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What is adhocism
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creditors, debtors, customers and suppliers. A key monetary influence. For business is the
interest rate. Higher interest rates increase business costs and act as a break on spending
in the economy.
The political /legal system creates the rules and frameworks within which business
operates. Government policy supports and encourages some business activities e.g.
Enterprise, while discouraging others e.g. the creation of pollution.
The environmental system is the natural system in which life takes place. Increasingly
businesses have become aware of the relationship between their economic activity i.e.
making goods and services for profits and the effects that this has on the environmental
system.
Internal Analysis: -
In order to develop successful strategies to exploit various opportunities or to control
threats that are found from swat analysis, analysis of an organizations capabilities is
important for strategy making which aims at producing a good fit between a country’s
resource capability and its external situation.
When a company efficiently and effectively manages its resources and competencies, it
leads it to a competitive advantage.
These are the different mechanisms through which environmental appraisal is done.
However, organizations have evolved from this environment –strategy Interface, to a more
comprehensive strategic view known as corporate planning. It involves moving ahead from
environmental appraisal to strategic alternatives and choice. The adhocism planning done
is strategic and incorporates the long- term view of all the major decisions.
Thus, the concept of corporate management has moved through the stages, planned
policy, environmental strategy, interface and corporate planning.
Ans2 - corporate governance is the set of processes. Customs, policies, laws and
institutions affecting the way a corporation is directed, administered or controlled.
Corporate governance also includes the relationships among the many stakeholders
involved and goals for which the corporation is governed. The principle stakeholders are
the shareholder, management and the board of directors. Other stakeholders include labor
(employees), customers, creditors (e.g. banks, bond holders), suppliers, regulators and
the community at large.
An important theme of corporate governance is to ensure the accountability of certain
individuals in an organization through mechanism that tries to reduce or eliminate the
principle agent problem. A related but separate thread of discussions focuses on the
impact of a corporate governance system in economic efficiency, with a strong emphasis
shareholders welfare. There are yet other aspects to the corporate governance anodal
around the world.
There has been renewed interest in the corporate governance practices of modern
corporations since 2001,particularly due to the high-profile collapses of a number of large
u.s. firms such as Iron corporation and MC1 inc. (formerly world com). Thus corporate
governance to build an atmosphere of mutual trust and responsibility. Corporate
governance can further be defined as an internal system encompassing policies,
processes and people, which serve the needs of shareholders and other stakeholders, by
directing and controlling management activity. Sound corporate governance is reliant on
external market place commitment and legislation, plus a healthy board culture which
safeguards policies and processes.
Write a note on corporate governance & CSR in India?
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In the first half of the 1990s, the issue of corporate governance in the u.s. received
considerable press attention due to the wave of CEO dismissals (e.g. IBM’ kodak,
Honeywell) by their boards In the early 2000s,the massive bankruptcies (and criminal
malfeasance) of Error and world com as well as lesser corporate debates, such as A
Delphi a Communications, AOL, Arthur Andersen, Global crossing, Tyco and more
recently, Fannie Mae Freddie Mac, led to increased shareholder and governmental
interest in corporate governance.
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organizational returns. If some parties are receiving more than their fair return then
participants may choose to not continue participating, leading to organizational collapse.
Principles
Key elements of good corporate governance principles include honesty, trust and integrity,
openness, performance orientation, responsibility and accountability, mutual respect and
commitment to the organization.
Of importance is how directors and management develop a model of governance that
aligns the values of the corporate participants and than evaluate this model periodically
for its effectiveness. In particular, senior executives should conduct themselves honestly,
especially concerning actual or apparent conflicts of interest, and disclosure in financial
reports.
Commonly accepted principles of corporate governance include:
• Rights and equitable treatment of shareholders: Organization should respect the
rights of shareholders and help shareholders to exercise those rights. They can
help shareholders exercise their rights by effectively communicating information
that is understandable and accessible and courage shareholders to participate in
general meetings.
• Interests of other stakeholders: organizations should recognize that they here legal
and other obligations to all legitimate stakeholders.
• Role and responsibilities of the board: the board needs a range of skills and
understanding to be able to deal with various business issues and have ability to
review and challenge management performance. It needs to be sufficient size and
have an appropriate level of commitment to fulfill its responsibilities and duties;
there are issues about the appropriate mix of executive and non-executive
directors.
