WHAT IS STRATEGY?

It has a military background which basically means layout of the battle plan in such a manner that puts the enemys move under ones own direction and control Strategy is a pattern of purposes, policies, programmes, actions, decisions and/or resource allocations that define what an organization is, what it does and why it does it. Strategy is an extension of mission to form a bridge between the organization and its environment Every organization therefore has some kind of strategy which may need to be refined, sharpened or changed altogether to be an effective bridge between the organization and its environment. Strategy formulation is the process of identifying strategic issues from among the many available options, prioritizing them and developing strategic objectives for each of them. Every strategic issue identified should have a justification as to why the organization should commit resources in it for the plan period. Characteristics of good strategy Judged by the results achieved NOT by the process Process must match: business needs Culture Specific issues of the context Process must be: Original Creative Easy to implement Nature of the formulation process

 Can be both: formal and informal simple and complex Analytical and qualitative Involve many people or just a few Strategic Thinking Should Consider the enterprise as a whole Be about the long term and not the immediate Address the organisations relationship with the environment and its capabilities and resources Be based on fact and reality with some imagination Have a good understanding of the present Be able to think imaginatively about the future

Importance of Strategy Formulation Process Causes strategic Thinking Mechanism to ease the communication of ideas Co-ordinate the efforts of those involved in the process Inject structure into the thinking without rigidity

The 3 Interlocking aspects of the Strategy Formulation Process

The 3 Aspects of Strategy Formulation Strategic Intent Provides relevant knowledge of strategic context Anchors future strategies in reality Answers question Where are we now? The 3 Aspects of Strategy Formulation Strategic Assessment Provides relevant knowledge of strategic context Anchors future strategies in reality Answers question Where are we now? The 3 Aspects of Strategy Formulation Strategic Choice If no choice - no strategy needed The link to action Answers question How to get from where we are to where we want to be? Activities and Results of Process

Effective strategy formulation processes Customer awareness Supplier relationships Stakeholder influences Understanding of competence Awareness of technological change and innovation Mix of people involved in process Encouragement and understanding of top management Communication of results and reaction to feedback

 Sound logic and balance to the process Process design but not over-design Considered role of external support Results from the strategy formulation process Goals that are simple, consistent and long term. Profound understanding of the competitive environment Objective appraisal of resources Effective implementation

Corporate governance
Corporate governance involves a set of relationships between a companys management, its board, its shareholders and other stakeholders. Corporate governance also provides the structure through which the objectives of the company are set, and the means of attaining those objectives and monitoring performance are determined." Good corporate governance balances the interests of, and relationships between, a company's employees, owners and customers to ensure the long-term sustainability and success of a corporate venture. 1. Laws and Regulations
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One of the primary aspects of corporate governance is company compliance with all

applicable federal and state legal regulations. Corporations must adhere to a set of strict, comprehensive laws administered by national and local governments. These laws shape the structure of a corporation's corporate governance before it even begins to operate. All corporations, for example, are required to hold annual shareholder meetings, report income and justify its use of assets. Interests of Stakeholders The stakeholders of a corporation are employees, customers, creditors and owners. Each of these individuals or organizations have invested assets into the corporation. Corporate governance describes how a corporation meets the interests of each of these stakeholders

without compromising the overall integrity of the company or neglecting obligations to other stakeholders. Ownership
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The owners of a corporation are called shareholders. They are primary stakeholders in the

company. The success of their investment in the corporation is directly dependent on the success and sustainability of a corporation's actions and decisions. Shareholders meet annually to elect members of a board of directors who act as their fiduciaries in the context of their investment in the company. Shareholders to not play a role in the company's operations or development. Board of Directors
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The board of directors in a corporation serve as the central body in the corporate

governance structure. Board members oversee the budget and operations of a company. They are duty-bound to analyze and report this information to shareholders honestly and accurately. The board is the primary conductor of corporate governance. They are the bridge between the owners and employees of a company. They make the strategic, long-term decisions that shape a corporation's structure and integrity. Other Stakeholders
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Good corporate governance does more than convey the authority of the shareholders

throughout the corporation. Shareholders are a key stakeholder, but they are not the only ones. Good corporate governance includes meeting the needs of employees and customers as well. Shareholders may benefit financially from offering poor compensation to employees or management, but the overall integrity of the corporation may not. The board and high-level management develop strategies to benefit all stakeholders of the company.

corporate governance consists of two elements: 1. The long term relationship which has to deal with checks and balances, incentives for manager and communications between management and investors; 2. The transactional relationship which involves dealing with disclosure and authority. This implies an adversarial relationship between management and investors, and an attitude of mutual suspicion. This was the basis for much of the rationale of the Cadbury Report, and is one of the reasons why it prescribed in some detail the way in which the board should conduct itself: consistency and transparency towards shareholders are its watchwords. Principles of corporate governance

Rights and equitable treatment of shareholders: Organizations should respect the rights of shareholders and help shareholders to exercise those rights. They can help shareholders exercise their rights by openly and effectively communicating information and by encouraging shareholders to participate in general meetings.

