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MS-91 Advanced Strategic Management MS - 91/TMA/SEM-II/2012 All Blocks
Distinguish between the Internal and External determinants of Corporate Policy and analyze how they are important in the present corporate scenario? Solution:-
corporate policy Usually, a documented set of broad guidelines, formulated after an analysis of all internal and external factors that can affect a firm's objectives, operations, and plans. Formulated by the firm's board of directors, corporate policy lays down the firm's response to known and knowable situations and circumstances. It also determines the formulation and implementation of strategy, and directs and restricts the plans, decisions, and actions of the firm's officers in achievement of its objectives. Also called company policy. ==================== External Environment: introduction to the external environment Introduction A business does not operate in a vacuum. It has to act and react to what happens outside the factory and office walls. These factors that happen outside the business are known as external factors or influences. These will affect the main internal functions of the business and possibly the objectives of the business and its strategies. Main Factors The main factor that affects most business is the degree of competition – how fiercely other businesses compete with the products that another business makes. The other factors that can affect the business are: • • • • • • Social – how consumers, households and communities behave and their beliefs. For instance, changes in attitude towards health, or a greater number of pensioners in a population. Legal – the way in which legislation in society affects the business. E.g. changes in employment laws on working hours. Economic – how the economy affects a business in terms of taxation, government spending, general demand, interest rates, exchange rates and European and global economic factors. Political – how changes in government policy might affect the business e.g. a decision to subsidise building new houses in an area could be good for a local brick works. Technological – how the rapid pace of change in production processes and product innovation affect a business. Ethical – what is regarded as morally right or wrong for a business to do. For instance should it trade with countries which have a poor record on human rights.
g. Government introduces new legislation e. the building of an attractive new factory provides employment opportunities to the local community. New competitors enter a market. increase brand loyalty. THE IMPORTANCE OF EXTERNAL AND INTERNAL DETERMINANTS ON THE CORPORATE POLICY HAVE INCREASED. however a business needs to react or lose customers. e.g. because parents feel their children are having too much sugar in their diets. but costs money) Cut costs. for instance pollution. inevitably most will face a degree of competition. do more advertising. A business could react to an increase in competition (e. A social cost is where the action has the reverse effect – there are costs imposed on the rest of society. A social benefit is where a business action leads to benefits above and beyond the direct benefits to the business and/or customer. use cheaper materials. Some of the main reasons why markets change rapidly: • • • • • Customers develop new needs and wants. a shopping mall or city centre arcade – close rivalry. New technologies mean that new products can be made. The amount and type of competition depends on the market the business operates in: • • • Many small rival businesses – e.Changing External Environment Markets are changing all the time. increases minimum wage.g. a launch of rival product) in the following ways: • • • • Cut prices (but can reduce profits) Improve quality (but increases costs) Spend more on promotion (e. A few large rival firms – e. It is also important to consider the effects a business can have on the local community. It does depend on the type of product the business produces. For example. Business and Competition Though a business does not want competition from other businesses. A world or countrywide event happens e.g. e.g.g.g. These are known as the social benefits and social costs.g. DUE TO THE GLOBALIZATION. Businesses will need to adjust their products to meet these changes. washing powder or Coke and Pepsi.g. where the technology is being developed very quickly – the mobile phone market. taking sugar out of children’s drinks. Gulf War or foot and mouth disease. make some workers redundant Social Environment and Responsibility Social change is when the people in the community adjust their attitudes to way they live. A rapidly changing market – e. ######################################### .
