Corporate strategy and Governance

This report will analyse research objectives and also make search questions in the context of Thomas Cook. This report will also discuss about the primary and secondary research, which will be helpful to write this report on corporate strategy and governance. Primary researches will used for  Thomas Cook, in which they can directly ask question to the customers about market and market but secondary research will be used by the company to collect data from online sources, newspapers, etc. this report will briefly explain both the method below. It will also analyse the purpose of this research in this report. This report will conclude by providing a literature review on the basis of research objectives. This report will provide recommendation and also conclude action plan of the company.

In the action plan report will cover seven steps. In the first step, it will define the problem according to the  Thomas cook company. second step- report—will collate the data and after collecting data from the various sources, the report will analyse that data. Third step: this report will clarify and prioritize the problems. Fourth step: this report will write goal statements and provide solution for each statement. Fifth step: after making the strategies and finding solutions, this report will implement them on the workplace of  Thomas cook company. Sixth, this report will explain how managers and leaders of the  Thomas cook company will monitor and evaluate the solutions of the problems. Seventh step: In the last step, this report will analyse the new problems  and refine the old problems of the  Thomas cook company. In the end of this report, it will critically evaluate the industry life cycle of the  Thomas cook Company, and it will also reflect on the existing strategies of the company.For those looking for additional support, Corporate Finance Assignment Help is available to assist with your academic needs.

Background of organisation

The present study is based on business activities of British Global Travel Group; this is the enterprise that operated their work as Travel group. It offers wide range travel services such as foreign exchange, international and domestic holidays, etc. It is entity that deals in hospitality and tourism services.

Review of problem

The present research is based on the topic of the identification of corporate issues that impact the working of the enterprise in a crucial manner. Henceforth, these guiding principles of corporate strategy range from customer demand and this also helps to drive industry in particular manner.

In addition to this, Corporate governance strategies impacts the working of enterprise as this restricts shareholder liability and also has limited liability protection.

Research objectives

1. To analyse meaning of Corporate Strategy and Governance.
2. To understand the impact of corporate strategy within Business.
3. To analyse different ways by which corporate governance of Thomas Cook's failure can be revised for embracing business performance.

Research question

• What is the meaning of Corporate Strategy and Governance?
• What is the impact of corporate strategy within Business?
• What are the ways by which corporate governance of Thomas Cook's failure can be revised to embrace business performance?
• Overcome strategies from these issues and improve their performance

Purpose of the study

The main objective for doing this research is to know why corporate governance is necessary within business. How it can help this company run smoothly and effectively Thomas cook is an integrated travel and tourism-related financial service company (Rummler and Brache, 2012). This British organisation collapsed after 178 years of operating business. The shareholders of this firm allowed it to pay an amount of more than $20 million to directors between 2014 and 2018 (Thomas Cook collapse, 2019). The CEO naming Peter Fankhauser was given $8 million. They does not pay benefits to their stakeholders, even they have made good profit in the market. The value of this firm collapsed by 95% at that time.

The executive pay bill defines a small proportion of the total value of the company, and savings were not there. Thomas Cook was operating in a highly competitive market, and there are high profit margins due to an increase in competitor’s threats and traditional high street operators. This firm was not providing equal pay to its employees and this created problem in maintaining healthy relationship between management and employees. This company was not able to make money, and it was working at a breakeven point where this company is making no profit, no loss. Both employee satisfaction and customer satisfaction were not present. This research study will help to know the impact of the corporate strategy on the Thomas Cook. Corporate strategies are important for this company to maximize their profitability and also maintain financial success in the future.  Thomas cook company can use this strategies to gain opportunities in the futures and also achieve goals and objectives set by this company. This research study will also help to find ways by which corporate governance of Thomas Cook's failure can be revised for embracing business performance. It is imperative for this company to look for their policies to improve their business performance. If the company is in profit, then it is the responsibility of the Thomas Cook Company to give benefits to their employees as well, and they need to provide equal pay to the employees so they can stay motivated. It will help them to overcome the governance problem in the Thomas Cook Company.

