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Strategic Management and Corporate Governance

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9 views40 pages

Strategic Management and Corporate Governance

Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

STRATEGIC

MANAGEMENT
Strategic Management is a systematic approach to a major and
increasingly important responsibility of general management to
position and relate the firm to its environment in a way that will
assure its continued success and make it secure from surprises.

- Ansoff

Strategic Management is the process of examining both present


and future environments, formulating the organization’s
objectives and making, implementing and controlling decisions
focused on achieving these objectives in the present and future
environments.
Role of Strategic Management
Offsetting uncertainity
Clarity in objectives and direction
Increase organisational effectiveness
Personnel satisfaction
Identification of products and markets
Acts as blueprint for future decision making
Vision
The vision is what you want to accomplish in
future.

Mission
It is a general statement of how you will
achieve your vision. It provides a clear focus on
what an organization does and what it doesn’t.
VISION OF GOOGLE
To provide access to the world's information in one click.

MISSION OF GOOGLE
To organize the world's information and make it universally
accessible and useful.
VISION OF APPLE
We believe that we are on the face of the earth to make great
products and that’s not changing.

MISSION OF APPLE

To bring the best user experience to its customers


through its innovative hardware, software, and
services.
VISION OF AMAZON
To be Earth’s most customer-centric company, where customers
can find and discover anything they might want to buy online.

MISSION OF AMAZON
We strive to offer our customers the lowest possible prices, the
best available selection, and the utmost convenience.”
Goals & objectives
Goals describe what you want to achieve
through your efforts. For this a acronym
SMART is used.
Specific
Measurable
Attainable
Relevant
Time-Bounded
STRATEGY
Strategy is a set of plans or decisions made in an effort
to help organizations achieve their objectives. Strategy
results from the detailed strategic planning process.

A general direction set for the company and its various


components to achieve a desired state in the future.
Strategy results from the detailed strategic planning
process.
NATURE AND SCOPE OF STRATEGY
• Strategy is a major course of action through which an
organization relates itself to its environment particularly the
external environment.
• Strategy is a blend of internal and external factors. To meet the
opportunities and threats provided by the external factors,
internal factors are matched with them.
• Strategy is a combination of actions aimed to meet a particular
condition.
• Strategy is future oriented.
• Strategy may involve a contradictory action.
IMPORTANCE OF STRATEGY
 Provides directions and action plan
 Prioritizes and aligns activities
 Defines accountabilities
 Enhances communication and commitment
 Provides a framework for decision making
STRATEGIC
MANAGEMENT
MODEL
Environmental
Analysis

Corporate Choice Evaluation


mission Strategic of Implement
& Action
& Alternatives Strategy tation
Control
objectives

Corporate
Analysis

Personal
Values &
Aspirations
STRATEGIC
DECISION MAKING
PROCESS
MONITOR IDENTIFY
RESULTS & MAIN
MAKE PROBLEMS
CHANGES

COMPANY
STAKEHOLDERS

CHOOSE & IDENTIFY


IMPLEMENT COST/RISK &
STRATEGY BENEFITS

IDENTIFY
AVAILABLE
OPTIONS
COMPOSITION OF
THE BOARD
Section 149 of the Companies Act,
2013 requires that every company shall
have a minimum number of 3 directors
in the case of a public company, 2
directors in the case of a private
company, and 1 director in the case of
a One Person Company.
The maximum number of members a company can
assign as directors is fifteen. However, the company
can pass a special resolution in a general meeting to
allow for assigning more than fifteen members to the
board of directors.
The maximum number of companies that an
individual can become a director of, is 20 companies.
ROLE
AND
RESPONSIBILITIES
 Determination of strategic objectives and policies of the
business
 Appointment of CEO to carry out business operations as per
plans and policies
 Establishment of different departments to carry out business
operations
 Conserve shareholders assets and make optimum utilization of
funds
 Decide ways to mobilize capital to expand company’s
business
To make call on shares and to recommend dividend
 Establishing compensation for executives
 Maintain company resources
CORPORATE
GOVERNANCE
It refers to the way a corporation is governed. It is all
about balancing individual and societal goals along with
economic and social goals. It deals with determining
ways to take effective strategic decisions.

1. Ensures corporate success and economic growth.


2. Maintains investors confidence
3. Positive impact on share price
4. Minimizes wastages, corruption, risk &
mismanagement
5. Helps in brand formation
6. Ensures organization is managed in a way that
works for best interest of all.
Recent trends in Corporate
Governance
Greater focus on the E&S of ESG. (Envt., Social,
Governance)
Increasing importance of corporate purpose.
Better board oversight of HCM.
More expansive view of board diversity that includes
ethnicity and race.
Companies facing wider forms of activism.
CORPORATE
SOCIAL
RESPONSIBILITY
(CSR)
The intelligent and objective concern for the welfare of
society that restrains individual and corporate behavior
from ultimately destructive activities, no matter how
immediately profitable, and leads in the direction of
positive contributions to human betterment.

