Strategic Management Purpose, shareholder value, and stakeholders - PowerPoint PPT Presentation

Loading...

PPT – Strategic Management Purpose, shareholder value, and stakeholders PowerPoint presentation | free to download - id: 491932-YjhhO



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

Strategic Management Purpose, shareholder value, and stakeholders

Description:

Strategic Management Purpose, shareholder value, and stakeholders Prof.Dr. E.Vatchkova Contents Identifying stakeholders The political power in the organization ... – PowerPoint PPT presentation

Number of Views:94
Avg rating:3.0/5.0
Slides: 33
Provided by: 6383118
Category:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: Strategic Management Purpose, shareholder value, and stakeholders


1
Strategic Management Purpose, shareholder
value, and stakeholders
  • Prof.Dr. E.Vatchkova

2
Contents
  • Identifying stakeholders
  • The political power in the organization
  • Sources of power
  • Stakeholder mapping
  • Power/dynamism matrix
  • Power/interest matrix
  • Conflicts of expectations
  • Managerial values
  • Ethical issues
  • Cultural frames

3
Freemans definition (1984)
  • Any group or individual who can affect or is
    affected by the performance of an organization

4
Stakeholders concept is valuable when
  • The organizational objectives are defined
  • Specific strategic developments will take place
  • The strategic choice is to be made

5
Groups of stakeholders
  • External stakeholders
  • The state
  • Customers
  • Suppliers
  • Financial institutions
  • Shareholders
  • Unions
  • Media
  • Internal stakeholders
  • Managers
  • Employees

6
Power
  • The ability of individuals or groups to
    persuade, induce or coerce others into following
    certain courses of action
  • The organization is a political arena

7
Source of power within the organization
  • Hierarchy (formal)
  • Influence (informal)
  • Control of strategic resources
  • Possession of knowledge and skills
  • Control of the environment
  • Involvement in strategy implementation

8
Sources of power for external stakeholders
  • Control of strategic resources
  • Involvement in strategy implementation
  • Possession of knowledge (skills)
  • Through internal links

9
Indicators of power
  • Internal stakeholders
  • Status
  • Claim on resources
  • Representation
  • Symbols
  • External stakeholders
  • Status
  • Resource dependence
  • Negotiating arrangements
  • Symbols

10
Stakeholders mapping assessing the importance
of stakeholder expectations
  • How likely each stakeholder is to impress its
    expectations on the company
  • Whether they have the means to do so (assessment
    of power)
  • The likely impact of stakeholder expectations on
    future strategies

11
Power /dynamism matrix
Low
High
Predictability
A Few problems B Unpredictable but manageable
C Powerful but predictable D Greatest danger or opportunities
Low
Power
High
Adapted from Mendelow, 1999
12
Power / interest matrix
Level of interest
Low
High
A Minimal effort B Keep informed
C Keep satisfied D Key players
Low
Power
High
Adapted from Mendelow, 1999
13
Stakeholders expectations(1)
  • Shareholders
  • Annual dividends
  • Increasing the value of their investments in the
    company as the share price increases

14
Stakeholders expectations(2)
  • Managers
  • salaries and bonuses
  • proxy payments
  • responsibility
  • challenge
  • working for a well known and prestigious
    company

15
Stakeholders expectations(3)
  • Employees
  • wages
  • holidays
  • job satisfaction
  • working conditions
  • security

16
Stakeholders expectations(4)
  • Consumers
  • desirable and quality products
  • competitive prices
  • new products at appropriate time

17
Stakeholders expectations(5)
  • Distributors
  • on time and reliable deliveries
  • Suppliers
  • constant orders
  • payment on time
  • Financers
  • interest payments
  • loan repayments

18
Stakeholders expectations(6)
  • Government
  • payment of taxes
  • provision of employment
  • contribution to the nations exports
  • Society in general
  • socially responsible actions

19
Common conflicts of expectations
  • Growth profitability
  • Cost efficiency jobs
  • Volume quality
  • Savings in one SBU increased spending in
    elsewhere
  • Divisions belonging to two organizational fields

20
Definition
  • Values are broad, general beliefs about some way
    of behaving or some end state is preferable to
    the individual

21
The influence of values
  • The way other individuals and groups are
    perceived, thereby influencing interpersonal
    relationships
  • The decisions and problem solutions
  • The perception of situations
  • The criteria for ethical behavior
  • The acceptation or resistance to organizational
    goals
  • The ways to achieve the success

22
Types of values
  • Theoretical order, system, logic
  • Economic usefulness and practicability
  • Aesthetic art and beauty
  • Social people and their welfare
  • Political power over people and things
  • Religious unity and harmony

23
The political and cultural aspect of the
organization
  • 1.Whom the organization does actually serve?
  • The concept of stakeholders
  • 2. Which purposes an organization should fulfill?
  • Ethical considerations
  • 3. Which purposes are actually prioritized?
  • The cultural concepts

24
Some questions of CSR JS,02
  • Internal aspects
  • Employee welfare
  • Working conditions
  • Job design
  • Intellectual property
  • External aspects
  • Green issues
  • Products
  • Markets and marketing
  • Suppliers
  • Employment
  • Community activity

25
The cultural web
Stories
Symbols
Routines and rituals
Paradigm
Power
Control
Organizational structures
26
Expectations and purposes model
Corporate governance
Business ethics
  • Organizational
  • Purposes
  • Mission
  • Objectives

Stakeholders
Cultural context
27
Managing for shareholder value
  • General consideration
  • How to make the business value-based?
  • Objective
  • Maximizing shareholder value over time
  • Strategy
  • Significant change in management
  • Action tasks (initiatives)

28
Key steps (initiatives) 1 (Cadbury-Schweppes
plc,1966)
  • 1. Preparing a multi-year blueprint for the many
    changes to make the business value-based
  • 2. Identify sources of value creation and
    destruction, using financial and performance
    measures
  • Economic profit
  • Return on total invested capital
  • Earning growth
  • Free cash flow
  • 3. Set performance targets
  • 4. Manage day-to day performance

29
Key steps (initiatives) 2 (Cadbury-Schweppes
plc,1966)
  • 5. Focusing business strategies on the search for
    profitable growth
  • 6. Creating short- and long term incentive plans
    for senior managers
  • 7. Reviewing the value performance of all the
    businesses
  • 8. Delivering awareness and training sessions on
    managing for value (top 300
  • executives worldwide)

30
Key steps (initiatives) 3 (Cadbury-Schweppes
plc,1966)
  • 9. Carrying two pilot studies in core group
    businesses (produce value champions)
  • 10. Establishing the first rolling strategic
    management agenda for the board
  • list of issues
  • managers in charge
  • value-maximizing decisions

31
Funding strategies in different circumstances
the Growth/share matrix
Growth (Stars) Business risk High Financial risk needs to be Low Funding by Equity (growth investors) Dividends Normal Launch (Question marks) Business risk needs to be Very high Financial risk Very low Funding by Equity (venture capital) Dividends Zero
Maturity (Cash cow) Business risk Medium Financial risk can be Medium Funding by Debt and equity (retaining earnings) Dividends High Decline (dogs) Business risk Low Financial risk can be High Funding by Debt Dividends Total
32
THANK YOU !
About PowerShow.com