• Integrity and ethical behavior: Ethical and responsible decision-making is not only
important for public relation. But is also a necessary element in risk management
and avoiding lawsuits. Organizations should develop. A code of conduct for their
directors and executives that promotes ethical and responsible decision-making. It
is important to understand, though, that reliance by a company on the integrity and
ethics of individuals is bound to eventual failure. Because of this, many
organizations establish “Compliance and Ethics Programs” to minimize the risk that
the firm steps outside of ethical and legal boundaries.
• Disclosure and transparency: organizations should clarify and make publicly known
the roles and responsibilities of board and management to provide shareholders
with a level of accountability. They should also implement procedures to
independently verify and safeguard the integrity of the company’s financial
reporting. Disclosure of material matters concerning the organization should be
timely and balanced to ensure that all investors have access to clear, factual
information
Issues involving corporate governance principles include:
• Internal controls and the independence of the entity’s auditors
• Oversight and management of risk
• Oversight of the preparation of the entity’s financial statements
• Review of the compensation arrangements for the chief executive officer and
other senior executives
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The idea of responsible business behavior is for from new. But Since 1990s,increasing
concern over the impacts of economic globalization has led to new demands for
corporations to play a central role in efforts to eliminate poverty, achieve equitable and
accountable systems of governance and ensure environmental security. In essence, the
approach is to view business as part of society and to find ways to maximize
The positive benefits that business endeavor can bring to human and environmental well
being whilst minimizing the harmful impacts of irresponsible business. The agenda that
has resulted from these concerns has variously been called “corporate citizenship”
“ Corporate social responsibility (CSR)”,”corporate accountability” or simply “corporate
responsibility”
Corporate Social Responsibility (CSR) is an expression used to describe what some see
as a company’s obligation to be sensitive to the needs of all to take account not only of the
financial /economic dimension in decision making, but also the social and environmental
consequences.
Sustainable Development:
One of the most significant developments in the field of CSR over the past few years
has been the growth in public expectations that the companies not only make
commitments to its stakeholders in its business operations. The principle is closely linked
with the imperative of ensuring that these operations are “sustainable”, that is, that CSR is
recognized as not only necessary but also develop systems to manage implementation
and systematically assess and report on progress relative to those commitments.
Corporate accountability encompasses the systems a company establishes to develop
policies, indicators, targets and processes to manage the full range of activities. The scope
of operations for which companies are expected to be accountable has increased
dramatically in recent year to include not only company’s own performance but also that of
the business partners and other actors throughout the company’s value chain. The
mechanisms a company uses to demonstrate accountability are varied and inevitably need
to change and grow as a company involves, at the some time effective systems for
increasing accountability generally allow the company to inclusive, responsive and
engaged with its shareholders.
Accountability in its basic sense implies rendering of accounts and by extension,
indicate answerability, to an external agency or group and future implies ensuring
propriety, legality and safeguarding public interest in satisfaction of the expectations of the
external agency or group. Social Accountability suggests accountability to the people; this
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Disinter mediation: Through B2B e-markets, suppliers are able to interact and transact
directly with buyers, thereby eliminating intermediaries and distributors. However, new
forms of intermediaries are emerging .For instance, e-markets themselves can be
considered as intermediaries because they come between suppliers and customers in the
supply chain.
Transparency in pricing: Among the more evident benefits of e-markets is the increase
in price transparency. The gathering of a large numbers of buyers and sellers in a single e-
market reveals market price information and transaction processing to participants. The
Internet allows for the publication of information on a single purchase or transaction,
making the information readily accessible and available to all members of the e-market.
Increased price transparency has the effect of pulling down price differentials in the
market. In this context, buyers are provided much more time to compare and make better
buying process.
Moreover, B2B e-markets expand boarder for dynamic and negotiated pricing
where in multiple buyers and sellers collectively participating in price setting and two-way
auctions. In such environments, the requirements of both buyers and sellers are thus
aggregated to reach competitive prices, which are lower than those resulting from
individual actions.
Economies of scale and network effects: The rapid growth of B2B e-markets creates
traditional supply-side cost-based economies of scale. Further more, the bringing together
of a significant number of buyers and sellers provide the demand-side economies of scale
or network effects. Each additional incremental participant in the e-market creates value
for all participants in the demands side. More participants from a critical mass, which is
key in attracting more users to an e-market.
