VUCA MANAGEMENT

Record – 1

Shorts :

1. Pre crises phase .

A.

Crisis Phase Stage Description

Identification/
Before Pre-crisis Before the event.
Discovery

Warning: Indications that there

are or may be or could be events
liable to cause significant impact
Preparation/ to the organization.
Planning
Crisis Point: When the event
During During crisis begins to cause a significant
Response/ Control
impact on the organization.

Recovery Recovery: The acute stage of the

crisis has passed, and the
organization can focus on a
return to normal operations.

Evaluation of the effects.

After Learning Post-crisis
Repair of the organization.

The basic stages of crisis are as follows:

1. Pre-crisis. As the name implies, the focus at this point is on prevention and preparation, in other words,
reducing the known risks that can lead to crisis.

2. Response. Now, you’re in the thick of it. This stage deals with the actual response to a real, live crisis.
2. Industrial sickness.

A. Industrial Sickness:
The industrial sickness has been growing in India year after year and hampering the growth of industrial
development. This would be seen in most of the important industries like, cotton textiles, engineering,
chemicals, agro based industries, cement and paper industries. The growing sickness among the large and
medium industries has been one of the most persisting problems faced by the industrial sectors of the
country. The sixth plan after making a careful analysis of the factors leading to sickness concludes ,
however, perhaps the most important of all causes of sickness is the incompetence or the cupidity of the
management. Both prevention and cure of industrial sickness would depend on our ability to identify
sickness as early as possible and analyse its causes.

These consequences of industrial sickness includes

a) Aggravating unemployment problem through the closure of industrial units.
b) Wide spread labor unrest due to closure, threatening industrial environment of the country.
c) Wastage of huge resources invested in these sick units
d) Creating disincentive among the entrepreneurs and investors due to wide spread closure of units
e) Creating adverse impact on the other related units through backward and forward linkages
f) Causing huge financial losses to banks and other term ending institutions and locking of huge funds
into these sick industrial units and
g) Resulting huge loss of centre, state and local governments.
3. National company of law tribunal .

A. NATIONAL COMPANY LAW TRIBUNAL:

National Company Law Tribunal is the outcome of the Eradi Committee. NCLT was intended to be
introduced in the Indian legal system in 2002 under the framework of Companies Act, 1956 however, due to
the litigation with respect to the constitutional validity of NCLT which went for over 10 years, therefore, it
was notified under the Companies Act, 2013.
NCLT works on the lines of a normal Court of law in the country and is obliged to fairly and without any
biases determine the facts of each case and decide with matters in accordance with principles of natural
justice and in the continuance of such decisions, offer conclusions from decisions in the form of orders.

Major Functions of NCLT:

Class Action: A class action suit is a technical mechanism that allows plaintiff(s) to file a lawsuit
representing a larger group, defined as class. The nature of a class action suit Is similar to that of a
representative suit where the interest including rights and obligations of a group of people is represented by
a only some of them. A class action suit is useful for the shareholders who are geographically dispersed and
are affected from the wrong doings of the company. It can be a handy tool where a few may take legal action
for the interest of the large.

Registration of Companies: The Companies Act, 2013 now allows to question the legitimacy of any
company because of certain procedural errors at the time of registration and incorporation. NCLT is
empowered to take a number of steps, ranging from cancelling the registration to dissolving the company.
The Tribunal can even render the charge or liability of members unlimited. This new approach for de-
registration of a company in certain special situations when the is registration certificate is obtained by
illegal means or wrongful manner has been provided u/s 7(7) of the Act of 2013.
Tribunal Ordered Investigations: Chapter XIV of the Companies Act, 2013 hands over various powers
to NCLT with respect to investigations. Some of the most important powers that rest with the Tribunal are:

a) Power to order investigation: According to the provision of Companies Act, 2013 investigation into the
affairs of the company can be ordered on an application of 100 members whereas prior to the 2013 act, 200
members were required for same. Furthermore, if any person who is not related to the company is able to
convince NCLT about the existence of circumstances to order a investigation then the tribunal has the power
to order an investigation. Any investigation ordered by the NCLT can be conducted either in India or in any
other part of the world.
b) Power to freeze assets of the company: The NCLT has not only been given the power to congeal the
assets of the company so as to use them later when the company comes under scrutiny or investigation, the
said investigation can also be initiated on the request of other people in certain circumstances.
4. Strategic alliances.

A. Strategic Alliances and Restructuring:

There's an African proverb that tells us "when the music changes, so must the dance." As
government funding dries up and competition for charitable dollars grow, many nonprofits are being
forced to step back and examine the dance; which may mean merging, restructuring, or forming
strategicalliances with other nonprofits that share similar missions.
Nonprofit Consolidation Strategies:
Unlike the corporate world, where such changes are common, nonprofit mergers are relatively
rare. One reason is that corporations have the luxury of offering financial incentives to help overcome
emotional resistance; an avenue typically closed to nonprofits. No one gets rich when nonprofits merge.
Without such tools, negotiating and managing a nonprofit consolidation of any kind requires greater
finesse and expertise at understanding the obvious and subtle impacts. Hiring an outside consultant with
that expertise is imperative, and the earlier you do so, the less disruptive the process can be.

5. Joint Ventures.

A. A joint venture (JV) is a business arrangement in which two or more parties agree to pool their
resourcesfor the purpose of accomplishing a specific task. This task can be a new project or any other
business activity. In a joint venture (JV), each of the participants is responsible for profits, losses and costs
associated with it. However, the venture is its own entity, separate and apart from the participants' other
business interests.

