What is strategy: it is the action plan formulated to reach a particular goal. Any company comes up with a strategy considering the current market situations and the development they are expecting in future. Before planning a strategy, a company should always keep a check on the available resources, their customers, market value and situation, working environment and government policies. The strategy of any company should reflect its mission, vision and set goals. It should be aligned with its legal and ethical values.
Hinduja Global Solutions is considered as one division of the large Hinduja Group Corporation. Hinduja Global is a USD 165 million organisation which has employed 14,000 people all over India, in Philippines, in Canada, in Mauritius, and the America. The strategy of Hinduja Global Solutions, Bangalore is to strengthen the clients' business. At Hinduja Global Solutions, they look at their client's business from client's perspective and see what's the requirement of their customer's is and in turn define the objectives.
Hinduja Global Solutions strategic Goal
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At Hinduja Global solutions, they believe that all the methods, planning and resources should aid in the achievement of the goal set by the organisation. An organisation's business strategy covers the strategic goal of the organisation. Strategic goal motivates an organisation to perform and achieve the objectives. (Johnson, 2006).
The objectives of the strategy of Hinduja Global Solutions, Bangalore are as follows:
To be a globally preferred business process transformer
To be create business value through different ideas
Grow and strengthen the core business
To Make Our Clients Competitive
1b) Philosophy underlying Strategy Planning
To reach any goal or target in future, every one needs to have a set plan. Principle of strategy planning coordinates between the processes, activities and assets in terms of
Who will achieve the goal?
What is the goal?
When to achieve the goal?
Why the goal should be achieved?
How will the goal be achieved?
As per the above rules or principles, we can clearly understand as to who will do what, when, where, why and how?
In general terms the objective of strategy planning can be described as the best way in order to achieve the results by utilising the resources to the least usage of resources and safeguarding against any unexpected threat in future. (Porter, 1980)
The basic rules which underlines the formulation and strategy planning has been listed below:
Vision should be clearly defined.
Strategy management and ownership.
Analyse the current situations appropriately.
Counselling approach in formulation of the strategy.
Strategy evaluation should be performed appropriately.
Having computable test points
Prepared with alternate way of performance and options
1c). Strategy Development
Any organisation should have two points well defined in order to develop a strategy appropriately.
Assets, technology, processes etc can be considered as part of the current circumstances. Any organisation should have an in depth analysis these.
Every company needs to have a clear understanding of there visions and appropriately define them. Operational based strategy planning becomes easier if the company's has measurable goals in terms of what they desire to be future.
Strategy development frame work:
Vision and mission
Goals and objectives
The planning process description
Measurement and answerability
Monitoring and response
Once the current circumstances has been analysed, the company needs to work on developing the vision and mission of the organisation.
1d) Tools and Techniques involved in strategy development
Development of strategy and its planning involved implementation of various tools and techniques. Some of the techniques involved are
Important question analysis
Process cycle analysis
Analytical frame works ( Like SWOT (Strength, Weakness, Opportunity, Threat)
Process Decision Program chart etc (Brassard, 1996)
The SWOT analysis was first described by Edmund in 1960 (Edmund, 1960). The SWOT analysis can be considered as a device or mean for evaluating an organisation and its performance. It is the most commonly used technique. SWOT analysis is used in initial stages of the strategy planning process followed by strategic goal setting. For this first the goal or objective of the analysis needs to be definite.
Always on Time
Marked to Standard
A SWOT analysis is performed for every single objective of the organisation. We can get a realistic picture through the SWOT analysis about the objectives. When ever there is a critical situation in the company SWOT analysis can be utilised to analyse the situation, even if the time period is less. SWOT stands for
From the above strength and weakness are considered as the internal factors, Opportunities and threat are external factors.
Strengths: These are the key points or the functional areas that the company considers as there strength. They utilise this strength in the critical situations to the maximum. These key point helps the company in achieving the there targets.
Weakness: As the terms says, these are the issues due to which the might not be able to achieve its objective. Weakness can be lack of employee, lack of funds etc.
Opportunities: As the word says opportunities are the favourable situations that the company implements when they need to achieve there target and increase there strength in market.
Threats: These are scenarios which can be a roadblock in achieving the organizations objective.
2a) Hinduja Global Solutions, Bangalore Strategic options
Hinduja Global Solutions has a definite goal. They want to be international call center as well as see a development in its local business and process. The company can choose either of these goals at one time. They can first focus on there international clients and then work on their domestic process.
2b) How strategy effects the major stake holders of the company
In this section we will see how strategy of a company affects the majority of stake holders of the business. Stakeholders can be considered as the cause and effect on the company strategy. Usually by using a representative representing the particular stakeholder takes part in the planning and development of strategy.
We know the current market situation and the concern; hence it's common for the stakeholders, investors and employees of the company to be worried about their security. As stakeholders are part of strategy formulation, it their responsibility and right to know whether the implementation of new strategy by the organisation have any adverse affect on the current spot of the company. The major concern of every stakeholder is always in terms of profit, competition and increase in value of the company. They feel that the new strategy should not weaken the current position of the organisation in market.
