The document discusses the importance of strategic planning for business success. It defines a business organization and how it creates wealth by taking inputs from one market and transforming them into outputs for another market. A business organization is like a system with predetermined behaviors from its members. Its success depends on forces in the external environment like technological, social, regulatory, and competitive factors. These forces are constantly changing, so strategic planning is needed to minimize the impact of discontinuities from environmental changes.
The document discusses various frameworks for analysing an organisation's external environment and developing business strategy. It describes Porter's Five Forces model and PESTLE analysis for assessing the macro environment. The Ansoff Matrix and strategic positioning are presented for growth strategies. Stakeholder mapping, organisational audits, SWOT analysis and benchmarking indicators are outlined as analytical tools. The key aspects of strategic planning including mission, objectives, strategies and tactics are also defined.
The document discusses resource-driven business strategy. It explains that a firm's profitability depends on the resources it possesses and how it uses them, rather than just the industry it operates in. Resources vary across companies and can include physical, financial, human, technological, brand and social network resources. A firm's competitive advantage comes from capabilities created through effectively deploying resources where net gains are highest. Long-term strategy should focus on stable core resources and expanding in areas that intensively utilize these resources.
The document provides an overview of PESTLE analysis, which is a framework used to analyze the macroenvironmental factors that may have a significant impact on a business. It examines the Political, Economic, Social, Technological, Legal, and Environmental factors (PESTLE). Each factor is described in terms of its key elements and examples are provided to illustrate how changes in these external factors can influence industries and companies. The document emphasizes that PESTLE analysis is an important tool that executives use to identify opportunities and risks posed by the broader business environment.
This document contains a test bank of questions and answers related to corporate governance. It covers topics such as the primary goals and mission of public companies, the roles of corporate governance gatekeepers, how corporate governance structures improve investor confidence, the intent of corporate governance reforms, and the benefits of proper implementation of the Sarbanes-Oxley Act. Discussion questions address additional topics such as defining and assessing corporate governance, the influence of corporate culture, and integrating corporate governance into business education curriculum.
Role of Procurement Professional in Public Private Partnerships (PPPs)Mwiza Helen
The document discusses the role of procurement professionals in public-private partnerships (PPPs). It states that procurement professionals can play a key role in PPP units by providing technical support and guidance throughout the PPP project process, from identification to evaluation to procurement to contract management. They can also build capacity for other public sector officials and help develop the PPP market for private sector involvement. Centralized PPP units have been created in many countries to better manage PPP programs, though the specific functions of these units vary between countries.
The document discusses emerging challenges for independent directors in meeting corporate social responsibility. It outlines four key factors impacted by corporate governance: strategy, people, performance, and risk. Independent directors play an important oversight role by providing informed and committed guidance. Their responsibilities include maximizing value for stakeholders, overseeing management and financial performance, and ensuring corporate social responsibility practices are followed. The document also examines the business case for CSR and potential consequences of neglecting it.
Corporate governance involves processes, policies, and laws that determine how a company is controlled. It includes accountability of managers to stakeholders and the relationships between stakeholders. Key aspects of good corporate governance include respecting shareholder rights, considering other stakeholder interests, having an effective board, integrity and ethics, and disclosure and transparency. Tools for evaluating corporate governance include auditing, board structure, transparency, and social responsibility compliance. Strategic control and leadership are also important, with leaders ensuring strategies are implemented and modified as needed based on changing conditions. Globalization brings both opportunities like expanded markets but also challenges like increased competition that companies must address in their strategies.
The document discusses various frameworks for analysing an organisation's external environment and developing business strategy. It describes Porter's Five Forces model and PESTLE analysis for assessing the macro environment. The Ansoff Matrix and strategic positioning are presented for growth strategies. Stakeholder mapping, organisational audits, SWOT analysis and benchmarking indicators are outlined as analytical tools. The key aspects of strategic planning including mission, objectives, strategies and tactics are also defined.
The document discusses resource-driven business strategy. It explains that a firm's profitability depends on the resources it possesses and how it uses them, rather than just the industry it operates in. Resources vary across companies and can include physical, financial, human, technological, brand and social network resources. A firm's competitive advantage comes from capabilities created through effectively deploying resources where net gains are highest. Long-term strategy should focus on stable core resources and expanding in areas that intensively utilize these resources.