Review of the literature

According to views of Yin and Zhang (2012), corporate strategy and governance is known as number of internal rules and policies that are helpful for an organisation in directing itself for enhancing business performance. It is responsibility of corporate governance to make effective business decisions that can help in increasing profits and money earned by the company. It is important for the  Thomas Cook company to stay connected with their stakeholders because governance practices can positively impact on the performance of the company . Corporate governance is the matter of the law based on the corporate securities laws and company policies.  Corporate governance is a necessary part of strategic management which helps to improve the performance of the organisation. It is important for the leaders and managers of the Thomas Cook company to understand that what corporate governance is, It can be helpful for them to allow to see their representative of the business The central purpose of corporate governance is to make companies managers accountable to the stakeholders of the  Thomas Cook company. Without the corporative structure in the  Thomas Cook Company, managers will be free to take their own interest , but it will not necessarily be in the interest of the company. Corporative governance keeps the manager of the  Thomas Cook company to limiting their powers so they can focus on improve performance of the company. There are many benefits from corporate governance; it helps to perform between because their managers are more inclined to make the decision that favors the companies business.

Governance is the set of rules of the company that are decided by the board of directors, and they ensure fairness, transparency, and accountability in the company's relationship with its stakeholders. Stakeholders of the company are customers, employees, the community, investors, leaders, and managers. And it is also known as corporate governance.

Thomas Cook is suffering from the serious lack of diversity in the company's workplace. The lack of diversity and equity is affecting the company, so it is important for Thomas Cook to pay equal salaries to their employees to overcome this issue. They can be demotivated because of unequal pay by the company. It can create conflicts in the company, and employees will not give their best toward their task. Employees in the Thomas Cook Company are demotivated, and it is important for the company to motivate them again so they can help to gain goals and objectives for the company. They should fix salaries of the employees and provide incentives to the employees so they can motivate again and start doing their task effectively.

According to the viewpoint of Wu  and Lu (2012), it is analysed that Thomas Cook is a great example that reflects that it is so important to have good corporate governance as it will help in making strong decisions in favour of the company. Corporations exist to earn profit and provide revenue and wealth to the stakeholders. The board of directors in small businesses—typically these individuals are the shareholders—and management of the company sets the goals and objectives for their business. How the Thomas Cook Company pursues its goals is its corporate strategy. Corporate strategy is the overall direction that helps to achieve the goals of the Thomas Cook Company's business. It is the ways in which corporations marshal their internal operational resources effectively to achieve their goals. Corporate has some additional components, such as the mission and vision of the Thomas Cook Company, sources of their competitive advantages, and sources of synergy. Corporate strategy has implications for several areas of the company and plays necessary roles in those areas.

A company with their customers-well-focused strategic have a proper corporate strategy, which has huge impact on their marketing.  When Thomas Cook can project and envision the long-term profit implications of those customers. It is able to capture as much of that buyer's lifetime values as possible. In addition, companies can make good relationships with their customers, gain the locality of their customers, and take competitive advantages. Another corporate strategy is knowledge-based synergies. It can impact knowledge on the Thomas Cook Company as a whole. A good corporate strategy may involve a new product or opening a store in a new location. It can help the Thomas Cook Company expand, and the company can expand their business more. This corporate strategy directly affects the company's profitability, and the company can show their presence in the market and take competitive advantages of the company. A company may have expansion goals but realize that opening new offers would be too costly, so they should have good financial resources to open their stores in the new locations. Instead, it opts to build out their information technology infrastructure so the Thomas Cook Company can help their employees do their tasks in a more effective way.

Corporate strategy has implications for personnel as well. The strategy dictates how fast a  Thomas Cook company expands their business in market, what products and services it provides and how the company grows in the market, for example, through increased sales and marketing or through acquisitions. The pace of  companies growth impacts on how many people a corporation will need to hire for the company. The focus of that growth determines the skill and ability level of the new employees and any training needed for existing employees. If growth of the company is slow, then Thomas Cook Company needs to provide training to their employees so they can increase their potential and kills. It will help company to boot up their market growth and take competitive advantages.

According to There are some steps to overcome from this problem. This will help in development of effective strategies and plans that will lead to business success. On the other hand, if there is no good corporate governance, then business will collapse.