How we can say when a strategy is good? Whenever it's having a positive effect on the business of the stakeholders and increases there share values in market. So in this even the employees would like to be with the organisation for longer period and in turn help in achieving the strategy.
2c) Stakeholders contribution in strategy planning and development
It's the responsibility of an organisation to make sure that the involvement of stakeholders in strategy planning is encouraged. This can be done by following the below mentioned points:
Communication of the Strategy planning process should be clearly communicated
The shareholders should have access to all the important data and analysis reports.
Should be accounted in the planning committee
Stakeholders should have the right to bring out doubts and alarms
They should have the right to vote
The above points are to make sure that the stakeholders are always considered to be the part of the strategy development procedure.
2d) Importance of Stakeholders and employees of the company
As we covered in the earlier section that the company should involves stakeholders in strategy planning, same way they need to ensure that the stakeholders are dedicated towards planned strategy. Without acquiring the stakeholders commitment strategy and functioning plan can become one directional attempt. Listed below are the methods that an organisation should follow to gain dedication from stake holders and employees:
Participation of stake holders and employees in policy formulation
In formulating the action plan, company needs to make sure that the suggestions, suppositions and restrictions brought up by the stake holders are considered.
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The structure, accountability, liability and measurability of objectives and target goals should be clear.
Change in culture if needed.
3a) Mission, Vision and Objectives
The Mission, Vision and objectives statement are considered as the main pillars of any strategy or policy program. As per ISO 9000 Clause 5.1 these statements are prepared by the management (Ketola and Roberts,2001)
Explanation of the Mission, vision and Objectives in layman's language,
Vision Statement: Through the vision statement we understand exactly what the organisation ultimately desires to be in future? For e.g. "We will be the top company in telecommunication in India by giving best service and the customer's choice every time" to the layman this will sound like a wish but if we can be observe that this statement is very specific, The company defined that they want to be top company and what they mean by best service and then customer's choice.". The vision of an organization is a futuristic roadmap/ destination/goal. It helps in directing the combined efforts of all the departments of an Organization towards one unified vision.
A vision statement focuses on what exactly the company wants to achieve in future. It's the desire statement. Vision statement can be considered as the guide following all the rule, plans and strategy of an organisation.
Mission Statement: The mission statement is a clear and succinct representation of the enterprise's purpose of existence. It incorporates socially meaningful and measurable criteria addressing concepts such as the moral/ethical position of the enterprise, public image, the target market, products/services, the geographic domain and expectations of growth and profitability.
If the vision of a company says that they want to be top and the best company then the mission of the company should depict the methods that will be implemented to achieve the goal for e.g.
Provide world class service and network
Keep on developing the product and service quality
Communication with the customer on the quality
3b) Hinduja global solution's Mission and Vision statement
Vision: To be a globally preferred business process transformation partner for our clients, creating value in their business through innovative outsourcing solutions (Hinduja Global Solutions Ltd. 2009)
Mission: To Make Our Clients More Competitive through our values. In order to understand the Mission, we need to get some understanding about the company's values: Listed below are the values of Hinduja global solutions: (Hinduja Global Solutions Ltd. 2009)
Values: Hinduja Global Solutions has evolved the following set of Seven Values that inspire and energize every employee of the Company and its subsidiaries:
Customer Focus: Our customer is in the centre of whatever we do. We listen to our customers - anticipate and consistently meet and exceed their expectations. We concreate value in partnership with them(Hinduja Global Solutions Ltd. 2009)
Total Quality: We are passionate about quality. We believe in continuous advancement/progress/improvement through innovation, process improvement and team work. (Hinduja Global Solutions Ltd. 2009)
People Empowerment: Our employees are encouraged to take risks, pride in their achievements, and celebrate small successes and to take responsibility/ownership or be responsible for all their actions. (Hinduja Global Solutions Ltd. 2009)
Integrity: We act ethically, honestly and with transparency. Honesty is the cornerstone in all our dealings - with our employees, customers, suppliers, partners, shareholders, the communities we serve and the Government. (Hinduja Global Solutions Ltd. 2009)
Global Mindset: In all our operating geographies, we respect cultural diversity and provide equal opportunities to all of our employees to voice their opinions, to learn, to contribute and to grow. (Hinduja Global Solutions Ltd. 2009)
Pride in Execution: Our work is our passion. We consistently deliver superior business results by excelling in all that we do for our clients. (Hinduja Global Solutions Ltd. 2009)
Sustained Growth: We are driven to grow our businesses rapidly and profitably to create value for all our stake-holders viz. employees, shareholders, customers, and society as a whole. (Hinduja Global Solutions Ltd. 2009)
3c) Cultural and ethical values and the Vision, Mission and Strategy
Understanding the organization's core cultural and ethical values plays a vital part in development of its vision, mission and strategy. For example a people centric culture like India would always concentrate more on people empowerment and development as compared to an American Organization. Cultural diversity, religious tolerance, providing equal opportunity is all critical aspects of an Organizations vision, mission and statement.
Every business has there own set of exclusive culture and an ethical values. Cultural and ethical values play a very important function.