The document provides an overview of PESTLE analysis, which is a framework used to analyze the macroenvironmental factors that may have a significant impact on a business. It examines the Political, Economic, Social, Technological, Legal, and Environmental factors (PESTLE). Each factor is described in terms of its key elements and examples are provided to illustrate how changes in these external factors can influence industries and companies. The document emphasizes that PESTLE analysis is an important tool that executives use to identify opportunities and risks posed by the broader business environment.
This document contains a test bank of questions and answers related to corporate governance. It covers topics such as the primary goals and mission of public companies, the roles of corporate governance gatekeepers, how corporate governance structures improve investor confidence, the intent of corporate governance reforms, and the benefits of proper implementation of the Sarbanes-Oxley Act. Discussion questions address additional topics such as defining and assessing corporate governance, the influence of corporate culture, and integrating corporate governance into business education curriculum.
Role of Procurement Professional in Public Private Partnerships (PPPs)Mwiza Helen
The document discusses the role of procurement professionals in public-private partnerships (PPPs). It states that procurement professionals can play a key role in PPP units by providing technical support and guidance throughout the PPP project process, from identification to evaluation to procurement to contract management. They can also build capacity for other public sector officials and help develop the PPP market for private sector involvement. Centralized PPP units have been created in many countries to better manage PPP programs, though the specific functions of these units vary between countries.
The document discusses emerging challenges for independent directors in meeting corporate social responsibility. It outlines four key factors impacted by corporate governance: strategy, people, performance, and risk. Independent directors play an important oversight role by providing informed and committed guidance. Their responsibilities include maximizing value for stakeholders, overseeing management and financial performance, and ensuring corporate social responsibility practices are followed. The document also examines the business case for CSR and potential consequences of neglecting it.
Corporate governance involves processes, policies, and laws that determine how a company is controlled. It includes accountability of managers to stakeholders and the relationships between stakeholders. Key aspects of good corporate governance include respecting shareholder rights, considering other stakeholder interests, having an effective board, integrity and ethics, and disclosure and transparency. Tools for evaluating corporate governance include auditing, board structure, transparency, and social responsibility compliance. Strategic control and leadership are also important, with leaders ensuring strategies are implemented and modified as needed based on changing conditions. Globalization brings both opportunities like expanded markets but also challenges like increased competition that companies must address in their strategies.
1. PESTLE is an analytical tool that considers external factors like political, economic, social, technological, legal and environmental factors that may impact an organization or industry.
2. It helps determine if an industry is attractive and what needs to be done to take advantage of or position against external factors during strategic planning.
3. The document then provides examples of using PESTLE analysis to analyze external factors impacting Tata Motors, including political issues around land acquisition, economic growth and competition, social impact and programs, technological innovation, environmental sustainability programs, and legal issues around product safety.
LPG stands for Liberalization, Privatization, and Globalization. India under its New Economic Policy approached International Banks for the development of the country. These agencies asked the Indian Government to open its restrictions on trade done by the private sector and between India and other countries.
Business Environment ppt 2020.pptx ppt on introduction to business environmentssusere1704e
The document provides information on business environment including definitions of business, objectives of business, characteristics of business environment, types of business environment (internal and external), and components of macro environment (political, economic, socio-cultural, technological, natural, demographic, international). It also discusses India's economic environment in the context of privatization, globalization, and liberalization policies and their impact. Key points include increasing competition, changing technological landscape, need for developing human resources, and market orientation in Indian businesses.
This document discusses strategic management concepts including the strategic management process, competitive advantage, and strategic competitiveness. It covers three key aspects: vision and mission statements which specify an organization's goals and objectives; stakeholders which are individuals and groups that can impact an organization's strategic outcomes; and strategic leaders who use the strategic management process to help an organization achieve its vision.
Entrepreneurship Development
Entrepreneurship development is the means of enhancing the knowledge and skill of entrepreneurs through several classroom coaching and programs, and training. The main point of the development process is to strengthen and increase the number of entrepreneurs.
Slideshareersion strategic report regulations guidance for companies and inv...Ardea International
Environmental, social governance issues have financial implications on how companies recognise, diagnose, manage and disclose their information. The legal and investor angle is discussed, together with how to diagnose the financial risk
Mba1034 cg law ethics week 5 stakeholders & bod 2013Stephen Ong
The document discusses corporate governance and stakeholders. It begins by outlining the learning outcomes, which include understanding governance structures, stakeholder analysis, and corporate social responsibility. It then defines stakeholders as individuals or groups that depend on an organization and discusses how they influence strategic purpose. The roles of boards, differences in governance systems, and issues in governance like aligning agent and principal interests are examined. The document also explores corporate social responsibility and ethics at the individual level.
