Since corporate governance includes major shareholders, it connects investors with the business itself, and these investors use their resources and contacts to support the company monetarily. Due to these close connections, capital also tends to be less expensive to finance with a strong corporate governance system. • Better Standards - Corporate governance makes many decisions about business operations, but one of the most important decisions involves corporate standards. Standards affect the quality of products and the goals that the business has in technology, customer service, and marketing. The combined efforts of the business leaders allows the company to accurately judge competition and create standards that add value to the business's products or services. • Better Talent Utilization - Without a corporate governance, business leaders tend to flounder. The lack of clear organizational structure at the top of the company makes it difficult for people to move up the ladder or to aim for a particular position. With a strong corporate governance structure, however, people can find positions that
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Corporate governance is the rules in which companies are controlled. This governance essentially balances the
Corporate governance is a set of actions used to handle the relationship between stakeholders by determining and controlling the strategic direction and performance of the organization. Corporate governance major concern is making sure that the strategic decisions are effective and that it paves the way towards strategic competitiveness. (Hitt, Ireland, Hoskisson, 2017, p. 310). In today’s corporation, the primary objective of corporate governance is to align top-level manager’s and stakeholders interest. That is why corporate governance is involved when there is a conflict of interest between with the owners, managers, and members of the board of directors (Hitt, Ireland, Hoskisson, 2017, p. 310-311).
The article is written to help readers gain a solid understanding the roles of corporate governance, both inside and outside the company. Its goal is simply to impart information, not make claims or arguments on its own. I will be judging it mainly on the sources gathered, numerous examples and explanations given and the overall effectiveness it possesses in effectively communicating its ideas.
Corporate governance is based largely on trust – the trust, by the stakeholders, that revenues will be fairly shared, and that those directly involved in running the company are running it in an aboveboard, honest, and open manner, and that they represent the best
The concept of Governance is simple the system designed to control and distribute power within an organization. According to Hoel (2011), good corporate governance involves having a good leadership structure and the complex system of incentives, checks and balances that makes sure that the organization creates long-term
Corporate governance can be referred to the rules, processes, or laws by which businesses are operated, regulated and controlled. It can also refer to internal factors defined by the officers, stockholders or constitution of a corporation. After finding the meaning of Corporate governance, which can also be referred to corporate responsibility, I thought about the policies in which the company I work for have. I work for Northrop Grumman, which is one of the leaders in global security.
Due to the ownership structure determines the distribution of the control rights of the company which also determines the nature of the principal-agent relationship between the owner and the operator. That’s mean the ownership structure can be determine the corporate governance structure. And the efficiency of corporate governance will finally reflect in the company operating performance.
Corporate governance essentially involves balancing the interest of the business’s stakeholders and the community. Corporate governance can also be defined as the systems by which companies are directed and controlled. It is also important to note that directors and executives must discharge they duties in a legal manner as part of corporate
The corporate governance structure specifies the distribution of rights and responsibilities among different participants in the corporation, such as the board, managers, shareholders and other stakeholders, and spells out the rules and procedures for making decisions on corporate affairs. By doing this, it also provides the structure through which the company objectives are set, and the means of attaining those objectives and monitoring performance. Therefore, the overall purpose of good governance: to assist organisations to achieve their strategic objectives.
Good “corporate governance" is synonymous with “good business management”, that reinforcing surveillance systems, management and administration of a company, making them efficient, effective, honest, transparent and democratic. A company with high quality management will have access to financing (public or private) in better conditions and terms. Make appropriate business decisions to reach a higher level of accounting transparency, more efficiently manage business problems, and gives people, who are not involved in decision making, guaranteed that their interests are well protected. But the most important, perhaps, it is a good implementation of "corporate governance" will be translate into a company more ordered, correctly planning of their strategies and objectives, in addition to strength, liquidity and highly competitive.
Corporate governance is a system that ensures companies are directed and controlled (Roberts 2016a). Boards of directors are essential for companies, because they have the obligation to governance the whole company and draw up long-term scheme to make it success (Roberts 2016a).
Corporate governance is also the way a corporation policies itself. The method is governing the company like a sovereign state, in stating its own customs, policies and laws to its employees from the highest to the lowest levels. Corporate governance is intended to increase the accountability of the company and to avoid massive disasters before they occur. Well-executed corporate governance should be similar to a police department’s internal affairs unit, weeding out and eliminating problems with extreme prejudice. The corporate governance mechanisms provide assurance that the people who sink in the capital will get back the return on this capital.
The purpose of corporate governance is not just to monitor, it is also to provide guidance to those in charge of running companies, board members, managers, shareholders etc. to operate, act ethically and responsibly. It also attempts to bring accountability to the fore, making provisions to safeguard against the misuse of resources whether those resources are identified as financial, human capital or intellectual property.
Corporate Governance refers to the way a corporation is governed. It is the technique by which companies are directed and managed. It means carrying the business as per the stakeholders’ desires. It is actually conducted by the board of Directors and the concerned committees for the company’s stakeholder’s benefit. It is all about balancing individual and societal goals, as well as, economic and social goals. Corporate Governance is the interaction between various participants (shareholders, board of directors, and company’s management) in shaping corporation’s performance and the way it is proceeding towards. The relationship between the owners and the managers in an organization must be healthy and there should be no conflict between the