Types of Joint Venture:

1. Insider joint venture:

Does the word ‘insider’ ring any bell? The word insider means someone from the organization
who has an access to the confidential information of the company’s operations. Well, the term is almost
similar when you include in the joint venture firm. Insider joint venture type allows joint effort of the
people to focus on a single product. Each participant shares an equal right, access and contribution in
operating various functions that need attention. Here in the company can view any information, as it
possesses equal rights. Some insider functions of joint venture include pooling the resources for
efficient research and development, product examination facility, abundance space, etc.

2. Outsider joint venture:

If you think that being an outsider is referred to someone who is not an insider then you are
right.Outsider joint venture means the same. Each participant of the outsider joint venture enterprise
 takes upa function relating to the product. However, the focus of each participant is limited to the
function he or she is assigned to perform. For example, a company produces a product and
implements the joint venture deal in it for the promotional purpose. Both the firms are equally involved
in the same product however; the functions are different.

3. Marketing joint venture:

The word ‘marketing’ is not a foreign term to you. Marketing refers to the promotional
processof a certain product. In a marketing joint venture structure, two marketing companies come
together to promote the product equally. A joint marketing venture can benefit in cutting down the
individual cost and avails a better reach. Most of the large enterprises or firms implement this efficient
technique. Benefits of joint venture marketing include combined advertisement, co-hosting facilities for
promotional seminars, etc.
A joint venture is a flexible enterprise and you can choose its types according to the
requirement.The flexible nature depends and differs according to the contractual agreement between the
participatingorganizations.

Essays

1. Define VUCA and impacts of VUCA.

A. Bob Johansen, of the Institute for the Future, adapted VUCA for the business world in his 2009 book,
Leaders make the future . He used it to reflect the turbulent and unpredictable forces of change that could
affect organizations, and he argued that you need new skills, approaches and behaviors to manage in the face
of the four VUCA threats.
VUCA represents a set of challenges that individuals, teams, managers, and organizations in affected
industries all have to face. Individually, these challenges can be significant, but they can be formidable when
they're combined.

 Volatile – change is rapid and unpredictable in its nature and extent.

 Uncertain – the present is unclear and the future is uncertain .
 Complex – many different, interconnected factors come into play, with the potential to cause chaos and
confusion.
 Ambiguous – there is a lack of clarity or awareness about situations.
Impact in a VUCA World

Although VUCA might seem inescapable in certain industries, you can manage yourself, your team and
your organization to mitigate its effects. You can even use it to your advantage.

The key to managing in this environment is to break VUCA down into its component parts, and to identify
volatile, uncertain, complex, or ambiguous situations. Each type of situation has its own causes and
resolutions, so you should aim to deal with one at a time.

Counter Volatility With Vision

1. Accept and embrace change as a constant, unpredictable feature of your working environment. Don't
resist it.
2. Create a strong, compelling statement of team objectives and values , and develop a clear,
shared vision of the future. Make sure that you set your team members flexible goals that you can
amend when necessary. This allows them to navigate unsettled, unfamiliar situations, and react quickly
to changes.

Meet Uncertainty With Understanding

1. Pause to listen and look around. This can help you understand and develop new ways of thinking and
acting in response to VUCA's elements.

2. Make investing in, analysing and interpreting business and competitive intelligence a priority, so that
you don't fall behind. Stay up to date with industry news , and listen carefully to your customers to
find out what they want.
3. Review and evaluate your performance. Consider what you did well, what came as a surprise, and what
you could do differently next time.

React to Complexity With Clarity

1. Communicate clearly with your people. In complex situations, clearly expressed

communications help them to understand your team's or organization's direction.
2. Develop teams and promote collaboration . VUCA situations are often too complicated for one person
to handle. So, build teams that can work effectively in a fast-paced, unpredictable environment.
Fight Ambiguity With Agility

1. Promote flexibility, adaptability and agility . Plan ahead, but build in contingency time and be prepared
to alter your plans as events unfold.
2. Hire , develop and promote people who thrive in VUCA environments. These people are likely
collaborative, comfortable with ambiguity and change , and have complex thinking skills .
3. Encourage your people to think and work outside of their usual functional areas, to increase their
knowledge and experience. Job rotation and cross training can be excellent ways to improve team
agility.

2. Define the Challenges of Globalization and Digitalization.

A. Challenges of Globalization:
1.International Recruiting
First, companies create a plan for how they will interview and thoroughly vet candidates to make sure they
are qualified when thousands of miles separate them from headquarters. Next, companies need to know the
market’s demands for salaries and benefits to make competitive offers. To ensure successful hires, HR teams
must factor in challenges like time zones, cultural differences, and language barriers to find a good fit for the
company.
2. Managing Employee Immigration
Immigration challenges cause a lot of headaches internally, which is why 28% of U.S. and UK tech leaders
agreed it was one of their top challenges. Immigration laws change often, and in some countries, it is
extremely difficult to secure visas for employees that are foreign nationals
3. Incurring Tariffs and Export Fees
Another challenge both U.S and UK tech leaders said they face in the report is incurring tariffs and export
fees—29% agreed this is a challenge for their global businesses. For companies looking to sell products
abroad, getting those items overseas can be expensive, depending on the market.
4. Payroll and Compliance Challenges
Another common global expansion obstacle is managing overseas payroll and maintaining compliance with
changing employment and tax laws. This management task gets even more difficult if you’re trying to
manage operations in multiple markets.
5. Loss of Cultural Identity
While globalization has made foreign countries easier to access, it has also begun to meld unique societies
together. The success of certain cultures throughout the world caused other countries to emulate them. But
when cultures begin to lose their distinctive features, we lose our global diversity.
Challenges of Digitalization :

1. Lack of Dedicated IT Skills

Behind every successful digital transformation is a dedicated, highly-skilled IT team. However, building this
team is getting harder. As more companies pursue new technologies, a labor deficit is developing.
According to one recent survey, 54% of organizations reported that skill shortages were holding them back
from pursuing their transformation goals.

