Strategic Management-PPT-Unit-1

OUT SMART YOURSELF !

1. SUCCESS COMES ONLY BY TURNING
NEGATIVE THOUGHTS TO POSITIVES!

2. YOUR SUCCESS DEPENDS ONLY ON YOUR

DREAMS!

3. CONSTANTLY REMIND YOURSELF OF YOUR

GOALS!
 An Important Quote !

• When you prevent me from doing anything I want to

do, that is persecution;

• But when I prevent you from doing anything you

want to do, that is LAW, ORDER and MORALS !

-G.B.SHAW
THE FOLLOWING POEM CAPTURES THE SPIRIT OF
TRANSLATING OUR THOUGHTS INTO ACTION ,AS TIME WILL
NOT WAIT FOR US;
When as a child I laughed and wept-
TIME CREPT !
When as a teenager I dreamed and talked-
TIME WALKED !
When I became an adult-
TIME RAN !
Then as with the years I grew older-
TIME FLEW!
 Continued------

Soon I shall find as I travel on-

TIME GONE !

AND SO, IT IS NOW TIME,

TO CREATE YOUR OWN RAINBOW !
 Let us discuss the following to update ourselves
a. Why do we study Organizational Behaviour?
b. Why do we study HRM?
c. What is Performance Appraisal?
d. Do you believe in Destiny?
e. What is aim of education in general?
f. How do you judge Attitude vs professional competence?
g. Is attitude a mind-set?
h. Can Attitude be changed?
i. What is relationship between Attitude and work performance?
j. What is SWOT Analysis?
k. What is more important COMPETITION or CO-OPERATION?
* Competitively co-operative!
* Co-operatively Competitive!
l. Organizational Structure and Design affects Attitude, Behaviour and hence work
performance of its employees, explain in detail.
 UNIT 1 (5 Hours)

Introduction: meaning nature, scope, and importance of

strategy; Model of strategic management, Strategic Decision-
Making Process. Corporate Governance: Composition of the
board, Role and Responsibilities of the board of directors,
Trends in corporate governance, Corporate Social
Responsibility. Case Studies and Latest Updates.
 Strategic Management (KMBN-301)-3xCredit
Course Objectives

1. To have a clear understanding of the key concepts and principles of strategic management.

2. To have skills and understanding of tools and techniques for analysing a company strategically.

3. To provide a basic understanding of the nature and dynamics of the strategy formulation and
implementation processes.

4. To encourage students to think critically and strategically.

5. The ability to identify strategic issues and design appropriate courses of action.
How do you improve Individual Work
Performance of an Employee in an industry?
Feed in
Individual Work Performance Model

Data/Raw
Information Beliefs Attitude
Information
Mind Set

Behaviour

Individual Work
Performance
 Individual Work Performance Model-2

Environment
Knowledge & Skill

Motivation
PJO
Individual Work
Performance
 WHAT ??
A=10% Level of Efficacy & Effectiveness.
( Motivation, T&D, Performance Management , Ability Building , P J O, help of
technology etc.)

B=30% Level of Efficacy & Effectiveness.

C=90% L of E & E.

D=270% L of E& E.

E=2700% L of E & E.

SIMPLY IT MEANS:
a. B=3A
b. C=9A
c. D=27A
d. E=270A, OR IT MEANS A PERSON CAN BE MADE TO PERFORM 270 TIMES,
HIS/HER ORIGINAL LEVEL OF PERFORMANCE!!
We can improve the Individual Work Performance of an
Employee in the Industry by following means;-
a. By Changing the Attitude and Behaviour.

b. By providing PJO, MOTIVATION, KNOWLEDGE & SKILLS in Conducive

working Environments.

c. By Making the organization Flat instead of pyramedial and Hierarchical.

Because organizational structure and design affects the attitude and
behaviour of the Employees and hence their work performance!
 WHAT IS STRATEGY?
Dictionary Meaning– Policy*

But , Strategy is a policy with a Great Difference!

STRATEGY IS ALSO A POLICY BUT A POLICY OF SUCH HIGH ORDER AND

QUALITY, WHICH WHEN ADOPTED & IMPLEMENTED, HELPS YOU TO
DEVELOP A SHARP COMPETITIVE EDGE, with respect to your
competitors, IN DOMESTIC AND OR WORLD MARKET, IN A
BUSINESS SCENARIO.
• The word strategy has also been defined in dictionary as “Art and Science of planning
and conduct of war.” The warriors always tried to find the best ways and means to
win the war and made strategic action plans in order to have definite competitive
advantages over their enemies!

• The present business environment can be compared to war like situation and hence
Strategic Management has become a must for all business organizations for their
survival and growth in highly competitive and turbulent business environment.

• Survival of the fittest is the only the principle of survival for business organizations!
By fittest it means, the organizations, which are highly flexible and adaptable to
environmental changes speedily.

