Business Strategy

Business Strategy - BUSINESS STRATEGY CARNIVAL GROUP P O...

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BUSINESS STRATEGY 2005
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Corporate Governance Business Strategy I. Introduction According to the Enterprise Theory of Accounting, a company is considered as separate legal entity having the rights to make decisions independently; despite the fact that company’s capitals might be “rented” from banks or stockholders. Regardless of being the true owners of company’s assets, stockholders cannot interfere with company’s operations without approvals of the executive leaders. Only in certain periodical meetings, the CEO will address stockholders, reporting management’s performance and performance results during the period. This principle has logically created sound issue of agency, which constitutes the concerns of whether managers and directors using the powers invested in them in the light of stewardship or not. Methods are developed in order to give owners of the company certain level of assurance regarding management’s performance. Annual reports are growing in analysis quality and in its detailed nature. Other ways to enhance supervision of management’s work is to have them report their practice of corporate governance. Description of company’s corporate governance will help the owners assess company’s performance transparently and accountably. The paper will elaborate best practice recommendations in corporate governance and compare the guidelines and principles concluded, with Carnival Corporation’s performance. Some of the discussion will involve the company’s activity of merger and acquisition, and how it has affected company’s performance. The focus of the paper is to give an example company strategy to survive turbulences of their environment (including mergers and acquisitions) and their practice of good corporate governance. Page 2
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Corporate Governance II. Corporate Governance II.1 II.1.1 Definition Relating to various types of business practices, definition of good corporate governance cannot be made trough a one size fits all perspective. It has been said that the communal description of corporate governance are like blind people trying to describe an elephant by touch (Ward, 2001). No one gets a full perspective of the value due to the vastness of concept and the variations of their industry. However, trough similar purposes of corporate governance found in most industries, we can formulate a certain guideline of good corporate governance. Good corporate governance is a system by which companies are directed and managed to encourage the creation of value inside their management activities; and to produce transparent performance report towards its parties of interests (“Principles”, 2003). II.1.2
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This note was uploaded on 03/02/2011 for the course BUS 500 taught by Professor Dr.spitz during the Spring '11 term at Deep Springs.

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Business Strategy - BUSINESS STRATEGY CARNIVAL GROUP P O...

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