2. A Lack of Organizational Change Management

Outdated organizational structures, inefficient workflows, and rigid leadership styles can all impede digital
transformation success. This was never more apparent than in 2020 when companies struggled to quickly
shift to a remote business model.
Simply navigating new tools is hard enough, but when you add change resistance to the mix, transformation
can begin to look impossible.

3. Insufficient budget for technological change

For businesses that faced significant losses during the pandemic, digital transformation practices may have been
set back due to financial constraints. The fact is, that implementing new digital solutions is an expensive process
that requires hefty investments. Then, there’s also the misperception that technology expenditure is an
operational expense. When businesses fail to see digital transformation as a strategic investment, they allocate
insufficient budgets for it. Ultimately, this hinders proper implementation and impedes future agility and
adaptability.

4.Shortage of technological resources

Aside from the talent shortage, businesses today are also faced with a shortage in other resources crucial to the
adoption of digital initiatives. The global microchip shortage still poses a roadblock to many industries. Then,
there are still prevalent issues hampering the supply chain for IT hardware and equipment. The shortage inhibits
the timely deployment of adequate resources to the right initiatives.

5. Increased security risks

To adapt to the sudden changes in consumer demands, many companies rushed the implementation of digital
solutions. This made them vulnerable to increased cybersecurity risks. This also made other businesses wary of
experiencing the same breaches when they implement their own initiatives. The fear is not unwarranted though.
Working with dozens of SaaS vendors is a daunting task. Verifying the security level of each third-party
platform and tool is a great challenge even for enterprises with a solid tech dev team.
3. Explain Turnaround Strategies & Process

A. Turnaround Strategies:

A turnaround is the financial recovery of a company that has been performing poorly for an extended
time. To effect a turnaround, a company must acknowledge and identify its problems, consider changes
in management, and develop and implement a problem-solving strategy.
Following are certain indicators which make it mandatory for a firm to adopt this strategy for its
survival. These are:
 Continuous losses

 Poor management

 Wrong corporate strategies

 Persistent negative cash flows

 High employee attrition rate

 Poor quality of functional management

 Declining market share

 Uncompetitive products and services

Also, the need for a turnaround strategy arises because of the changes in the external environment Viz,
change in the government policies, saturated demand for the product, a threat from the substitute
products, changes in the tastes and preferences of the customers, etc.
Process of Turn Around Strategies :
STEP 1 – DEFINE & ANALYSE
During this stage the definition of performance problems within the business are clearly outlined. It is
particularly important during this step that any areas of financial stress within the business are identified and
a thorough analysis undertaken.
The objective of this is to arrest any further decline in the business while continuing to trade and avoid
insolvency.
STEP 2 – SCOPE & STRATEGY
Once the business has been stabilized, it is now time to commence a strategic planning process. The first
part of this is to scope the strengths, weaknesses, opportunities and threats (SWOT analysis) of the business.
It is important during this stage to not only look internally (strengths and weaknesses) but to strategically
analyze the external environment (opportunities and threats) as well.
From the SWOT analysis, the long term vision, mission and objectives for the business can be defined.
Knowing where the business is heading then allows the development of a strategic plan.
STEP 3 – LINK & ACTION
Now it is time to take the strategic plan and develop an action plan. This is a list of actions and tasks
complete with time frames that must be undertaken to ultimately achieve the business objectives.
The tasks are the daily, weekly and monthly activities to be done and with this strategic planning process,
each one will be contributing to the overall mission.
STEP 4 – IMPLEMENT
This step is not just about implementing the action plan, but also ensuring coaching and support of all staff.
Without this critical step, all the planning can go to waste.
It is important that employees are aligned with the overall vision for the business. This is achieved through
communication, consultation and coaching on a regular basis.
STEP 5 – REVIEW
With all the planning and implementation in place, it is now time to conduct regular reviews. This ensures
not only that continual improvement is achieved but also helps to identify any corrective actions that may be
needed.
In effect, turnaround management is very similar to the strategic planning process; however the first step of
identifying areas of stress in the business is critical. For any business where this stress is already occurring,
applying the above process, in consultation with a turnaround management expert, will not only ensure the
business turnaround but also the opportunity to improve and develop well into the future.

4. Explain Crisis Management its Types and Approaches and process of Crisis Management
A. Crisis Management
MEANING OF CRISIS
A sudden and unexpected event leading to major unrest amongst the individuals at the workplace is called as
organization crisis. In other words, crisis is defined as any emergency situation which disturbs the
employees as well as leads to instability in the organization. Crisis affects an individual, group, organization
or society on the whole.
Types of Crisis :
Natural Crisis
Disturbances in the environment and nature lead to natural crisis.
Such events are generally beyond the control of human beings.
Tornadoes, Earthquakes, Hurricanes, Landslides, Tsunamis, Flood, Drought all result in natural disaster.
Technological Crisis
Technological crisis arises as a result of failure in technology. Problems in the overall systemslead to
technological crisis.
Breakdown of machine, corrupted software and so on give rise to technological crisis.
Confrontation Crisis

Confrontation crises arise when employees fight amongst themselves. Individuals do not agree to each other
and eventually depend on non productive acts like boycotts, strikes for indefinite periods and so on.
In such a type of crisis, employees disobey superiors; give them ultimatums and force them to accept their
demands.
Internal disputes, ineffective communication and lack of coordination give rise to confrontation crisis.

