Sample Essay

Corporate governance inChinais much about the culture rather than the business and although the situation seems to be improving yet this research shall provide insights into the country’s age-old practices that need to be changed. The research shall focus on an automotive retail company “Inchcape” established in theUK, that wants to expand its business into China.

Expansion requires a detailed study of the corporate governance of the country since it’s the culture and the corporate governance code that determine the success of a company. Inchcape is a leading automotive retail company in UK. The competitive pressures inUKon autotmotive retail industry have risen immensely with the introduction of Block Exemption Regulations that restrict retail companies from being attached to a single car manufacturer. The retailers have to continuously improve cars by adding advanced electronic components since the consumers in UK prefer the product quality over service quality. Corporate governance in China is not as developed as that of UK. Chinese corporate governance code spells out shareholders as the most important group and the code focuses on just two types of firms which include the state owned enterprises (SOE’s) and Listed companies.

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Essay: Corporate governance in China
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