IMG Reliance Private Limited and Reliance Europe Limited. Ambani is a Chemical Engineer from the Institute of Chemical Technology. power generation.846 shares of the Company in his name as on March 31. USA. Bangalore. He has been appointed as a Director by the Board of Directors of the Bank of America Corporation on its Board. Ambani . He is the Chairman. Reliance Foundation. 2011. the University of Bombay).24 million barrels of oil per day at any single location in the world which has transformed "Jamnagar" as the 'Refining Hub of the World'. a Director of Reliance Infotel Broadband Services Limited. Mumbai (earlier the University Department of Chemical Technology. He is the first non-American to occupy such a position. At RIL. At RIL. He has pursued MBA from Stanford University. Identify a Chairman and a CEO of a Company and assess how they have performed their respective functions? CHAIRMAN ShriMukesh D.15. he steered the setting up of another 27 million tonnes refinery next to the existing one in Jamnagar with an aggregate refining capacity of 1. He is also Co-Chair of India-Russia CEO Council and Co-Chair of Japan-India Business Leader's Forum. Highlights . Gandhinagar. Chairman of PanditDeendayal Petroleum University. petroleum refining and going up-stream into oil and gas exploration and production.2. port and related infrastructure. He led the creation of the world's largest grassroots petroleum refinery at Jamnagar.Chairman & Managing Director Shri Mukesh D. Board of Governors of the Indian Institute of Management. ShriMukesh He is the Chairman of Reliance Retail Limited. Further. He is Promoter of the Company and holds 36. with a current capacity of 33 million tonnes per year integrated with petrochemicals. a Member of the Governing Board of Public Health Foundation of India (PHFI). He created several new world-class manufacturing facilities involving diverse technologies that have raised Reliance's petrochemicals manufacturing capacities from less than a million tonnes to about twenty million tonnes per year. he is the Chairman of the Finance Committee and a Member of the Employees Stock Compensation Committee. He joined Reliance in 1981 and initiated Reliance's backward integration journey from textiles into polyester fibres and further into petrochemicals.
4 million shares of ITC as of December 31. 31.12. "I would say that companies like L&T and ITC can be the models for what the public sector can become tomorrow.811 Crore ($ 7. That is because banks and public financial institutions hold about 35 per cent of ITC.289 million) Rs.8% Weightage in the NSE Nifty Growing importance across the globe • • • • Largest refining capacity at any single location Largest producer of Polyester Fibre and Yarn 5th largest producer of Paraxylene (PX) and Polypropylene (PP) 8th Largest producer of Purified Terephthalic Acid (PTA) and Mono Ethylene Glycol (MEG) @@@@@@@@@@@@@@@@@@@@@ CEO YogeshChanderDeveshwar thinks that ITC Ltd could be a model for running India's state-owned companies. Deveshwar does own 3.3% Weightage in the BSE Sensex 7.013 million) Significant contribution to India's economic growth • • • • • 14% of India's total exports 5. and both happen to be among India's largest 'board-managed' companies. the Anglo-American giant wanted ITC to stick to cigarettes.95.• • • • • • Turnover : PBDIT : Cash Profit : Net Profit : Net Profit 10 years CAGR : Total Assets : Rs.040 Crore ($ 3.3. 2." he told BT in an exhaustive conversation in his wood-panelled office at the 1920s Virginia House in Kolkata.790 million) Rs.792 Crore ($ 66. He has risen through the ranks. Back then. 39. they say that what has been done here is actually right for India.994 Crore ($ 6. and he .39. and Larsen & Toubro No. "According to what they tell me now.6 on the BT500 list. but at least his name is not eponymous with his company's.5% of the Government of India's indirect tax revenues 4% of the total market capitalisation in India 9. Deveshwar is third on the list of the BTINSEAD-HBR study on India's best CEOs between 1995 and 2011. and have been a strong counterfoil to British American Tobacco Plc.140 Crore ($ 58.939 million) 20% Rs. ITC ranks No. which owns 31 per cent and was trying hard to take full control of its Indian associate back when Deveshwar took the rudder. The antagonism of the 1990s seems to be history. 20." Deveshwar says.825 million) Rs.