Crisis of Malevolence
Organizations face crisis of malevolence when some notorious employees take the help of criminalactivities
and extreme steps to fulfill their demands.
Acts like kidnapping company’s officials, false rumours all lead to crisis of malevolence.

Crisis of Organizational Misdeeds

Crises of organizational misdeeds arise when management takes certain decisions knowing the harmful
consequences of the same towards the stakeholders and external parties.
In such cases, superiors ignore the after effects of strategies and implement the same for quick results.

Crisis of organizational misdeeds can be further classified into following three types:
Crisis of Skewed Management Values: Crisis of Skewed Management Values arises when management
supports short term growth and ignores broader issues.
Crisis of Deception : Organizations face crisis of deception when management purposely tampers data and
information. Management makes fake promises and wrong commitments to the customers. Communicating
wrong information about the organization and products lead to crisis of deception.
Crisis of Management Misconduct: Organizations face crisis of management misconduct when management
indulges in deliberate acts of illegality like accepting bribes, passing on confidential information and so on.
Crisis due to Workplace Violence: Such a type of crisis arises when employees are indulged in violent acts
such as beating employees, superiors in the office premises itself.
Crisis Due to Rumors: Tarnish the Spreading false rumors about the organization and brand lead to crisis.
Employees must not spread anything which would image of their organization.

Bankruptcy: A crisis also arises when organizations fail to pay its creditors and other parties.Lack of fund
leads to crisis.
Crisis Due to Natural Factors: Disturbances in environment and nature such as hurricanes, volcanoes,
storms, flood; droughts, earthquakes etc result in crisis.
Sudden Crisis: As the name suggests, such situations arise all of a sudden and on an extremely short notice.
Managers do not get warning signals and such a situation is in most cases beyond any one’s control.
Smoldering Crisis: Neglecting minor issues in the beginning lead to smoldering crisis later. Managers often
can foresee crisis but they should not ignore the same and wait for someone else to take action. Warn the
employees immediately to avoid such a situation.
Crisis Management Process:
The art of dealing with sudden and unexpected events which disturbs the employees, organization as
well as external clients refers to Crisis Management.
The process of handling unexpected and sudden changes in organization culture is called as crisis
management

1. Anticipate

The first step is to prepare. Be proactive and arrange an intensive brainstorming session to go through all the
potential crises that could occur at your organisation. The simple rule of thumb is to accept Murphy’s Law,
“What can go wrong, will go wrong.” However, not only are some situations preventable by simply
modifying processes, but this assessment process should lead to the creation of a crisis response plan.

2. Create a plan and test it

The crisis response plan should be tailored for your organisation, and it should include both operational and
communications components – in a crisis, what will you do and what will you say? In order to ensure the
messages contained in the crisis response plan are delivered effectively and with credibility, it needs to be
tested. This is where crisis training and simulations come in, as well as media training for those who could
be giving statements and interviews. Most importantly, taking these steps will help ensure you can carry out
your response plan in a real-life situation, not just in theory.

3. Identify your crisis communication team

A small team of senior executives should be identified to serve as your organisation’s crisis communications
team. Ideally, the CEO will lead the team, with the firm’s top public relations executive and legal counsel as
his or her chief advisers, after that the size if the team depends on the needs of your business.

This team should set the communications process for your business. Avoid getting caught out when a staff
member, who does not know the whole story, gives a quote to the media or posts on their personal social
media, because they didn’t know what to do (or not to do). Make sure a clear process is created and
communicated to your staff, channels can include newsletters, employee handbooks and intranet.

4. Establish notification and monitoring systems

Knowing what’s being said about you in traditional and social media, by your employees, customers, and
other stakeholders often allows you to catch a negative “trend” that, if unchecked, could turn into a crisis.
Likewise, monitoring feedback from stakeholders during a crisis situation allows you to accurately adapt
your strategy and tactics. Furthermore, your organisation should have the means to reach the internal and
external stakeholders as soon as possible.

5. Communicate, communicate, communicate

The first rule of crisis management is to communicate. Early hours are critical and they set the tone for the
duration of the crisis. Be as open as possible; tell what you know and when you became aware of it; explain
who is involved and what is being done to fix the situation. Be sure to correct misinformation promptly
when it emerges. Remaining silent or appearing removed could enrage the public and other stakeholders.

5. Define Corporate Restructuring Mergers and Acquisitions

A. The process of corporate restructuring is considered very important to eliminate all the financial crisis
and enhance the company’s performance. The management of the concerned corporate entity facing the
financial crunches hires a financial and legal expert for advisory and assistance in the negotiation and the
transaction deals.

Types of Corporate Restructuring

1. Financial Restructuring: This type of restructuring may take place due to a severe fall in the
overall sales because of adverse economic conditions. Here, the corporate entity may alter its
equity pattern, debt-servicing schedule, equity holdings, and cross-holding pattern. All this is
done to sustain the market and the profitability of the company.

2. Organisational Restructuring: Organisational Restructuring implies a change in the

organisational structure of a company, such as reducing its level of the hierarchy, redesigning
the job positions, downsizing the employees, and changing the reporting relationships. This
type of restructuring is done to cut down the cost and to pay off the outstanding debt to
continue with the business operations in some manner.

Reasons for Corporate Restructuring

Corporate restructuring is implemented in the following situations:

 Change in the Strategy: The management of the distressed entity attempts to improve its
performance by eliminating certain divisions and subsidiaries which do not align with the core
strategy of the company. The division or subsidiaries may not appear to fit strategically with
 the company’s long-term vision. Thus, the corporate entity decides to focus on its core strategy
and dispose of such assets to the potential buyers.

