Corporate Governance Case Study - Swvl

Question 1

Define Corporate Governance

Answer 1

Involves the processes, structures and mechanisms that influence the control and direction of corporations

Question 2

Define and explain the types of capitalism (3)

Answer 2

State Capitalism - where the government steers the economy and can intervene when necessary

Shareholder Capitalism - where the social responsibility of business is to increase profits

Stakeholder capitalism - where society’s goal is to increase the well being of people and the planet

Question 3

Define unilateral dependence

Answer 3

Where a subsidiary depends entirely on their parent company, only selling up to the parent

Question 4

Define mutual dependence

Answer 4

where the subsidiary and parent rely entirely on each other for the supply of goods and trade

Question 5

Define dual focused

Answer 5

where the subsidiary can sell their goods everywhere, with the parents benefit being the revenue made

Question 6

Explain the trends in corporate governance outlined by Yoshikawa

Answer 6

There have been increasing calls to include voiceless stakeholders in corporate decision making, to create more stakeholder oriented corporate governance

Is a reversal of previous trends, where agency theory was introduced to safeguard shareholder interests seen in the UK and US

Question 7

Explain the Egypt transportation problem which led to Swvl being established

Answer 7

Cairo has a population of 22 million with only few options for transport - taxi’s which are unsustainable for most citizens and mass transport used by 85%

Deals with extreme overcrowding and uncertain pickup times, as well as safety issues where 82% of women experienced harrassment

Question 8

Explain how Swvl formed

Answer 8

A commercial plane carrying Russian citizens crashing in Egypt led to the tourism sector crashing, leaving 150,000 private buses unused.

Swvl was established, introducing convenient mass transport cheaper than Uber with reliable pick up times.

Grew to 20,000 bookings a day and a $38 funding in 2018

Question 9

Explain how Swvl have been able to grow as a business

Answer 9

In 2019 the firm relocated headquarters to Dubai to gain access to global talent and funding

The core aim was to deliver affordable transport to low and middle income earners in emerging and developing countries

Growth has continued in to Latin America, with high degrees of local responsiveness and has led to expansion to Europe

Expansion to europe can be criticised -> strays away from core aim of delivering transport to low income earners