This document provides an overview of key concepts in business strategy and strategic planning. It discusses frameworks for analyzing the external business environment, such as the PESTEL and Five Forces frameworks. It also covers internal organizational analysis and stakeholder analysis. Key strategic planning concepts summarized include the Ansoff Matrix, the Boston Consulting Group matrix for classifying business units, and the importance of understanding stakeholders' needs, priorities, and sources of power within an organization.
Liberalisation, privatisation and globalisation.Sweetp999
The document discusses India's New Industrial Policy of 1991 which introduced the principles of liberalization, privatization, and globalization (LPG). It aimed to address issues like the government's excessive spending, inefficiencies, and losses in public sector enterprises. Liberalization relaxed restrictions on trade, investment, industry and privatization transferred public sector enterprises to private ownership. Globalization opened the Indian economy to increased foreign investment and trade. The policy changes aimed to make the Indian economy more competitive and integrate it with the global economy.
The document discusses India's New Industrial Policy of 1991 which introduced the principles of liberalization, privatization, and globalization (LPG). It aimed to address issues like the government's excessive spending, inefficiency, overprotection of industries, and other economic distortions. Liberalization relaxed restrictions on trade and investment. Privatization transferred ownership of public sector enterprises to private companies. Globalization opened the Indian economy to increased international trade and foreign investment. The policy changes aimed to make the Indian economy more competitive and integrate it into the global market.
The document discusses India's adoption of liberalization, privatization and globalization (LPG model) in 1991. It aimed to make the Indian economy more efficient and competitive by reducing state control over markets and encouraging private sector participation both domestically and internationally. Key aspects included liberalizing trade and foreign investment, privatizing state-owned enterprises, and integrating Indian markets with the global economy. The document outlines the reasons for adopting LPG, and provides details on the policies and economic impacts of liberalization, privatization and globalization.
1. The document discusses strategic management and planning. It introduces strategic planning boards, different management levels, and models for strategic management.
2. Key aspects of strategic management covered include external and internal scanning, analyzing opportunities/threats and strengths/weaknesses, developing long-term objectives and strategies, and implementing, measuring, and evolving strategies.
3. Critical factors to consider in strategic management are the legal, economic, technological, customer, competitor, physical, political, and social environments that can impact an organization.
This document discusses various business analysis tools and techniques including PESTLE, SWOT, and Porter's Five Forces analyses. PESTLE is used to analyze political, economic, social, technological, legal, and environmental factors impacting a business. SWOT evaluates a company's internal strengths and weaknesses as well as external opportunities and threats. Porter's Five Forces examines competitive rivalry, supplier power, buyer power, threat of substitutes, and threat of new entry to understand a company's competitive position. The document provides examples and explanations of each analysis technique to help understand their importance for business strategy and decision making.
Organizations use information systems to gain competitive advantages in several ways:
1) Information systems can help lower costs through efficiencies like inventory management (e.g. Walmart) or reduce transaction costs (e.g. Dell's customization).
2) Systems can enable product differentiation, like Google's continuous innovations or Apple's customized iPhone.
3) Niche strategies using systems include Hilton Hotels' customer profiling to better serve specific markets.
4) Strengthening relationships is another approach, like Chrysler's supplier integration system.
This document discusses the internal and external factors that affect a business environment. The internal factors are under a company's control and include human resources, company image, management structure, physical assets, R&D capabilities, marketing resources, and financial factors. The external factors are outside a company's control and include the micro environment of suppliers, customers, competitors, marketing intermediaries, and publics, as well as the macro environment of demographic, economic, technological, political/legal, and social/cultural forces. Understanding both the internal and external factors is important for business success and strategic planning.
This document provides a program guide for the Dbriefs webcast series from July to September 2013. It outlines various webcast topics within the areas of Financial Executives, Industries, Markets, HR Executives, Technology Executives, Tax Executives, and Our Presenters. Some of the highlighted webcasts include discussions on emerging markets opportunities and competition, IT infrastructure transformation challenges, risk management lessons, executive compensation trends, cybersecurity issues for boards, and information reporting and withholding tax liabilities. The guide encourages subscribers to look ahead at emerging business trends and gain insights from these convenient live webcasts.
This document provides a program guide for the Dbriefs webcast series from July to September 2013. It outlines various webcast topics within the areas of financial executives, industries, markets, HR executives, technology executives, and tax executives. The webcasts will discuss emerging issues leaders need to address, including driving enterprise value, governance and risk, financial reporting, transactions and business events, and specific industry topics. The guide provides details on subscription information and accessing materials from past Dbriefs webcasts.