• Story of two top strategists discussing business plan in a forest!!

 Types of Approaches in Problem Solving?

1. Pro- active approach.

2. Reactive approach.

3. Holistic approach.

4. Heuristic approach.
 What is Holistic ?
• THE STORY OF FIVE BLIND PEOPLE‘S PERCEPTION ABOUT AN ELEPHANT
!

• PERSONALITY DEVELOPMET;
A. Physical Characteristics.
B. Psychological Characteristics.
C. Emotional Characteristics.
D. Intellectual Characteristics.
E. Spiritual Characteristics.
 HEURISTIC APPROACH ?
* Dictionary Meaning :-Allowing or assisting to Discover ,
Proceeding to a solution by Trial and Error.
* Definition:-Trial & Error procedure for solving problems (or
reaching an unclear goal) through incremental exploration, and
by employing a known criteria to unknown factors. For example
trying to climb a fog shrouded hill by making every step an
upward step.
A heuristic employs independent discovery and relies heavily on
common sense, creativity & learning from experience .
Unlike an algorithm, however, it offers no guaranty of solving any
problem !
This approach is applied lavishly in Journalism.
Example: Failure of government to stop locals from cutting trees
in Arunachal Pradesh?!
 Philosophy of an Organization

Vision

Mission/ mission statements

Strategy

Objectives

Short term Very Long Term

goals Long Term
Goals Goals
HOLISTIC/strategic MODEL OF PERFORMANCE
MANAGEMENT
POSITIVE THINKING KEY TO SUCCESS!
• OUR BRAIN IS LIKE A COMPUTER, WAITING FOR A PROGRAMME TO BE INSTALLED. TO TRANSFORM
YOURSELF, YOU MUST OVER-WRITE OLD NEGATIVE PROGRAMMING WITH A POSITIVE ONE----
RAGHAV PANDEY.

• THE DEBATE ABOUT WHICH METHOD OF FAT LOSS IS MOST EFFECTIVE, HAS BEEN RAGING ON AS
LONG AS ONE CARES TO REMEMBER.WHETHER IT IS DIET CONTROL OR EXERCISE, OR IS CARDIO
EFFECTIVE OR WEIGHT TRAINING, THE ARGUMENT CONTINUES.

• I AM HERE TO TELL YOU TODAY THAT WHAT EVER ELSE YOU MIGHT DO, WITHOUT THE RIGHT
ATTITUDE AND POSITIVE THINKING, SUCCESS IS HARD TO COME BY.

• FOR YEARS, “ POSITIVE THINKING” AND “ THE LAW OF ATTRACTION” WAS RELEGATED TO THE
CATEGORY OF NEW AGE FLUFF !

• SCIENTISTS HAVE IDENTIFIED SPECIFIC PARTS OF THE BRAIN SUCH AS RETICULAR

ACTIVATING SYSTEM(RAS), WHICH WORKS WITH THE VISUAL PARTS OF THE BRAIN TO
CALL OUR CONSCIOUS ATTENTION TO THINGS THAT ARE IMPORTANT TO REACHING OUR
GOALS AND FILTER OUT THOSE GOALS INTO OUR SUB-CONSCIOUS MINDS.

• OUR SUB CONSCIOUS MIND IS THE POWER CENTRE AND THIS IS THE MECHANISM THAT EXPLAINS
WHY GOAL SETTING & POSITIVE THINKING ARE NOW BEING ACCEPTED AS SCIENIFIC MEETHODS
“POWER OF POSITIVE THINKING BY VINCENT
FOR CHANGE !
 Sacred Space-Drawing the line-From The
Art of Happiness

“I THINK THERE ARE TWO KINDS OF DESIRES.CERTAIN DESIRES ARE

POSITIVE.A DESIRE FOR HAPPINESS.IT IS ABSOLUTELY RIGHT.THE DESIRE
FOR PEACE…BUT AT SOME POINT, DESIRE CAN BECOME UN-
REASONABLE.THAT USUALLY LEADS TO TROUBLE …SELF SATISFACTION
ALONE CAN NOT DETERMINE,IF A DESIRE OR ACTION IS POSITIVE OR
NEGATIVE...I THINK EXCESSIVE DESIRE LEADS TO GREED ! WHEN YOU
REFLECT UPON THE EXCESSES OF GREED, YOU WILL FIND THAT IT LEADS
AN INDIVIDUAL TO A FEELING OF FRUSTRATION,DISAPPOINTMENT ,A LOT
OF CONFUSION AND A LOT OF PROBLEMS...ALTHOUGH THE UNDERLYING
MOTIVE IS TO SEEK SATISFACTION, THE IRONY IS THAT EVEN AFTER
OBTAINING THE OBJECT OF YOUR DESIRE, YOU ARE STILL NOT SATISFIED!
THE TRUE ANTIDOTE OF GREED IS CONTENTMENT.”