has bucked many trends. Espouses an appropriate set of core values and beliefs during both good and adverse times. Encourages an attitude of lifelong learning to develop new skills that enable continued personal and career growth. So I have started from running shifts. and acts consistently in line with those values. when he took over a company in crisis. and that results meet defined expectations. deals directly with adversity. ensuring that they participate in development and effective implementation of programs that are needed and wanted by members. including unpopular stands as necessary. Practices what he preaches." CEO COMPETENCIES Leadership Skills • • Communicates a compelling Vision and sense of core purpose. So it gave me a much closer feel for the grass roots of the organisation. Builds team spirit. effectively blends people into teams when needed. negotiates performance parameters and priorities. And started running with holding the toolbox with the fitters. and develops an appreciation for the value of the diversity that is generated by team cooperation. "I would say that since I was not an MBA. "I may not have been a business graduate. such that everybody wants to do his/her best. Defines tasks. as the authors of the BTINSEAD-HBR study put it. encourages debate. motivates and coordinates the efforts of a large and influential force of member-volunteers supplemental staff. Creates a climate conducive to an attitude of integrity. coaches for improved performance and development. implements. and handles timely decision-making in an equitable and caring manner. Prepares. or lack thereof. Then I got very quick breaks." he says. and manages progress. Helps others to rise above self-limiting mindsets and constraints to make full use of their capabilities. but the opportunity I got very early on in ITC actually grew me. to those standards. I began on the shop floor. enlisting staff and others. Motivates staff to perceive their jobs as an avocation. selects assignees. and inspiring their allegiance to its fulfillment. monitors and adjusts budgets to remain within approved expenditure limits. trust and professionalism. • • • • • • Management Skills: • Sets standards of performance. He did enjoy a 'runway effect'. supports rigorous problem-solving disciplines. Establishes and uses records. irrespective of job role. gives feedback on performance. Oversees projects and delegated assignments to ensure they are completed on schedule and within budget. from under the machines. delegates authorities & accountabilities. reports and other techniques to identify and track performance accountabilities. Relishes the command role. Communicates with. and to find ways for them to experience the same kinds of satisfaction. but he did not come armed with an MBA. much as they feel about pastimes. Attends to workplace and employment concerns and regulatory • • • • • • .
gaining their trust and respect. enjoys working diligently. develops schedules and assignments. can presuppose future scenarios. can articulate credible pictures of possibilities and likelihoods. breaks down work into process steps. is action oriented. steadfastly urging himself and others for results. and assesses the need to modify personal behaviors to deal with changing demands and personalities. Copes effectively and shifts gears comfortably dealing with change. sets objectives and goals. Looks toward the broad perspectives of issues and challenges. and is able to ease tensions. and accurately reads conflict situations quickly and hammers out cooperative agreements with minimal disruption. maintains composure amidst uncertainty and can simultaneously manage multiple activities. and characteristically listens and tests to understand both the data and the people ramifications before acting. to ensure employees have a wholesome environment conducive to high performance and employment longevity. Exudes energy. Acts with customers in mind. Knows personal strengths and limits and handles them appropriately. and can act with a minimum of planning in the face of uncertain circumstances. and communicates to get the message across and achieve desired results. is able to diffuse tense situations.considerations. Interpersonal Skills: • • • Relates to all kinds of people. Displays compassion about people’s work and non-work difficulties and is available to help. Displays approachability and a positive and constructive sense of humor. and establishing and maintaining effective relationships. and builds rapport and constructive relationships. • • • • Results Orientation: • • • • Focuses on customer service and is dedicated to meeting requirements and expectations of internal and external “customers”. • • • Organization & Planning Skills: • • Marshals resources and uses them effectively and efficiently to orchestrate multiple activities and get things done. uses diplomacy and tact. diverse workgroups comprised of staff and volunteers. Skilled at finding common ground to solve problems. Sees ahead clearly. and is composed under pressure. • Listens actively. Consistently can be relied on to achieve or exceed goals and is very bottom-line oriented. Facilitates effectively the business processes and tasks activities of large. establishes measures and evaluates results. and thinks globally. Scopes out accurately the difficulty of projects. and can create breakthrough strategies and plans. Exercises patience and tolerance. speaks and writes clearly and succinctly suitable for a variety of applications and settings. ================================================== . dealing well with frustrations and not becoming defensive or aggressive.
This fact can be explained with the help of the following statement. Local Market or Regional Market. here forms an arrangement and such arrangement also is included in the market. perhaps may not be. Usually. In Economics. buyer and seller can carry on their transactions through internet. Classification or Types of Market . Explain the basis of classification of markets with special reference to impact of regulation on market competition. But in Economics. above statement indicates that face to face contact of buyer and seller is not necessary for market. International Market or Global Market. in stock or share market.Chart The classification or types of market are depicted below.g. market can exist even without direct contact of buyer and seller. National Market or Countrywide Market. Thus. On the basis of Place. Market means a place where buyer and seller meets together in order to carry on transactions of goods and services. 2. 3. it may be a place. . So internet. E. market is classified into: 1.3.
