University Business Strategy and Management Principles Report Analysis

This report analyzes business strategy and management principles, focusing on stakeholder and shareholder relationships, and the processes companies use to address stakeholder concerns. It examines the agency problem and various governance mechanisms, along with how organizational design contributes to competitive advantage. The report explores the impact of strong organizational culture on transparency, ethics, and competitive advantage. It also discusses strategic planning for single and multidivisional structures, including advantages, problems, and how companies implement strategies at a global level. The report includes references to academic sources and provides a comprehensive overview of key business strategy concepts.

Name of the student
Topic- Business Strategy & Management Principles
University Name-

RUNNING Head: Management of Risk 2 | P a g e
Table of Contents
Description of stakeholders and shareholders......................................................................................3
Process which company undertakes to go through to respond to stakeholder concerns.....................3
Steps of this process..............................................................................................................................3
The agency problem..............................................................................................................................3
Governance mechanisms.......................................................................................................................3
Organizational design contribute to competitive advantage.................................................................4
Strong organizational culture leads to transparency, ethics, and to competitive advantage within a
company................................................................................................................................................4
Develop strategic plans for single or multidivisional structures............................................................4
...............................................................................................................................................................4
Advantages and problems in implementing a multidivisional structures..............................................4
Companies implement strategies at a global level................................................................................4
Organizational structures help them develop competitive advantage..................................................4
References.............................................................................................................................................4

RUNNING Head: Management of Risk 3 | P a g e
This report focuses on business strategy & management principles of organization. It
is analysed that companies operating in the different business sectors may face business
ethics issues and governance practices due to their complex business structure.
Description of stakeholders and shareholders
Stakeholders are the persons who directly and indirectly influence the company and
get influenced by the company such as employees, government, clients, employees and
shareholders..
Shareholders are the real owners of company who invested their capital in the
business functioning of organization (Rugman, and Verbeke, 2017).
Difference in both
Subject Stakeholders Shareholders
Inclusion Stakeholders include
shareholders.
Shareholders never covers
stakeholders in its definition
Influenced They influence and get
influenced by each and every
practice of company.
They influence by the loss
and profit of company.
Interest They have all the direct and
indirect interest in company.
They have interest in value
creation and profit of
company.

Business Strategy & Management Principles 4 | P a g e
.
Process which company undertakes to go through to respond to
stakeholder concerns
Ideally, company uses stakeholder’s engagement program. It may include holding
meeting and seminars. In addition to this, annual report and other documents are also used to
reveals the performance of company to the stakeholders (Hardy, 2018).
Steps of this process
The main step of this process is based on the reporting framework. Company follows
quarterly and annually reporting framework to respond to the stakeholders concern. In
addition to this, grievances mechanism process is also used to resolve their issues (Aguilera,
Judge, and Terjesen, 2018).
The agency problem
This agency problem ideally arises when management of company does not act as per
the wants and interest of stakeholders. Managers are the representative of the company and
have to act in the best interest of company.
Governance mechanisms
The main governance mechanism which could be undertaken is based on the reporting
frameworks. Managers should keep the business process more transparent in the best interest
of organization and stakeholders at large. Grievances mechanism process is also used to
resolve their issues.

RUNNING Head: Management of Risk 5 | P a g e
Internal controls and strategies that can be implemented to ensure
ethical behaviour
It is evaluated that company needs to follow proper ethical programs and procedure to
maintain the ethical business practice. Company needs to follow following steps to ensure the
ethical behaviour in organization.
Preparation of Ethics and compliance glossary
 Determine the standards values and ethical program.
 Formulation of code of conduct
 Build a culture of integrity
 Re-evaluation and proper check
Organizational design contribute to competitive advantage
It is evaluated that if organization design is suitable to employees and accompanied
by the advanced technologies then it will motivate employees to work efficiently. It will
reduce the employee turnover and result to decrease in the overall cost of production. It
eventually company to create competitive advantage in cost leadership strategy
Strong organizational culture leads to transparency, ethics, and to
competitive advantage within a company
It is evaluated that organization culture of company should be based on the
international business policies and program. If organization maintains its business structure as
per the employees and management program then it will result to effective flow of
information. It will also help company to establish strong brand image and competitive
advantage (Rugman and Verbeke, 2017).

Business Strategy & Management Principles 6 | P a g e
Develop strategic plans for single or multidivisional structures
Company develop strategic plans by conducting meetings with all of its board of directors
and managers. The key managerial person takes all the strategic decision for the organization.
It helps in keep control on the multidivisional structure of company.
Advantages and problems in implementing a multidivisional
structures
Advantage Problems
It keep control on the multidivisional
structure of the company..
It makes the business process complicated
It establish the business process chain It may result to loss to business if
communication channel is weak.
Companies implement strategies at a global level
Company asses all the global factors of business and decision of organization are
taken by management to implement strategies at global level. It starts with the collection of
data, assessment of information, formulation of business strategies and implementing the
same (Tricker and Tricker, 2015).
Organizational structures help them develop competitive advantage
The employees oriented organization structure helps in development of completive
advantage. It helps company to reduce the overall cost of production.

RUNNING Head: Management of Risk 7 | P a g e
References
Aguilera, R.V., Judge, W.Q. and Terjesen, S.A., 2018. Corporate governance
deviance. Academy of Management Review, 43(1), pp.87-109.
Hardy, J., 2018. 15 Cultural Embeddedness, Corporate Strategy and Foreign Investment in
Poland: A Tale of Two Firms. Knowledge, Industry and Environment: Institutions and
Innovation in Territorial Perspective: Institutions and Innovation in Territorial Perspective.
Rugman, A.M. and Verbeke, A., 2017. Global corporate strategy and trade policy (Vol. 12).
Routledge.
Tricker, R.B. and Tricker, R.I., 2015. Corporate governance: Principles, policies, and
practices. Oxford University Press, USA.