...Semester III UNIT – I STRATEGY AND PROCESS |Conceptual Framework for Strategic Management – Concept of Strategy and Strategy Formation Process – Stakeholders in Business – Vision, | |Mission and Purpose – Business Definition – Objectives and Goals – Corporate Governance – Social Responsibility | CONCEPTUAL FRAMEWORK FOR STRATEGIC MANAGEMENT Strategic management deals with decision making and actions which determine an enterprise’s ability to excel survive or die by making the best use of a firm’s resources in a dynamic environment. The main purpose of study of strategic management is to examine why some organization succeed while others fail and yet others completely change. Consider the following examples: ➢ Bharat Heavy Electricals Ltd. (BHEL) is now planning to expand its range to 800 MW supercritical power projects. ➢ LG Electronics India Ltd. (LGEIL) signed a MOU with Maharashtra government to expand manufacturing facility at Pune for Rs.900 crores. ➢ GAIL India has received an offer from China Gas Holdings for participation in a gas based petrochemical project to be set at Humor in Mangolia. ➢ The world’s largest steel conglomerate Mittal Steel Company is to become the second largest stakeholder in a Chinese Steel firm in Hunan Province. ➢ Mittal singed three MOUs with Jharkhand Government for setting up 12 million tonne Greenfield project in two phases. ➢ Maruthi Udyog slashed the price of Maruti-800 by...
Words: 3249 - Pages: 13
...from both an economic and societal point of view. “Stakeholder theory is a theory of organizational management and ethics.” (Phillips, 2003) Stakeholders are the individuals, groups, and organizations who can affect the firm’s vision and mission, are affected by the strategic outcomes achieved, and have enforceable claims on the firm’s performance.” (Hitt, Page 19) “Stakeholders can include employees, customers, owners/investor groups, suppliers, unions, professional /industry associations, government, community neighbors, NGOs, educational institutions, neighbors, the media and so on.” (Fowler, 2014) Managing for stakeholders involves attention to more than simply maximizing shareholders. It is not an excuse for managerial opportunism. Stakeholder Theory does not require changes to current laws; it is not a theory of socialism; it is not a comprehensive moral doctrine; and it is not applicable only to corporations. (Phillips, Page 484) An organization in return have a dependency relationship with its stakeholders. The more critical and valued a stakeholder’s participation, the greater a firm’s dependency becomes. They continue to support an organization when the firm’s meets or exceeds their expectations. Both, the organization and the stakeholders have responsibilities towards each other in their own interest. “It is important to gain feedback from a variety of stake holders. This helps in order to better understand the key issues that affect the people and places that an organization...
Words: 1755 - Pages: 8
...CSR REPORT ANALYSIS Student name Institution Date Introduction A business report is meant to put across information useful to a particular business. Actually, a business reports lets the stake holders know the position that their investment stands. These reports also provide problems that have been faced by the business and also the strategic plans that are supposed help solve the problems in future. The following report is basically evaluating two companies’ annual reports. This report will consider all factors such as services, products, and the environment as well as stake holders, both internal and external; based on the annual reports of both, Mitsubishi and Sony companies. Both have designed their reports to inclusively create awareness to all their stake holders, concerning the CSR actions that the companies may be planning to undertake Scope The following report will be based on; Setting out the differences between the reports of the two companies in terms of the range of issues dealt within the reports and the depth of the coverage; a. Explain the differences between the two reports in terms of country or industry factors; b. Assess the quality of the reporting in terms of Zadek’s (1997) criteria c. Evaluate the extent to which it would be appropriate for the two companies to use a standardized approach; d. Make recommendations about how each of the reports could be improved and why A. Set out the differences between the reports of the two companies...