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E-commerce allows, “network production.” This refers to the parceling out of the
production process to contractors who are geographically dispersed but who are
connected to each other via computer networks. The benefits of network production
include: reduction in costs, more strategic target marketing, and the facilitation of selling
add-on products, services and new systems when they are needed. With network
production, a company can assign tasks within its non-core competencies to factories all
over the world that specialize in such tasks (e.g. the assembly of specific components).
In C2B transactions, customers/consumers are given more influence over what and
how products are made and how services are delivered, thereby broadening consumer
choices. E-Commerce allows for a faster and more open process, with customers having
greater control.
E-commerce makes information on products and the market as a whole readily
available and accessible, and increases price transparency, which enable customers to
make more appropriate purchasing decision.
To manage the chain of networks linking customers, workers, suppliers, distributors and
even competitors, an integrated or extended supply chain management solution is
needed. Supply chain management (SCM) is defined as the supervision if materials,
information and finances as they move from supplier to manufacture to wholesaler to
retailer to consumer it involves the co ordination and integration of these flows both within
and among companies. The goal of any effective SCM is timely provision of goods or
services to the next link in the chain and ultimately, the reduction of inventory within each
link.
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Thus, there are few of the various E-businesses and E-business models.
‘‘In this business environment, satisfy the customer is a sacred cow. Even most car
dealers are doing that. Sales managers and store managers everywhere are imploring
their people to put the customer first. But they’re only playing catch up. In the new world of
commerce, satisfying is only the beginning . . . So don’t satisfy customers, everyone does
that. Surprise them. Give them something they don’t expect.’’
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The four phase-model of Management Process is one of many useful frameworks for
planning the sales process. It includes:
2.Planning – How?
Sales, and selling and the sales force, is inherently a part of the marketing mix. It must be
deployed appropriately if it is to play its part and have a significant effect on thewhole.
Thatmeans that those people undertaking the sales task must be professional: able to
communicate persuasively and create the necessary relationship with customers. It also
means that the efforts of sales staff must be properly coordinated and therefore well
managed: sales management is therefore important, and can directly influence results.
The management of any group of staff is important if they are to perform well. In sales
there are a number of particular factors that make it especially so.
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» Isolation: sales people must work predominantly on their own and there is a possibility
that, without supervision, they become disassociated from the overall marketing effort and
that their activity is therefore incomplete.
» Geography: sales people must work away from base, sometimes far away. Apart from
the isolation referred to above, this means that applying management to them is inherently
more difficult, and probably more time consuming than with staff in the office.
» The nature of the task: selling is a social skill, one that must be constantly fine-tuned if it
is to do the desired job satisfactorily. Customer attrition can dilute such skills and
management must act regularly to prompt sales people to maximize their approach in
whatever way prevailing market conditions make necessary.
Sales management is not simply a supervisory process, that is, in the sense of the
‘‘policing’’ role of management: checking and making sure things are done. It is, or should
be, a creative role, one that enhances the ongoing sales activity and ensures it achieves
everything possible. So too the relationship between sales people and sales manager
should be a constructive one and viewed as such by both sides. Two other factors are of
key importance.
» Change and complexity: the markets of the twenty-first century are nothing if not
dynamic. For example: customers are increasingly demanding and fickle, distribution
patterns are ever changing (e.g. with the increasing power of large customers and the e-
sales routes now possible in many industries), buying processes and responsibilities
change and pressure on time means buyers may want less personal relationships with
suppliers.
» Competition: competition (including global competition) seems to increase all the time.
There is a direct impact here on the sales job. Customers not only have considerable
choice in almost any industry and product area one cares to mention, they have choices
that are very close in performance, price, service and other factors. There has come to be
a powerful commodity aspect to many markets. This means that sales people have a
three-tier job to do. They must:
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» bepersuasive
» differentiate.
In other words it is not enough to be able to describe products and services effectively, nor
even to do so persuasively – always there is the added dimension of ensuring something
is described in a way that makes it more desirable than other similar products on the
market. Because of these factors the quality of selling itself can literally be a differentiating
factor, giving any organization that maximizes its effectiveness an edge over competition.
This is a vital factor in marketing success. The manager or managers who head up the
sales function, and who work to make it effective, have a vital task. It is a complex job, and
one that in future will tend to get more complex as the trends described here progress. For
sales management, creatively making the sales activity work well is a challenge; for the
organization an effective sales management function, now and in the future, is a must.
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