 Lack of Profits: The undertaking may not be enough profit-making to cover the cost of
capital of the company and may cause economic losses. The poor performance of the
undertaking may be the result of a wrong decision taken by the management to start the
division or the decline in the profitability of the undertaking due to the change in customer
needs or increasing costs.

 Reverse Synergy: This concept is in contrast to the principles of synergy, where the value of a
merged unit is more than the value of individual units collectively. According to reverse
synergy, the value of an individual unit may be more than the merged unit. This is one of the
common reasons for divesting the assets of the company. The concerned entity may decide
that by divesting a division to a third party can fetch more value rather than owning it.

 Cash Flow Requirement: Disposing of an unproductive undertaking can provide a

considerable cash inflow to the company. If the concerned corporate entity is facing some
complexity in obtaining finance, disposing of an asset is an approach in order to raise money
and to reduce debt.

Mergers and acquisitions:

Mergers and acquisitions (M&A) are defined as consolidation of companies. Differentiating the
two terms, Mergers is the combination of two companies to form one, while Acquisitions is one
company taken over by the other. M&A is one of the major aspects of corporate finance world. The
reasoning behind M&A generally given is that two separate companies together create more value
compared to being on an individual stand. With the objective of wealth maximization, companies keep
evaluating different opportunities through the route of merger or acquisition.

Mergers & Acquisitions can take place:

• by purchasing assets

• by purchasing common shares

• by exchange of shares for assets

• by exchanging shares for shares

Types of Mergers and Acquisitions:

Merger or amalgamation may take two forms: merger through absorption or merger through
consolidation. Mergers can also be classified into three types from an economic perspective depending
on the business combinations, whether in the same industry or not, into horizontal ( two firms are in the
same industry), vertical (at different production stages or value chain) and conglomerate (unrelated
industries). From a legal perspective, there are different types of mergers like short form merger,
statutory merger, subsidiary merger and merger of equals.

Reasons for Mergers and Acquisitions:

• Financial synergy for lower cost of capital

• Improving company’s performance and accelerate growth

• Economies of scale

• Diversification for higher growth products or markets

• To increase market share and positioning giving broader market access

• Strategic realignment and technological change

• Tax considerations

• Under valued target

• Diversification of risk
 VUCA MANAGEMENT

Record – 2

Shorts:

1. Business sustainability.

A. Business Sustainability

Any corporate sustainability initiative has to balance its impact on three things: people, planet, and profit.
This concept is known as the triple bottom line, and it shapes the environmental efforts for many
corporations worldwide.

1.Improved environmental sustainability is not valued in internal capital allocation decisions

Companies often lack the internal mechanisms to properly value the benefits of managing environmental
sustainability, such as reduced exposure to energy price volatility, water risks and other environmental
impacts of operations and supply chains.

2.The goals of corporate sustainability teams and financial teams are not well-aligned

Divergent priorities mean that sustainability teams and financial teams often do not effectively engage each
other. As a result, sustainability teams are brought into project planning too late to influence project design
and cannot make an effective case to financial decision makers.

3.Companies lack metrics to account for external environmental costs

Without a clear method to price external costs, such as the risk of climate change to society, companies can't
factor these "expenses" into their traditional decision-making. Companies may find they are not fully
cognizant of the real costs and risks associated with their investments over time.

4.Environmental factors, such as climate change and water scarcity, are not being fully integrated into
long-term business strategy

As a result, companies often miss opportunities to improve financial performance through environmental
improvements in processes and product lines.

2. Understanding the vision

A. VUCA stands for:

 Volatile – change is rapid and unpredictable in its nature and extent.

 Uncertain – the present is unclear and the future is uncertain.
 Complex – many different, interconnected factors come into play, with the potential to
cause chaos and confusion.
 Ambiguous – there is a lack of clarity or awareness about situations.
Many people predict that volatility, uncertainty, complexity, and ambiguity are going to become
more and more prevalent in the business world. To manage teams in the VUCA age, you should be
aware of the changes that this kind of environment can cause.
To create organizations that can thrive in a VUCA world, we need to start looking at it as an opportunity and
develop the necessary mindsets and skills to use it. Very often, whether as companies or a society, we are
still in a mode of preparing ourselves for the world of yesterday, instead of appreciating the opportunities for
a blooming future offered by a VUCA environment.

To do this, we need to turn VUCA on its head and reframe it in a positive light, so that:

 Volatility becomes Vision

 Uncertainty becomes Understanding
 Complexity becomes Clarity
 Ambiguity becomes Agility

Let vision take the place of volatility

If our vision is clear and coherent it can be communicated and shared. Laszlo suggests developing what he
calls “protopian frames”. They are realistically optimistic scenarios based on the creation of desirable,
feasible, and realizable images of the future, as well as solutions that lead to them.

Such visions do not include precise goals but provide direction and orientation for an organization or
society. There has to be some level of flexibility in goals to accommodate unforeseen changes. However, a
clear vision equips an organization with a tool for navigating uncharted and rough terrain.

3. Strategies of talent management .

A. A talent management strategy is an adaptable system of nurturing the human assets of the company
through innovative recruitment and performance management initiatives. It allows you to implement
methods that improve your standard talent management process to take advantage of your human capital
in driving growth and success for the company.

The process includes the following steps.

1. Talent strategy and planning: Talent planning considers factors to anticipate labour needs, such as
voluntary turnover rate, workforce management, demographics, succession planning, business
priorities and budget. This involves identifying the needs, considering changes in the structure of the
organization, the strengths of the current staff and preparing people for future roles.
 2. Sourcing and recruiting: Recruiters work to attract highly qualified people they think will be good
fit for the company. The recruiters then vet the candidates, gather key information and pass on the
best-fit candidates to the hiring manager and their team for further interviews.

