ASSI

GNMENT

SUBJECT:STRATEGI
CMANAGEMENT

TOPI
C:ROLEOFTOPMANAGEMENTBNANDCORPORATE
GOVERNENCEI
NSTRATEGI
CMANAGEMENT

DATEOFSUBMI
TION:15/
5/2020

SUBMI
TTEDTO SUBMI
TTEDBY

Ms.
RESHMARAVENDRANATH. ANI
LA.
R

ASSI
STANTPROFESSOR T3MBA

MANGALAM MANGEMENTSTUDI
ES. BATCH.
B
 ROLEOFTOPMANAGEMENTBNANDCORPORATE
GOVERNENCEI
NSTRATEGI
CMANAGEMENT

I
NTRODUCTI
ON
Str
ategicManagementi sast r
eam ofdeci sionsandact i
onswhichlead
tothedev el
opmentofanef f
ect i
vest rat
egyorstrat
egi est
ohelpachieve
corporateobjectiv
es.TheSt rategicManagementpr ocessisthewayi n
whichstrategistsdetermineobj ectiv
esandmakest rategi
cdecisi
ons.
Str
ategicManagementcanbef oundi nvar
ioustypesofor gani
zat
ions,
business,service,cooperat
ive,gov ernment,andthelike.

Str
ategicmanagementi sanon-goingpr ocesst hatevaluatesand
contr
olsthebusi nessandtheindustri
esi nwhi chthecompanyi s
i
nvolved;assessesi t
scompetitorsandset sgoal sandst rategiesto
meetallexisti
ngandpot ent
ialcompet it
ors;andt henreassesseseach
str
ategyannual lyorquar
ter
ly[i
.e.
,regularl
y]todet er
mi nehowi thas
beenimpl ement edandwhetherithassucceededorneedsr eplacement
byanewst rategytomeetchangedci rcumst ances,newt echnol ogy,
new
compet i
tors,aneweconomi cenv i
ronment ,oranewsoci al,financi
al,
or
poli
ti
calenv i
ronment .

 TOPMANAGEMENT

Strat
egicmanagementi sbasical
lyt
opmanagementf unction.Thus,i
n
ordertoensureeffecti
vetopmanagementfunct
ion,itisnecessar yt
hata
di
st i
nct
ionshouldbemadebet weenst
rat
egicmanagementand
operati
onal managementwhichemphasisesday-
to-dayoper ati
onsi
nthe
organizat
ion,sothattopmanagementcanfocusmor eat tentiononthe
strat
egicaspectrathert
hanemphasisi
ngonoper at
ional management .

Sincetheenvi
ronmentoft heorganizati
onisalwayschangi ngprovidi
ng
newoppor t
uni
tiesandthreats,
topmanagementmustspendmor eand
mor eti
meont hisaspect
.Thus, t
herei saconsider
ablechangeont he
emphasisoftopmanagementf unctionsintheorganizat
ions,part
icul
arl
y
i
nl ar
geandcompl exorganizat
ions.Thechangei sfrom operati
onal
managementt ostrat
egicmanagement .
 ROLEOFTOPMANAGEMENTI
NSTRATEGI
CMANAGEMENT

1.Set
ti
ngCor
por
ateCul
tur
e

Thecor porat
epoli
ciesandaccept abl
ebehaviorsgeneral
lyst
artatthe
toplevelofmanagement .Theleadersofthecompanyest abl
ish
proceduresandexpectati
onst hr
ought hosepol
icies.Thewaythe
companyi srundayt oday,basedont hosepoli
cies,hel
psest
ablishthe
corporatecul
tur
e.

Aculturethatencouragescreati
vit
y,i
nnov ati
onandout -
of-the-
box
thi
nki
ngi sli
kelytoresulti
nacompanyt hatissuccessfulandcont i
nual
ly
comesupwi thnewi deas.Asti
fli
ngcorpor at
ecult
ureli
mi tstheeffor
ts
oftheempl oyees,makingitdif
fi
cultf
orthecompanyt oadv ance.When
employeesknowt heyhavethetopmanagementt eam'ssuppor t,t
hey
contr
ibutewithoutholdingback.

2.Communi
cat
ingCompanyGoal
s

Thegoalsandv i
sionoft hecompanygui det hewor kthatiscomplet
ed
bytheempl oyees.Tor eachhi gherachievement sforthecompany ,t
op
managementf i
rstneedst omakesur eev er
yonei nthecompanyknows
whatthecompany 'sov er
allgoalsandst r
ategyar e.It
'snotenoughto
knowtheirowngoal s.Theyneedt ounder standthedi rect
ionthe
companyi sheadedandwhatmanagementwant st oachievesotheycan
seewheret hei
ref f
or t
sf i
tint
ot heoverallst
rategy.