Words: 3893 - Pages: 16
...QCF LEVEL 7 EXTENDED DIPLOMA IN STRATEGIC MANAGEMENT & LEADERSHIP STRATEGIC CHANGE MANAGEMENT ASSIGNMENT UNIT: STUDENT NAME : COLLEGE ID : TUTOR : SUBMISSION DATE : WORD COUNT : TABLE OF CONTENTS Introduction …………………………………………………………………………… 03 LO1. Understand the background to organizational strategic change 1.1 Discuss a minimum of three established models of strategic change, highlighting the differences in approach. 1.2 Evaluate the relevance of models of strategic change, and using examples from organizations, Explain why the models for change are appropriate in their selected examples. 1.3 Assess the value of using strategic intervention techniques that are used in organizations. LO2. Understand issues relating to strategic change in an organization 2.1 Examine the need for strategic change in an organization. 2.2 Show an understanding of the forces that are impacting on an organization and driving the need for Change. 2.3 Assess the resource implications of the organization not responding to strategic change. It is Expected that learners will assess the relevant financial, human and physical resources. LO3. Be able to lead stakeholders in developing a strategy for change 3.1 Develop systems to involve stakeholders in the planning of change. The systems need to be Appropriate...
Words: 3050 - Pages: 13
... Malaysia, UK, Germany, Bangladesh, Egypt, Hungary, Myanmar, Singapore, Laos ,Brazil, Italy, Philippines, France, Vietnam, Indonesia, Thailand, Dubai, Switzerland, China, Korea, Australia, Canada. ABRL works in healthcare, education, urban and social issues in three thousands and six hundred villages. It achieved an award of Best Employer of India. This organisation has grown up from my neighbourhood and very much familiar to me. As I am a witness of the organizations grow up and my subject of study also similar; I have no doubt to choose this organization as a subject of my present study. 1(B) Strategic marketing planning presents a useful process by which an organization formulates its strategies, providing it is adapted to the organization and its environment. Although it can bring many hidden benefits, like the better coordination of company activities, a strategic marketing plan is mainly concerned with competitive advantage – that is to say, establishing, building, defending and maintaining it. Marketing is a process for: 1. Defining markets. 2. Quantifying the needs of the customer groups (segments) within these markets. 3. Determining the value propositions to meet these needs. 4. Communicating these value propositions to all those people in the organization responsible for delivering them and getting their buy-in to their role....
Words: 3934 - Pages: 16
...profits since last two decades. This is regarded as the ways of Samsung conducts the business and strategic INFORMATION MANAGEMENT is the pillars of the entire business at Samsung. For a long period relationships between corporate strategy and information systems; Top management of the firms were not much interested. Information management systems are to be thought as same to corporate data processing and support the daily routine functions (Rockart, 1979). Information management systems based on computer based response to any type of interaction whether at transaction level and supply levels etc. Although Samsung is a much consolidated company but it requires more strategic development planning system to identify more future projects to compete its sister companies in the world. Shipping of products and the best use of strategic information management can enhance the capabilities of the managers to identify the achievable targets of selling of new products of fashionable mobiles by installing the new information management systems. Supply Chain Operations need more development to improve Samsung’s global business operations. OBJECTIVES: The main objective of the Samsung company is to provide better technology. Samsung should apply such strategies which are worth gaining and company should make such decision which satisfy the stake holders. Management of the Samsung must takes strategic decisions to become important player in the Phone Industry. All units within Samsung are responsible...
Words: 890 - Pages: 4
...HARD BUT MANDATORY TO BE IN BATTLE –CORPORATE SUSTAINABLE DEVELOPMENT Dr PP Singh-Director, C.T Group of Institutions Maqsudan Campus Jalandhar. Arora Gaurav Singh-Management Faculty, Lovely Professional University Jalandhar. Rohit Kapoor-MBA-International Buisness,Lovely Professional University Jlandhar. Abstract In the current Business environment we often come across some facts where corporate enterprises form strategy to meet the second biggest challenge after transforming its business into corporate. The mainstream of the literature on corporate sustainability follows the win–win paradigm, according to which economic, environmental and social sustainability aspects can be achieved simultaneously. Where making profit is one primary objective and challenge for any corporate on the other front dynamism in the business environment lays corporate to plan down certain strategies to sustain in the battle irrespective of the crest and troughs in the business. This paper examines various strategies adopted by the companies to sustain ie- Corporate and social responsibility, stake holders management relations, environment management or it also the cost cutting part to be on the kitty to maintain the balance of revenues. The paper also highlights the manipulation of figures by the companies to be the arena. Introduction Corporate sustainable development means a formulation of Business strategy that puts the...