Interests of other stakeholder Organizations should recognize that they have legal, contractual, social, and market driven obligations to non-shareholder stakeholders, including employees, investors, creditors, suppliers, local communities, customers, and policy makers.

Role and responsibilities of the board: The board needs sufficient relevant skills and understanding to review and challenge management performance. It also needs adequate size and appropriate levels of independence and commitment to fulfill its responsibilities and duties.

Integrity and ethical behavior: Integrity should be a fundamental requirement in choosing corporate officers and board members. Organizations should develop a code of conduct for their directors and executives that promotes ethical and responsible decision making.

Disclosure and transparency: Organizations should clarify and make publicly known the roles and responsibilities of board and management to provide stakeholders 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.

Benefits of Corporate Governance 1. Good corporate governance ensures corporate success and economic growth. 2. Strong corporate governance maintains investors confidence, as a result of which, company can raise capital efficiently and effectively. 3. It lowers the capital cost. 4. There is a positive impact on the share price. 5. It provides proper inducement to the owners as well as managers to achieve objectives that are in interests of the shareholders and the organization. 6. Good corporate governance also minimizes wastages, corruption, risks and mismanagement. 7. It helps in brand formation and development. 8. It ensures organization in managed in a manner that fits the best interests of all.

Compliance with the CG principles can benefit the owners and managers of companies and increase transparency and disclosure by: Improving access to capital and financial markets; Help to survive in an increasingly competitive environment through mergers, acquisitions, partnerships, and risk reduction through asset diversification; Provide an exit policy and ensure a smooth inter-generational transfer of wealth and divestment of family assets, as well as reducing the chance for conflicts of interest to arise. Also, adopting good CG practices leads to a better system of internal control, thus leading to greater accountability and better profit margins.

The Benefits to Shareholders Good CG can provide the proper incentives for the board and management to pursue objectives that are in the interest of the company and shareholders, as well as facilitate effective monitoring. Better CG can also provide Shareholders with greater security on their investment. Better CG also ensures that shareholders are sufficiently informed on decisions concerning fundamental issues like amendments of statutes or articles of incorporation, sale of assets, etc. The Benefits to the National Economy Empirical evidence and research conducted in recent years supports the proposition that it pays to have good CG. It was found out that more than 84% of the global institutional investors are willing to pay a premium for the shares of a wellgoverned company over one considered poorly governed but with a comparable financial record.

The adoption of CG principles - as good CG practice has already shown in other markets - can also play a role in increasing the corporate value of companies Corporate governance is the method by which a corporation is directed, its business practices controlled, and its vision for success communicated to its shareholders. Disadvantages of this method of leadership arise from a lack of oversight, sentimental business decisions by an entrenched board of directors, and the high cost of changing direction once a business path proves to be ineffective.

Family-Owned Companies

Corporate governance works at its best when shareholders and board members are able to make objective decisions that are in the best interest of the company.,

Easily Corruptible

Corporate governance needs a certain level of government oversight to avoid increasing levels of corruption. This is certainly true of areas in corporate finance and banking where deregulation of the industry through 2001-2004 contributed to predatory lending practices and created a credit crises for millions of Americans.

SOCIAL RESPONSIBILITY

Social responsibility is an ethical or ideological theory that business should not function amorally but instead should contribute to the welfare of their communities and an entity whether it is a government, corporation, organization or individual has a big responsibility to society at large. ... Emerging Normative Status of Social Responsibility Social responsibility as a non-binding, or soft law principle has received some normative status in relation to private and public corporations in the United Nations Educational, Social and Cultural Organization (UNESCO) Universal Declaration on Bioethics and Human Rights developed by the UNESCO International Bioethics Committee particularly in relation to child and maternal welfare. The International Organization for Standardization (ISO) is developing an international standard to provide guidelines for adopting and disseminating social responsibility: ISO 26000 - Social Responsibility. Due for publication in 2010, this standard will "encourage voluntary commitment to social responsibility and will lead to common guidance on concepts, definitions and methods of evaluation The business benefits of corporate social responsibility Corporate social responsibility (CSR) isn't just about doing the right thing. It means behaving responsibly, and also dealing with suppliers who do the same. It also offers direct business benefits..

