1. Board of Directors Who are they? Who appoints them? What are they supposed to do? What binds them?
Board of directors Variation in the boards of companies across sectors Directions to managers + Operational matters of significance Formal and informal functions Vital link between the company and the environment
BoD as STRATEGISTS Guidance for objectives, review and appointment Strategic direction to the organisation Exact role of board dependent on relative strength
2. Chief Executive Officer Who is a CEO? What else is he/she known as? How important is the CEO to the organisation?
Chief Executive Officer Defining Roles Theoretically: 1. The Role Modelling Approaches Chief architect of organisational purpose, strategist or planner Organisational leader, organiser, or organisational builder Chief administrator, implemetor, or coordinator Communicator of organisational purpose, motivator, personal leader or mentor
Chief Executive Officer2. The other approaches:On parameters like: How time is spent Qualities & personalities Communication styles Demographic characteristics Managerial values Environment Managerial styles
Chief Executive Officer Defining roles practically: By practitioners or by CEOs themselves ‘Keynote’ by J.R.D. Tata ‘Return to Punjab’ by Prakash Tandon ‘India’s industrialists’ by Gita Piramal
Example: Indira Nooyi (Pepsi co)Extremely important strategies for the company, for e.g., Acquisition of Tropicana Merger with Quaker Oats
3. EntrepreneursThe entrepreneur always searches for change, responds to it and exploits it is an opportunity.
ExampleKiran Mazumdar, a young entrepreneur,set up an export-oriented unitmanufacturing a range of enzymes.She was actively involved in all aspects ofpolicy formulation and implementationfor her companies.
4. ConsultantsThey can be individuals, academia, or consulting companies specializing in strategic management.
5. Corporate Planning StaffThey support and assist the management, prepare & communicate strategic plans and conduct special studies & researches.
6. SBU- Level ExecutivesThe executive head of each SBU is responsible for the framing of strategies for that SBU and for the coordination with the other SBUs in the organisation.