Instructions
Instructions
Please use Buffalo Wild Wings.
Using the organization that you have selected, prepare a report of approximately 500 words that includes
Give a short description of the organization’s approach to corporate governance
How effective do you think it is? Cite specific reasons and offer at least one example to substantiate your reasoning.
How might it be improved?
Include citations from at least two references.
Coursework Paper
Buffalo Wild Wings Corporate Governance
Corporate Governance can be defined as company’s systems and principles governing it. They are guidelines used in directing and controlling activities of a company with an aim to achieve the set goals and targets and at the same time incorporating all the interests of the stakeholders and ensuring equity to all and hence performance. Stakeholders to a company may be the board of directors, shareholders, employees, suppliers, customers and the surrounding community (Thomson, 2009). Buffalo Wild Wings maintains a high corporate governance profile due to its large operations throughout the United States. This profile has assisted the restaurants maintain a high competency in the market and give it a competitive advantage.
Corporate Governance Involvement
Buffalo Wild Wings is a rising restaurant chain in America with aspirations to expand internationally. Therefore, the company has to align different views of stakeholders and ensure that an equilibrium point is used to make decisions to push the restaurants ahead. The Board of Directors has set high standards to oversee the actions of all the employees, officers and the directors themselves (Tricker, 2009). The Board of Directors has a responsibility to the shareholders to manage and protect their company and their investments. Code of ethics has been maintained by the company to oversee the actions of the management and the employees as well as the directors themselves, any action performed within the organization should hence reflect a just and transparent decision.
The company has an audit committee which ensures that the management of Buffalo Wild Wings uses the available finances and other resources efficiently and that they disclose all the relevant information. Therefore, they should ensure accountability and responsibility towards any misuse of shareholders’ funds. The company also has a Governance Committee that ensures that the principles of corporate governance are upheld and that business activities are conducted with the set integrity level. Shareholders also receive frequent updates on how the company is performing and the future actions the company is about to take, this will solve the issues associated with agency between the management and the shareholders.
Buffalo Wild Wings has major campaigns that have benefited the society, the Annual Fundraiser to Help Kids Play Team Sports with Boys and Girls Clubs of America was held from 1st October to 31st October, where all the Buffalo Wild Wings restaurants donated 100% of the amount received by pinup paper purchase. These donations financed sports teams and improvement of facilities for the local clubs. “Wings for Heroes” is a promotion done by Buffalo Wild Wings in honor of heroes who served to protect the nation, the restaurants provided wings to veterans and military personnel as a way of thanking them for seeking their services.
Effectiveness of Corporate Governance
Corporate governance has improved the confidence of all stakeholders on Buffalo Wild Wings. Customers are increasing their preference for their products, and investors want to be associated with them and their share price is rising in the stock market. Corporate governance has allowed Buffalo Wild Wings to continue growing within a competitive industry (Marder, 2015). The company is experiencing tremendous expansion especially in the United States with Estimated Sales per Unit (ESPU) Growth of 6.7% annually. More branches are being opened worldwide, and a recent case is the grand opening of a restaurant in Dubai on 3rd September 2015 to join the already big number of about 1, 120 restaurants spread across United States, Mexico, Canada and the Philippines.
Areas of Improvement
Buffalo Wild Wings need to work on employee satisfactions; most employees work extra hours and have low pay and benefits, some of their restaurants also have poor working conditions. Employee satisfaction ensures that the employees are confident about their jobs and dedicates all their efforts towards customer satisfaction (Marder, 2015). The company should also open an online portal to receive customer complaints about each and every restaurant, currently, all customer complaints are held from the head office, which may not be effectively resolved.
References
Buffalo Wild Wings Corporate Governance, Buffalo Wild Wings. Retrieved from http://ir.buffalowildwings.com/corporate-governance.cfm
Marder, A. (2015). Buffalo Wild Wings Is Spreading Its Wings. Retrieved from http://www.fool.com/investing/general/2014/06/11/buffalo-wild-wings-is-spreading-its-wings.aspx
Thomson, M. (2009).What is corporate governance? ET Bureau
Tricker, A. (2009). Essentials for Board Directors: An A–Z Guide, Bloomberg Press, New York.