---DALAI LAMA
 What is Strategic Management?
Strategic Management is an ongoing process that evaluates and controls the business and the
industries in which the company is involved; assesses its competitors and sets goals and
strategies to meet all existing and potential competitors; and then reassesses each strategy
annually or quarterly (i.e. regularly) to determine how it has been implemented and whether it
has succeeded or needs replacement by a new strategy to meet changed circumstances, new
technology, new competitors, a new economic environment or a new social, financial or
political environment.

- Lamb 198
* There is an old saying, “If you fail to plan, you are planning to fail!”

* Business has now become truly international and hence the environment has
become highly competitive. Success and survival of a firm in such environment is
 Framework of Strategic Management

Introduction Stage 1- Where are

we now? (beginning)
Stage-5 How can we
ensure arrival? *
(Control) 1
Stage-2- where
we want to be?
5 (Ends)

Sequence of Five stages 2

3
Which way is the best
to reach there? Stage-3 How might we reach there?
(Evaluation) (Means)
 Comprehensive Strategic Management Model

Perform
external
audit

Implement Measure and

Develop Generate, Implement
strategies- evaluate
Vision & Establish marketing,fi performance
evaluate & strategies-
Mission long term nance,accou
select Mgt issues
objs nting,R&D,&
Statements strategies
MIS issues

Perform
internal
audit

Strategy Implementation Strategy

Strategy Formulation
Evaluation
 Five Tasks of Strategic Management
1. Forming a Strategic Vision of where the organization is headed, so as to provide long
term direction, delineate what kind of enterprise the company is trying to become and
infuse the organization with purposeful action.

2. Setting Objectives, i.e., converting the strategic vision into specific performance out-
comes for the company to achieve.

3. Crafting a strategy to achieve the desired out-comes.

4. Implementing and executing the chosen strategy efficiently and effectively.

5. Evaluating performance and initiating corrective adjustments in Vision, long term

direction, Objectives, Strategy or execution in light of actual experience, changing
conditions, new ideas and New Opportunities.
 Task-5
FIVE TASKS OF STRATEGIC
MANAGEMENT Evaluating Performance,
monitoring new
Developments & initiating
corrective Adjustments

Task -1 Task-2 Task- 3 Task- 4

Forming a Strategic Vision Setting Objectives Crafting a Strategy to achieve the objectives Imple &Executing the Strategy

Revised as Needed
 Key Benefits/Advantages and Disadvantages of Strategic Management
Advantages;
1. Discharges Board Responsibility:

2. Forces an Objective Assessment:

3. Provides a Framework for Decision Making:

4. Supports Understanding:

5. Enables Measurement of Progress:

6. Provides an Organizational Perspective:

Disadvantages:
* Future does not unfold as Anticipated:

* It can be Expensive:

* Long Term Benefits vs. Immediate Results:

* Impedes Flexibility:
Like any Process or tool, Strategic Management has also got both Advantages as well as
Disadvantages. However the disadvantages are basically because of poor Consultancy or Advice
and or poor research process. Therefore the clients have to ensure the correct and capable
Consultants are hired and the processes are implemented meticulously.
 Why Strategic Decision? Dimensions of Strategic Decisions
Why Strategic decision/Importance of Strategic Decision: Strategic decisions are taken after
great analysis of all factors which affect the viable functioning of a business organization, including internal
and External environments and competitors. Various alternatives are evaluated and the best course of
action is decided which is most effective for an organizational profitability. Hence the importance of
Strategic Decision.

Dimensions of Strategic Decisions:

Strategic Management have the following issues:-
a. Strategic issues require Top Management decisions.

b. Strategic Decisions require large amount of a business organisations resources.

c. Strategic decisions affect an organization’s long term prosperity.

d. Strategic decisions are future oriented.

e. Strategic issues generally have multi- functional & multidimensional business consequences.

f. Strategic issues require considering the business organisation’s external environment.

 Strategic Decision Making Process
Organization’s decision making process starts right from Philosophy of an organization, its Mission
statements and Vision leading to long term and short term goals.

Competitors
Organizational
strengths &
strengths &
weaknesses
weaknesses

Strategic Decision
*Strategic Investment.
*Functional Areas Strategies.
* Sustainable Competitive Advantage

Market needs,
attractiveness & key
success factors.
 What is Corporate Governance?
* Corporate governance is a set of business factors that consists of processes,
rules, and practises through which the authorities run the system. It is an
important part of the daily administration of the companies through which
companies function successfully.

* Like any other policy, corporate governance defines the professional

relationship between those who run the company collectively, such as
stakeholders, directors’ board, management, and shareholders.

