Sample Solution

Tyson took charge of the company from Don Stallings, he was a part of the solution rather than the problem (McConnell, 2016). It might have been too late for Matt Tyson to prevent the inevitable.

Principle 1 of ASX Corporate Governance Principles and Recommendations describes the importance of a clearly set out roles and responsibilities of the board and of the management. Recommendation 1.1 of Principle 1 suggests that “a listed entity should disclose: (a) the respective roles and responsibilities of its board and management; and (b) those matters expressly reserved to the board and those delegated to management.” (ASX, 2014). Though there is a brief commentary about the roles and responsibilities of the board and the management, there is nothing in specific. Clearly defined roles help in expectation setting and avoiding misunderstanding. However, stringent roles deter flexibility and may add to unwillingness to perform cross-divisional roles.

List Reasons Explicitly

In conclusion, the failure of Masters Home Improvement was a result of poor strategic thinking, a consequence of corporate governance failure. Poor strategic thinking which led to haphazard expansion and acquisitions can be attributed Woolworths’ epic failure. It can be deducted from the argument presented above that better application of Principle 7, Recommendation 7.4 by ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations statement. This, coupled with choice wrong locations, selling the wrong stuff and flawed workplace culture was the reason behind Masters downfall (Stewart, 2016). All of these mentioned causes can be traced back to lack of