Sample Solution

016). It was restructured after Don Stallings, the managing director, was replaced by Matt Tyson. The roll-out was slowed down and investment was cut-back until the model was proven (McConnell, 2016). However, the fallout seemed inevitable and Masters stopped operation on December 11th 2016.

Enumerate Options

Woolworths needed a more effective risk management team, which would have foreseen the risks involved with entering a market or at least diverted the motive of bringing Masters into existence from attacking Westfarmers to actually looking for an entry into a profitable industry. The main fact that the Woolworths board failed to recognize is that Westfarmers allowed Bunnings to perform as a silo (Stewart, 2016). Recommendation 7.4 should have been followed in order to predict and manage material exposure to economic, environment and social risks (Hamilton & Mickelthwait, 2006).

In addition to that, the composition of Woolworths’ board lacks expertise in new business development, research and specifically home improvement industry as shown in the skills matrix presented in the corporate governance statement. Recommendation 2.6 deals with induction and professional training to be provided to the directors. It should have been applied to equip