* Companies review their corporate governance policies timely and enforce them
accordingly. This system is implemented to regulate the responsibilities and
rights of the company employees. It helps to ensure that an organization
functions transparently, which is in the interest of company employees.

* The corporate bigwigs implement corporate governance policies so that the

employees come together to work and build professional stability, integrity which
results in growth and financial success for the companies. 
 * In this era of technology and liberalization, where there are business
upgrades at a large scale daily, enterprises need to implement a corporate
governance model. It also strengthens employees’ bonds and integrity, which
improves professionalism and makes the organization inclusive.

* Suppose a company decides to implement corporate governance in its

system. In that case, employees can successfully deliver results for long terms,
the price of its share remains healthy, mismanagement and corruption issues
get minimized, its investors gain strong confidence seeing employees’
performance rise, and its brand value gets better in the market.
Corporate Governance: Composition of the board, Role and Responsibilities of the
board of directors & their powers - Trends in corporate governance?

• Composition of the Board: Section 149 of the Companies Act 2013 requires that every
company shall have a minimum number of three directors in case of a public company, two
directors in case of a private company and one director in case of one person’s company. The
maximum number of directors a company can assign is fifteen.
The board comprises of the CHAIRMAN, two EXECUTIVE DIRECTORS and two NON-EXECUTIVE
DIRECTORS. The board considers that it is of an appropriate size to over see the company’s business,
with a structure that ensures that no individual or group dominates the decision making process.

• Role, Responsibilities & powers of the Board of Directors:

* Role of board of directors: The board of directors do their work in 3 main areas:
Governance, Strategic Direction and Accountability.

* Powers of board of directors:

The Board of Directors of a company shall exercise the following powers on behalf of the company by
means of resolutions passed at meetings of the Board, namely:
(a) to make calls on shareholders in respect of money unpaid on their shares;
(b) to authorise buy-back of securities under section 68;
(c) to issue securities, including debentures, whether in or outside India;
(d) to borrow monies;
(e) to invest the funds of the company;
(f) to grant loans or give guarantee or provide security in respect of loans;
(g) to approve financial statement and the Board’s report;
(h) to diversify the business of the company;
(I) to approve amalgamation, merger or reconstruction;
(j) to take over a company or acquire a controlling or substantial stake in another
company;
(k) any other matter which may be prescribed which are as follows:
i. To make political contributions;
ii. To fill a casual vacancy in the Board;
iii. To enter into a joint venture or technical or financial collaboration
or any collaboration agreement;
iv. To commence a new business;
v. To shift the location of a plant or factory or the registered office;
vi. To appoint or remove key managerial persons and senior
management personnel one level below the key managerial personnel;
vii. To appoint internal auditors;
viii. To adopt a common seal;
ix. To take note of the disclosure of Director’s interest and shareholding;
x. To sell investments held by the company, constituting five percent or more
of the paid-up share capital and free reserves of the investee company;
xi. To accept public deposits and related matters;
xii. To approve quarterly, half-yearly and annual financial statements.
-> The Board may, by a resolution passed at a meeting, delegate to any committee of
directors, the managing director, the manager or any other principal officer of the
company or in the case of a branch office of the company, the principal officer of the
branch office, the powers specified in clauses (d) to (f) on such conditions as it may specify.
-> The acceptance by a banking company in the ordinary course of its business of deposits
of money from the public repayable on demand or otherwise and withdrawable by
cheque, draft, order or otherwise, or the placing of monies on deposit by a banking
company with another banking company on such conditions as the Board may prescribe,
shall not be
deemed to be a borrowing of monies or, as the case may be, a making of loans by a
banking company within the meaning of the section 179.
Regardless of an organization’s health, type, or status, boards
have the following 10 basic responsibilities
1.Establish the organization’s vision, mission, and purpose.
2.Hire monitor and evaluate the CEO.
3.Provide proper financial oversight.
4.Ensure that the organization has adequate resources.
5.Create a strategic plan & ensure its compliance.
6.Ensure legal compliance & ethical integrity.
7.Manage resource responsibility.
8.Recruit & orient new board members and assess board performance.
9.Enhance the organization’s public standing.
10.Strengthen the organization’s programs & services
 Top Ten Issues in Corporate Governance Practices in India
• Getting the Right Board.

• Performance Evaluation of Directors.

• True Independence of Directors.

• Removal of Independent Directors.

• Accountability to Stakeholders.

• Executive Compensation.

• Founders' Control and Succession Planning

• Risk Management.
Five Trends that defined India Inc’s Corporate Governance
standards in 2019

1. Blue chip companies face corporate governance issues.

2. Record number of independent directors and auditors quit corporations

before end of their terms.

