Corporate Governance Benchmarking Essay
According to The Coca-Cola Company 2005, the company pronounced change to its senior management players as well as operation structure. The chief officer Neville Isdell, announced that,
We are creating a new corporate function to integrate Marketing, Innovation and Strategic Growth Paths reporting to Mary Minnick. Additionally, we are realigning our Group structure in Europe and adjusting our structure for Asia and Eurasia and the Middle East. To lead new Groups, we are bringing on board system veterans and proven operators Dominique Reiniche and Muhtar Kent. They will bring fresh perspectives to our senior management team as we together work to implement our Manifesto for Growth” (The Coca-Cola Company 2005 para 1).
Changes that kicked off from 2005 were intended to come up with team which would ensure execution of company’s objective with excellence, motivate as well as inspire, instill entrepreneurship and accountability among the management team. This was in line with ensuring continuity of the Coca-Cola Company and also the new changes would give support to Coca-Cola bottling partners for continued service to the customer through having efficient line of distribution.
The changes in coca-cola company affected the structure of the company from top to bottom organization power. This company
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The role of corporate management in Coca-Cola Company is to coordinate market activities promote innovation through investing in market research and plan and coordinate for strategic growth plan within Coca-Cola Company and its bottling partners. That is ensure the process of business from the manufacturing is well coordinate up to the consumption or end user of Coca-Cola Company products through aggressive advertisement campaign. Corporate team is also required to; “pursue the right growth opportunities leverage customer insight, and capitalize on ability to develop new products, packaging and technologies supported by the right marketing platforms” (The Coca-Cola Company 2005 para 4).
Coca-Cola company audit committee is mandated to assist the Board of Directors in accomplishing its oversight function on behalf of shareholders and the entire Coca-cola investment community. They monitor integrity of the financial statements, ensure there is effective internal control, monitor management of enterprise risk management, select company external auditors, ensuring company is following the ethics policies legal requirement and preparation of the report on there work.
Audit committee according to coca-cola requirement shall meet all legal requirements of Securities exchange Commission (SEC), the New Yolk Exchange as well as any other legal regulatory requirements. Audit committee is subject to periodical revision as law governing this provision is dynamic.
Coca-Cola Enterprises (2007): Corporate Governance: Audit Committee Charter. Retrieved on 26th September 2008 from: http://ir.cokecce.com/documentdisplay.cfm?DocumentID=1172
The Coca-Cola (Company 2005): The Coca-Cola Company Announces Changes To Senior Management And Operating Structure. Retrieved on 26th September 2008 from; http://www.flex-news-food.com/pages/1326/Asia/Beverages/Coca/Fruit/Japan/the-coca-cola-company-announces-changes-senior-management-operating-structure.html.
American Express Corporation
American Express Corporation headquarters situated in New Yolk is a diversified financial, travel as well as net work service provider. According to American Express 2005, American Express pronounced management and organization changes. In 2005, the company’s Chairman and chief executive officer Ken Chenalt announced that; “As we prepare to spin off our financial advisors business and become the new American Express Company, I am making a number of organization and management changes to help accelerate the implementation of our growth strategies and broaden our executive leadership team” (American Express Company, 2005 para 2).
The changes were motivated by new developments in the business operations and need to cope with vast growth of the company’s global network services (GNS) due to continued increasing demand in United States as well as around the world. Changes of the company’s management structure were important. They would help to cater for the need cropping up as a result of expansion of world wide merchant network which was in the company’s plan for implementation. The company’s long term relation with it business partners were calling for change in the organization structures as they were resulting to increased responsibilities. At this point in time i.e. 2005 the company change were greatly motivate by the excellent position the company was experiencing in the market which called for expansion of it operations. Changes were intended to strengthen company’s long term position ensure the growth experience was maintained through employment of strong management team.
Chairman and the chief executive officer in 2005 reshuffled the structure of the management affecting certain key are of the company. These change targeted area of finance where the company leaving the company’s chief financial officer, Gary Crittenden still in charge of finance but increase his responsibility by head of GNS, Peter Godfrey report to him. This was intended to ensure there was continuity in the business strategy especially due to the expansion of market to China. “This structure will also help ensure that the firewalls between this business and our proprietary card issuing businesses are strong and effective” (American Express Company 2005 para 6). Changes in structure was geared toward ensuring there is continued development of the business in the line with dynamic and fast growing global commerce. To achieve this company the management considered engage someone with strong background in finance and having a good track record of success. Other changes witnessed in this company touched The Travelers Cheque and prepaid Service Group with similar aim of streamline the companies business as well expansion plan. According to the management these changes were intended to ensure there was professional growth opportunity for various employees within American Express Company (American Express Company 2005).
Audit committee and external account requirements are defined in American Express Company Audit committee charter which states that committee is mandated to assisting the Board of directors in its mandate or duties of oversight responsibilities on behalf of the shareholders and other interested parties. The committee ensures the integrity of the company’s financial matters is maintained; ensure the works of internal audit as well as external audit are done according to the company’s requirement. The committee also ensures the integrity of internal accounting and financial control, compliance to the law are upheld in the structure establishing American Express Company.
American Express Company (2005): AMERICAN EXPRESS ANNOUNCES ORGANIZATION AND MANAGEMENT CHANGES. Retrieved on 26th September 2008 from: http://home3.americanexpress.com/corp/pc/2005/structure.asp
American Express 2005: Corporate Governance – Committee. Retrieved on 26th September 2008 from; http://ir.americanexpress.com/phoenix.zhtml?c=64467&p=irol-govcommittee&Committee=104