In fact. 1. Gold silver. flowers. Perfectly competitive market structure. 2. 3. On the basis of Competition. it is said to have International market or world market. price etc. sugar.Meaning in Economics : 1.On the basis of Time. milk. it is called a local market. Very Long Period Market. (2) time and (3) degree of competition. the idea of locality or place is not necessary. Long Period Market. On the basis of 'time' : . International Market : International Market When a commodity enjoys demand and supply from the entire world. According to the area. medicines etc. 4. electronic goods are the examples for goods having international market. markets can be of three types (a) local (b) national (c) International. For example. we have a national market. vegetables.Market . wheat. Goods available in the local markets may also have national market. National Market : : National Market : When demand and supply of a commodity are spread over the entire nation. Both these market structure widely differ from each other in respect of their features. Imperfectly competitive market structure. market is classified into: 1. In economics to be called as a market.Meaning in Economics Market is commonly thought of as a place where commodities are bought and sold and where buyers and sellers are meet. Very Short Period Market. market is classified into: 1. say shares are traded". It may for example. consist of network of telecommunications across the world. Local Market : : Local Market : When demand and supply of a commodity is restricted to a particular locality. fish etc. There need be no physical entity corresponding to a market. Short Period Market. 2. duopoly. buyers and sellers are located only in particular locality where these goods are usually available. there are different forms of markets like monopoly. Under imperfect competition. Classifaction of Markets : Classifaction of Markets Markets can be classified on the basis of (1) area covered. oligopoly and monopolistic competition. anything which has a price has a market.Market . For such perishable goods. For example.
if demand for cotton cloth increases in the long run. he takes into account the reaction of his rival. 2. many firms produce differentiated products. each firm can influence the price and output decisions of its rival firms. 1) Monopoly. In long run. Imperfect market can take several forms. 3.On the basis of 'time' On the basis of 'time' markets are classified into three types : 1. A change in the price and output by one seller affects the other. Imperfect Competition Market : Imperfect Competition Market In this market. Buyers and sellers accept the price determined in the market. Interdependence is one of the importance feature of the market.Perfect Competition Market : There is a perfect competition among the buyers and sellers. 3) Oligopoly . Duopoly : Duopoly It is a market where there are only two sellers. Long Run : This is the time period in which complete adjustment in supply is possible. Different prices come to prevail for the same commodity at the same time. The price paid in this time period is called market price or very short period price. 4) Monopolistic Competition. As the number is small. . competition is imperfect amongst the buyers and sellers. For instance. This is the time period in which supply remains constant. markets can be classified as perfect and imperfect markets : 1. Supply of a commodity can be increased or decreased according to the changes in demand.Very Short Period : It is also called as market period. Thus in monopolistic competition the goods are produced with slight differences. Based on competition: : Based on competition: Based on competition. When a duopolist takes a decision. The commodities produced are close substitutes of one another. The price or output in a monopoly market is not influenced by other goods. Prevalence of the same price for the same commodity at the same time is the essential feature of this market. Short Run : This is the time period in which supply can be altered to some extent by changing the variable factors of production. Monopoly : Monopoly It is a market in which a single firm or seller controls the entire supply of the commodity which has no close substitutes. 2) Duopoly . the capital equipment can be altered and the equilibrium between the demand and supply can be achieved. Oligopoly : Oligopoly There are few sellers in this market dealing in differentiated products. Homogeneity of goods may or may not exist Monopolistic Competition : Monopolistic Competition In this market. The commodities produced are close substitutes of one another. all factors become variable.