3. Related party transactions and siphoning of funds, a new eye-sore!

4. Increased actions by regulatory bodies.

5. Emergence of ESG ( Environmental, Social & Governance ) funds.

 Corporate governance, Latest picture
* The corporate world has seen numerous companies getting dissolved in the
last few decades owing to scandalous reasons. It happened mainly as top
authorities didn’t follow any business ethics, chose to show higher current
profits, didn’t allow auditors to curb improper policies, allowed greed to
prosper, sacrificed long-term profits, among others.

* As such incidents kept increasing, federal agencies of many countries

(especially in the US) that acted as market regulators started introducing rules
to keep such incidents under control.
 Latest trends in corporate governance
Introduction
This year, as in the previous five years, Russell Reynolds Associates interviewed over 40
global institutional and activist investors, pension fund managers, proxy advisors and other
corporate governance professionals to identify the corporate governance trends that will
impact boards and directors in 2021.

Global Trends Predicted for 2021

1.Climate Change Risk
2.Diversity, Equity & Inclusion (DE&I)
3.Convergence of Sustainability Reporting Standards
4.Human Capital Management
5.Return of Activism and Increased Capital Markets Activity
6.Virtual Board & Shareholder Meetings: Here to Stay
 Future of corporate governance 

* As more and more companies are adopting corporate governance models, they
are witnessing diversity in every section. Instead of insiders, private entities are
allowing outsider professionals with ample experience in their BoD team. Board
agendas are now being decided to keep in mind the needs of stakeholders.

* Interaction between different levels of management now needs governance of

high quality.
 
* Network governance will see a rise where there shall be the distribution of
power within different degrees, all participants shall have equitable ownership, and
each governing authority shall hold power.
 Corporates’ Social Responsibility
Every establishment, however small it may be, should ask this question every evening while closing the
store- “ If I shut down my shop from tomorrow will there be any effect in the Society?” and if the answer
is NO, it is better that the establishment is closed.

- Konosuke Matsushita

While profit motive no doubt provides the main spark for any economic activity, any
organization which is not motivated by consideration of urgent service to the
community becomes out-dated soon and cannot fulfil the real role in modern society.

- J R D Tata
 Corporate Social Responsibility. Excerpts from Case Study-
Nestle, Tata & ITC

Since the times of the barter system to present era of plastic money, the
mankind has stridden out long path. There is no doubt in this that
“profitability” has always been the primary force and main motivation behind
all this development. This motive actually increased cut throat competition
between the business forms. Because of this competition, the companies
started exploiting the quality of product as well as the environmental concern.
Slowly and gradually the business houses realized that they have to give back
to the society because they are surviving because of the society only. This
realization gives the birth to the concept of Corporate Social Responsibility.
However, the companies started using this concept for brand building more
than delivering it as a responsibility. The studies also revealed that the
companies used the corporate social responsibility for enhancing their profit
as well.
This present study attempts to investigate about the core concept of
corporate social responsibility (CSR), and finding out its scope taking the case
study of the TATA Group, ITC and NESTLE
Corporate Social Responsibility refers to the management as a management model
according to which business firms take care of the society and environment as their social
responsibility. The society pays the price in terms of pollution and other difficulties for business to
run smoothly. Even the human society suffered with a number of new diseases because of the
environmental changes coming because of the industrial pollution.

However, in the present era companies are using as most of a business strategy to take
competitive advantage over others as well as to enhance the profit to the companies.

A properly executed CSR concept can result as huge competitive advantages, such as better access
to capital and markets, boosted sales and profits, operational cost reserves, enhanced productivity
and quality, competent human resource, value-added and status, improved customer loyalty,
enhanced decision-making and risk management processes. The CSR can be understood as a
responsibility of business wherein the business not only takes care of the internal stakeholder
(i.e., Shareholders, Workers) but also the external stakeholder (i.e., society, nature) as well.

The 2013 Act offers a chance to catch up and make our corporate regulations more contemporary,
as also potentially to make our corporate governing framework a model to imitate for other
economic systems with similar physiognomies( external features of land-scape).
 You may also know this!
The 2013 Act is more of a rule-based legislation comprising only 470 sections,
which refers that the extensive part to the regulation will be in the form of rules.
There are over 180 sections in the 2013 Act where rules have been arranged and
the draft rules were released by the MCA in three batches. It is generally
anticipated that the 2013 Act and undeniably the rules will stipulate for phased
execution of the provisions and in line with this, 98 sections of the 2013 been
notified and subsequently the analogous section of the 1956 Act ceases to be in
force (Grant, Thornton, an insight for growth 2013) J. Adv. Res. HR Organ. Mqmt.
201 added brand image, and status, improved customer loyalty, making and risk
management processes. The CSR can be understood as a responsibility of business
wherein the business not only takes care of the internal stakeholder (i.e.,
Shareholders, also the external stakeholder.

