Marketing Management Strategic Management and Business Policy

Question: Describe the concept strategic management and business policy in achieving sustainability. Answer: HIERARCHY OF STRATEGY To create an effectual business strategy, the business firms consist of three hierarchies: Functional strategy, Business strategy and corporate strategy. Source: Made By Author The functional level strategy deals with small-small parts of business maintaining the objectives of a particular function in business like operations, finance, marketing and production. This helps to drive the goals of the corporate. The Business Strategy focuses on the complexities that the business is facing and also helps to improve the competitive position served by a particular business unit. Lastly, the corporate strategy gives proper direction to the management for improving the attitude and growth of the organization (Srinivas, 2012; Hierarchystructure.com, n.d.). CORPORATION HAVE TO ACT SELFLESSLY TO BE SOCIALLY RESPONSIBLE Corporate citizenship is not an act of being selfless; instead it is all about good business practice which means linking the corporate interest systematically with the common goal. It mainly requires integrating the business strategy with the community focused activities. This would help to motivate the staffs, improve public image, building customer base, improve competitive position and also decrease absenteeism(fes.de, n.d.). It is a sustainable and reliable process of human action not idealistic beliefs. Thus there is no need for the corporations to act selflessly to be socially responsible (Wheelen Hunger, 2010). RESPONSIBILITIES OF THE BOARD OF DIRECTORS The boards of directors are mainly hired to act on behalf of the shareholders for running the daily activities. They are mainly answerable to the companys shareholders during annual meetings. The main purpose of the board of directors is to make sure the prosperity of the company is meeting together with directing the affairs of the company and also interests of stakeholders and shareholders (Winfield, n.d.). Thus, the three main role of board of directors are (Wheelen Hunger, 2010): 1. Determine and Initiate: A board can describe the mission of the organization with particular strategies of management. 2. Influence and Evaluate: A board can observe the managements proposals, actions and decision and make suggestions and give advice with alternatives. 3. Monitor: Through its committees, the board can keep the internal and external employees of the organization with updated developments and also making the management aware of different developments that it might have overlooked. One of the recent examples is the failure of AIG Board to meet its responsibility. The dispute aroused due to AIGs decision to increase the cash for repaying the billion dollars bailout funds of government (Bob MacDonald on Business, 2010). SARBANES-OXLEY ACT AND ITS IMPACT ON CORPORATE GOVERNANCE Sarbanes-Oxley has always showed signs of change the scene of corporate governance. It has expanded the responsibility desires we have of executives and officers, and their lawful and bookkeeping consultants also. Sarbanes-Oxley grabbed the inside of corporate course from the corner office and returned it to the meeting room, where it had a place. Additionally, the law energized the recognition of "best practices" to direct board room conduct. It has served to shape the center of state courts and controllers on the best possible application of other trustee obligation laws(S-ox.com, 2015). It has raised people in general cognizance of corporate governance. It likewise diminished resistance for moral omissions, more prominent concentrate on corporate notoriety and more exceptional consciousness of big business hazard. These are signs of a more dynamic, captivated and educated board. The major changes that the organization has brought in are development of Public Company Accounting Oversight Board to assess the internal controlling procedures, auditors liability etc. The board works with SEC and monitors the public accounting companies (Nytimes.com, 2012). References Bob MacDonald on Business,. (2010). AIG Board Fails to Meet Its Duty in Power Struggle. Retrieved 16 January 2015. Hierarchystructure.com,. Business Strategy Hierarchy. Retrieved 16 January 2015. Nytimes.com,. (2012). Sarbanes-Oxley Changed Corporate America - NYTimes.com. Retrieved 16 January 2015. S-ox.com,. (2015). The Impact Of Sarbanes Oxley On Companies, Investors, Financial Markets. Retrieved 16 January 2015. Srinivas, R. (2012). STRATEGIC MANAGEMENT: THE INDIAN CONTEXT (p. 5). PHI Learning Pvt. Ltd. Wheelen, T., Hunger, J. (2010). Concepts in strategic management and business policy (12th ed., p. 53). Upper Saddle River, NJ: Pearson Prentice Hall. Winfield, R. Roles and responsibilities of board directors. Brefigroup.co.uk. Retrieved 16 January 2015.