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Pre-Assignment Instructions: Download the annual report of a company that has substantial foreign operations.
Assignment Instructions: The Final Project will involve applying the concepts learned in class to an analysis of a company using corporate governanceinformation from their annual report. Using the concepts gleaned from this course, you will analyze the corporate governance activity of the company and write a report analyzing that activity.
Review Chapters 13 & 14 in the text. Address the following questions:
What are the main strategic issues associated with the company that you have chosen?
Discuss the way in which your chosen company has attempted to establish corporate governance.
Discuss the highlights of the auditor’s report.
Do you see any links between corporate governance and auditing?
Expert Answer
The company I chose is Ford
Company has following strategic issues associated with it
- Maintaining companies growth
ford’s 80% businesses outside of its core country maintaining companies growth outside the main country is really hard but God has managed to set up its branches in different countries of the world and ford uses a strategic improvement structure.
By timely Innovation and application of new strategies to the company structure makes ford grow in different markets, as the company is targeting new markets the policies of investment in marketing have very widely changed and improvised over all growth of the company
- Optimizing the risk profile
By optimizing the risks and avoiding taking risks in an unstable market made the company’s risk profile better. Company has introduced new electronic platforms which can predict the risk in the market. And can also forecast the upcoming problems and various issues reducing the overall risk.
- Improvement of cost of capital and margins
Company has set up the plants in multiple global manufacturing facilities which has reduced their manufacturing costs and transporting costs which is directly reflecting in the company’s cost profile. They have started using the sustainable resources which is contributing in companies social and ethical profile as well. By producing cost effective vehicles and rugged vehicles, company’s earning large margins because the customer is preferring their products over the competitors
- Giving out good shareholder returns
Company’s shares are improved by many folds in past few years and company is giving out good returns to their stakeholders. Giving out good returns to the stakeholders made them a reliable brand and investors are preparing the company over the competitors. For maintaining this good return inches company uses a new prediction system to predict the share market according to their investments and Research and Development.
Ford’s work structure includes corporate offices who are responsible for company’s work strategy and above them there are board of directors who are directly responsible to the shareholders. The corporate officers create interest of the shareholders in the company’s Investments. Ford has their own ethical business institute with teaching their employee to create a better working environment. What medical policies made it world’s number one ethical company in last 8 years. Extreme experienced employees and board of directors are leading the company.
In the recent auditor’s report Ford has highlighted the use of Sustainable resources and the green energy. What is producing new electrical vehicles commercial
vehicles and the main message of the audit was to shifting to the greener resources.
Creating a better work place for manufacturing employees.
Yes, there is a link between corporate governance and auditing. Corporate governance is totally dependent on Auditing for a better corporate governance auditing should be done every once in a while. For keeping an eye on the corporate officers and employees the Audit should be practice more frequently in any company which would boost the company’s performance.