The company does not fulfil their promises with their stakeholders, which was the first reason behind the failure in Thomas Cook's corporate governance. company can overcome from this failure by fulfilling those failures. The company promised to pay an amount of more than $20 million to directors between 2014 and 2018. The CEO naming Peter Fankhauser was given $8 million. They does not pay benefits to their stakeholders, even they have made good profit in the market. The value of this firm collapsed by 95% at that time. CEO of the Thomas Cook company should realize their mistake, and he should pay them their dues. It will help them to create good relationship with their stakeholders and other people can be motivated to invest in this company. Trust among the stakeholder will improve the company's reputation in the market, and they can show their name as a reputable brand.

Employees are also stakeholders of the company, and the company cannot be successful without the contribution of the employees. Most of the employees in this company do not get equal wages, which is also a reason for the failure of the company in their corporate governance. The company should provide equal pay to every employee of the company because they make the company successful. The company should provide equal pay to the employees so employees can be motivated and give their best to achieve their business goals and objectives. Managers and leaders of the company should motivate them through the reward strategies. They can give rewards to the employees who are doing well in their job. reward system will motivate employees of the  Thomas Cook company

The Board needs to balance conformance  with the performance aspects of the company's work, Such as improving the performance of  Thomas Cook company through making new policies and strategy formulation. In this process, the board of the company needs to detail its position and also understand the major functions it performs as conflicting with those performed by the company's management.

Clarify the board's role and strategy

In accordance with Li, Terjesen, and Umans (2018), Thomas Cook needs to manage their overheads, such as rent, expenses, and insurance. If the overheads reach a high level, then it will disrupt the ability of the company to maintain quality in their operations. company needs to realize the factors which are incurring as extra expenses so that they can be reduced and company can focus on other areas which can help them to improve their performance. As per the view of Su and Sauerwald (2018), Thomas Cook needs to monitor their performance so that they can evaluate whether or not the employees of the company is working towards achieving the goal. The reason behind this is that if they are not working up to their potential, then one of the reasons which is affecting the performance of the company will be this one. In order to improve this measure, they need to set indicators for performance, which will help them evaluate these factors and bring about change in them. They need to clear the vision of their employees because if they are not working with clarity, then it will lead to errors in work. If they evaluate these factors, then they will be able to improve the performance of the employees till the end of management cycle. According to Hamilton et al. (2019), they need to gather and listen to feedback so that they can save the reputation and image that the company has earned in the market. Thomas Cook serves in the sector of tourism, which requires serving effectively to their customers. Considering the feedback and working on them will enable the company to focus on those measures which need improvement, such as the area of customer service, which will help them to improve their performance in the overall market. Thomas Cook needs to respond to their competition as there are many companies which are serving in the same sector and can affect the growth of Thomas Cook. company needs to keep an eye on their competitors so that they can evaluate the forces and measures which they need to take as their next step so that they can compete with them and win over the share of competitors in the market. Thomas Cook will need to adapt new technologies sooner than their competitors so that they work on taking out effective solutions to the problem and improve the quality of customer service by implementing modern approach in their culture. Thomas Cook needs to prepare for the upcoming forces in the market, which can leave a negative impact on the performance of the company. market is uncertain and in order to increase their share, they need to keep up with the available trends in market and offer all the new and updated services. Fluctuation in demand can affect the business of the company. It is important for Thomas Cook to figure out the right staff and hire them after checking that if or not they measure up to the eligibility criteria of the company. As per the view of Rasche, Morsing and Moon (2017), Thomas Cook needs to hire people who fits perfectly according to the criteria of work. These employees will help the company improve the experience of customers by delivering them better service quality. With this strategy, company can retain their consumers for a long period of time and maintain their base of customers. They need to serve according to the taste and preferences of achieving growth in market. The most important factor that Thomas Cook needs to maintain is the flow of cash and check that they are able to meet with the bills that are outstanding or the payments which are pending so that they can survive in the market with achieving growth. In accordance with Madhani, P.M. (2017), if the company is able to overcome the barriers upon these strategies, then they will be able to achieve growth in market and reduce the negative impact.

Discussion of the primary and secondary research

RESEARCH METHODOLOGY

Research methodology is defined as different methods by which a researcher tries to investigate research. This is a way by which aims and objectives of the research are analysed (Saeidi et. al., 2015). There are basically two ways by which research is conducted and these are qualitative and quantitative. In the present research, investigator is using both qualitative and quantitative method for analysing the aims of this research.