The document provides an overview of business environment in India. It defines business and its objectives. It describes the internal and external factors affecting a business. The external environment includes micro environment like suppliers, customers, competitors etc and macro environment like political, economic, social, technological, demographic and international factors. It highlights the impact of economic reforms like privatization, liberalization and globalization on Indian business environment. It also discusses the characteristics, importance and dimensions of business environment and changes in industrial policy in India.
This document provides an overview of business environment and its key components. It discusses that business environment consists of internal and external factors that affect a business's performance. The internal environment includes values, objectives, management structure, and human resources. The external environment includes micro factors like suppliers, customers and competitors, and macro factors like economic, political, social, technological, and international conditions. It also examines the characteristics, types, importance and impact of factors like policies, economic conditions, privatization, liberalization, industrial policy and demonetization on business in India.
This presentation was provided by Steph Pollock of The American Psychological Association’s Journals Program, and Damita Snow, of The American Society of Civil Engineers (ASCE), for the initial session of NISO's 2024 Training Series "DEIA in the Scholarly Landscape." Session One: 'Setting Expectations: a DEIA Primer,' was held June 6, 2024.
1. PESTLE is an analytical tool that considers external factors like political, economic, social, technological, legal and environmental factors that may impact an organization or industry.
2. It helps determine if an industry is attractive and what needs to be done to take advantage of or position against external factors during strategic planning.
3. The document then provides examples of using PESTLE analysis to analyze external factors impacting Tata Motors, including political issues around land acquisition, economic growth and competition, social impact and programs, technological innovation, environmental sustainability programs, and legal issues around product safety.
LPG stands for Liberalization, Privatization, and Globalization. India under its New Economic Policy approached International Banks for the development of the country. These agencies asked the Indian Government to open its restrictions on trade done by the private sector and between India and other countries.
Business Environment ppt 2020.pptx ppt on introduction to business environmentssusere1704e
The document provides information on business environment including definitions of business, objectives of business, characteristics of business environment, types of business environment (internal and external), and components of macro environment (political, economic, socio-cultural, technological, natural, demographic, international). It also discusses India's economic environment in the context of privatization, globalization, and liberalization policies and their impact. Key points include increasing competition, changing technological landscape, need for developing human resources, and market orientation in Indian businesses.
This document discusses strategic management concepts including the strategic management process, competitive advantage, and strategic competitiveness. It covers three key aspects: vision and mission statements which specify an organization's goals and objectives; stakeholders which are individuals and groups that can impact an organization's strategic outcomes; and strategic leaders who use the strategic management process to help an organization achieve its vision.
Entrepreneurship Development
Entrepreneurship development is the means of enhancing the knowledge and skill of entrepreneurs through several classroom coaching and programs, and training. The main point of the development process is to strengthen and increase the number of entrepreneurs.
Slideshareersion strategic report regulations guidance for companies and inv...Ardea International
Environmental, social governance issues have financial implications on how companies recognise, diagnose, manage and disclose their information. The legal and investor angle is discussed, together with how to diagnose the financial risk
Mba1034 cg law ethics week 5 stakeholders & bod 2013Stephen Ong
The document discusses corporate governance and stakeholders. It begins by outlining the learning outcomes, which include understanding governance structures, stakeholder analysis, and corporate social responsibility. It then defines stakeholders as individuals or groups that depend on an organization and discusses how they influence strategic purpose. The roles of boards, differences in governance systems, and issues in governance like aligning agent and principal interests are examined. The document also explores corporate social responsibility and ethics at the individual level.
This document provides an overview of key concepts in business strategy and strategic planning. It discusses frameworks for analyzing the external business environment, such as the PESTEL and Five Forces frameworks. It also covers internal organizational analysis and stakeholder analysis. Key strategic planning concepts summarized include the Ansoff Matrix, the Boston Consulting Group matrix for classifying business units, and the importance of understanding stakeholders' needs, priorities, and sources of power within an organization.
Liberalisation, privatisation and globalisation.Sweetp999
The document discusses India's New Industrial Policy of 1991 which introduced the principles of liberalization, privatization, and globalization (LPG). It aimed to address issues like the government's excessive spending, inefficiencies, and losses in public sector enterprises. Liberalization relaxed restrictions on trade, investment, industry and privatization transferred public sector enterprises to private ownership. Globalization opened the Indian economy to increased foreign investment and trade. The policy changes aimed to make the Indian economy more competitive and integrate it with the global economy.
