Question One

CASE $1$: THE ALPHA, BITA AND GAMA CASES

Post$-$COVID business environment has introduced a lot of turbulence in global business. Many companies have restrategised and reorganised in order to remain going concern businesses. The restrategisation and reorganisation include a relook at corporate objectives, respective emerging policies, implementation and monitoring of policies, and board accountability. A renowned CEO from a prominent entity indicated that in fact, we have to overhaul our entire corporate strategy and our corporate governance system, which are key to our economic, social and environmental sustainability. He continues, we relooked at our legal obligations and figured how we could ensure that we fulfilled all of them to avoid default. We also re$-$evaluated the way we conduct our business to ensure that we still do things right. This is due to the financial challenges that covid posses which could make us cut corners in our operations and processes. We still want to remain ethical, which is core to our business. In all these, we do not fail to drive home to our community and society the great value we provide and also show them that we still value their core values and culture and we fully align. He continues, although we have been a profitable company prior to Covid $19,$ with robust corporate governance structures, the pandemic has tested the robustness of our structures and we have realised that we needed to do things differently within the covid era and more importantly post covid. We noticed that our profits have been challenged, but our enhanced efficiency enabled us keep afloat. A quick glance through the global business environment shows that many companies struggled and are still struggling to remain going concern. For example, a CEO from a company that is perceived to be struggling iterated, $.$ Our competitors have been badly bruised by the fiery darts of covid $19.$but we are fortunate to be less affected, though we sustained some injuries. Judging from the CEOs submission, we perceive a struggling firm that is trying to paint a positive image of itself. He continued our company suffered a damaging scandal that touched our public image, but from all indications we had fulfilled all our legal obligations and so we couldnt be blamed for that $..$the other accident was also due to the negligence of a third party. Another CEO in his annual report reiterated covid $19$ violently shook our business at its core, particularly, our supply chain, but we remain resilient. This has been due to a global phenomenon which adversely affected many companies but we survived it$..$we remain poised.. From the the foregoing, corporate restructuring and reorganisation could be eminent in many companies.

You are Required to:

A$.$ From the case above, two $(2)$ theories are apparent: the Institutional Theory and the Legitimacy Theory. Explain these two theories.

B$.$ Identify three $(3)$ issues in the case that could be explained by the Institutional Theory and comment on the issues.

C$.$ Identify three $(3)$ issues in the case that could be explained by the Legitimacy Theory and comment on the issues.