Research Onion: This is considered a model that is essentially made up of three basic philosophies: axiology, epistemology, and ontology.

Research Design: In the current investigation, combination is concerned with various methods that allow researchers to easily gather relevant data for the project they want. In the present research, investigator is using descriptive design type of investigation over a given topic (Schaltegger and Wagner, 2017)

Data collection: Primary and secondary are two different kinds of data collection, which are given below:

1. Primary method: This is known as data collection, in which first-hand information is analysed.  Some of the methods that can be used are observations, questionnaires, interviews, and many others.
2. Secondary method: This kind of data is collected by using already existing information by using different sources such as articles, newspapers, online sources, etc.

Data Collect:

There are two types of method of research and in this report, the researcher will be taking both of them, that are primary and secondary.

Secondary research involves the data that is already existing in the market, and it can be used to increase the effectiveness of the research. This research involves various methods and published reports, such as similar documents. Secondary data can be extracted from library, already filled in surveys and websites. This type of data can also be extracted from the agencies of government as well as non-government to conduct the research. This research is considered a more cost-effective method as compared to the method of primary research because the data which is used in the research is already existing (Sari et al., 2018). This will help Thomas Cook identify the causes of impact on the performance of the business.  Some of the ways from which secondary data of resources extracted are

Data available on the internet:

This is helpful for the company as it can be easily extracted in a shorter amount of time. Data is available on the internet and it can be easily downloaded. If factor of cost is evaluated for this method, then this is basically free for the company. Internet has many webpages which contain a lot of data, and company can identify which are the factors they need to change and improve so that they can achieve growth in market. researcher can easily collect the information, which will be according to the needs of the company and can help them. researcher needs to collect the information from authentic sources so that they can get the data which is accurate and they can rely on that information.

Government and non-government agencies:

The researcher also collects the data from these types of agencies. For instance, the printing office of government, bureau of Census and centres which work for the development of small business. These type of agencies store the data which is valuable and researcher can easily rely on them. This method incurs a bit of cost for the researcher but the information it provides is worth the cost (Lutsenko, 2018).

Public Libraries:

The researcher collects the suitable data for the company from these libraries, as they have copies of some of the data that they collected earlier. This is the reason why researcher prefer this source, as it has all the information collected from different sources. Different library have different type of data stored, which is why the researcher shortlists the libraries useful to him so that they can collect the right and suitable information for identifying the cause of the company. Most of the data found in these places is from the publications of the government, directories of business and statistics of market. 

Educational Institutions:

The researcher collects the data from colleges and universities instead of businesses. Mostly, this method is used to collect primary data but some of the companies approach these institutions and with their permission, they collect the data.

Commercial information sources:

To obtain secondary data, researchers look out in various ways, that is, newspapers, journals, radio, TV, and magazines. These sources helps the researcher collect the data on a wide area and the data which is available in these forms is on the issues of economic development, market research, and political control, which can help Thomas Cook reduce the impact and increase the performance (Ocasio and Radoynovska, 2016).

Primary Research:

This research states that in order to collect the suitable and right type of information, they need to collect new and updated data rather than collecting it from the already existing resources. In this type of research, the researcher puts their focus on a specific area and collects the data which gives the solution to the problem. There are some methods of primary research which the researcher takes out, such as

Interviews:

The researcher conducts interviews in two ways: on the phone or face-to-face. It is considered as a qualitative method of research. In order to identify the causes or issues that have affected the performance of the company, they ask open-ended questions by engaging in a conversation with them. It is considered that face-to-face interview is a better option to generate results but the potential and authenticity of collecting the data depend on the skills and abilities of the researcher. Researcher ask questions, which helps them to gain information about the perception and opinion of people (Zhou and Guillén, 2019).

Online Surveys:

Researchers use this method because of its reach and convenience. It can be sent through emails and respondent can answer it through phones, tablets, etc. researcher designs the question according to the information, which can help the company improve their performance. researcher makes the question in a proper way which does not come as lengthy to respondents because if they find it too long, then they will leave it in the middle of it. In order to attract people to fill out surveys, researcher reward people. researcher designs it with a mix of both open-ended as well as closed-ended questions so that they do not loose the interest of their consumers.