The document discusses India's New Industrial Policy of 1991 which introduced the principles of liberalization, privatization, and globalization (LPG). It aimed to address issues like the government's excessive spending, inefficiency, overprotection of industries, and other economic distortions. Liberalization relaxed restrictions on trade and investment. Privatization transferred ownership of public sector enterprises to private companies. Globalization opened the Indian economy to increased international trade and foreign investment. The policy changes aimed to make the Indian economy more competitive and integrate it into the global market.
The document discusses India's adoption of liberalization, privatization and globalization (LPG model) in 1991. It aimed to make the Indian economy more efficient and competitive by reducing state control over markets and encouraging private sector participation both domestically and internationally. Key aspects included liberalizing trade and foreign investment, privatizing state-owned enterprises, and integrating Indian markets with the global economy. The document outlines the reasons for adopting LPG, and provides details on the policies and economic impacts of liberalization, privatization and globalization.
1. The document discusses strategic management and planning. It introduces strategic planning boards, different management levels, and models for strategic management.
2. Key aspects of strategic management covered include external and internal scanning, analyzing opportunities/threats and strengths/weaknesses, developing long-term objectives and strategies, and implementing, measuring, and evolving strategies.
3. Critical factors to consider in strategic management are the legal, economic, technological, customer, competitor, physical, political, and social environments that can impact an organization.
This document discusses various business analysis tools and techniques including PESTLE, SWOT, and Porter's Five Forces analyses. PESTLE is used to analyze political, economic, social, technological, legal, and environmental factors impacting a business. SWOT evaluates a company's internal strengths and weaknesses as well as external opportunities and threats. Porter's Five Forces examines competitive rivalry, supplier power, buyer power, threat of substitutes, and threat of new entry to understand a company's competitive position. The document provides examples and explanations of each analysis technique to help understand their importance for business strategy and decision making.
Organizations use information systems to gain competitive advantages in several ways:
1) Information systems can help lower costs through efficiencies like inventory management (e.g. Walmart) or reduce transaction costs (e.g. Dell's customization).
2) Systems can enable product differentiation, like Google's continuous innovations or Apple's customized iPhone.
3) Niche strategies using systems include Hilton Hotels' customer profiling to better serve specific markets.
4) Strengthening relationships is another approach, like Chrysler's supplier integration system.
This document discusses the internal and external factors that affect a business environment. The internal factors are under a company's control and include human resources, company image, management structure, physical assets, R&D capabilities, marketing resources, and financial factors. The external factors are outside a company's control and include the micro environment of suppliers, customers, competitors, marketing intermediaries, and publics, as well as the macro environment of demographic, economic, technological, political/legal, and social/cultural forces. Understanding both the internal and external factors is important for business success and strategic planning.
This document provides a program guide for the Dbriefs webcast series from July to September 2013. It outlines various webcast topics within the areas of Financial Executives, Industries, Markets, HR Executives, Technology Executives, Tax Executives, and Our Presenters. Some of the highlighted webcasts include discussions on emerging markets opportunities and competition, IT infrastructure transformation challenges, risk management lessons, executive compensation trends, cybersecurity issues for boards, and information reporting and withholding tax liabilities. The guide encourages subscribers to look ahead at emerging business trends and gain insights from these convenient live webcasts.
This document provides a program guide for the Dbriefs webcast series from July to September 2013. It outlines various webcast topics within the areas of financial executives, industries, markets, HR executives, technology executives, and tax executives. The webcasts will discuss emerging issues leaders need to address, including driving enterprise value, governance and risk, financial reporting, transactions and business events, and specific industry topics. The guide provides details on subscription information and accessing materials from past Dbriefs webcasts.
The document provides an overview of business environment in India. It defines business and its objectives. It describes the internal and external factors affecting a business. The external environment includes micro environment like suppliers, customers, competitors etc and macro environment like political, economic, social, technological, demographic and international factors. It highlights the impact of economic reforms like privatization, liberalization and globalization on Indian business environment. It also discusses the characteristics, importance and dimensions of business environment and changes in industrial policy in India.
This document provides an overview of business environment and its key components. It discusses that business environment consists of internal and external factors that affect a business's performance. The internal environment includes values, objectives, management structure, and human resources. The external environment includes micro factors like suppliers, customers and competitors, and macro factors like economic, political, social, technological, and international conditions. It also examines the characteristics, types, importance and impact of factors like policies, economic conditions, privatization, liberalization, industrial policy and demonetization on business in India.
