Recommendations
Firstly, the recommendation would be by setting up apparent responsibility and task. By setting up understandable tasks held for future use for the Board and those authorize to management. The particular tasks and duties of the Board and management are precisely positioned in the Board Charter and assumed to establish responsibility of both parties. This distribution of tasks indicates the vital description of the relationship essential for the Ajinomoto to modify to dynamic circumstances. Important matters such as authorization of annual and provisional outcome, investment and disposals, likewise significant approval are held for future use for the Board, as long as an effective and knowledgeable management team is responsible to supervise the daily operations of Ajinomoto.
Besides, one of the recommendations is by putting together the most excellent administration form and advocate administration differences. This comprise of strengthen administrative and decision-making accountability by way of external omission and likewise including the outlook of women, workers from various countries, and the rest to encourage innovation. Profession paths likewise need to be made apparent, with clear-cut necessary requirements for every post and task. Meticulous skills assessment paired with targeted guidance can alter employment recruiting and management into human capital and “suitable position for suitable people” into “suitable people for suitable position”.
I presume Ajinomoto capable to advance in classifying and determining the consequences of its activities and newsgathering these consequences to stakeholders. As an illustration, Ajinomoto disclose stories to what degree Ajinomoto contributes latest food alternatives for customer in Brazil and Pakistan and newborn nourishment in Ghana. These abilities to assess are praiseworthy but the actual inquiry is to what degree are they actually ameliorating lives and to what degree? Newsgathering proof of alteration accordingly of self-motivation would help us acknowledge Ajinomoto’s achievement and comprehend the actual worth of Ajinomoto’s contribution of developing healthy way of life.
Besides that, I would recommend Ajinomoto to establish a core set of objectives to 2020 that possibly used to encourage standard and review future advancement. Ajinomoto’s dedication of continuous business and accountability gives me self-assurance that Ajinomoto will be around for somewhat another 105 years. Thus, a longer outlining and goal-setting perspective would be appreciated. Moreover, Ajinomoto should strengthen connection between company and stakeholders by taking practical procedure to persuade stockholder involvement at general conference. Notice of the annual general conference, annual reports and pamphlet are sent out with adequate information before the date of the conference to allow the stockholders to have thoroughly data relating about the conference to facilitate cognizant of decision-making.
Moreover, Ajinomoto outlined an objective to “encourage more women to administration positions”. Women workers account for just 27% of Ajinomoto’s worldwide workforce and 15% of managers (Elaine, 2015). In consequence of the fact, that a company whose outputs are generally aimed at women, there is favorable circumstances to strengthen Ajinomoto’s dedication to women by summarizing apparent procedure of action with objectives and aims. Some other illustration relates to workers welfare. Ajinomoto’s welfare statistics shows that the welfare of employees outside Malaysia is far less conclusive than in Malaysia. With 65% of Ajinomoto’s lasting workforce outside Malaysia, newsgathering a particular procedure to address welfare of the workers at a worldwide position would appear vitally important. I would recommend Ajinomoto to consider this.
Lastly, other recommendations would be by encouraging referendum voting. The Company will be conducting its voting on all resolutions by poll accordingly. Also, one of the recommendations is by encouraging productive transmission and dynamic commitment with stockholders. The annual general conference remains the most important framework for communication with stockholders where they might look for description on Ajinomoto’s business and reports.
Limitations & Conclusion
Limitations
One of the limitations is assessing the effects of the company activities and their impacts on community, association and the surroundings. It is inadequate to aim attention at and report, what you are achieving. The actual assessment of advancement is what alteration accordingly of what you accomplish. This is partially as a result of the involvement of large-scale background description for the issues Ajinomoto written in the report. A comprehension of pertinent framework is crucial; however it is the accomplishment and end result that stakeholders need to comprehend.
Besides, it is the risk management that is causing a barrier to Ajinomoto. The Board verbally recognizes authority that Ajinomoto’s business activities include a few extents of risks and important management staff and Heads of Department are in charge of managing identified risks within characterized framework and guideline. Recognizing, assessing and managing the critical risks confront by Ajinomoto are a continuous procedure which is handled at every department.
Lastly, financial risk management is one of the limitations as well. Ajinomoto is revealed to financial risks emerge from their operations and the usage of financial instruments. The critical financial risks comprises of credit risk, liquidity risk, interest rate risk, foreign currency risk and market price risk. The Board of Directors analyzes and complies with the procedure and strategies for the management of these risks, which are performed by the director responsible for the finance, finance manager and the finance department (Ajinomoto, 2016).
Conclusion
To conclude the comparison of the performance forecast issued on 2015, Ajinomoto has improved from a lower to higher position at every level of ratio from liquidity ratio to market value ratio in 2016. Overall performance of Ajinomoto in 2016 compared with 2015 has ameliorate tremendously by cause of the aspects inclusive of development in sales of seasonings and processed foods (foreign) on a regional currency basis, a growth in animal nutrition sales, and prepare amalgamate branch, a frozen food production and sales company in the United States in which Ajinomoto obtained brimming equity interest and of Ajinomoto General Foods, Inc. (“AGF”).
Today, Ajinomoto is becoming more and more engaged with the resolutions to enhanced food resources, human well-being and worldwide sustainability. Ajinomoto is established in 1909 and at the present is operating in 26 countries and regions, Ajinomoto increases income of 17.58% from 340.38 million to 400.20 million from 2015 to 2016 while net income increased 37.18% from 29.73 million to 40.79 million. Ajinomoto is forecasted to exceed the basic forecast as a result of strong sales of seasonings in Asia, likewise strong performance in the provisional term by umami seasonings for processed food producer as a result of the impact of the exchange rate for buying and selling, in association with other aspects.