Strategic Management in a Global Environment Assignment - 5

Strategic Management in a Global Environment - Assignment Example The paper tells that good governance means that all the authority and power is used in the most convenient way to uplift the performance of the institution without necessarily exploiting all the stakeholders and available resources. The secret of success lies in the power of the management team to utilize the strengths, weaknesses, opportunities, and threats to place the institution in a better functioning state. Good governance provides clear direction for the business institution. Transparency, fairness, accountability, planning, monitoring, and vigilance are the main building blocks of good governance. There is increased investment, boosted investor confidence, as well as interest. There is fairness in handling all stakeholders especially when there is good governance in a company. Good governance also strengthens the competiveness of the company besides making it cruise through the constant economic crises. Another benefit is scrapping off corruption and fund embezzlement, good g overnance has better strategies for conducting quality assurance programmes and giving comprehensive feedback for improvement in areas of weakness. The other side is bad governance; this is the true opposite of good governance. There lacks fairness, equity, responsiveness, transparency, effectiveness, and efficiency, in bad governance. In most case, bad governance precedes the downfall of a company. This means that the company is unable to survive the harsh and overwhelming market competition. Furthermore, many funds are misappropriated through lack of monitoring and evaluation. Bad governance is almost synonymous with poor planning and inadequate preparedness.