This presentation was provided by Steph Pollock of The American Psychological Association’s Journals Program, and Damita Snow, of The American Society of Civil Engineers (ASCE), for the initial session of NISO's 2024 Training Series "DEIA in the Scholarly Landscape." Session One: 'Setting Expectations: a DEIA Primer,' was held June 6, 2024.
How to Add Chatter in the odoo 17 ERP ModuleCeline George
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A review of the growth of the Israel Genealogy Research Association Database Collection for the last 12 months. Our collection is now passed the 3 million mark and still growing. See which archives have contributed the most. See the different types of records we have, and which years have had records added. You can also see what we have for the future.
This slide is special for master students (MIBS & MIFB) in UUM. Also useful for readers who are interested in the topic of contemporary Islamic banking.
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How to Make a Field Mandatory in Odoo 17Celine George
In Odoo, making a field required can be done through both Python code and XML views. When you set the required attribute to True in Python code, it makes the field required across all views where it's used. Conversely, when you set the required attribute in XML views, it makes the field required only in the context of that particular view.
1. Strategic HRM: Pulak Das 1
Significance of Strategic
Planning for Business success
Lecture slide for Chapter 1
2. Strategic HRM: Pulak Das 2
Objective
• To Understand the meaning of a business
organization and how environmental
forces compel it to plan its actions well in
advnace.
3. Strategic HRM: Pulak Das 3
What is a business organization?
• An assembly of people who all
volunteered to work together;
• Any difference from other types of
organization e.g. local neighborhood club?
– Contract of different members are different ?
– Driven by the goal of creating more wealth out
of limited wealth.
4. Strategic HRM: Pulak Das 4
How does an organization create
wealth?
Markets for
inputs
Business
organizations
Markets for
outputs
5. Strategic HRM: Pulak Das 5
Business organization as a
system
• It takes in goods and services from one market
and transform them into some other form and
delivers that to another group of people.
• System:
– It is called a system because it shows very similar
behavior like a machine such as a petrol engine of a
car that runs even when the driver is not in his/her sit
or the wrist watch on your hand which runs even
when you are not wearing it. It is called a system
because all its members are expected to behave in a
particular way.
6. Strategic HRM: Pulak Das 6
Sources of a business
organization’s efficiency
• Pre-determined behavior of all its
members;
• Because it is located close to the
customer, it generates goods that are liked
by the customers;
• It is driven by a very well recognized and
visible goal of creating financial wealth.
7. Strategic HRM: Pulak Das 7
What is Business Success ?
• Traditional measures: Surplus fund generated
per unit of asset of related investment in the firm.
• One can use many other measures for
evaluating the success of a firm e.g. Ratio of
total employment to asset, ratio of revenue to
asset etc.
• No matter what measure of success one uses,
an organization’s success would depend on
many forces operating in the environment from
where it procures and sells its goods and
services.
8. Strategic HRM: Pulak Das 8
Efficiency and Governance
• In a business organization, there are two types of
members; the owners and the employees;
• The owners provide initial capital for forming the
organization and the employees provide service to run it;
• Employees are hired on a fixed contract and they are
paid their dues first;
• Once the employees’ due are paid the rest of the wealth
are distributed to the owners or the share holders.
• This is the rule of capitalist system
• The employees are in a better position when it does not
generate much wealth while share holders benefit more
when it does well.
9. Strategic HRM: Pulak Das 9
Efficiency and Governance rule
Organizational
wealth
Members share
(First right)
Owners share
(Residual)
10. Strategic HRM: Pulak Das 10
How the success of a business
organization could get affected?
• If it is unable to keep people working for it because of
poor internal governance policy;
• If it is unable to find goods in its inputs side;
• If it is unable to sell the goods produced by it;
• If Govt. and public concern for its actions places extra
burden on its operation.
• If others have found superior means to reach out the
customers.
• The most important factors that can affect the
success of an organization is through appearance of
discontinuity in any of the environmental forces.
• Why?
13. Strategic HRM: Pulak Das 13
What is a strategy ?
• Strategy is a set of intended actions e.g.
– Building a new plant or closing an existing one;
– Expanding one’s distribution network;
– Acquisition of new business or selling off an existing business;
– Launching of new products;
– Going into new markets;
– Expanding or contracting manpower in a selected division or
dept.
• Many of these decisions are taken with incomplete
information about the state of the world.
