Q.5. What do you mean by corporate parenting? Explain in brief.
Ans. Corporate Parenting: Corporate parenting refers to the level of management over business units of the corporate. These different management groups provide overall vision and strategic intent for all business units. This will help business unit managers with the focus and motivation for a common unit purpose. In addition, corporate parent can provide central direction and intervention within its business units in order to ensure its appropriate performance. Following are some common methods of implementing corporate parenting:
1. Strategic Forecasting: In this method, a parent of business units provides direction and enhances synergies to produce an effective work across the business units. This may be attained by foreseeing common purposes, facilitating cooperation across businesses and providing central services and resources.
2. Strategic Direction: In this method of corporate parenting, the management controls its resources and capabilities to form value for its business.
3. Financial Control: This method is used to observe and to evaluate the financial performance of asset portfolio of the particular business unit. The corporate managers act as agents on behalt of shareholders and financial markets to classify and purchase possible assets. The business unit managers are given the liberty to carry out business operations and make decisions at their level.
Q.6. Discuss the various types of strategic control.
Ans. The various types of strategic control are given below:
1. Premise Control: Every strategy is based on certain assumptions about environment and organisational factors. Some of these factors are highly significant and any chan the strategy to large extent. Premise control is necessary to identify the key assumintinand keep
land any change in them can affect track of any change in them so as to assess their impact on strategy and its implementation. It enables the strategies to take corrective action at the right time.
2. Implementation Control: Implementation control is aimed at evaluating whether the plans, programme and projects are actually guiding the organisation towards its predetermined objectives or not. Implementation control may be put into practice through the identification and monitoring on strategic thrusts. Another method of implementation control is milestone review,
3. Strategic Surveillance: The premise and implementation types of strategic control ar, specific in nature. Strategic surveillance is designed to monitor a broad range of events inside and outside the company that are likely to threaten the course of firm’s strategy.
Broad-based, general monitoring on the basis of selected information sources to uncover events that are likely to affect the strategy of an organisation.
4. Emergency Alert Control: It is based on trigger mechanism for rapid response and immediate reassessment of strategy in the light of sudden and unexpected events. Emergency alert control can be exercised through the formulation of contingency strategies and assigning the responsibility of handling unforeseen events to crisis management teams.
Crises are critical situations that occur unexpectedly and threaten the course of a strategy. Organisations that hope for the best and prepare for the worst are in a vantage position to handle any crises. Crises management follows certain steps, such as signal detection, preparation/prevention, containment/damage limitation, and recovery leading to organisational learning.