Role of Corporate Governance in Strategic Decision-Making

Company analysis is done to ascertain a company’s capabilities and also establish the inabilities within different departments. Recommendations on how to improve the production or sales are also made in the analysis. This paper will focus on the leadership management in the power tools department of this corporation. As a director of strategic planning and analysis, I am mandated to critically analyze the various roles played by the management leadership in the power tools department to get the root of the problem i.e. the decline of the market share on certain power tools in the organization. The company report is categorical on the quality of some tools which are being taken to the market thus leading to this decline in the market dominancy; this is because the tools are low in quality (Cardy, 2008). The analysis, in this case, will be dominant in highlighting the strengths and weaknesses of the corporation. This will include the evaluation of resources within the company’s reach and the way they have utilized within each department especially the power tools department which has reported a poor marketing strategy. The essence of this analysis is to provide the company with important techniques and strategies to use while marketing its products, thus increasing its profitability.

Corporation’s strengths and weaknesses

The positive part of the corporation is that it has had new innovations which have been engineered by the quality and competence of the employees. If the company can invest in tapping the employees’ talents and empowering them, then this can lead to better production hence increasing the profitability of the business (Enriques and Volpin, 2007). The other strength of the company is its reputation as a cordless innovator and if the corporation can prevent competitors from copying its work, it can increase its market share.

This corporation has a serious problem in the production unit this justified by the fact that in all its products only the circular saws meets the customers’ quality. This has led to the decline in the market share of the other products and left the circular saws to dominate the market, which it has done very well by recording 40% dominancy. This domination of the market might be good in the meantime since the company needs the money, but it is not proper in the long run because the company will end up withdrawing the other products from the market (Cardy, 2008). This withdrawal of some of its products will lead to its downfall. The other weakness that the corporation has is the lack of proper and important information on the market. This is a very critical issue because without the proper information the management cannot formulate a good strategy for marketing its products. Moreover, the company has had no analysis done for a couple of years hence leaving the management to make ambiguous decisions that bare the corporation unnecessary costs and time. These decisions have made the corporation get inconsistent information about the market which has proved fatal to the corporation. The corporation has been rocked by friction among the senior management team which has hampered the decision making process hence leading to problems to the market.

The corporation’s resources, capabilities, and core competencies

The corporation has a very competent and capable human resource and if it is well invested it can lead the company to greater heights. Many companies which are similar to it usually concentrate in single line production, but this corporation offers a full range of power tools thus making it to be a one stop shop for customers, unlike in the other companies. This is an advantage to the company and must be enhanced and fully utilized if the company is to realize the full market share it desires. Due to its competence in production of some power tools, such as circular power tools the company has earned a lot of respect to its customers and this should be a starting point in producing better quality products (Cardy, 2008).

Role of corporate governance in strategic decision-making

The role of the corporate governance body is to offer advice to the corporation’s management. The advice offered by the board members are crucial regarding to the decisions being made in the company, this is because the members usually research on the various issues regarding the company before advising the management. The members of the corporate governance are involved in policy setting, which is very vital to the corporation, since the decisions made by the management are based on these policies (Enriques and Volpin, 2007). Corporate governance ensures accountability in a corporation hence ensuring that proper and accountable decisions are made in the management level. Hence good corporate governance is a driver to good and informed decisions in a company, thus leading to its prosperity.

Environmental analyses

This company is producing and marketing power tools which are pollutant to the environment. This is because they produce a lot of noise and vibrations which are not environmental friendly. The study has shown that out of ten machines which are produced three of them are faulty and do not conform to the environmental regulations. This means that 30% of the machines produced, either produce excessive noise or vibrations, which is hazardous to the user. It is also important to note that some of these machines produce excessive heat which makes the user uncomfortable while using them. This heat can cause very fatal diseases such as cancer and the company should do something to its production unit.


Cardy, L. (2008) Management: People, Performance, Change, 3rd edition. New York, New York, USA.

Enriques, L., and Volpin, P. (2007) Corporate governance reforms in Continental Europe. Journal of Economic Perspectives, 21 (1): 117–140.

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BusinessEssay. "Role of Corporate Governance in Strategic Decision-Making." December 17, 2022.