Next,topmanagementneedst odirectfrontl
inemanagerstoestabli
sh
goalsforeachempl oyee.Theseshoul dbeachiev
ablebutchall
engingso
theypusheachempl oyeetogrow.Thegoal smusttakeinto
considerat
ionthecompany 'scur
rentsituati
onandit
sov er
allst
rategy
anddi r
ecti
on.Aboveal l
,eachemploy ee'
sgoalsshouldbemeasur abl
e
soit'
sclearwhentheyhav ebeenachi eved.

3.Ensur
ingManagementI
nvol
vement

Thetopmanagementofacompanyl eadsbyexampleandaffect
sthe
moti
vati
onfel
tbytheemployees.Amanagementteam thatt
akesa
si
ncerei
nter
estandconnect
swi t
hthestaf
fismoreli
kel
yt oi
nspir
ethe
employeest
oachi
ev e.Tr
anspar
encyf r
om themanagementt eam about
thecompany'
sfut
ureaidsinmoti
v at
ingthestaffbecausei
tgivesthem a
bett
eri
deaofthereasonsfort
heirworkduties.

1.TheCEOmustunder standthatst
rategicmanagementishis
responsi
bil
i
ty.Par
tsofthi
stask,butcertai
nlynotal
lofi
t,canbe
delegat
ed.

2.TheCEOisresponsi
bleforest
abl
i
shi
ngacl
i
mat
eint
heor
gani
zat
ion
thati
scongeni
altostr
ategi
cmanagement
.

3.TheCEOi sr
esponsibl
eforensuri
ngthatt
hedesignoft
hepr
ocessi
s
appropr
iat
etotheuniquecharact
eri
sti
csofthecompany.

4.TheCEOi sresponsiblefordet
erminingwhet herther
eshouldbea
corpor
ateplanner.I
fso, t
heCEOgener allyshouldappointtheplanner(
or
pl
anners)andseet hattheoffi
ceislocatedascl osetothatoftheCEO
aspracti
cal
.

5.TheCEOmustgeti
nvol
vedi
ndoi
ngpl
anni
ng.

6.TheCEOshouldhaveface-
to-
facemeetingswi
thexecut
ivesfor
makingpl
ansandshouldensurethatt
hereisapr
opereval
uationoft
he
pl
ansandfeedbacktothosemakingthem.

7.TheCEOisresponsi
bleforr
epor
ti
ngt
heresult
soft
hest
rat
egi
c
managementprocesstotheboar
dofdi
rect
ors.

Thechiefexecuti
veof
fi
cer(CEO)isr
esponsibl
eforthefi
naldeci
sions,
buti
tsdecisi
onsisthecul
minati
onoftheideas,i
nformat
ion,and
anal
ysesofot her
s.

 CORPORATEGOVERNANCE

Cor porateGov ernanceisav ol

untarycodeofconductthattheBoar dof
Directorspar t
icularl
yChiefExecuti
veOfficeroft
hebusiness
organi zat
ionisexpect edtofoll
owinoper ati
ngthebusi
ness.Corporate
gov ernancebasi call
yaddressestheneedf oracompany ’
sshareholders
(t
heowner s)andt hei
relect
edrepresentati
ves(t
heBoardofdirectors)t
o
ensuret hatthef i
rm’sexecutives(themanagementt eam)st r i
veto
maxi mizel ong-
term shareholdervalue.Iti
sbasi call
yaboutf ai
r
management ,t
ransparency,discl
osur e,r
esponsi bi
li
tyandaccount abil
i
ty
i
ngov er
ni ngtheaf f
air
soft hecorpor ati
on.Instancesofv ariousscandal s
andf r
audswhi choccur r
edi ntherecentpasthav eincreasedt heneed
forgoodcor porategovernanceallov erthewor ld.Thishasmadet he
government sandt hemanagement soff ir
mst ot akestepst oachi eve
bestper formanceoff ir
msandbel oyaltobot hitsstakeholder sandthe
society.

