Business practices usually involve different risks and challenges that results from minor errors in the course of operation. The Core-Tex company is facing a serious problem in its operations; the stock price is dropping drastically, a situation that requires serious intervention of the board members to save the Core-Tex’s future.
Going by the current financial situation, Core-Tex needs to reshape its strategies and align them with the current state of operation. The board of directors needs to revise the policies or the operational procedures that do not work effectively. It should focus on discussing procedures of scrutinizing the books of accounts and determining the faults as well as the measures of the environmental protection. 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.
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 regain the state high productivity.