Words: 2227 - Pages: 9
...possible without conscious efforts to realign operational priorities with the demands of the changing environment. Thus, successful achievement of the fundamental objectives of organizations is highly dependent on their ability to attune their operational focuses to the realities on the ground. Cognizant of this fact, Somali regional state capacity building bureau has recently embarked on an initiative aimed at redefining its major businesses in light of the objective demands. The bureau envisions bringing about radical change in its performance by applying Business Process Reengineering as a main tool. To this end, the existing Human Resources Development (HRD) core process has been identified to be an important candidate for the reengineering initiative. An existence of a HRD system which systematically coordinates the continuous human resource development, motivates civil servant to high level of performance, and ensures that they continue to maintain their commitment is essential to the successful achievement of the regional institutions mission and vision. However, because of traditional operational focuses, the existing HRD system of the bureau has for long been engulfed with a number of managerial and functional inefficiencies. In view of this, the bureau has assigned team consisting of four members to assess the basic features of the existing HRD system and redesign a new process that can contribute to the realization of the...
Words: 1309 - Pages: 6
...fourthlargest airport by land area owned in the nation. The Midfield Terminal Energy Facility was designed to meet the requirement as: Ultimate cooling load of 9,100 tons Ultimate heating load of 113 x 106 Btuh Out Line of Project Outline of project The energy facility also provides electric power to the Midfield Terminal from the new substation located between the energy facility and the field-erected concrete cooling tower. Completion – 6 weeks ahead of schedule and within budgeted cost. Outline of project ??? Cost Quality Scope Management Outline of project Well defined scope and explicitly required quality removes building up of cost contingencies for unknowns by the executers in turn reduction of in Cost. Scope Management Outline of project Time Management Outline of project Scope with Complete details Realistic Cost Project Completion Time Time Management Outline of project Realistic Project Schedule All contingencies properly factored in to the...
Words: 1407 - Pages: 6
.......................................................................................................................10 References...............................................................................................................................10 Introduction Organizations can be considered as a system which consists of a numerous number of people who coordinate and work together to achieve the common goal. Organizational behavior is the set of actions performed by the individuals or the attitudes of the individuals in a particular organization. For a manager it is very essential to study and understand the organizational behavior as it will assist him to identify and correct problems, establish necessary changes etc. Management or managers plays a vital role in organizational behavior and in achieving its goals (R.L, M, and N, 2010). The role of managers is considered as the key factor in the success of the organization. However the success of an organization does not purely depend on the effectiveness of a manager but also on the interdependencies with other peoples in an organization’s operation. Manager’s interaction with the individuals who are involved in the process of goal achievement...
Words: 2054 - Pages: 9
...Human capital management (HCM) is concerned with obtaining, analyzing and reporting on data that informs the direction of value-adding people management, strategic investment and operational decisions at corporate level and at the level of front line management. The defining characteristic of HCM is this use of metrics to guide an approach to managing people that regards them as assets and emphasizes that competitive advantage is achieved by strategic investments in those assets through employee engagement and retention, talent management and learning and development programmes. The Accounting for People Task Force Report (2003) stated that HCM involves the systematic analysis, measurement and evaluation of how people policies and practices create value. The report defined HCM as 'an approach to people manage¬ment that treats it as a high level strategic issue rather than an operational matter "to be left to the HR people" '. The Task Force expressed the view that HCM 'has been under-exploited as a way of gaining competitive edge'. As John Sunderland, Task Force member and Executive Chairman of Cadbury Schweppes pic commented: 'An organization's success is the product of its people's competence. That link between people and performance should be made visible and available to all stake¬holders.' Nalbantian el al (2004) emphasizes the measurement aspect of HCM. They define human capital as, 'The stock of accumulated knowledge, skills, experience, creativity and other relevant...