Observations:

Researchers observe the reaction of consumers to a product or a thing, and to remember it, they make notes. This method does not involve any interaction or conversation between both parties. Some of them even use camera to notice the reaction of a new product or a service by consumers. These observations then will be proceeded for the benefit of Thomas Cook.

Focus Groups:

The researcher targets a small group of people and collects the data from them. This method is used to figure out the niche market for the company and learn the behaviour of group of consumers. With the help of this method, researcher focus on experts and groups of people to collect accurate data, which will be helpful for the company (O'Connell, 2016). Sampling-

This process helps the company to analyse the statistical data on the basis of observation of a large audience. There are two types of sampling: random and systematic sampling. There are two types of sampling: probability and non-probability. In this research, the scholar will use random sampling method. The sample size will be 30 employees of Thomas Cook. 

Data Analysis

Questionnaire 1. Do you think corporate governance assists firms to deliver long-term success and economic growth. Yes No May be 2. Does effective implementation of corporate governance aids in accomplishing business objectives? Yes No May be 3. Does a better set of policies, practices, and principles aid in achieving competitive advancement? Yes No May be 4. Is the use of corporate governance within the enterprise helpful to establish transparency? Yes No May be 5. Does better implementation of corporate governance translate into greater investment and access to cheaper funds? Yes No May be 6. What are the beneficial aspect of corporate governance within business enterprise. Reduce conflicts and fraud Lowers the cost of capital Enhance trust Access to cheaper capital 7. Is the execution of corporate governance an aid to enhance the firm's profitability? Yes No May be 8. What are the major drawback of corporate governance strategy. Limited liability protection Fiduciary duty Restricts shareholders liability Poor financial decision 9. Does the execution of corporate governance assist in abiding by the law and reduce the likelihood of expensive fines or lawsuits? Yes No May be 10. Does corporate governance plan of action aids in dealing with ethical violation. Yes No May be

Theme 1: Corporate governance helps firms to deliver long term success and economic growth within enterprise.

Do you think corporate governance assists firms to deliver long-term success and economic growth?	Frequency	%
Yes	28	93.33%
No	1	3.33%
May be	1	3.33%
Total	30	100.00%

Interpretation:

The above graphical findings have reflected that corporate governance is a term that is mainly associated with the formulation of a plan of action that aids in bringing long-term success within the enterprise. Herein, the number of participants has been taken as 30. In this, 93.33% indicated positive responses, 1 said no, and 1 has no clue about this statement.

Theme 2: Implementation of corporate governance aids to accomplish business objectives.

2. Does effective implementation of corporate governance aids in accomplishing business objectives?	Frequency	%
Yes	22	73.33%
No	6	20.00%
May be	2	6.67%
Total	30	100.00%

Interpretation:

The above analysis has been interpreted as indicating that effective execution of corporate governance helps firms to direct and control business activities. Herein, the total respondents taken by the researcher are 30. In this, 22 responded positively, 6 stated no, and 2 are not sure about it.

Theme 3: An effective set of policies, procedures, and principles aids in accomplishing competitive advancement.

3. Does a better set of policies, practices, and principles aid in achieving competitive advancement?	Frequency	%
Yes	21	70.00%
No	7	23.33%
May be	2	6.67%
Total	30	100.00%

Interpretation:

As per the above-stated pie chart, it has been reflected that effective policies, practices, and principles help to accomplish the business objectives. The total participants has been taken as 30.  In this, 21 stated yes, 7 responded no, and 2 has no clue about it.

Theme 4: Better use of corporate governance assists in establishing transparency within the enterprise.

4. Is the use of corporate governance within the enterprise helpful to establish transparency?	Frequency	%
Yes	25	83.33%
No	3	10.00%
May be	2	6.67%
Total	30	100.00%

Interpretation:

The above chart has been summarized that corporate governance aids to enhance transparency within business enterprises. Therefore, the total number of respondents is 30. Herein, 83.33% stated yes, 10.00% responded no, and 2 are not sure about it.

Theme 5: Execution of corporate governance aids to translate within greater investment, and this also allows for cheaper funds.