Empiricism Empiricists hold that all of our knowledge is ultimately derived from our senses or our experiences. We know about ourselves. namely explicit and tacit knowledge. and that reason plays an important role in the acquisition of all of our knowledge. to account for certain types of knowledge. then. They therefore deny the existence of innate knowledge. it should be fairly evident that the knowledge captured in a document would need to be managed (i. however. we know about the world around us. we know about abstract concepts and ideas. from the media. but the rationalist’s claim is that reason play a role in observation. Describe the two sources and types of knowledge and explain their contribution in Knowledge Management. i. retrieved. Philosophers have often wondered where this knowledge ultimately comes from. two types of knowledge are usually defined. the wikipedia article on knowledge provides some interesting background reading (go to article). What.) in a totally different way than that gathered over the years by an expert craftsman Over the centuries many attempts have been made to classify knowledge. changed. . and from other people. There is clearly a limit to what we can learn through abstract thought. e. To process information from these sources. knowledge of pure mathematics or ethics.######################################## 4. Empiricism fits well with the scientific world-view that places an emphasis on experimentation and observation.e. we must already know many things: how to read. Within business and KM. It struggles. etc. The former refers to codified knowledge. how to reason. For example. Of course. we learn a lot of things from books. This has resulted in numerous classifications and distinctions based in philosophy and even religion. Sources of Knowledge Each of us possesses a great deal of knowledge. however. To learn these things requires yet more knowledge. and thereby being able to distinguish between various types of knowledge. Though not directly related to our purpose here. shared. such as that found in documents. and so that the mind is more fundamental than the senses in the process of knowledge-acquisition The Different Types of Knowledge Understanding the different forms that knowledge can exist in. while the latter refers to non codified and often personal/experience-based knowledge. Rationalism Rationalists hold that at least some of our knowledge is derived from reason alone. is an essential step for knowledge management (KM). stored.g. who to trust. knowledge that we possess from birth. is the most fundamental way of acquiring knowledge? There are two competing traditions concerning the ultimate source of our knowledge: empiricism and rationalism. and different fields have focused on different dimensions.e.
Some researchers make a further distinction and talk of embedded knowledge. documents. it is important to define these theoretical opposites. that important knowledge is stored. which are very effective at facilitating the storage. However. one differentiates between knowledge embodied in people and that embedded in processes. hard to define knowledge that is largely experience based. It is sometimes referred to as know-how (Brown &Duguid 1998) and refers to intuitive.g. (Botha et al.). which in actual fact are/were nothing more than information and explicit knowledge management software. It is hard to communicate and deeply rooted in action. store.KM and organisational learning theory almost always take root in the interaction and relationship between these two types of knowledge. retrieval. I will treat this type of knowledge in its own separate category. notes. updated. as well as a short discussion on the way knowledge management systems (KMS) can/cannot be used to manage them. etc. This way. in order to understand knowledge. organizational culture. and that the knowledge is reviewed. This concept has been introduced and developed by Nonaka in the 90's (e. commitment. Because of this. Cook & Brown 1999. This has therefore created many products labeled as KM systems. Explicit Knowledge This type of knowledge is formalized and codified. It involves ensuring that people have access to what they need. and the most likely to lead to breakthroughs in the organization (Wellman 2009). in fields such as IT there is often a lack of a more sophisticated definition. tacit knowledge is often context dependent and personal in nature. It is therefore fairly easy to identify. Nonaka 1994) and remains a theoretical cornerstone of this discipline. KM initiatives driven by technology have often had the flaw of focusing almost exclusively on this type of knowledge. Brown &Duguid 1991. (Horvath 2000). 2008) Tacit Knowledge (Embodied Knowledge) This type of knowledge was originally defined by Polanyi in 1966. It is considered simpler in nature and cannot contain the rich experience based know-how that can generate lasting competitive advantage. all knowledge is a mixture of tacit and explicit elements rather than being one or the other. Gamble & Blackwell (2001) link the lack of focus on tacit knowledge directly to the reduced capability for innovation and sustained competitiveness. These three types of knowledge will be used exclusively on this site. Bukowitz& Williams 1999. routines. This is the type of knowledge most easily handled by KMS. Due to the rather different managerial demands. Below I present an overview of these three categories. Therefore in practice. . and involvement (Nonaka 1994). Botha et al (2008) point out that tacit and explicit knowledge should be seen as a spectrum rather than as definitive points. Explicit knowledge is found in: databases. etc. and is sometimes referred to as knowwhat (Brown &Duguid 1998). From a managerial perspective. and retrieve (Wellman 2009). and modification of documents and texts. or discarded. As discussed previously. Although this is changing to some limited degree. Tacit knowledge is also regarded as being the most valuable source of knowledge. the greatest challenge with explicit knowledge is similar to information. Many theoreticians regard explicit knowledge as being less important (e. etc. memos.g.