Words: 634 - Pages: 3
...Management Buyouts: A Framework for Value Realization Management buyouts (‘MBO’s) have become increasingly popular in recent years due in large part to the abundance of available capital in the North American marketplace. They can be particularly attractive as an exit strategy for business owners looking to retire and for corporations seeking to divest of a non-core business segment. In addition to the many Canadian-based financial investors searching for good MBO candidates, a growing number of players from the United States and other parts of the world are looking to Canada due to the scarcity of good prospects and the quality of the companies and management teams that reside here. Financial investors will compete among themselves for the chance to secure an opportunity that meets their investment criteria. Financial investors may take a minority equity interest or a majority stake in an investee company, and some financial investors specialize in certain industry sectors. Most financial investors publicize their areas of interest and general investment criteria on their websites. There a three main parties involved in an MBO: the owner of the company who is seeking to divest, the management team looking to acquire an equity interest, and the financial investor seeking a return on invested capital. In order to be successful over the long term, an MBO must be structured to satisfy the collective, yet sometimes conflicted, interests of these parties. This article examines the...
Words: 2269 - Pages: 10
...Define and explain the significance of the term ‘derived demand’ as it applies to Strategic Human Resources Planning. (5 marks) Derived demand is defined as a requirement for one product that is created due to the purchase of another product. It occurs for consumers who purchase goods for further production, because their purchases are based on the demand for their final product.[1] For example, when the demand for automobiles is high, the derived demand for steel, and all other products used to make automobiles, is also high. Should the demand for automobiles drop, so will the demand for the products used to make the automobiles. Derived demand applies particularly to strategic human resources planning in relation to labour. Demand and supply of labour interact to determine the wages and affects the allocation of labour resources in ta corporation. It involves anticipating both the need for labor and the labor supply while planning programs necessary to ensure the organization will have the right mix of employees. The demand for labour is derived form the demand for the goods and services that labour is used to produce. Additionally the demand for labour is influenced by the level of economic activity, the productivity of labour and relative cost of labour compared to capital.[2] The demand and supply of labour are influenced by both macroeconomic and microeconomic factors. Macroeconomics refer to conditions in the whole economy affecting the general labour market. Microeconomic...
Words: 2988 - Pages: 12
...Book Review Book Name: Performance Management: A Strategic and Integrated Approach to Achieve Success Authors: Michael Armstrong & Angela Baron Publication: JAICO Publication House, 2012 Approach: * Strategic in the sense that it is concerned with the broader issues facing the business if it is to function effectively in its environment and with the general direction in which it intends to go to achieve longer-term goals. * Integrated in four senses: * Vertical integration- linking or aligning businesses, team and individual objectives. * Functional integration- linking functional strategies in different part of the business. * HR integration- linking different aspect of HRM. * Individual needs integration- linking organizational and individual need together as far as possible. Performance: Performance is defined as “a multi-dimensional construct, the measurement of which varies, depending on a variety of factors. It is important to determine whether the measurement objective is to assess performance outcomes or behavior.” History of Performance management: According to the author the history of performance management formally evolved out of the work of Frederick Taylor. Then the merit-rating came to the fore in the USA and the UK in the 1950s and 1960s, when it was sometimes rechristened performance appraisal. Management by objectives then came out in the 1960s and simultaneously, experiments were made with the critical incident...
Words: 842 - Pages: 4
...some of the ways to achieve this, but the primary driver is the desire to obtain valuable resources. Many acquisitions failed to achieve their objectives and resulted in poor performance because of improper implementation. 1. Improper documentation and changing implicit knowledge makes it difficult to share information during acquisition. 2. For acquired firm symbolic and cultural independence which is the base of technology and capabilities are more important than administrative independence. 3. Detailed knowledge exchange and integrations are difficult when the acquired firm is large and high performing. 4. Management of executives from acquired firm is critical in terms of promotions and pay incentives to utilize their talent and value their expertise. 5. Transfer of technologies and capabilities are most difficult task to manage because of complications of acquisition implementation. The risk of losing implicit knowledge is always associated with the fast pace acquisition. Preservation of tacit knowledge, employees and literature are always delicate during and after acquisition. Strategic management of all these resources is a very important factor for a successful acquisition. Increase in acquisitions in our global business environment has pushed us to evaluate the key stake holders of acquisition very carefully before implementation. It is imperative for the acquirer to understand this relationship and apply it to its advantage. Retention is only possible...
Words: 273 - Pages: 2