• But for some companies and industries these issues are
becoming very critical now. Why ?
14. Strategic HRM: Pulak Das 14
Forces in the Environment
Business
organization
Technological
forces Social forces
Industrial
competition
Regulatory
forces
15. Strategic HRM: Pulak Das 15
Regulatory forces
• A broad framework of rules usually made by the
Govt. of the day to ensure that business
transactions between different parties are fair
and free from opportunism, exploitation and
discrimination.
• These rules are applicable across organizations
within an industry or across all industries. These
may include industry policies for prioritizing
investment, environment protection policy, labor
regulations, trade policy between countries etc.
16. Strategic HRM: Pulak Das 16
Areas of concern Due to Change
in Regulatory Forces
• Economic liberalization;
• Protection of consumer rights;
• Environmental protection laws;
• Govt. tax policy in annual budget: Value added
tax, excise exemption, tariff policy;
• WTO regulation and patent law change;
• A change in labor regulations.
• Spot an important source of discontinuity in
a company you worked or you know.
17. Strategic HRM: Pulak Das 17
Vignette 1.1
• Cost of bending the rule:
– In 2009 May, there was news that European
Commission penalized Intel Corporation to
the tune of $1.45 billion for their practice of
paying secret payment and rebate to Chip
users in Europe so that they do not use chips
from a competitor names Advanced Micro
device. This practice they were following for a
long period. The penalty was about 4% of
Intel’s world wide sales turnover.
18. Strategic HRM: Pulak Das 18
Vignette 1.2
• Global Crisis
– Duplication of development models of the
West is likely to face a crisis of running out of
environmental resources not just at a country
level but at a global level. Global warming due
to progressive accumulation of greenhouse
gases in the atmosphere is staring on the face
of many industries. There is likely to be more
international restrictions and regulations on
how common resources of humanity could be
used and abused by different countries.
19. Strategic HRM: Pulak Das 19
Vignette 1.3
• Business in a regulated space:
– Kyoto Protocol demand 5.2% reduction in emission of
greenhouse gases over there level in 1990 for
industrialized countries.
– Any industrial house that takes measure to reduce its
carbon dioxide emission by one tonne in a year will
get credit of one unit of carbon emission
reduction units (CER). This CER can be exchanged
with other companies who has no choice but to use
high global warming gas emission technology. There
was news that ITC in 2007 ITC got 140,000 carbon
credits through their forestry and use of other energy
saving technology in their existing plants.
20. Strategic HRM: Pulak Das 20
Social Forces
• Society and its members interact with a
business as
– Customers for its goods and services;
– As suppliers of parts, components, and
services;
– As employees;
– As members of various Govt. agents.
21. Strategic HRM: Pulak Das 21
Sources of change for social
forces
• Educational composition of the customers;
• Demography of a country;
• Culture of the society.
• Political process of the society;
22. Strategic HRM: Pulak Das 22
Consumer Income, Education and
awareness of customer rights
• High income and education raise demand
for fairness in market;
• High income and education also increases
volatility of demand;
• Demand for quality product increases with
increasing level of education and income.
• Consumer court and consumer right
movement are some of the outcomes of
these developments.
23. Strategic HRM: Pulak Das 23
Some potential changes of the
social forces
• 1. Slowing down of population growth rates;
• Annual growth rates
• 1981 1991 2001
• 2.22% 2.14% 1.93%
• Life Expectancy at birth
• 1981 1991 2001
• Male
• 54.1 Y 59Years 62.3years
• Female
• 54.7 years 59.7Years 65.3 Years
• Question: Why population growth rate could be a source of
opportunity or threat.
• 2. Demographic characteristics and demand for goods and
services.
• 3. Demography and manpower supply.
• 4. Demography and population burden from retired population.
24. Strategic HRM: Pulak Das 24
Population distribution by age
range
• Age Group (male) 1991 (%) 2001
• 0-9 25.7 23.3
• 10-19 21.85 23.3
• 20-29 16.4 16.8
• 30-39 13.1 13.9
• 40-49 9.7 10.2
• 50-59 6.5 6.5
• 60+ 6.67 6.93
• 60+ in Japan 25%, Germany 25%, UK 22%, US
17%
25. Strategic HRM: Pulak Das 25
Culture and Human Behavior
• What is culture ?
– Inter-personal exchange that are not contract driven are guided by culture or
commonly accepted code of conduct. It can also be a characteristics of social
contracts.