The Act requires companies with a net worth of ₹500


crore or more, or turnover of ₹1,000 crore or more, or
a net profit of ₹5 crore or more during the immediately
preceding financial year, to spend 2 per cent of the
average net profits of the immediately preceding three
years on CSR activities.
CSR
by
TATA group
1. Aarogya: Addressing malnutrition, spreading awareness and
delivering preventative healthcare – Impacted3,82,888 lakh
lives
2. Kaushalya: Improving employability through skill
development, vocational training, assistance for supplementing
income, women empowerment – Skilled 17,661people
3. Amrutdhara: Offering water relief measures –
Impacted8,153 lives
4. Seva: Tata Motors’ family volunteered – 10,232employees
clocked29,011 hours for social upliftment
5. Vidyadhanam: Holistic educational initiatives and financial
support – Touched lives of 1,16,893 students
6. Vasundhara: Planted 1,10,101 saplings, and reached out to
create awareness in 90,575 people
7. Aadhaar: Affirmative Action initiatives focussed towards
integrated development approach – Touched lives
of 3,18,000people
Besides the ongoing programmes for societal and
community betterment, our teams respond to issues on
‘need’ basis across the year as well. In 2020-21, we
reached out to impact 1,36,800 lives through our Covid
Response initiatives, which involved equipping the
ground-zero heroes and educating masses for containment
and protection, involving spends of around Rs 3.34 crores.
CSR
OF
RELIANCE
Community Infrastructure & Environment
A large number of initiatives are focused on developing
community infrastructure and protecting the environment.
Reliance has developed infrastructure for water conservation and
constructed community halls, schools, and health centers in
various locations.
Some of Reliance's initiatives to promote environment protection
include investing in renewable energy sources, promoting green
plantations and spreading environmental awareness.

Environment Protection Drives


Environmental impact assessment and qualitative risk analysis
are central to all their new projects. They have converted acres of
arid lands into major green zones.
Education & Skill Enhancement
Reliance supports local schools with logistical and financial
support, capacity building of teachers and infrastructure
development.
Reliance also organises skill development and income-
generating programmes for local communities. Assistance is also
given to such communities by helping them to start Self Help
Groups and empowering them with marketing knowhow.
Women & Youth Empowerment Programmes
Reliance nurtures and sponsors many projects designed to
educate, employ and empower women and youth in and around
the catchment areas of its operations.
Reliance Community Development Programmes
Reliance conducts several livelihood training programmes and
has provided aid and equipment to the physically challenged
Project Jagruti
A project to uplift and bring dyslexic students from the
underprivileged segment into the main stream.
Reliance Dhirubhai Ambani Protsahan Scheme
A scheme for supporting meritorious students and providing
financial aid to the toppers for pursuing higher studies in
engineering and medical streams.
Community Healthcare
Reliance provides affordable curative and preventive
healthcare services to the community through various
healthcare programmes. It has constructed health centers,
operates mobile medical clinics and emergency ambulance
services, and conducts various camps on health awareness.
Reliance is also focusing on specific areas like addressing
maternal mortality and providing support to patients suffering
from chronic ailments such as AIDS and TB.
Reliance Primary Health Centre
Reliance adopted a PHC in Gujarat for catering to the
community health needs under the National Rural Health
Mission Programme.
Reliance Employee Health Care Services
Reliance Occupational Health Centers, located at plants and
offices, are equipped with state-of-the-art facilities and
manned by specialists to take care of the staff and their
families.
Reliance HIV/DOTS Therapy Centre
This centre’s programme for the underprivileged is run with
the support from various governmental and non-governmental
organizations.
Dhirubhai Ambani Hospital
The hospital plays a significant role in improving the quality
of life with its prompt and specialized services and by
providing free lifesaving treatment.
CSR
OF
ITC
E-CHOUPAL

e-Choupal Village internet kiosks


Providing farmers with easy access to real-time, relevant
information
Choupal Pradarshan Khet Demo plots,
farmer field schools, customised solutions
Raising agri competencies through knowledge and technology
transfer
Choupal Saagar Procurement-cum-retail hubs
Bringing appropriate farm and non-farm services close to
farmer's doorstep
Choupal Haat & Mahotsav
Expanding choice & services for evolving rural customers
AFORESTATION

Providing environmental & economically positive alternative


land-use option
Forming Water User Groups
Mobilising community action to conserve and manage local
resources
Comprehensive training for all Water User Groups
Building grassroots capacity so that communities can manage
resources equitably and sustainably
LIVESTOCK DEVELOPMENT

Preserving native breeds


Producing high-yielding calves through artificial insemination
Transferring know-how & technology to local communities
Milk Marketing Societies
Promoting collective action for greater benefit
Producing high-yielding crossbred cattle
Reducing climate risks by diversifying income streams
Women Empowerment

1. Overcoming financial inadequacy through micro-credit / seed


money / loans, etc
2. Promoting co-operative action & collective enterprises
3. Expanding skills & know-how for better opportunities
4. Special Focus: Supporting Women in Extreme Poverty

PRIMARY EDUCATION

1. Creating a child-friendly, supportive school environment


2. Improving Learning Outcomes
3. Supporting children to keep up & return to regular schools
SKILLS & VOCATIONAL TRAINING

Providing affordable training at easily accessible locations


Assisting participants to find employment

HEALTH & SANITATION

Building awareness to change behaviour


Providing financial assistance to construct family toilets
Linking with government schemes for greater reach and scale

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