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Introduction to Corporate Governance
This report is based on the corporate governance and its relevance to the Waitrose, a grocery retail company in the UK. The Corporate Governance is referred to as the different styles and the procedures that allow the company or the different companies to maintain their strategy and their working procedures in a given time, in their respective business environments. It has been seen that the Corporate Governance is governed by the statute combination of their stakeholders, suppliers, management authorities and the decision-makers of the company. Therefore, it may be stated that much of the fate of the company is dependent on the Corporate Governance scheme of the company.
Background of the Waitrose
After its establishment in the year 1904, Waitrose has been dealing with the grocery and the supermarket facilities in the areas of the UK. Since its establishment, the Waitrose has been burdened with the responsibility of providing the products and services of superior quality to the customers of the UK. By 2015, the company has produced over 350 branches of its presence and all of these are implemented with similar objectives to supply the products to the customers that are of superior quality and value as compared to the other companies that are present in the UK. It is currently the 6th largest grocery retail in the UK. One of the most notable contributions of the company is that they have the legal warrant for supplying the grocery and the wine to the queen’s palace in the UK. Currently, the Waitrose provides employment to over 91000 employees in the UK.
It has been observed that the different processes and the business environments have led to the changes in the structure of the business operations for the Waitrose, including the exit of the UK from the European Union. However, the strict Corporate Governance strategies of the company allow them to sustain their business statistics in the recent years. Waitrose has been considered to be one of the first supermarket companies that dealt with the sale of the organic foods and therefore influence the procedures of environmental protection in the UK. However, the prices of the products and services are comparatively higher, as compared to the dominating companies in the UK including Tesco and Sainsbury’s.
Successful aspects of Corporate Governance in the Waitrose
In the modern context of the business environments, it has been observed that the changes in the business environments have led to the differences in the corporate governances of the companies. In the context of the Waitrose, a similar situation has been observed. A number of successful aspects of the corporate governances have been observed in the context of the Waitrose. These include the development of the economy of the company since its exit from the European Union. It has been observed that the Brexit elections and the consequent exit of the UK from the European Union led to a severe crisis in the economic stability among the different companies in the UK. Waitrose has been similarly burdened with similar fates and the resultant lack of the economic stability has been observed since then. However, the strategies of the successful execution of the corporate governances allowed the company to have successful insights and thereby improve their economic stability very successfully at a faster rate.
The maintenance of the superiority in the quality of the products that are offered by the Waitrose, in spite of the lack of the financial stability has been another area that has led to the insights for the company to ensure their effective and efficient incorporation of the corporate governance in the context of the Waitrose. Therefore, it may be ascertained that although the company had faced an economic scarcity after the disintegration of the UK from the European Union, yet the quality of the products and the services of Waitrose remained unaltered and this contributed to the aspect of the successful implementation of the corporate governance of the Waitrose.
Factors leading to the success of the Waitrose
It has been noted that the Waitrose has been successful in the recent years and the major factor that have attributed to their success has been laid towards the strict implementation of the corporate governance of the company. It has been noted that the Waitrose has been one of the largest employees owned retail in the UK. Therefore, the major decisions and the skills for the marketing have been laid towards the development of the employees and their skills. It has been seen that the major reasons relating to the maintenance of the quality of the products and the services for the company has been sourced towards the specialised skills of the employees that allowed them to provide the superior quality of products even at the lack of the availability of the resources. Moreover, in this case, the risk management of the company has played an active role, and it stated that the company are required to maintain the quality of the products that they have been producing in the recent years. Therefore, in this case, both the skill of the employee and the decisions of the management of the company have their active involvements in the development of the stability of their economy.
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The lack of the effective advertisement strategy has been one of the major drawbacks of the company. In this context, the retention of the customers becomes difficult for the company. However, the corporate governance skills of the company allowed them to eradicate this barrier. In this case, the company had planned the strategy of providing sponsorship to one of the leading grounds in the UK. Although, the company did not believe in the overcharge of the sponsorships and advertisements, yet it decided to provide one of the sponsorships in the jersey of the England cricket team. This allowed the customers to be attracted towards the company. The international concern also aroused and this has led to the active retention o the customers in the areas of the UK and Wales. Therefore, in this case, the different areas of the corporate governance from the company management executives allowed them to have their only sponsorships in the England cricket jersey. This provided them to survive the economic success in the context of the UK, after the Brexit elections.
