Internal Analysis of Sab Miller Company Research Paper

Internal Analysis of Sab Miller Company - Research Paper Example The corporate governance is maintained at high standards by the committed directors which they believe to be the base for carrying out their responsibilities effectively. They aim for providing the right leadership and control over the environment to produce the value and even sustain the delivery of value to the entire shareholder of the company. (Ahmed, 2008, pp. 23-25)The corporate governance structure of the company comprises of 15 boards of directors amongst which five are non-executive non-independent directors and six are independent non-executive directors, and two are executive directors Mr.Clark the chief executive and Mr.Wilson the chief financial officer of the company. The chairman of the company is Mr.Manser. The structure of the corporate governance comprises of non-executive chairman, managing director, and some committees like audit, nomination, remuneration, corporate accountability and risk assurance, accountability committee, and the business units. The operations of the board are to set strategic objectives of the group, to determine different investment policies, sets upon performance criteria, and forwards the planning and implementation of those goals along with various policies including the various risk parameters. There are specific matters reserved by the board such as approval of the financial statements, the business strategy being adopted by the group, the plan for the annual capital expenditure, major capital projects, managing the various changes in the group’s management and control structure, various risk management strategy, material investments and disposals, implementing various sustainability and environmental policies, and other treasury policies. The board clearly governs through the elected board committees and monitoring the system. The board applies integrity, accountability, and principles of good governance through all the activities it performs and each of its directors bring independence and ju dgment to the role. By such defined structure, each member of the board are well aware of their responsibilities towards the company’s stakeholders and the board keeps a regular review on the performance and the core governance principles. The executive directors are responsible for proposing various and implementing operational decisions. The non-executive directors contribute to the formulation of strategy, decision making, and forming policies with the help of their knowledge. The audit committee’s responsibilities being to review and challenge the financial statement before final submission to the board, review and examine well the risk management system and internal control environment systems within the group and then carrying out analysis of the group’s overview, to recommend to the board regarding the appointment and removal of external auditors, to check the effectiveness of the internal audit process through focus on charter, staffing, annual work plan s, organizational and reporting structure (SabMiller, 2013).