In the current time, every company’s main motive is to gain profits and reach the highest position in the market place. For this, they need to fulfill all the necessary goals and ensure that their activities of a business are being conducted properly. Organization management requires making sure that their performance is enhancing regularly and they should take required decisions for managing business operations. The purpose of the report is to analyze the significance of corporate governance in the company and also describe the internal and external factors which are directly impact on the decision-making process of an organization. The project scope is to show the knowledge of the business and management applied in the company so that they can properly understand the market place. The report is based on Hawthorn Tennis Club.

Background information of the company

Hawthorn Tennis Club was established in the year of 1905 and the club is located at 13 Swinburne Avenue, Hawthorn. They are serving tennis enthusiasts who want to learn and play tennis or involved in the state-level tennis competition. It is one of the famous tennis clubs where a large number of people are getting admission to participate in tennis tournaments and who is best among them can be selected for the state level competition of tennis (Hawthorn Tennis Club, 2020).


1) The governance structure of The Hawthorn Tennis Club and its effect of the organization’s corporate governance

Governance structure defines as such a structure in which duties and roles inside the company are being distributed and allocated. This is essential for every organization is to ensure that its structure is designed in a better manner so that they do not face any issue in future time. Corporate governance refers to that system by which a company is managed and effectively controlled the role of its BOD and its members. Business structure is the form of a company that is considered as a legal form. The type of business structure is sole proprietorship, corporation, partnership which is categorized according to the tax liability (Corporate Governance: an international review, 1992).
The governance structure of the Hawthorn Tennis Club is regulated centralized in which senior administration is holding the whole authority of the club and its main functions. There are 4 directors in an organization and they have board committees who are selected most capable participants for the state-level championship of tennis(Schneider, et. al., 2015). There are some coaches and other executive managers who manage and control all the important functions in the club.
The governance structure of an organization makes sure that the company is taking seriously to the CG as they have the Hawthorn Tennis Club committee who has the power to dismiss and select any member in their club. The organization is developing some policies and procedures which need to be followed by every member of this club otherwise they need to pay some penalty.

2) External environmental factors influencing The Hawthorn Tennis Club performance and/or decision-making

External environmental factors are directly influencing the business performance and for analyzing this company are conducting an external analysis model. PESTEL analysis helps analyze the external factors which can impact on the Hawthorn Tennis Club performance and growth(Rose, 2016). Some possible influences are developed by such factors on the Hawthorn Tennis Club which include growth, profitability, change in business structure, and performance level. PESTLE analysis is described as under:
Political factors–In this, different political factors can directly affect the Hawthorn Tennis Club performance in the market place. Some of the legal policies related to equality, taxation, etc. developed in Australia, and such policies are creating major risks for the club while they are smoothly conducting their business operations. Hawthorn Tennis Club needs a huge amount for carrying out the business functions and required an operation that provides profitability.
Economic factors –In this, some of the factors which affect the Hawthorn Tennis Club performance such as saving rate, inflation, GDP, interest rate, etc. Australian GDP rate is always fluctuating and it is not stable at a time. GDP rate in 2017 was around 2.3% and it is increased by 2.9& in 2019(Australia GDP Growth Rate 1961-2020, 2020).It has been analyzed that such factors mainly impact the club performance and its profitability level.
Social factors –It is that factor which creates issues for the club while gaining potential goals and objectives. The Australian government is focused on human capital growth in the industry through training which increases their energy(Lau, et. al., 2016). Social efforts help to boost the image and quality of participants’ health by regularly play tennis. The club promotes their tennis practices and style of working among people which enhance their interests to play tennis.
Technological factors –It is an important factor which assists in developing opportunities for the club. With the adoption of the latest and advanced technology, there are increments in-crowd and participants who are joining this club. They are providing the latest technology on which they can practice and increase their strength as well. But technology spends more cost and it is the main concern for the company.
Legal factors –This is difficult for the management is to carry out their business operations in the legal framework that are designed by the government. It is important for every company is to follow the government made rules and regulations for the smoothly running of business operations(Honoré, et. al., 2015). Hawthorn Tennis Club needs to set remuneration by the government and pay its workers as per the policy. They required getting licenses and renewing the licenses every six months so that they can easily regulate their club in a better manner.
Environmental factors–In this factor, every company needs to practice environmental-friendly working. Hawthorn Tennis Club ensures that they required to highly environmentally favorable regions for the tennis play. Hawthorn Tennis Club also follows all the important guidelines and invests money in friendly environmental areas.
Therefore, all the factors are plays a major impact on the Hawthorn Tennis Club’s decision making and performance effectively.

3) Major risks for The Hawthorn Tennis Club and its influence on performance and/or decision making

Hawthorn tennis club is a famous club for learning and playing tennis in Australia. The operations of the club can be influenced by the competition in the market. There are some risks which influence on the operations and decision making of the hawthorn tennis club such as-

• There is a huge risk of losing market value for a hawthorn tennis club. There is major competition for the club in the market which is competing with them by offering lower prices for the training wheels program(Chu, et. al., 2016). The local clubs are increasing the risks factor for a hawthorn tennis club.
• Hawthorn tennis club is having risks related to the information technology usage in the club. These issues are impacting on the decision making and daily operators of the club. The entry and exits of the customers are dependent on the IT features using special cards. This is back dropping the situation of the club.
These are some of the risks which are creating an influence on the daily operations in the club and also impacting the decision-making process of the hawthorn tennis club.
4) Business practices of The Hawthorn Tennis Club and its influencing on performance and/or decision making
The hawthorn tennis club is a reputed club for the tennis lovers in Australia. The business practices should reflect upon the best features to improve the decision making for the benefits of the club. The policies which are being used by hawthorn tennis club are as follows:
• The hawthorn tennis club is a well-known platform for learning and playing tennis. The club practices the policy under which they understand the demands and requirements of the customers. They frequently adopt new policies to keep up with time and fulfill the desires of the customers as an ideal club(Armstrong, et. al., 2015).
• Hawthorn tennis club practices the policy for serving benefits to the employees based on their performances. This act serves the club with enhanced performance of employees and increasing benefits in the market place. The club measures the performance of employees and then rewards them according to their actions to motivate them for better performance.

5) Functional departments of The Hawthorn Tennis Club and their support towards business activities

The functional departments of the club handle different kinds of business activities which are very important for running a business. The various functional departments of the club are as follows:

• Human resource department: this is the department which handles the recruitment, selection, training development and monitoring of the policies in the working place.
• Finance department: this department is responsible for the handling of accounts, capital and resources, paying salaries for employees, etc.
• Marketing department: this department is responsible for the handling of marketing of club activities(Aguilera, et. al., 2018). This department works for popularizing the club to increase the membership numbers for enhancement in business activities.
• Sales department: this is the department which controls over the sales of the club. It includes the membership sold to the people who will use the various activities offered by the club.



It has been concluded that corporate governance has helped the business to manage and maintain their performance. The governance structure of an organization required to manage by managers so they can get better results. Hawthorn Tennis Club is an operated centralized business in which the senior management plays an important role in controlling entire functions along with the Board of the committee also responsible for taking decisions. PESTLE analysis helps in evaluating external factors that affect the business operations and its functions effectively. Along with this, the company focuses on maintaining their position and gains more people’s attention towards their services.


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