+1 862 207 3288 Paper instructions:
Report should be between 2,000 to 2,500 words and there is an option to answer one of three questions;
QUESTION 1
Roberto and Maria, brother and sister, are the principal owners of a very successful
retailing business, GoodValue, a chain of twelve department stores. Together, they
own almost sixty percent of the shares of the company. GoodValue is the largest
department store chain in their country other than a chain owned by a European
multinational company.
Commanding the dominant voting power in the company, Roberto and Maria have
always agreed on business strategy in the past. Now, however, Roberto wants to
expand the business both by diversifying into other industries and also by entering
into neighbouring countries. He argues that other industries, such as
pharmaceuticals and tobacco, for instance, represent far higher profit margins. For
her part, Maria argues that GoodValue’s strength has always been the family’s focus
on its core business interest and also on the long-term future of the business.
Rather than have a protracted family row, they propose that GoodValue seek your
advice. The company requests that you write the Board of Directors a report on: 1)
whatever factors are usually regarded as contributing to the success of a familyowned
firm such as theirs; 2) whatever factors are usually regarded as contributing to
the special challenges of family-owned firms; and 3) any other matters that might be
regarded as relevant to their current impasse. Write the report.
To begin your investigation, you will be aided in the first instance by the following
readings;
Credit Suisse Research Institute, Family Businesses: Sustaining
Performance (2012)
https://publications.creditsuisse.
com/tasks/render/file/index.cfm?fileid=88ED9AE8-83E8-EB92-
9D5DE4532F973AAA
PricewaterhouseCoopers, Family Firm: A Resilient Model for the 21st Century
(2012)
http://www.pwc.com/en_GX/gx/pwc-family-business-survey/assets/pwcfamily-
business-survey-2012.pdf
QUESTION 2
DuSo Chemical is a chemical company that is listed on its national stock exchange.
A rule of the exchange provides that every listed company should have at least two
independent non-executive directors on its board.
At the company’s most recent Board meeting, Ilana, the youngest member of the
Board, makes an argument for increasing the proportion of independent directors.
She argues that increasing the proportion of independent thinkers on a Board, a
move favoured by many corporate governance experts, makes a company much
more attractive to institutional investors.
Kaan, the most senior member of the Board, dismisses Ilana’s corporate governance
claim, arguing that there is far too much box-ticking going on in the country recently.
“It’s just silly”, he says. Ilana replies, “Corporate governance is not about box-ticking.
It’s really about the minimisation of risk.” An argument ensues. Two members of the
Board support Ilana. All the other members of the Board support Kaan.
Hani, the Chairman of the Board, suggests that the Board resolve the matter by
requesting a report from you on corporate governance with a focus on the Board’s
role in the oversight of risk. Write the report.
To begin your investigation, you will be aided in the first instance by the following
readings:
Spencer Stuart, The Growing Role of the Board in Risk Oversight (2010)
https://www.spencerstuart.com/~/media/PDF%20Files/Research%20and%20I
nsight%20PDFs/The-Growing-Role-of-the-Board-in-Risk-
Oversight_06Dec2010.pdf
Financial Reporting Council, Boards and Risk (2011)
https://frc.org.uk/Our-Work/Publications/Corporate-Governance/Boards-and-
Risk-A-Summary-of-Discussions-with-Comp.aspx
QUESTION 3
Shining Star is a successful Asian consumer goods multinational. Recent stories in
the Asian press have picked up on the theme in the much of the international press
concerning greater gender diversity on boards of directors. There is only a single
female director on the Shining Star Board out of a total of twelve directors.
The recent stories in the press have influenced the thinking of at least some of the
directors. At the latest Board meeting, some of the directors request a memorandum
on the issue of Board diversity. The other directors agree that a memorandum on the
issue would be appropriate. As a result, the Chairman of the Board contacts you and
requests that you write the Board a report on the issue of the business case for
Board diversity. Write the report.
To begin your investigation, you will be aided in the first instance by the following
readings:
Davis Report, Women on Boards (2011)
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file
/31480/11-745-women-on-boards.pdf
Credit Suisse Research Report, Gender Diversity and Corporate Performance
(2012)
https://www.credit-suisse.com/newsletter/doc/gender_diversity.pdf
TAKE ADVANTAGE OF OUR PROMOTIONAL DISCOUNT DISPLAYED ON THE WEBSITE AND GET A DISCOUNT FOR YOUR PAPER NOW!
