Business Strategy, Carnival Group – P & O

BUSINESS STRATEGY

CARNIVAL GROUP -

O

2005

Business Strategy

Carnival Group -

O

I . Introduction

According to the Enterprise Theory of Accounting , a company is considered as separate legal entity having the rights to make decisions independently despite the fact that company 's capitals might be rented ' from banks or stockholders . Regardless of being the true owners of company 's assets , stockholders cannot interfere with company 's operations without approvals of the executive leaders . Only in certain periodical meetings , the CEO will address stockholders , reporting management 's

performance and performance results during the period

This principle has logically created sound issue of agency , which constitutes the concerns of whether managers and directors using the powers invested in them in the light of stewardship or not . Methods are developed in to give owners of the company certain level of assurance regarding management 's performance . Annual reports are growing in analysis quality and in its detailed nature . Other ways to enhance supervision of management 's work is to have them report their practice of corporate governance . of company 's corporate governance will help the owners assess company 's performance transparently and accountably

The will elaborate best practice recommendations in corporate governance and compare the guidelines and principles concluded , with Carnival Corporation 's performance . Some of the discussion will involve the company 's activity of merger and acquisition , and how it has affected company 's performance . The focus of the is to give an example company strategy to survive turbulences of their environment (including mergers and acquisitions ) and their practice of good corporate governance

II . Corporate Governance

II .1 Definition Importance

II .1 .1 Definition

Relating to various types of business practices , definition of good corporate governance cannot be made trough a one size fits all perspective . It has been said that the communal of corporate governance are like blind people trying to describe an elephant by touch (Ward , 2001 . No one gets a full perspective of the value due to the vastness of concept and the variations of their industry

However , trough similar purposes of corporate governance found in most industries , we can formulate a certain guideline of good corporate governance . Good corporate governance is a system by which companies are directed and managed to encourage the creation of value inside their management activities and to produce transparent performance report towards its parties of interests ( Principles , 2003 II .1 .2 Importance

From the financial point of view alone , the cases of Enron , Tyco Worldcom and Arthur Andersen have encouraged companies to perform good corporate governance and to transparently report them . Even the Asian Crisis of 1997 is considered to have strong connections with poor practices of corporate governance (Endriga , 2002 . The above incidences display the lack of management morale , the ineffective board of directors , and the accounting 's complicity trough deliberate violations of ethics all of which equals to poor corporate governance and thus , a recipe for business destruction (Endriga , 2002

If we are worried by the...