Due to the difficulty in effectively managing embedded knowledge. Using a reference by Polanyi (1966). i. IT can be used to help map organizational knowledge areas. products. IT's role in this context is somewhat limited but it does have some useful applications. etc. and they must understand the limitations imposed by computerized systems. attitudes. or informally as the organization uses and applies the other two knowledge types. Tacit knowledge is found in: the minds of human stakeholders. It includes cultural beliefs. and products. The exact extent to which IT systems can aid in the transfer and enhancement of tacit knowledge is a rather complicated discussion. It would be very difficult for him to codify his knowledge into a document that could convey his know-how to a beginner. artifacts. Knowledge is embedded either formally. Embedded knowledge is found in: rules. such as through a management initiative to formalize a certain beneficial routine. Embedded Knowledge Embedded knowledge refers to the knowledge that is locked in processes. routines. values. which is something that is difficult/impossible for the tacit knowledge holder. that while embedded knowledge can exist in explicit sources (i.KMS have a very hard time handling this type of knowledge. whenever making this distinction is relevant. manuals. as a tool in reverse engineering of products (thus trying to uncover hidden embedded knowledge). For now. it has also been argued that IT can have a disruptive influence on culture and processes. as well as skills. On this site. It is important to note. organizational culture. suffice it to say that successful KM initiatives must place a very strong emphasis on the tacit dimension. This is one reason why experience in a particular field is so highly regarded in the job market. imagine trying to write an article that would accurately convey how one reads facial expressions. codes of conduct. An IT system relies on codification. focusing primarily on the people involved.e. I will generally limit tacit knowledge to knowledge embodied in people. etc. Broadly speaking. or as a supporting mechanism for processes and cultures. the knowledge itself is not explicit. mental models. The challenges in managing embedded knowledge vary considerably and will often differ from embodied tacit knowledge. Formalized routines on the other hand may be easier to implement and management can actively try to embed the fruits of lessons learned directly into procedures. Virtually all practitioners rely on this type of knowledge. routines. products. processes. KNOWLEDGE MANAGEMENT PLANNING& DEVELOPMENT . and refer separately to embedded knowledge (as defined below). particularly if implemented improperly. An IT specialist for example will troubleshoot a problem based on his experience and intuition.e. it is not immediately apparent why doing something this way is beneficial to the organization. or structures (Horvath 2000. a rule can be written in a manual). Culture and routines can be both difficult to understand and hard to change. culture. capabilities and expertise (Botha et al 2008). ethics. However. Gamble & Blackwell 2001). firms that succeed may enjoy a significant competitive advantage. It should be quite apparent that it would be near impossible to convey our intuitive understanding gathered from years of experience and practice.
-the company employs about 235 people. transformed. or transferred to another process or medium. -the company has the following functional departments *marketing *manufacturing *sales *finance/ administration *human resource *customer service *distribution *warehousing/ transportation *TQM AT THIS ORGANIZATION. released or disposed of. AND DEVELOPMENT Step 3: Designing the knowledge management architecture and integrating existing infrastructure Step 4: Auditing and analyzing existing knowledge Step 5: Designing the knowledge management team Step 6: Creating the knowledge management blueprint Step 7: Developing the knowledge management system PHASE 3: DEPLOYMENT Step 8: Deploying with RDI methodology Step 9: Change management. The data and quantification methods must be evaluated for accuracy with mass balance checks performed to identify any imbalances between input and output so that all quantities can be explained. The organisation I am referring to The organization. DESIGN. .PHASE 1: INFRASTRUCTURAL EVALUATION Step 1: Analyzing existing infrastructure Step 2: Aligning knowledge management and business strategy PHASE 2: KM SYSTEM ANALYSIS. Selecting any Company of your choice highlight any three key developments in social transparency and reporting. culture. I am familiar with is a -a large manufacturer/ marketer of safety products -the products are used as [personal protection safety] [ industrial safety] -the products are distributed through the distributors as well as sold directly -the products are sold to various industries like mining/fireservices/defence/ as well as to various manufacturing companies. THE THREE DEVELOPMENTS ARE ONE At the process level. reward structure design. contained in the product. and evaluating system performance ####################################### 5. measurements and calculations must be performed to quantify the amount of toxic substances used. created. destroyed. etc PHASE 4: PERFORMANCE EVALUATION Step 10: Measuring results of knowledge management. devising ROI metrics.
