Management Structure And Nature

MANAGEMENT STRUCTURE AND NATURE Organizational structure impacts decision-making speed and efficiency. Centralized structures often delay decisions, while decentralized ones enable faster responses. Board of Directors composition influences strategy direction and oversight. Highly qualified, responsible boards contribute to better governance. Shareholding patterns affect control. Promoter-led firms like Wipro enjoy more control than diversified owners like Tata. Internal power dynamics matter. Good relationships between management, board, employees enable smooth functioning. Internal Business Factors Influencing Human Resources: Skills, morale, attitudes of employees impact organizational strengths/weaknesses. High involvement and empowerment contribute to innovation. Company Image: Brand reputation affects ability to raise finances, form partnerships, attract talent, and build marketing channels. Strong image and brand equity provide advantages. Physical Assets: Production capacity, technology, distribution logistics affect efficiency and competitiveness. Stateof-the-art assets confer advantages. R&D Capabilities: Vital for innovation and competitive edge. Firms with strong R&D better positioned to offer cutting-edge products. Marketing Resources: Strength of marketing team, brand equity, distribution network critical for entering new markets and segments. Financial Factors: Capital structure, revenue management, working capital optimization are key for managing growth. External Business Environment Micro Environment Suppliers: Reliable, cost-effective sources of supply ensure smooth operations. Maintaining multiple suppliers reduces risk. Trend is toward partnership and collaboration. Customers: Creating and keeping customers is central to business success. Risky to depend on few customers. Markets becoming more globalized. Competitors: Rival firms that market similar products or compete for consumer income. Requires monitoring competitor actions and differentiation. Marketing Intermediaries: Channels like retailers, physical distribution firms, marketing agencies that connect company with customers. Critical links that must be carefully managed. Financiers: Banks, financial institutions that provide capital. Their policies and risk appetite impact operations. Publics: Groups like media, local communities, NGOs whose actions can help or hinder business. Proactive issue management important. Macro Environment Economy, demographics, culture, technology, ecology, politics, laws. Cannot be controlled but must be tracked. Requires adaptability and agility to respond to changes in macro environment. Macro Business Environment The macro environment refers to the broader societal forces that shape opportunities and pose threats. It includes economic, political, legal, social, technological, demographic, cultural, ecological, and global forces. Economic Environment Economic conditions and policies inflation, interest rates, money supply, fiscal policy, etc. Business cycles - periods of growth and downturn Globalization trends - flow of trade, capital, technology