Continued…….
The 2013 Act offers a chance to catch up and make our corporate regulations more contemporary, as
also potentially to make our corporate governing framework a model to ic systems with similar
physiognomies. The 2013 Act is more of based legislation comprising only 470 sections, which refers
that the extensive part to the regulation will be in the form of rules. There are over 180 sections in the
2013 Act es have been arranged and the draft rules were released by the MCA in three batches. It is
generally anticipated that the 2013 Act and undeniably the rules will stipulate for phased execution of
the provisions and in line with this, 98 sections of the 2013 Act have been notified and subsequently
the analogous section of the 1956 Act ceases to be in force (Grant, Thornton, an insight for growth
2013). The 2013 Act played a vital role in converting the Corporate Social Responsibility (CSR) activities
as law from a voluntary activity. Now the corporate houses have a legal obligation to perform the CSR
and have to spend 2% of their profit in the societal works. The main objective of the CSR law is to
enhance the lives of the individuals and exceeds profit-and-loss matters for businesses or individuals.
Thus the CSR can be defined as the responsibility to the business to defend, sphere and foster human
values and endorse socio-economic welfare. CSR is frequently understood interchangeably with
philanthropy. While philanthropy can be said to be a vital vehicle for doing welfare, it is certainly not
homogeneously disseminated across time and space within the whole social sector. CSR is actually can
be referred as the concentrated effort by the organizations to coexist with the society and nature
investment newsletter (2014) Now with the changing systems and the activities, the previous concept
of CSR has little changed to be in more of isolated form and profitable concept. To be known that basic
six core characteristics of CSR are as follows:
 Six Basic characteristics of CSR

Voluntary

Managing
enterprises
Beyond
Philanthropy
CSR
Multiple stake
Practices holders
& Values orientation
Social
&
Econo
mic
Requir
ement
 What are main benefits of CSR?
1. Improves public image.
2. Increases brand awareness and recognition.
3. Cost Savings.
4. An advantages over competitors.
5. Increased customer engagement.
6. Greater employees engagement.
7. More benefits for employees.

Is CSR good or bad?

Implementing a CSR model does more than just help the environment &
society. It also has a positive affect on business. There is nothing bad about
CSR, if it is followed as per laid down rules and regulations and the funds of
CSR are not misused!
RESEARCH PAPER “CORPORATE SOCIAL RESPONSIBILITY IN TATA GROUP – A CASE STUDY”. Dr. Geetanjali G.
Kolhar B. B. A. Coordinator, Chintamanrao College of Commerce, Sangli.
ABSTRACT Companies Act amended in 2013 introduced Corporate Social Responsibility as a mandatory activity for all
companies. Though it was introduced in 2013, many companies in India had been practicing it long before its enactment.
The Tata Group of Industries is one of them. In this study/paper, researcher intends to study Corporate Social
Responsibility activities executed by Tata Group of Industries pre and post 2013.
Key words: Corporate Social Responsibility, Companies Act Amendment 2013 and Tata Group.
SYNOPSIS 1. Introduction Corporate Social Responsibility (CSR) is a system of corporate self-regulation connected with
business model and strategies. It focuses on companies responsible for their actions and encourages a positive impact
through its activities on the society. Thou Corporate Social Responsibility (CSR) can be defined as a Company’s sense of
responsibility towards the community and environment (both ecological and social) in which it operates. The
Companies Act was introduced in 1956. It was revised in 2013 which proposed mandatory provisions for companies
though it was made mandatory only in 2013, most of the renowned companies have been following CSR even before
its inception. This study involves in depth evaluation of the steps taken by Tata Group to serve the society in today’s
situation. 2. Defining the Research Title India has always had a rich practice of social responsibility. Since beginning,
businessmen have been constantly participating in benevolent activities like, serving the needy people, building places of
worship, and supporting the poor by way of providing financial assistance. Not to mention, the same tradition continues
even today. The Companies Act, 2013 under CSR has given a way in this direction. The Act also lists a set of activities
which CSR can undertake. Tata Group is known for contributing consistently and vigorously towards the CSR activities. It
has accepted and combined CSR in its routine planned functioning and has been sincerely involved in the development of
society. It has set an example for the emerging companies by its service in the fields of education, health, social and
women issues. Therefore, the statement for the problem of present study is Corporate Social Responsibility in Tata Group
– a case study. 3. Importance and Significance of Study CSR is a tool by which the corporate sector tries to serve the
Generally, liable companies do not restrict themselves in exploiting their resources towards undertakings that upswing
only their profits. But, they use CSR to incorporate financial, ecological and societal purposes with the company’s
activities and progress Therefore, the importance of the present study can be summed up as under. a. To know the
nature of activities taken by corporate sector under CSR. b. To guide emerging companies in establishing social
reputation by implementing their best service providing strategy. 4. Objectives of Study a. To understand the concept of
CSR. b. To study CSR activities before and after 2013. c. To study the CSR activities of Tata group in COVID 2019. 5.
Hypothesis of the study Irrespective of amendments of Company Act 2013, CSR activities had been implemented by Tata
Group. 6. Research methodology For this study, the researcher followed descriptive research. For the study, the
methodology used for data collection is as under: A. Research Title: “Corporate Social Responsibility in Tata Group – a
case study.” B. Data collection: Secondary data: For this study, comprehensive literature study regarding the topic and
concepts has been done. The secondary data is collected through the following sources: like (1) Research papers, (2)
Newspapers, (3) websites, etc. C. Data Analysis: The analysis will be done by comparing the CSR activities of Tata Group
before 2013 and after 2013 thereby drawing conclusions based on the analysis. 7. Limitations of Study To carry out the
research study the following limitations are expected during the research study: a. As the present study is confined CSR
activities only in Tata Group, the data presented in this study is based on the information and opinion expressed by
different researchers in their articles. Hence the data collected may tend to be subjective and therefore sometimes
misleading. b. Even though the utmost care has been taken, there may be possibility of errors in the findings carried out.
8. References i. https://www.investopedia.com/terms/c/corp-social-responsibility.asp ii.
https://en.wikipedia.org/wiki/Corporate_social_responsibility iii. https://en.wikipedia.org/wiki/Tata_Grou
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Sectors which will need serious attention of state and centre
governments?