3. Selecting and hiring: This step involves careful coordination between recruiting, human resources
and the business function in developing and communicating compensation packages. Once an offer
is extended and accepted, the onboarding (typically an HR function) and training (a business
function) begins.

4. Developing: Training and developing the people you hired involves several functions working in
concert. It begins at onboarding and includes immediate job-specific training but extends to
developing competencies that advance individual career goals aligned to business
objectives. Employee recognition programs are also helpful tools to help employees feel appreciated
and allow them to thank and call attention to their peers.

5. Retaining and engaging employees: Managing performance and compensation is more than goal
setting and performance reviews but encompasses ongoing communication between the employees
and their managers to align work with strategic business goals. Engaging employees with
challenging work while providing the support, tools and training they need to succeed can be a recipe
for success.

6. Transitioning: Think about succession planning and leadership development. Identify and train
promising leaders for management tracks.

4. Agility.

A. The Agile approach has been the norm for technical projects for almost two decades, yet it remains rare
at a corporate level. The need for agility is abundantly clear as we all face a radically changing world
transforming all aspects of our lives… personally, socially, professionally and economically.

FOUR TYPES OF AGILITY COMPETENCIES

Successful leaders consistently use the following four types of agility competencies:
Context-setting Agility is the ability to scan the environment, anticipate what might change, and clearly see
connections beyond the boundaries of their specific initiative, function, company, or even industry. This
enables a longer-term focus, visionary thinking and true impact.

Stakeholder Agility is the ability to identify, seek out, and engage key stakeholders. It’s the capacity to
understand and empathize with the views of multiple stakeholders while also honoring one’s own view.
Effective leaders seek input from stakeholders not just to get buy-in, but to gain a better understanding from
their diverse perspectives. The bold and innovative go further, co-creating new products and services with
their key stakeholders – and reaping the benefits as a consequence.

Creative Agility is the ability to explore multiple views when dealing with a complex problem and to step
back to examine the assumptions being made. Creative leaders comprehend and manage the cognitive
dissonance that can arise when working with a diverse team of people. And to lead those teams to generate
inimitable and elegant solutions.

Self-Leadership Agility is the capacity to constantly grow self-awareness, and to lead oneself first by
understanding the kind of leader one aspires to be. Successful leaders have an interest in aligning their
behaviour with values, and seek to become more and more authentic. They use personal growth to fuel
professional development.

5. Vision .
A. Vision in response to Volatility is more than an exercise. It is how you get out of the weeds, come up for
air, and steer toward the horizon. Incorporating constant exploration and imagination, Vision becomes a
counterbalance to Volatility. On the other hand, Vision that is vague or without just enough structure is
Volatility in dangerous disguise.

The group Darcy leads is globally dispersed and multifunctional. She is accountable for integrating R&D,
clinical development, and regional marketing. Volatility in her world is often generated by the system itself.
Consider the following:

 The results of multiple interdependent global clinical trials create multifaceted dilemmas (a
both/and/and/and… situation)
 In-market drugs have regional differences with respect to indication, marketing, regulatory
requirements, and opinion leader input – what is tactically appropriate in one region may be
counterproductive in another
 Team members are functionally co-located and constantly struggle to overcome the Volatility of an
internal Us/Them mindset relative to their distant colleagues

When Volatility hits, Darcy’s first action is to step back and explore how this event, or set of events,
directionally impacts the course she has set. Vision for her is more like sailing toward a point on the horizon
that forever recedes, pulling her forward. When Vision is understood by the whole, then interdependent
movement of the parts can be coordinated. Darcy finds that Vision provides “just enough” structure and
process for her organization to balance prediction and exploration.
Using Vision as a rudder, she constantly navigates between rigidity-prediction (too much stability) and
turbulence-exploration (too much Volatility). Recently she faced a situation in which she introduced
Volatility to break up a rigid mindset that was holding a team back. As the team explored options and
opportunities, she learned her way forward, using Volatility and Vision alternately to maintain creative
tension and lead the team toward a self-generated, productive outcome.

Essays
1. Discuss the Triple Bottom Line (TBL) Approach.
A. The triple bottom line is a business concept that posits firms should commit to measuring their social and
environmental impact—in addition to their financial performance—rather than solely focusing on generating
profit, or the standard “bottom line.” It can be broken down into “three Ps”: profit, people, and the planet.
Profit

In a capitalist economy, a firm’s success most heavily depends on its financial performance, or the profit it
generates for shareholders. Strategic planning initiatives and key business decisions are generally carefully
designed to maximize profits while reducing costs and mitigating risk. In the past, many firms’ goals have
ended there. Now, purpose-driven leaders are discovering they have the power to use their businesses to
effect positive change in the world without hampering financial performance.

Here are some examples of economic variables that can be measured:

 Job growth percentages

 Establishment size
 Establishment churn
 Average incomes
 Cost of underemployment

People

The second component of the triple bottom line highlights a business’s societal impact, or its commitment
to people. It’s important to make the distinction between a firm’s shareholders and stakeholders.
Traditionally, businesses have favoured shareholder value as an indicator of success, meaning they strive to
generate value for those who own shares of the company. As firms have increasingly embraced
sustainability, they’ve shifted their focus toward creating value for all stakeholders impacted by business
decisions, including customers, employees, and community members.