Building a reputation as a responsible business sets you apart. Companies often favour suppliers who demonstrate responsible policies, as this can have a positive impact on how they are perceived by customers. Reducing resource use, waste and emissions doesn't just help the environment - it saves you money too. It's not difficult to cut utility bills and waste disposal costs and you can bring immediate cash benefits.. There are other benefits too:

A good reputation makes it easier to recruit employees. Employees may stay longer, reducing the costs and disruption of recruitment and retraining.

Employees are better motivated and more productive. CSR helps ensure you comply with regulatory requirements. Activities such as involvement with the local community are ideal opportunities to generate positive press coverage.

Good relationships with local authorities make doing business easier. See the page in this guide on how to work with the local community.

Understanding the wider impact of your business can help you develop new products and services.

CSR can make you more competitive and reduces the risk of sudden damage to your reputation (and sales). Investors recognize this and are more willing to finance you.

Human resources

A CSR programme can be an aid to recruitment and retention, particularly within the competitive graduate student market. Potential recruits often ask about a firm's CSR policy during an interview, and having a comprehensive policy can give an advantage. CSR can also help improve the perception of a company among its staff, particularly when staff can become involved through payroll giving, fundraising activities or community volunteering.

CSR has been found to encourage customer orientation among frontline employees. See also Corporate Social Entrepreneurship, whereby CSR can also be driven by employees' personal values, in addition to the more obvious economic and governmental drivers.

Risk management Managing risk is a central part of many corporate strategies. Reputations that take decades to build up can be ruined in hours through incidents such as corruption scandals or environmental accidents. These can also draw unwanted attention from regulators, courts, governments and media. Building a genuine culture of 'doing the right thing' within a corporation can offset these risks. Brand differentiation In crowded marketplaces, companies strive for a unique selling proposition that can separate them from the competition in the minds of consumers. CSR can play a role in building customer loyalty based on distinctive ethical values. Several major brands, such as The Co-operative Group, The Body Shop and American Apparel are built on ethical values. Business service organizations can benefit too from building a reputation for integrity and best practice. License to operate Corporations are keen to avoid interference in their business through taxation or regulations. By taking substantive voluntary steps, they can persuade governments and the wider public that they are taking issues such as health and safety, diversity, or the environment seriously as good corporate citizens with respect to labour standards and impacts on the environment.

Bharat Sanchar Nigam Ltd. formed on 1 st October 2000, is one of the largest & leading public sector units providing comprehensive range of telecom services in India.

BSNL has installed Quality Telecom Network in the country & now focusing on improving it, expanding the network, introducing new telecom services with ICT applications in villages & winning customer's confidence. Today, it has about 43.74 million line basic telephone capacity, 8.83 million WLL capacity, 72.60 million GSM capacity, 37,885 fixed exchanges, 68,162 GSM BTSs, 12,071 CDMA Towers, 197 Satellite Stations, 6,86,644 RKm. of OFC, 50,430 RKm. of microwave network connecting 623 districts, 7330 cities/towns & 5.8 lakhs villages .

VISION: Be the leading telecom service provider in India with global presence. Create a customer focused organization with excellence in customer care, sales and marketing. Leverage technology to provide affordable and innovative telecom. Services/products across customer segments. MISSION: Be the leading telecom service provider in India with global presence. Creating a customer focused organization with excellence in customer care, sales& marketing Leveraging technology to provide affordable and innovative products/ services across customer segments Providing a conducive work environment with strong focus on performance

Establishing efficient business processes enabled by IT OBJECTIVES: To be the Leading Telecom Services provider by achieving higher rate of growth so as to become a profitable enterprise. To provide quality and reliable fixed telecom service to our customer and thereby increase customers confidence. To provide customer friendly mobile telephone service of high quality and play a leading role as GSM operator in its area of operation. Business definition An economic system in which goods and services are exchanged for one another or money, on the basis of their perceived worth. Every business requires some form of investment and a sufficient number of customers to whom its output can be sold at profit on a consistent basis. Goals An observable and measurable end result having one or more objectives to be achieved within a more or less fixed timeframe. Objectives Objectives are a basic tools that underlying all planning and strategic activities. They serve as the basis for policy and performance appraisals