5. Does better implementation of corporate governance translate into greater investment and access to cheaper funds?	Frequency	%
Yes	24	80.00%
No	5	16.67%
May be	1	3.33%
Total	30	100.00%

Interpretation: The above chart has been summarized that strategies of corporate governance allow business managers to have greater investment and access to cheaper funds. Thus, total respondents are 30.

Herein, 24 responded yes, 5 stated no, and 1 is not sure about it. 

Theme 6: Access to cheaper capital is one of the beneficial aspect of corporate governance.

Â	Frequency	%
Reduce conflicts and fraud	8	26.67%
Lowers the cost of capital	6	20.00%
Enhance trust	7	23.33%
Access to cheaper capital	9	30.00%
Total	30	100.00%

Interpretation:

The above graph reflected that corporate governance strategy plays the key role in business activities.  Therefore, the total number of participants is 30. Herein, 26.67% responded that this aids to reduce the situation as conflicts and fraud, 20.00% of participants stated that this helps to lower the cost of capital, 7 responded that this aids to enhance the trust within employees in the entity, and 9 stated that this helps to access cheaper capital.

Theme 7: Execution of corporate strategies helps to increase profitability within the enterprise.

7. Is the execution of corporate governance an aid to enhance the firm's profitability?	Frequency	%
Yes	27	90.00%
No	2	6.67%
May be	1	3.33%
Total	30	100.00%

Interpretation:

The above-stated graphical presentation stated that corporate governance boosts the brand image of enterprises. Thus, it leads to enhanced profitability within enterprises. The total number of participants are 30. Herein, 27 stated yes, 2 stated no, and 1 has no clue about it.

Theme 8: Corporate governance restricts the shareholders liability within the enterprise.

8. What are the major drawback of corporate governance strategy.	Frequency	%
Limited liability protection	7	23.33%
Fiduciary duty	6	20.00%
Restricts shareholders liability	11	36.67%
Poor financial decision	6	20.00%
Total	30	100.00%

Interpretation:

From the above-stated graph, it has been reflected that a corporate governance plan of action can impact the workings of the enterprise in an adverse manner. Thus, the total number of participants is 30. Under this, 6 stated that this brings poor financial decision, 11 responded that this allows to restrict shareholder liability, and 6 responded that this has fiduciary duties that can impact the working of the enterprise. 7 participants stated that this has bought limited liability protection.

Theme 9: Implementation of corporate governance helps to stay with laws and cut down the expensive fine.

9. Does the execution of corporate governance assist in abiding by the law and reduce the likelihood of expensive fines or lawsuits?	Frequency	%
Yes	28	93.33%
No	1	3.33%
May be	1	3.33%
Total

Interpretation:

Based on the stated graphical presentation, it is stated that effective strategy formulation of corporate governance helps to reduce business activities. Therefore, the total number of participants are 30. In this, 28 responded positively, 1 said no, and I have no clue about it.

Theme 10: Corporate governance plan of action deals with firms ethical violation.

10. Does corporate governance plan of action aids in dealing with ethical violation.	Frequency	%
YesÂ	26	86.67%
No	3	10.00%
May be	1	3.33%
Total	30	100.00%

Interpretation: From the above-stated graph, it has been reflected that corporate governance strategy aids in dealing with business activities in an ethical manner. The total number of participants are 30. In this, 26 stated yes, 3 stated no and 1 is no sure about it.

Critical review of the results of research

In the earlier section, it has been stated that corporate strategies is termed out as the overall direction that aids in accomplishing business success. Therefore, the corporate plan of action needs to put the major emphasis on the key elements as internal measures, source of competitive advancement, etc. Therefore, the firm with better and more effective customer-focused objectives will have corporate strategy that highly impacts the marketing of enterprise. As per the above-stated analysis, it has been reflected that corporate governance is inclusive of rules that direct the roles and actions of key individuals that aid in rendering the business activities effectively and efficiently. This article has also stated that good and effective governance is ideal and this is very difficult to accomplish.

