QUESTION TWO: Read the case below and answer the questions that follow Temasek Holdings (Private) Limited (abbreviated as Ternasek) is a Singaporean holding company, owned by the Government of Singapore. Incorporated on 25 June 1974 as a Commercial Investment Company (1) Temasek owns and manages a net portfolio of S$306 bilion[3] (as of 31 March 2020), with S$26 billion divested and S$32 billon invested during the year, and 66% exposure to Asin - 24% Singapore and 42% Asia ex-Singapore.(4] It is an active shareholder and investor, and its investments are guided by four key themes - transforming economies, grawing middle-income populations, deepening comparative advantages and emerging champions. Its portfolio covers a broad spectrum of sectors including financial services. telecommunications, media and technology, transportation and industrials, life sciences and agribusiness, consumer and real estate, energy and resources, as well as multi-sector funds. Headquartered in Singapore, Temasek has a multinational team of over 800 people, spanning 32 nationalities across eight countries including two offices in Beijing, and one office in each of Shanghal, Mumbal, Hanol, London. New York, San Francisco, Mexico City, Washington, D.C., and Sao Paulo.(5] Temasek differs from many sovereign wealth funds because it invests mostly in equities, is the outright owmer of many assets, and pays taxes like other commercial investment firms. (6) Temasek has overall credit ratings of "Aaa/AAA" by rating agencies Moody's Investors Service(71 and Standard & Poor's[8] Global Ratings respectively since their Inaugural ratings in 2004. Temasek has also attained perfect quarterly scores(9] on the Linaburg-Maduell Transparency Index, a measure of the openness of gavemment-owned investment funds. In February 2020, Temasek announced a company-wide wage freeze and voluntary pay cuts for senior management in part to help fund community programs aimed at alleviating the impact of COVID-19, [10]. In addition to Temasek, the Government of Singapore owns another sovereign wealth fund, GIC Private Limited, which manages about US$440 billion of assets. [11) IDC was established to spearhead the development of Zambia's domestic Industrial capacity, and in doing so play a major role in creating jobs. IDC expects to be instrumental in the establishment of industries across the agriculture, livestock and forestry value chains, tourism, manufacturing. mining. infrastructure and financial services. Its vision is to become Africa's best-performing sovereign holding corporation and strategic investment partner. Its mission is to maximise long-term shareholder value in State-Owned Enterprises and invest in key economic sectors to contribute to industrialisation and sustainable economic growth. And overall strategy statement is to transform State-Owned Enterprises towards commercial viability, contribute to industrialisation and job creation. DC is one of the key implementing agencies of the Zambian Government's Industrialization and Job Creation Strategy with identified growth sectors as drivers. IDC actively identifies investment opportunities for sector development in line with GRZ policy objectives and plays a catalytic role by developing projects either on its own or in partnership with private sector players and other development-oriented agencies. The IDC was incorporated in January 2014 and is wholly owned by the Goverment through the Minister of Finance under the Minister of Finance (Incorporation) Act Cap 349 of the Laws of Zambia. The IDC was established to create and maximise long-term shareholder value as an active investor and shareholder of successful state-owned enterprises, as well as undertake industrialisation and rural development activities through the creation of new industries. Questions: a) For corporate parents, elucidate the rationalisation for forming/ having SBUs to exploit different opportunities in the markets and industries. b) Rationalise your categorisation of the corporate parenting approaches between Temasek and IDC and guide the institution. c) A Corporate parent may be inadvertently or wittingly destroying value in its interactions with SBUs. Enlighten the Board IDC on how to mitigate that possibility? d) Explore the governance issues that may be manifesting unintended or intended consequences in the performance and direction of the two entities e) When evaluating the performance of each SBU, a parent has to assess preliminary factors before resorting to strategy modification, Discuss.