1. Education Sector.

2. Health Sector.

3. Engineering;
* Agriculture Sector
* Textile Sector.
* Civil Engineering.

4. Skill Development.
 Important Questions-Assignment-Part 1
Q1. Define and explain the term strategy. What is the basic frame work of strategic planning?

Q2. Why has Strategic Management become so important for today’s corporations?

Q3. Explain as to how strategic decisions are different from other kinds of decisions?

* Q4. Explain the term Corporate Social Responsibility. Why should corporates be burdened with social
responsibility? Is it not the responsibility of the states and central government’s to do all the activities
which had been thrust upon the corporates under CSR?

Q5. What is generally the composition of Board of Directors as per Section 149 of the company Act
2013? What is their role, responsibilities and powers? How can the members of the board of directors
removed?

* Q6. What do you understand by Corporate social responsibility? Is it voluntary or obligatory? Why
corporates should shoulder this economic burden?

Q7. What are basic characteristics of CSR?

 Practical Assignment-1
• Find out the Organizational Philosophy, Vision, Mission statements & strategies of
Johnson & Johnson and compare these with that of Genpact India?

• To be successful in life, workout your Philosophy of life, vision, mission statement ,

strategy and objectives assuming 100 years of life! Also state clearly your short
term, long term & very long term goals.

• Go through the case study of CSR in respect of Nestle, Tata & ITC from the net,
compare their CSR activities.

Submit this assignment as hard copy for evaluation by 23rd, Oct

2021
 Case Study 1: Strategic Management at HUL
Hindustan Unilever Ltd.(HUL) is a subsidiary of Unilever, which is one of the world’s largest organizations in
the Fast Moving Consumer Goods FMCG) sector. The brands of HUL touch the everyday lives of various
consumers in India.
The vision of HUL involves continuously innovating the technologies to increase conservation in its
operations. It aims to reduce the water consumption by using advance technologies. The Mission of HUL
includes meeting every day needs of nutrition, hygiene and personal care with brands that help people feel
and look good & get more out of life. The main Aim of HUL is to add vitality to the lives of people.
HUL cares about its Customers, Employees, Shareholders and Business Partners. It is committed towards
making continuous improvements according to the Changing Environment.
HUL’s core business is home and personal care products & food items. Home & personal care products
include Skin-care, Laundry, deodorants & Health Care; whereas food items include Tea, Coffee, Ice creams and
processed food products etc. HUL has a planned strategy for developing strong brands; thus covers different
market segments with different brands, such as Dove, Lux, Liril, Pears, Lifebuoy etc.
The increasing competition in FMCG sector has posed a great challenge for HUL. Proctor and Gamble and
Nivea are the strong competitors of HUL, among a few others. Many competitors of HUL have copied its
marketing and distribution strategies, adversely affecting the competitive advantage of HUL to a great extent.
Earlier, the top management of HUL was responsible for making strategic decisions and the functional heads
looked after the functional management of HUL. Now, there is a shift in strategic decision making from HUL to
Unilever. The global strategy of Unilever focused on producing limited number of high- priced products in a
year. However it affected HUL’s own earlier strategy of HUL of offering low priced products.
 HUL has always tried to align with Indian environment. It Has always experimented with new
ideas; for example, it entered the rural Market with effective distribution system. The global
strategies of Unilever indicate a change and maturity in the Indian Market.

