Business procedures and risks
Business procedures frequently contain a variety of dangers and difficulties that might arise from small mistakes made during operation. The board of directors must act decisively to save the survival of the Core-Tex company as a result of a significant issue with the company's operations and a sharp decline in the stock price.
Modifying strategy to fit the present circumstances
According to the present financial circumstances, Core-Tex must modify its strategy to fit the way things are going right now. The board of directors must change any operational methods or policies that are ineffective. It ought to concentrate on going through how to examine the books of accounts and identify flaws as well as how to take environmental protection measures. The board should identify a specialised committee of accountants that are able to rescue the firm from the above state. One of the major functions of the board is to monitor the risks associated with the business operation; in the Core-Tex case, the situation could have arisen as a result of risks. The board should therefore put forward measures that can be used to eliminate the causes of the above risks. Again, setting up the a committee to deal with the risk factors will be a better step as it will fully go through the system and determine the appropriate ways of eliminating the risk factors.
Checking management procedures and policies
The board of directors needs to check on the management procedures; this should start from the departmental heads to the supervisors. They should reform the policies that guide the management techniques and in so doing, they should include the discussion on the reshuffling mechanism among the supervisors as well as the workers. Replacing or reshuffling of the management can sometimes create new and unique ways of operation that can enable the business to regain a state of high productivity.