Below are some examples of social variables that can be measured:

  Median household income
 Unemployment rate
 Average commute time
 Violent crime per capita
 Female labour participation

The Planet

The final component of the triple bottom line is concerned with making a positive impact on the planet. The
"planet" component measures a company's environmental impact. Managing an organization's
environmental bottom line involves controlling, monitoring and reporting its level of consumption, waste
and emissions. This can include measuring it's negative impact (eg. carbon footprint, use of natural
resources, etc), but also the positive (eg. reforestation, removal of waste, etc>)

Below are some of the metrics used by the Global Reporting Initiative for measuring, monitoring and
reporting on a company's environmental triple bottom line:

 Energy consumption (% of fossil fuels, electricity and/or renewable)

 Water consumption
 Total greenhouse gas emissions
 Amount of recycled material used
 Amount of waste generated
 Impact in land use/ land cover

SOCI AL PROGRESS INDEX

A slightly different version of a Triple Bottom Line is the Social Progress Index and it applies to everyone
across the globe, not just the entrepreneurs. The Social Progress Index breaks down the UN’s Global Goals
into three separate categories, or “bottom lines”:

 Basic Human Needs

 Foundations of Wellbeing
 Opportunity
Though they look and sound different than the original TBL, they are similar in many ways. With the Social
Progress Index, people, planet, and profit are interwoven into the above mentioned categories rather than
each one standing on its own.
WHY IS THE TRIPLE BOTTOM LINE IMPORTANT

To some, adopting a triple bottom line approach may seem idealistic in a world that emphasizes profit over
purpose. Innovative companies, however, have shown time and again that it’s possible to do well by
doing good. The triple bottom line doesn’t inherently value societal and environmental impact at the expense
of financial profitability. Instead, many firms have reaped financial benefits by committing to sustainable
business practices.

2. Explain the Talent Management and Importance of Talent Management.

A. Talent management is how employers recruit and develop a workforce that is as productive as
possible and likely to stay with their organization long term. When implemented strategically, this
process can help improve the overall performance of the business and ensure that it remains
competitive.

The talent management process consists of finding the right people and helping them discover and
apply their strengths so they can work and lead more effectively. Employers who do it well generally
follow these steps:

1. Recruit
Source candidates from outside or within the organization using the most appropriate method,
i.e., employee referrals, social networks, job boards, etc.
2. Hire
Use analysis tools, prescreening questionnaires, skills tests and interviews to narrow the list of
candidates and make an offer.
3. Develop
Make learning and development resources accessible and relevant to employee expectations
and needs so they can do their jobs more effectively.
4. Engage
Keep teams connected and focused with engagement tools that help identify potential retention
risks and retain top performers.
5. Perform
Monitor employee performance and collect data to make more informed workforce decisions.
6. Recognize
Manage compensation equitably and reward top performers.
 7. Plan
Create succession plans that allow employees to advance their careers when openings become
available.

Talent management Importance

Businesses that take the time to develop their employees and keep them engaged tend to be innovative
and profitable. Conversely, those that are unable to source or retain talent generally have poor
customer satisfaction and limited growth potential.

Benefits of talent management

 Recruit in-demand talent

Businesses become employers of choice and attract talent organically by making their brand a
central component of their talent strategy.
 Minimize disruptions
Unexpected departures cause gaps in coverage, but with a talent pipeline, it’s possible to fill
open positions quickly and keep operations running smoothy.
 Improve productivity
Continuous strengths-based coaching helps employees develop skills and reach their full
potential, thereby increasing efficiency.
 Reduce costs
Retaining valued team members and keeping them engaged is usually more cost effective than
sourcing and training new hires.
 Innovate
Talented teams are more likely to develop new methods of problem solving and make the most
of advancements in technology.
3. Illustrate the Issues and significance Corporate Governance and its Reforms in India

A. Corporate Governance is basically all about how corporations are directed, managed, controlled and held
accountable to their shareholders. In India, the question of Corporate Governance has come up mainly in the
wake of economic liberalization and de-regularization of industry and business.

Issues and Significance in Corporate Governance

1. Selection procedure and term of Board:

The selection procedure adopted in Indian corporations is the biggest challenge for good corporate
governance. Law requires a healthy mix of executive and non-executive directors, independent directors,
and woman directors. Most companies in India tend to only comply on paper; board appointments are still
by way of word of mouth or fellow board member recommendations. It is common for friends and family of
promoters and management to be appointed as board members.

2. Performance Evaluation of Directors:

SEBI, India's capital markets regulator, has released a 'Guidance Note on Board Evaluation' in January 2017.
Which cover all major aspects of Board Evaluation including the Subject & Process of Evaluation, Feedback
to the persons being evaluated, Action Plan based on the results of the evaluation process, Disclosure to
stakeholders, Frequency & Responsibility of Board Evaluation. But for achieving the desired objectives
from performance evaluation, they need to make the evaluation result public and these disclosures may put
the corporate in big trouble.

3. Missing Independence of Directors:

Independent directors' appointment was supposed to be the biggest corporate governance reform by kumar
mangalam committee on corporate governance in 1999. However in reality independent directors have
hardly been able to make the desired impact. Till now the appointment of directors in most of companies is
made at the discretion of promoters, so it is still questionable. For providing the true success it is necessary
to limit the promoter's powers in matters relating to independent directors.

4. Removal of Independent Directors:

Under law, an independent director can be easily removed by promoters or majority shareholders. When an
independent director doesn't take the side with promoter's decisions, they are removed from their position by
promoters. So to save their post directors have to work for the interest of promoters. To resolve this issue
SEBl's International Advisory Board had proposed an increase in transparency for the appointment and
removal of directors.

5. Liability toward Stakeholders:

Indian company act 2013 mandates that directors owe duties not only towards the company and shareholders
but also towards the other stakeholders and for the protection of the environment. But generally, board tries
to limit and escape from these kinds of accountability good idea to require the entire board to be present at
general meetings to give stakeholders an opportunity to pose questions to the board.