Sustaining the aspects of the success
It has been noted that the success of the Waitrose has been attributed to the different strategies and the modes of the corporate governance. However, in order to have a continuous development in these business perspectives and at the same time, in order to have their successful economic growth in the future years, the sustainability of these methods is required to be important for the company.
One of the sustainability methods that may be adopted is the stable maintenance of the quality of the products. It has been seen that the only factor that has led to the increased retention of the customers even at the times of the economic recession for the companies in the UK, is the superior quality of products by the Waitrose. Therefore, in the future years, the superior quality maintenance may allow the company to have the desired quality of economic stability and sales in the UK.
Another important method is the ability of the company to accept feedbacks and the implication of the environmental protection initiatives. The feedback systems may allow the company to have their orientations towards the development of the different departments and aspects of the company. Therefore, in this case, the company may implement the feedback system. It may provide the insights for assessing the weaknesses and thereby implement the desired changes in the company. On the other hand, the environmental protection plans for the company may allow the Waitrose to have their modes of operations-oriented towards the availability of the products that are environmentally friendly. This may improve the customer retention and at the same time, may allow the company to have their desired modes of corporate governance in the future years.
Aspects where the Waitrose has been less successful in incorporating corporate governance
Lack of advertisements
One of the major areas where the company have failed to achieve the desired levels of corporate governance is the areas of the advertisements. It has been seen that the Waitrose do not have the management that supports the extensive use of the advertising procedures for the company. It has been seen that the company has comparatively lower levels of advertisements as compared to the other grocery retailers in the UK including the Tesco and the Sainsbury's. In the recent years, the level of annual sales of the company has seen to be reaching satisfactory levels, as compared to the other companies in the UK. Therefore, it may be stated that the advertisement schemes had led to the shortcomings in the levels of the corporate governance in the context of the Waitrose.
Lack of additional discounts
Many of the companies in the UK, is based on the different business management schemes including the levying of additional discounts on their products and services at the different times. It has been seen that the leading grocery retailing companies including the Tesco and the Sainsbury’s have led to the development of a number of aspects including the attraction of a large number of customers in the region of the UK. In many aspects, the lack of the extensive discounts led to the loss of a large number of customers in the UK. However, the company had other strategies that allowed them to maintain a stable number of customers in the UK, including the production of the products and services of superior quality. Therefore, in this context, it may be ascertained that the lack of the proper improvisation of the discounts led to the lack of the increased customer retention ability for the Waitrose in the recent years and thus, may be considered to be one of the lack of the activeness of the corporate governance for the company.
Reasons for the lack of implementation and recommending ways to achieve these
It has been noted that levels of advertisements have been noted because of the insufficiencies in the modes of the decisions by the management of the company. It has been stated that the different higher professionals had different views about the advertising strategy of the company. It has been noted that the lack of the stable means of advertisements sourced to the ethics and the differences between the decisions of the management. The same sources are responsible including the higher annual profits led to the company to devise the strategy to have no discounts or very minimal discounts on their products and services, as compared to the products and services of the rival companies in the UK.
In these cases, the recommendations may be stated as follows
Increase their modes of advertisements
Advertisements play an important role for the companies, especially the business companies, to increase their levels of awareness among the customers of a given area. Therefore, in the context of the Waitrose, it has been seen that the increase in their modes of advertisements may allow the company to attract a large number of customers. At the same time, the newer products that may be introduced by the Waitrose may be introduced to the customers through the active modes of advertisements. Therefore, in this context, the advertisements may be another way by which, the corporate governance strategies may be achieved by the company.
Increasing their environmental protection campaigns
The company may increase the levels of their campaigns for the environmental protection. The increase in these campaigns may allow the company to showcase their levels of environmental awareness and their ways to protect the environment to the general people. As a result of this, the company may increase their number of customers and as a whole, the number of customer bases increases. Therefore, increasing the frequency of the environmental protection campaigns may allow the company to retain an additional number of customers in a given period of time.
Finally, it may be stated that the overall assignment states the importance of the Corporate Governance in the context of the business environments of Waitrose. It may be concluded that a number of hurdles may be exposed to the business processes of the company. This may be a result of the development of the different adversities in their business environments. However, the flexible nature of the corporate governance allowed the company, to have their desired development in their modes of business operations in the UK. Therefore, the corporate governance holds the responsibility for the success of the Waitrose in the recent years.
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