material safety data sheets (MSDS) Administrative burdens Public relations Energy.TWO As part of the drive towards transparency. operation and maintenance for pollution control equipment THREE As part of the expected corporate social responsibility. Write short notes on the following: a) Transnational Strategy An international businessstructure where a company'sglobalbusiness activities are coordinated viacooperation and interdependence between its head office. Line management should supervise and audit work so that breaches are detected and corrected early. IT is particularly interested in all the “indirect costs” that the agency believes really drive . operational divisions and internationally located subsidiaries or retail outlets. health and safety compliance Pollution liability Waste disposal Hazardous material storage & handling Worker protective equipment. the plan must identify at least one method for reducing toxic substances under each of seven categories. . including: • • • • • • • • • Environmental. packaging (CLP). PPE costs) The outcome of the case should lead businesses to review their health and safety policies to ensure their management systems and work instructions are up-to-date. Staff should be fully aware of those policies and trained regularly on any important changes. and to ensure there are no hidden icebergs under the water. comp time. ######################################## 6. IT requires firms to also report costs associated with these industrial operations in its plan due at the end of the year. the plan must document the anticipated cost savings. along with the anticipated cost savings of both direct and indirect (and cobenefits) including: • • • • • • Total Savings Return on Investment (ROI) and Payback Period Replaces Equipment Scheduled for Repair/Replacement Energy Efficiencies Reductions in Byproducts Reduced Worker Exposure (including reductions in claims. The net present value and timelines for implementing feasible options must be outlined. A transnational strategy offers the centralizationbenefits provided by a global strategy along with the local responsiveness characteristic of domesticstrategies. Both feasible and non-feasible options must have a rough toxic substance reduction estimate. ventilation Container labeling. For those options that are considered technically feasible.
coordination of operations and leveraging unique advantages of local markets to drive sales. Country Environment The country environment is an important aspect of transnational strategy. In an October 1999 interview with Harvard Business School Working Knowledge writer James Aisner. Basics Transnational strategy involves operating in different world markets. Shih suggests that manufacturers and suppliers often lack contingency plans and find themselves scrambling for alternatives when disaster strikes. Branding Transnational businesses may use global brands or create specialized local brands. In an October 2007 Harvard Business School Working Knowledge article. International is a generic term that . In a May 2011 interview with Harvard Business School Working Knowledge writer Dennis Fisher. secure property rights and anti-corruption policies attract transnational companies. The development of skills training and support infrastructure are also important characteristics of countries that are appealing for transnational companies. Diversification of supply sources and having alternative distributors are some of the contingency planning options. Global brands share certain characteristics. international and transnational businesses have subtle differences. Stonehouse defines transnational strategic management as iterations of organizational learning and performance improvements. multinational. Natural disasters. In a March 2007 interview with Harvard Business School Working Knowledge writer Sean Silverthorne. Harvard professor Michael E. A transnational strategy combines global reach. global. such as a focus on a single product category and consistent market positioning. Quelch cites the cases of American and Japanese automakers to suggest that developing a marketing strategy around one set of brands is more efficient than having several different brands for different regions of the world. A small-business owner should select a country based on its current business environment and a reasonable estimate on what the business and political environment might be in three to five years. Considerations Although people use the terms interchangeably. Harvard professor Richard H. market share and profit growth. Porter discussed the importance of clusters in country selection. designing responsive organizational structures and establishing value-added activities that exploit national similarities and differences. such as the March 2011 earthquake in Japan. Harvard professor Willy C. Emerging nations should encourage transnational companies to build linkages with the local economy and become consumers of local goods and services. However.K. Clusters are geographic concentrations of competing and cooperating suppliers and service providers. according to Newcastle Business School professor George Stonehouse and his colleagues. can cause severe disruptions in the supply chain. Harvard professor John A.A transnational business conducts operations in several countries with varying degrees of coordination and integration of strategy and operations. Vietor suggests that countries with a sound fiscal and monetary environment. but with customized implementations for local markets and regions. management should consider whether customers would be willing to pay for the cost of establishing and maintaining these backup supply and distribution arrangements. Contingency Planning Transnational strategy also includes contingency planning. The foundation of a transnational strategy is a global vision.