6. Founder/Promoter's extensive Role:

In India, instead of separate entity of businesses, promoters or founders continuously influence the business
decisions Family owned Indian companies suffer an inherent inhibition to let go of control. They affect the
decisions by influencing the board and management. This is done because they had the significant portion of
company's share. So to remove this issue it will be good idea to amplify the shareholder base and reduce the
shareholding of founders.

7. Transparency and Data Protection:

Corporate governance is based on the principle of transparency but it cannot be defined what information is
to be disclosed or not. In today's cut throat environment of competition it can be very dangerous if wrong
information be disclosed. In digitalization Privacy and data protection is a central governance issue. For this
the board must be capable of handling data and to ensure the protection of such data from potential misuse.

8. Business Structure and internal conflicts:

Business structures also put hindrance on the way to good governance as they require many layers of
management, executives and other officers. This makes it very difficult for the company leaders to receive
accurate, important data from the lower levels and to command orders to lower level of the company as the
data may be distorted at any point of chain. Board of executives can make much good decisions and policies.

Corporate governance and ethical actions have a number of advantages. Primarily, they help to make good
brand image for the company. Once there's a brand image, there's greater faithfulness, once there's greater
loyalty, there's greater commitment to the employees, and when there's a commitment to workers, the
workers will turn more creative.

4. Explain the Role of Strategic Management in VUCA World.

A. Strategic Management In The VUCA World

In the management world, it is clear that organizations and the stakeholders inside it are dealing with
a VUCA world, necessitating the need for strategies and interventions. It’s crucial to handle the situation
according to what’s practical, necessary and understood to accept this reality. In this spirit, contrary to the
belief that VUCA and strategy cannot coexist, strategy has become more crucial than ever.
Tools for Strategic Management Success in the VUCA world
How businesses gather and evaluate data, make strategic decisions, create plans, and implement those plans
must change in the VUCA world.
 Scenario Planning: The foresight process is closely tied to scenario planning, a crucial tool in
the VUCA world. The scenario is a comprehensive plan, a collection of presumptions outlining a
different perspective on the future, which is then utilized to build or test a strategy.
 Blockchain in Popular Culture: In the 21st century, traditional applications that will quickly
transform fields like digital identity verification, data security, and intelligent automation is expected
to expand, according to our prediction for the future of digital transformation services.
  Roadmapping: Roadmapping is the VUCA tool that most embodies the concepts of dynamic
planning, ongoing adaptation, and learning. The primary attribute of road mapping is that it fully
embodies the ideas of logical incrementalism and dynamic planning.
Benefits of Managing In a VUCA World
By concentrating on the following areas, you may use VUCA as a chance to strengthen your management
and leadership abilities and increase the effectiveness of your team:
 Implementation: Work together with your team to solve VUCA threats.
 Decision Making: When making judgments, see complexity and uncertainty as motivating factors
for doing more research rather than as overwhelming forces.
 Innovation: Process and workflow innovation should be viewed as a solution to combat VUCA
rather than as something that could suffer as a result of it.
 Looking for opportunities: Seek better offers and chances rather than relying solely on your regular
suppliers and dealers. These possibilities in a VUCA world may only present themselves briefly, so
you must be vigilant and take advantage of them when they do.
 Team Building and Organizational Culture: Adversity and challenge can unnerve people, but they
can also focus their attention and motivate them to work toward a common objective, which is
important for team development and corporate culture.
 Recruitment:
Improve agility by recruiting individuals who are at ease in circumstances that are less organized and
constantly changing
5. Criticize the Developing Core Competencies.

A. Core competencies are the resources and capabilities that comprise the strategic advantages of a
business. A modern management theory argues that a business must define, cultivate, and exploit its core
competencies in order to succeed against the competition.

Core Competencies in Business

A business can choose to be operationally excellent in a number of different ways. Below are common core
competencies found in business:

 Greatest Quality Products. This core competency means the company's products are most durable,
long-lasting, and most reliable. The company will likely have invested in the strongest quality
control measures, technically proficient workers, and high-quality raw materials.
 Most Innovative Technology. This core competency means the company is an industry leader in
its sector. The company will likely have invested heavy amounts of capital into research &
development, holds many patents, and hires experts in respective fields.
 Best Customer Service. This core competency means customers have the greatest experience
during (and after) their purchase. The company will likely have invested in training for staff, large
 numbers of customer service representatives, and processes to manage exceptions or issues as they
arise.
 Largest Buying Power. This core competency leverages a company's economy of scale. This
company will likely have invested in mergers or acquisitions and have built up strong relationships
with vendors to gain favourable pricing or service.
 Strongest Company Culture. This core competency promotes the internal atmosphere of the
business. The company aims to attract the best talent by investing heavily in employee recognition,
development, or collaborative, fun events.
 Fastest Production or Delivery. This core competency means the company is able to make or ship
items the fastest. The company will likely have invested in connected software systems as well as
production processes and distribution relationships.
 Lowest Cost Provider. This core competency means the company charges the lowest price among
comparable goods. The company will likely have invested in the most efficient processes the reduce
labour or material input.
 Highest Degree of Flexibility. This core competency allows the company to quickly pivot in
response to business opportunities or challenges. The company will likely have invested in cross-
training across employees or nimble software solutions.

Core Competencies

Pros
 Are not easily replicable since they take long or large investments
 Is often difficult for competitors to overcome once a core competency has been achieved
 May be able to be translated to different products, sectors, or business opportunities
 Enhances the company's brand image and may make marketing endeavors more easily understood

Cons
 May result in a company being tied to an outdated, no-longer-used core competency
 May reduce the overall flexibility of a company
 May require large time or capital requirements
 May result in a company focusing too heavily on core competencies instead of a single cohesive
strategy