Culture affects some of these areas
• Demand for services:
– Lack of prior experience of similar services can make it harder to create demand
for education, preventive healthcare, organized banking, insurance, cosmetic
products.
Manpower service
–permitted vs non-permitted
• Importance of informal contracts:
– Informal contract may be flexible to accommodate contingency or no flexibility.
• Value system: Eastern vs Western value:
– what drives people to work hard.
– Intrinsic vs extrinsic rewards
26. Strategic HRM: Pulak Das 26
Political Process as a force of
instability
• A very unstable Government can be a force of
high instability in the economic environment
because of its effect on regulations.
• Do social forces has anything to do with this
instability?
• A heterogeneous society and limited economic
space may throw up lots of varieties of political
forces which may have the potential to create
high level of political instability.
27. Strategic HRM: Pulak Das 27
Social forces and its effects
• Which kind of companies are more
vulnerable to such slow change in
social forces?
• Identify any important change in social
forces which may create serious problems
for the company you worked or planning
to take employment after graduation.
28. Strategic HRM: Pulak Das 28
Industry Level Competition
• Economic liberalization and change in structure of industry
• Vanishing industrial boundary
• IT and Computer got merged; banking and insurance are getting merged; Railway and hotel
industry are coming closer.
• Merger and acquisition and change in nature of competitors
– After Jet Airways acquired Sahara its market share jumped to 55%
• Joint Venture and Strategic alliance
– In 2006 there was news that Corporation Bank, Indian Bank and Oriental Bank of Commerce were going to
share infrastructural resources in the area of IT, E-payment system, joint training and international ventures.
• Overcrowding by domestic based company:
– Pressure on factor market; raw materials manpower and other resources; Pressure on product market: lower
margin
• International competition: Entry of MNC
– International fund transfer, technology, quality, higher staying power in the face of low profitability, high
expenditure on product promotion.
– In 2005, Korean steel major Posco signed MOU with Orissa Govt. for building a steel plant there.
Immediately, there was news of capacity expansion move by tata Steel, SAIL, Essar, Ispat, Jindal and
Vijaynagar Steel. But the operating cost of Posco was far less than those of others. SAIL needs 10,000
operators for a million tonne plant, Tata uses 40000 for a 4 million tonne plant but Posco uses 14000 for a
30 million tonne plant.
• How can a discontinuity appear from a change in these areas ?
29. Strategic HRM: Pulak Das 29
Technological Change
• Technology and fast diminishing product life cycles;
– Computers and many other technology intensive products are becoming obsolete at a
faster and faster rate.
• Product Standardization and Organizational size
– Size of Manufacturing organizations are becoming smaller and smaller.
• New Product with better appeal to customers;
– Entry of mobile phone sealed the fate of land-line phone business.
– Entry of flat screen technology in TV business is posing serious danger to the CRT
picture tube business.
• Widespread use of IT;
– By using IT, one can manage business with fewer employees. Example: banks branch
may not require that many employees to run.
• Change in manufacturing technology:
– integrated manufacturing is bringing down the size of company and raising the level of
minimum skill required from the operators;
• Innovation in business practice:
– Product innovation, service innovation and innovation in business process.
• Could you spot any recent discontinuous change in the technological
environment of your past employer?
30. Strategic HRM: Pulak Das 30
Key learning
• A business organization is an assembly of many people.
Its success depend how well it can manage its relations
with the changing environment in which it has decided to
do its business. There are four types of forces in the
business environment of an organization viz.
technological opportunities and threats, other industries
and companies, social forces, and regulatory forces.
These environmental forces are not static but are
changing constantly. A strategic or future oriented plan
is required to position one’s company and business in
such a way that the stress from these changes are
minimal.
31. Strategic HRM: Pulak Das 31
Questions - 1
• A few years back when Govt. tried to
introduce value added tax, it was
vehemently opposed by small business
houses but not big business organizations.
Why?
32. Strategic HRM: Pulak Das 32
Question-2
• There was news that since 1990s, Indian
Revenue service was loosing its talent
pool of officers at a fast rate. What could
be the reasons for such exodus of IRS
officers?
33. Strategic HRM: Pulak Das 33
Question-3
• In 2005, there was news that UK Govt. was
changing the pension rule that led to huge
protests by Govt. employees e.g. school
teachers, health workers, transport workers etc.
As per old rule one was eligible for pension if
retired at the age of 60 years. According to new
rule, one would be eligible for pension only if the
age of retirement plus years of service add up to
85 or more. What do you think, prompted the
Govt. to go for such policy?