Question 1.
Give your opinion on Strategic decision making at HUL. Do you think the shift in decision making was
advantageous for HUL?

Question 2.
What are the main objectives of HUL?

Question 3.
What Lessons do you learn from this Case Study?
 Case Study 2: Innovative Business Ideas-Amazon.com
Amazon.com., Inc, the world’s largest online retailor, is a multinational e-commerce enterprise.
Headquartered in Seattle, Washington, it was started by Jeff Bezoz in 1994. The name Amazon was adopted
from the biggest river on earth. Amazon.com was initially started as an online book store. However the
enterprise eventually diversified into different other products, such as DVDs, computer software, video-games,
electronics, apparels, furniture, foods, and toys etc. Within a span of sixteen years, the enterprise had achieved
overwhelming success. In 2010, Amazon earned USD 34.204 billion as revenue.
In the beginning Amazon did not have its own delivery net-work. Therefore the products were delivered
to customers, after receiving orders, to the post office by Jeff Bezoz in his family car. In 1995, Amazon opened
its first virtual store with more than 1.1 million titles. In 1997, Amazon went public on NASDAQ by raising more
than USD 50 million. By 1998, the enterprise reached a market value of USD 5.5 billion.
Amazon.com was formed after a combination of most innovative entrepreneurial ideas of the last
century. Jeff Bezoz, the founder of the enterprise, did not have any prior experience in the book business.
However, he realized the huge business potentiality of selling books online. Jeff Bezoz had a notion that an
online book store can accommodate a large number of titles as compare to any other physical store. Apart
from this, an online book- store enables customers to order any book of their choice & preference.
The entrepreneur wanted to leverage the internet for informing the buyers and inspire them to purchase.
Since its inception, Amazon strived to be user friendly, easy to navigate and offer highest possible discounts to
customers. Therefore, Amazon.com does not only sell books, but also offers other information about books.
Extraordinary customer service had helped the enterprise in acquiring and retaining millions of customers over
a very short period.
 In addition to online bookselling, Amazon had adopted numerous innovative business ideas. The
enterprise also started syndicate selling, under which customer can browse to other websites, through
web links available on the Amazon’s website. Amazon receives commission each time a sale is made on
other websites. Through syndicate selling, Amazon.com is the premier book seller on various popular
websites. This model is also applicable for all different type of products offered by Amazon.
In addition, Amazon enabled independent and relatively smaller publishers and authors to go global
without making a large amount of investment.
The main success factors of Amazon.com are as follows:-
* Building a strong & reliable BRAND.
* Focusing on providing value for money to customers.
* Generating customer satisfaction.
* Achieving economy of scale.
* Targeting the mass-market for achieving high sales revenue.
For achieving all the above factors, Amazon Has taken the following measures:-
* Diversifying into wide range of products.
* Delivering every possible information to potential customers about products.
* Enhancing visibility of products on the internet.
* Using advanced and latest technology for providing better customer support.
* Expanding operations by developing partnership with other online retailers and content providers.
Amaazon.com has also adopted the strategy of mergers and acquisitions for rapid expansion. Following are
some of the enterprises which had been acquired by Amazon:-
* Bookpages.co.uk in 1980.
* Internet Movies database (IMDb) in 1999
* CD now in 2003 Joyo.com in 2004
* BookSurge, Mobilepocket.com, Createspace.com in 2005
* Shopbop in 2006
* Lovefilm in 2010
* The Book Depository in 2011
Latest figure is about 108 enterprises acquired.
Amazon launched a web auction service website by the name amazon.com Auctions. However, the site
was not able to compete with eBay, the largest auction site in the world. After the failure of auction website,
Amazon launched zShops in 1999. In 2000, Amazon launched a service named, Amazon Marketplace. The
enterprise launched various other businesses, such as Pinzon, Amazon MP3 and Amazon Fresh over the next
few years. Amazon forayed into film production with 20th century Fox by producing-The Stolen Child. Currently
amazon has separate websites in many countries such as, Canada, UK, Germany, France, Italy Austria, Japan,
China etc , offering many different products.

Amazon has been ranked as the world’s most valuable brand yet again, beating tech majors like Apple and
Google to the race. The company grew by Dollars 268 billion in value this year, registering an astonishing 64%
jump from last year!
 Question 1: With respect to the amazon.com case study, discuss how technological change
can create new business opportunities for entrepreneurs?

Question 2: What lessons new entrepreneurs can learn from the grand success story of
Amazon?

Question 3: What lessons in general the business enterprises can learn from this case study?

Question 4: Cooperation in business is important to get into win-win situation. Support this
statement by suitable examples from this case study.

Question 5: What do you think could be the reasons of failure of Amazon.com Auctions
website? Is it that Amazon could not compete with e-Bay, the world’s largest auction website?