Corporate governance is a set of customs, laws, policies, processes and institutions that affect the way a company is directed, administered or controlled in an area Cadbury, Sir Adrian(1996). The Chinese market has replaced the Japanese market to be one of the largest automotive markets in the world. In the year 2006, 4.3million vehicles were sold in China. The automotive retail industry in UKhas faced certain ups and downs. Since the company is UKbased the report will focus on the industry in UK. The automotive retailers in UKhad to face certain competitive pressures:
- Introduction of Block Exemption Regulations according to which retail companies can not stick to just one manufacturer of cars.
- The pressure with advancements to have cars with higher electronic components.
- The pressure for the retail companies to differentiate in quality and service quality than differentiation with price to gain competitive advantages. Since consumers give more weight to the former (McKinsey & Company, 2002).
With these pressures building up in the industry the automotive retailers faced certain problems to meet up with the skills required to face the pressures and gain competitive advantages.
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