The critical competencies to achieve company's vision, mission and strategy would be:
Communication: Internally to the employees and externally to the clients
Customer Service: To achieve the set goals and objectives customer service is the most important competency.
Cultural and religious tolerance
4a) Effect of current economic and business environment on Hinduja Global Solutions, Bangalore
The present financial crisis has affected all most all the organisation by reducing there business value. As Hinduja Global solutions is one of the offshore and Business process outsourcing call center in India. Even Hinduja global solutions have encountered loss and got affected in terms of the growth of the company.
Hinduja Global solutions are try to work out by increasing there service quality and reduce the additional expenses in order to be prepared for the issues that can be encountered in near future. They made sure that they used there current assets to meet the requirements and avoid any further expense to company.
4b) Reaction of Hinduja Global Solutions to changes in situation
Hinduja Global solutions has given more importance in retaining there current clients and control unnecessary expenses in the current economic crisis. They have come up with differentiate controllable means to handle finance as well as the employee management. Severe finance control is important in the current environment of crisis however controlling too much will require additional needs resources or in the absence of these resources many things may hold back. As there is no other option available, we think Hinduja Global solutions the response to the current situation is appropriate.
4c) Key functional Areas in Hinduja Global Solutions
Listed below are the key functional areas of Hinduja Global Solutions;
Telecom: The Company is equipped to meet the requirements and challenges global telecom companies.
Financial Services: Hinduja Global solutions, is one of the leader in banking and financial services due to their knowledge and experience.
Healthcare services: The Company has been providing insurance services to different companies across United States from past six years. The Company is equipped to meet the requirements and challenges global insurance companies
Logistics: Hinduja Global solutions, provides a complete range of service in logistics. Hinduja Global attempts for delivering high quality while continuously improving on the processes.
Energy and utility: Through this Hinduja global focuses on two objectives namely customer service levels and operational competence.
Technology: Technical support is the back bone for technology. Companies focus n providing excellent customer service to the customer.
4d) Growth of Critical Functional Areas
Critical functional areas development depends on the assets management, dedication and the desire to develop. True growth will never occur without dedication and commitment. The following are essential for functional development,
Purposeful Objectives should be clear
goals should be measurable
understandable process explanation
Line of authority
Each function requires development and evaluation for end results. Through the Functional development, a company can attain its organizational goals separately from the strategy and capital.
5a) pointers of Strategy
We have understood that the strategy is designed and implemented to attain the organizational goal. The strategy plan can be divided into a variety of landmarks. By setting the milestones or the landmark, the company can make sure that the management is aware of their performance and how far they are from their organisational goal.
5b) Sample time table for Hinduja Global Solutions
Sample time table for some of Hinduja Global solutions strategic goals:
Acquiring source one
Open 300 seat Disaster rescue center in Mauritius
Increase employee strength to 7000
This was considered a year of growth
Hire new employees in Mauritius for the disaster center
Perform extremely well in the current process to help in acquiring new business
Tier 2 city expansion in India
Open first healthcare center in Manila
ISO 27001 certification
This was considered a year of integration.
Look out for acquiring new companies and process.
Keep working on high standards to attain the certification.
2009- Till date
Entry in United Kingdom Market
Expansion in China
Employee Strength 14500
This is considered a year of expansion
Target new business market and products in United Kingdom and China.
Hire new employee and staff for the expanded business and processes.
5c) Evaluation of Strategy at development stage
The developed strategy needs to be evaluated at the initial development stage. This will help the organisation in concluding whether the current strategy is the best to be followed and practiced. This evaluation is mainly done to find out whether the strategy is good at it is or if it needs any changes. We know that Strategy single-handedly will not add to the accomplishment or breakdown of a business but the best strategy can definitely produce unexpected results (Tilles,2010)
The evaluation of a strategy can be performed in following ways,
prospects and policies should always be compared with the past results
conservative discussion on previous approximates and assumptions along with the present status
SWOT analysis based on the past data (Lost opportunities, unused strengths, irreversible weakness and recent threats)
5d) Importance of Monitoring Strategy
Assessing and having a control on the strategy is the considered as the final phase of strategy management procedure. Based on the situations that can affect the strategy, it is under changeable or say can be modified. It's through this evaluation that the management can conclude if the current strategy is aiding in achieving the objectives and goals of the company or not. Error or mistake in a Strategy can cost the business more than its implementation. Evaluation of strategy at the time of development as well as at the time of functioning can avoid the errors on strategy. There are lot of examples about the strategy errors available in History in addition to companies (these had terrible consequences).
Example: COPC certification Hinduja Global Solutions:
In 2008, Hinduja Global Solutions, Bangalore started working on acquiring the COPC certification. They came up with training sessions for employees and the management. They started reporting and keep the data required for COPC certification.
Later part of the year, the evaluation resulted in not acquiring of the certification. By this the company realised that they are focusing on too many goals at the same time. Hence they changed there strategy towards the certification. They utilised all there drawback and reformulated there strategy towards COPC certification.
Conclusion: Through this task, we can clearly understand how important is strategy and its formulation for the success for any company. We analyse as to how Vision, Mission and objectives are important for an organisation. We understood that the development and evaluation of strategy has been done effectively and appropriately for benefits.