Jb Hi-Fi's Corporate Governance Structure

Porter’s Five Forces (1980), named after Michael E. Porter, is a critical framework to access the level of risk and degree of potential profitability of each industry in which firms are competing. Specifically, five forces are shown in Figure 1, are includes competition between rivalry, potential of new entrant, threat of substitute products, and pressure on bargaining power of suppliers and customers.

142). The Hershey Company`s board can be described as an Anglo-Saxon model, which is typically for American companies. It is a one-tier board, where the employees of the company has no direct affiliation or representatives among the directors. This may be a source of Type 3 agency problems (stakeholder vs. shareholders) (Thomsen and Conyon, 2012, p. 20). The board is led by the companies` CEO, Mr. John Bilbrey while other directors are in charge of different committees. Pearce and Zahra (1991) examine the relative power of the CEO and the board. Their matrix suggest that The Hershey Company board is a Participative board as both the CEO and the board exercise a lot of power. John Bilbrey has been involved with The Hershey Company in several positions since 2003 several years and is likely to enjoy the trust and favor of the board of directors through his seniority and as the company stock has been steadily increasing throughout his period at the wheel (Thomsen and Conyon, 2012, p. 172). Due to the fact that he also is on the board himself, he also get to know the board better and get better handling of them.

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).

Common stockholders are the basic owners of a corporation, but few stockholders of large corporations take an active role in management. Instead, they elect the corporation’s board of directors to represent their interests. Board members seldom get involved in the day-to-day management of the company. They establish the basic mission and goals of the corporation and appoint

This report is looking into the organization JB Hi-Fi the vision, mission, values and challenges facing the organization, while identifying and analyzing the business. It will also feature a SWOT report followed by and over view of the organizations issues. Lastly the report will look into current and ongoing HR issues within the organization.

To ensure that the company thrives and overcomes the crisis that may come on the way, the company has various strategies and ways to overcome that and to keep the company on the track which includes constitution and board of directors which has various roles and responsibilities. The company has got a constitution and also corporations’ act. The companies’ values are the trust, integrity and honesty. The board carries out the duties in regard to the interest of the companies’

The following report will analyse both JB Hi-Fi and Dick Smith’s financial statements to decide which of the companies would buying shares be beneficial. Moreover a comparison of the Corporate Social Responsibility (CSR) of the two companies and why it does/doesn’t change the decision of who to buy shares from.

It is essential that the role, duties and responsibilities of directors are clearly defined. The Combined Code (2006) states that “the board’s role is to provide entrepreneurial leadership of the company within a framework of prudent and effective controls which enables risk to be assessed and managed”.

With a strong sign of the success of the business in October 2003, JB Hi Fi was floated on the Australian Stock Exchange.

In large corporations the success or failure of the company is the responsibility of the board of directors. According to Richard DeGeorge, “The members of the board are responsible to the shareholders for the selection of honest, effective managers, and especially for the selection for the CEO and of the president of the corporation.” (p. 202). The board members have a moral responsibility to ensure the corporation is run honestly, in respect to its major policies, and to ensure the interests of the shareholders are satisfied. The next responsibility within a corporation is the responsibility management has to its board of directors. DeGeorge writes, “It must inform the board of its actions, the decisions it makes or the decisions to be made, the financial condition of the firm, its successes and failures, and the like.” (p. 202). The management of the corporation is morally obligated to

Company: JB Hi-Fi limited has achieved sales of $3.65 billion in the financial year of 2015, with a total sales growth of 4.8% and comparable sales growth of 2.9% on last financial year. In 2015 the net profit tax has increased 6.4% to $136.5 million, earnings per share increased 7,4% to 137.9 cents per share and the hole dividend for the 2015 financial year increased 7.1% on the before financial year to 90.0 cents per share. JB HI-Fi Capital Management area has conducted regular revirews of all the aspects of its capital structure with the main focus on increasing all returns to its

It is the board's responsibility to consider and authorize a suitable remuneration package for the company's chief executive officer (CEO), make recommendations with respect to the attractiveness of dividends and dividends pay out, approve stock splits, form the audit committees, approve the company's financial statements, oversee management’s involvement in the shareholders and other stakeholders long-term interests and recommend or discourage major decisions such as acquisitions and mergers.

Anheuser-Bush Corporate Governance Charter (AB InBev, 2021) the corporate governance charter is a comprehensive document prepared by the organization with covers the company's expectations for ethical conduct at all levels of the organization.

The board also acts as a guardian for all ethical processes and outcomes from decisions executed by the operation of the business. Another important aspect is that of a facilitator and leader which entitles the communication between management and relevant stakeholders and interlocks the close partnership between the important individuals the employees and the management of the business.

The board will help set strategies, direction, vision, hire/fire top management, monitor and supervise top management, oversee the use of resources, and care for shareholders' interests (Wheelen & Hunger, 2006, pp. 36-37).