Every organisation is trying to become more efficient and more productive. The key to an organisations success is to become more global and advance from a technological prospective. In order to become more efficient and to make its goals achievable, an organization should focus the most important assets of all other resources, which is the human capital or the intellectual assets. After all, none other than a person or an employee executes every achievement or any activity in an organization. Thus keeping this particular asset in good terms and managing it up to a standard is quite a challenge in terms of time and similarly finance. However, having a well organized and a well-managed human resource brings more significance to an organizations well being. This article will investigate how Strategic Management (SM) and Human Resource Management (HRM) are related, and then evaluated the role they play in providing organisations with Continue reading
Strategic Management
Strategic management is the art and science of formulating, implementing and evaluating cross-functional decisions that will enable an organization to achieve its objectives. It involves the systematic identification of specifying the firm’s objectives, nurturing policies and strategies to achieve these objectives, and acquiring and making available these resources to implement the policies and strategies to achieve the firm’s objectives. Strategic management, therefore, integrates the activities of the various functional sectors of a business, such as marketing, sales, production etc. , to achieve organizational goals. It is generally the highest level of managerial activity, usually initiate by the board of directors and executed by the firm’s Chief Executive Officer (CEO) and executive team.
Important Elements of Merger Procedure – Scheme and Valuation
Scheme of Merger The scheme of any arrangement or proposal for a merger is the heart of the process and has to be drafted with care. There is no specific form prescribed for the scheme. It is designed to suit the terms and conditions relevant to the proposal but it should generally contain the following information as per the requirements of sec. 394 of the companies Act, 1956: Particulars about transferor and transferee companies Appointed date of merger Terms of transfer of assets and liabilities from transferor company to transferee company Effective date when scheme will came into effect Treatment of specified properties or rights of transferor company Terms and conditions of carrying business by transferor company between appointed date and effective date Share capital of Transferor Company and Transferee Company specifying authorized, issued, subscribed and paid up capital. Proposed share exchange ratio, any condition attached thereto and the fractional Continue reading
What is Strategic Innovation?
Innovative thinking can be applied to the strategic planning of an organization to create new opportunities and boost market performance. Strategic Innovation is the creation of growth strategies, new product categories, services, or business models that change the market and generate significant new value for consumers, customers, and the organization. Strategic Innovation takes the road less traveled – it challenges an organization to look beyond its established business boundaries and to create possibilities in an open-minded and creative environment. It has been seen that focusing on the short-term aspects typically yields short-term results, however, firms seeking to make significant breakthroughs identify both, big and innovative ideas. Strategic Innovation calls for a holistic approach that operates on multiple levels. First, it blends non-traditional and traditional approaches to business strategy, deploying the practices of “Industry Foresight”, “Consumer/Customer Insight” and “Strategic Alignment” as a foundation, and supplementing them with more conventional approaches and Continue reading
Behavioural Issues in Strategy Implementation
It is vital to bear in mind that organizational change is not an intellectual process concerned with the design of ever-more-complex and elegant organization structures. It is to do with the human side of enterprise and is essentially about changing people’s attitudes, feelings and – above all else – their behavior. The behavioral of the employees affect the success of the organization. Strategic implementation requires support, discipline, motivation and hard work from all manager and employees. Influence Tactics: The organizational leaders have to successfully implement the strategies and achieve the objectives. Therefore the leader has to change the behavior of superiors, peers or subordinates. For this they must develop and communicate the vision of the future and motivate organizational members to move into that direction. Power: it is the potential ability to influence the behavior of others. Leaders often use their power to influence others and implement strategy. Formal authority Continue reading
Strategic Business Decisions on Research and Development (R&D)
Industrial research can have one of two fundamental orientations. First orientation is the scientific research, which is concerned with generating new concepts that may or may not have product applications. The second orientation is the commercial development – which can take several forms, but is essentially product, as opposed to concept, oriented. Thus commercial development is a more pragmatic and market-centered form of R&D effort than scientific research. Research and Development strategy has four primary elements: R&D goals, extent of integration of the R&D function, amount of market coupling desired, and size of the budget. 1. Research and Development Goals Goals are needed to specify the purpose of R&D is used as part of product or market development or market-penetration business-level strategies, the firm’s desired competitive position can largely determine the amount and type of R&D needed. More specifically R&D can have one of four basic purposes that normally would Continue reading
Platform Leadership – Meaning and Examples
Platform Leadership is a new concept in strategic management, introduced by Annabelle Gower and Michael Cusumano in their book , “Platform Leadership: How Intel, Microsoft, and Cisco Drive Industry Innovation,” HBS Press, 2002. Platform leadership enables companies to exert influence over the direction of innovation that is taking place in their industry, thus extending their weight over the network of firms and customers involved with the industry. In the initial phase of many industries, the early movers tend to develop most of the components necessary to make the products. But later, specialized firms typically emerge to develop different components. Along with components, evolve platforms, which consist of various components made by different companies. Some companies become platform leaders. They ensure the integrity of the platform by working closely with other firms to create initial applications and then new generations of complementary products. “Becoming a platform leader is like winning the Continue reading