I shall refer to this kind of balancing as autonomy maximisation. The second kind of balancing is slightly broader. with reference to their importance from the perspective of the self-conceptions of the agents. and preference is given to the weightier autonomy interest. in this sense it is correct to say that the right way to resolve the conflict is ‘to strike a balance’. The fourth kind of balancing – balancing as reasoning – regards balancing simply as a matter of assessing the relative strength of reasons. My third understanding of balancing – formal balancing – does not work with the image of scales anymore. but it delegates strategic decision-making responsibility to its overseas subsidiaries. thus the four kinds of balancing can be imagined as four concentric circles. under formal balancing the conflict between the two autonomy interests may be resolved wholly or partly independently of the weight of the two interests. which operate as autonomous businesses. and often decisive. Even in the case of a truly absolute prohibition of torture. A global business conducts activities in many countries but with an integrated worldwide strategy. Balancing is the fourth. We sometimes say that we need to ‘balance’ all the morally relevant considerations. stage of the proportionality test. it must be impermissible. rather. thus the balancing metaphor is somewhat misleading. and even in constellations where courts do not rely on the proportionality test. c) Global Reporting Index (GRI) WHAT IS GRI? . Each kind includes the previous one but is broader. which is determined with reference to the perspective of the agent whose autonomy is at stake. it still works with the image of scales.1 But what does it mean to say that the interests involved have to be ‘balanced’? I shall present four concepts or kinds of balancing. I shall call this kind of balancing interest balancing. we could still say that we have to ‘balance’ the reasons for and against torture and conclude that since torture is absolutely prohibited. But it determines the weight of the respective autonomy interests not exclusively with regard to their importance for the self-conceptions of the agents. But in contrast to interest balancing. they often resort directly to balancing. it additionally relies on other factors. One might call this kind of balancing a ‘utilitarianism of autonomy interests’ (parallel to Nozick’s ‘utilitarianism of rights’2) or ‘autonomy maximisation according to this approach the controlling factor is the weight of the respective autonomy interests.applies to all businesses with foreign operations. The first and most narrow one simply puts the two (or more) competing autonomy interests on the scales. and what we mean by that is that we have to develop a moral argument. @@@@@@@@@@@@@@@@@@@ b) Balanced Autonomy The dominant approach in constitutional rights law recommends that in the case of conflicts between rights (autonomy interests) and other rights (autonomy interests) or public interests (which are eventually personal autonomy interests). and their respective weight is determined. But it is still about balancing is the sense that none of the two (or more) competing interests takes absolute priority. balancing is the appropriate method to determine the correct result. in accordance with the approach developed in Chapter Three. A multinational business operates in several foreign countries. So we need to make a moral argument which may be at least partly independent of the weight of the autonomy interests at stake. Balancing then is a synonym for practical reasoning.
enables greater organizational transparency about economic. use GRI’s Framework in order to understand and communicate their sustainability performance. More than 4. public agencies. coordinating the activity of GRI’s many network partners. the Organisation for Economic Cooperation and Development. network-based organization. they have generally been subsumed by similar guidelines from the UN ICLEI.000 organizations  from 60 countries use the Guidelines to produce their sustainability reports. (View the world’s reporters at the GRI Sustainability Disclosure Database. Brazil. GRI also enjoys strategic partnerships with the United Nations Environment Programme. Its global network includes more than 600 Organizational Stakeholders – core supporters – and some 30. and due process – including Public Comment Periods – help make the Guidelines suitable and credible for all organizations. and can lead to many other benefits.) GRI Guidelines apply to corporate businesses. social and governance performance – the four key areas of sustainability. . GRI’s is a multi-stakeholder. GRI Guidelines are regarded to be widely used. International Organization for Standardization and many others. The Secretariat acts as a hub. China.000 people representing different sectors and constituencies. The Framework enables all organizations to measure and report their economic.The Global Reporting Initiative (GRI) is a non-profit organization that works towards a sustainable global economy by providing sustainability reporting guidance GRI has pioneered and developed a comprehensive Sustainability Reporting Framework that is widely used around the world. of all sizes and sectors. the Netherlands. GRI has Focal Points – regional offices – in Australia. India and the USA. The Reporting Framework – which includes the Reporting Guidelines. Sector Guidelines and other resources . environmental. International working groups. stakeholder engagement. This transparency and accountability builds stakeholders’ trust in organizations. social and governance performance. the UN Global Compact. industry groups and others. Its Secretariat is headquartered in Amsterdam. Thousands of organizations. environmental. For municipal governments. GRI’s Guidelines are developed with the expertise of the people in its network. NGOs. smaller enterprises.
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