From the analysis, it has been argued that implementation of corporate strategies does not stand along, and this works in conjunction with the firm's mission and values. In addition to this, the conflict situation within the entity occurs at times of financial interest that can influence the decision-making of the enterprise along with company objectives. Also, it has been analysed that to build good corporate governance, the entity needs a board, and this should have the right to manage the firm for a long period of time. In this, managers of the enterprise can face the unrelenting pressure to meet the quarterly earnings targets.

As per the above findings, it has also been stated that corporations are mainly governed by the federal and state. Under this, business corporations are permitted to enhance capital by selling stock to investors. This article has analysed that corporate governance is derived as a set of regulations and practices that aid in controlling business performance.

From the above finding, it has also been summarized that corporate governance has one of the fundamental objectives that aids in running organizations in a transparent manner. Under this, firms have independent leadership that oversees and guides the management as independent directors. This has been analyzed to show that the present environment of business activities is very competitive, so there is a need to implement good governance practices that can allow a reduction in company cost of capital.

By executing corporate governance correctly within the business enterprise, the firm can enhance profitability, and this can also lead to competitive advancement. In order to have more rapid access to information, the enterprise is taking steps that aid in efficient allocation of the capital and resources.  Therefore, the strong governance helps to understand the regulatory that governs the business in form, leveraging technical advancement from a production, distribution, and communication point of view. As per the above findings, it has been analysed that corporate governance mainly deals with the misleading financial statement that highly impacts the brand image of the enterprise.

CONCLUSION

From the above report, it can be summarized that corporate governance is defined as the strategic management that has a set of internal rules and policies that aid in building competitive advancement within an enterprise. Additionally, corporate governance is termed one of the crucial parts of strategic management that assists to improve the performance of enterprises. Good governance practices mainly entail the active participation of the shareholder within the direct and indirect management performance. Effective corporate governance helps to business activities effectively, and this also aids to enhance the brand value of the enterprise.

The present report has covered the business activities of Thomas Cook; this is a British travel agency that engaged in business working as a hospitality and tourism business.

Furthermore, the assignment has covered business activities as the background of the organisation and key issues that faced within the organisation due to the formulation of corporate strategies. A key literature review has been conducted to gather the depth and reliable information for the research topic. Also, discussion has been undertaken in context to secondary and primary research. Lastly, the report has focused on recommendations in terms of dealing with issues that relate to corporate governance strategies.

RECOMMENDATION

On the basis of the above report, suggestive measures have been given in terms of coping with the issues relating to corporate governance challenges within enterprises. Henceforth, these are defined in the following manner, as are:

• Managers of the Thomas Cook need to take the initiatives that are crucial to ensuring legal compliance, which is a major aspect of the board's monitoring role. The effective implementation of corporate governance of the enterprise is defined as a key performance driver that aids in establishing the appropriate measures for determining success.
• The quoted enterprise should take the steps that help establish a sound system to deal with risk, management, and internal control, as these are all fundamental roles of the board. Effective risk management within the enterprise aids in building better decision-making, and this also develops deeper insights into the risk-reward trade-off that is faced by the business enterprise.
• The chosen firm needs to take the initiatives that provide a chance to give new directors an orientation program that helps to familiarize individuals with business, duties, and the board of expectations. This kind of facility can aid in carrying out better working performance.
• Thomas Cook entity needs to take the steps to regularly identify and assess the risk they face, and this is inclusive of the financial, operational, environmental, and industry-related legal risk. By engaging the effective risk management of the enterprise, the firm can undertake the business performance efficiently. To deal with the risk management procedures, the board is responsible for strategic leadership that establishes firms risk tolerance and also develops a framework that clears accountabilities for managing risk.
• If the chosen enterprise practices corporate governance, it does not need to strictly operate the top-down hierarchy. In this, managers and workers of the enterprise must feel free to give their honest opinions related to firm direction. This is a term that aids in enhancing customer engagement, and this also aids in implementing the solution that leads to undertaking business activities more effectively.
• In order to cope with the issues of corporate governance, the entity needs to establish better accountability practices that aid in ensuring business sustainability, and this also allows for integration with the business goals. Therefore, inclusive of sustainability performance within the enterprise, the entity can undertake the employee performance review that aids to ensure reliability within business performance. Thus, the reporting system of the enterprise must be accurate and transparent, and this must have adequate checks and balances, and this is concerned as one of the crucial parts of business practice.

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