Cor
por
ateGov
ernanceandSt
rat
egi
cManagement

Starti
ngwi t
h1990st rategi cmanagementhasent erednewper iodof
developingandadopt i
ngnewst yl
esbasedont hinking“ Mybusi nessi s
thi
nking–T. A.Edi son”.Thatasksmanager st obeawar eabout
company ’satmospher eandunder standwel lt
hechangesofbusi ness
wor l
d.Manager smustr ecogni zeexchangi ngr elat i
onshi pbet ween
environment ,society,economi candt heircompani esswi tchingf rom
l
inert hi
nkingtonon- li
nert hi
nki ng,manager sshoul dbecr eati
v ein
achiev i
ngcompani es’ obj ectiv
es.Pl us, f
inancial scandal sinUni ted
StatesofAmer icaandi tsshadowonEur opeUni onandgr owt h
economi ccountries,wher et heheadquar t
erofmul t
inationalcompani es
aroundt hewor l
dar e,pushr esear cher stodev elopst rategic
managementbyadopt ingnewt er
msandst ylest alkingwi thther eali
ty.
Managementmustr espectal linterestsofst akehol ders,andf rom t his
pointcor porategov ernancest artsitsrole,thef inanci alsocietybecomes
stri
ctwi t
hcor porat egov ernancet hroughr ecogni zinggov ernanceasa
solutionkeyt oear nbackt helostt rustgener ally, notonl ystockmar ket.

Rol
eofBoar
dofDi
rect
ors

TheQualit
yofBoar di
sadecidingfactorforgoodcorporat
egov er
nance.
Thecomposi ti
ngandnumberar ethedeterminantsofqual
it
y .Evenina
smallconcerntheeff
ici
encyoftheBoardofDi rect
orsi
sacr ucialfact
or
fort
hesur v
ivali
nacompet i
ti
veenv i
ronment.
Responsi
bil
it
iesoft
heCor
por
ateGov
ernance

Iti
scommonl ybel
i
evedthatCorpor
ateGovernancei
sresponsi
blef
or
f
ormulat
ionofchoi
ceofstrat
egyandintheimplement
ati
onofstrat
egy
.

Responsi
bil
it
iesoft
heBoar
dofDi
rect
ors

TheBoar dofDirector
sisr
esponsibl
eforsuperv
isi
ngthesuccessf ul
managementoft heorgani
zati
on’
sbusiness.I
thastheaut hori
tyand
obl
igati
ontoprotectandenhancetheassetsofthecorporati
oninthe
i
nterest
sofallsharehol
der
sandt hecompany’spubli
cmi ssi
on.

TheBoar
dofDi
rect
orsr
esponsi
bil
i
tiesi
ncl
ude:

 Over
sightandappr
ovalonanongoingbasi
softhecor
por
ati
on’
s
cor
porateandbusi
nessstr
ategi
esandmonitor
ingt
hei
r
i
mplementati
on;

 Over
seetheest
abl
ishmentandimplement
ati
onofef
fect
ive
cor
porat
egover
nanceprocesses.

 Est
abl
i
shst
andar
dsf
ormanagementandmoni
torper
for
mance;
and

 Appr
oveproceduresforstr
ategyimplementat
ion,f
oridenti
fyi
ng
andmanagingri
sksandf orinsur
ingthei
ntegri
tyofint
ernalcont
rol
andmanagementi nf
ormationsystems.

BoardofDi rect
orsisther
epresentati
vesofshareholdersanditisi
n
betweenCEOandt heshar
eholders.BoardofDi r
ector
si ndif
fer
ent
compani escontr
ibut
esdif
ferent
lytothecorporategovernancedueto
var
iati
onsi ngoal
sandduties,st
ructure,
composition,
sizeoftheboard,
boardleadershi
pandboardcommi tt
ees.
  CONCLUSI
ON
Corporategov ernancei sani mpor tantpar tofstrategicmanagement
thatcanimpr ov efir
m per formance.Bot hmanager sandi nv estors
shouldknowt hei mpor t
anceofcor porategov er
nanceandt her ol
et hati
t
playsinfirmsandaf fectstheirrespect i
vebusi ness.Cor porate
governancei st her efl
ectionoft hebusi nesscul ture,pol
icies, associati
on
withthest akehol dersandt heor ganisati
on’scommi t
mentt oitsv al
ues.
Goodcor por ategov ernanceist hekeyt ot heintegrityofcor porations,
fi
nancialinstitutionsandmar ket s.I
tisal soessent ialt
ot heheal t
hy
economyandt hest abil
it
yoft heor ganisation.Wel ldefi
nedandenf orced
corporategov er nancepr ov i
desast r
uctur ethatwor ksfort hebenef itof
everyindividual andi sconcer nedov ertheaccept edethical standards
andbestpr acticesf oll
owedi nanor ganisation.

 REFERENCE
 ht
tps:
//www.
int
roduct
ion-
to-
management
.24xl
s.com/
en217

 ht
tps://
bizf
luent
.com/
inf
o-7959976-
cor
por
ate-
gov
ernance-
st
rategi
c-management.
html