The New Board Chairman and the Managing Director summoned the Senior Director of ROHPRA and demanded “You realize ROHPRA is the only cash in the Conglomerate. Now it is also in trouble. The share-holders are already up in arms and the next elections are not far away. We need a set of recommendations form you by Tuesday at the least."  What are your recommendations? Discuss.

 

Answer:

The set of recommendations that can be given to the ROHPRA are as follows:

• The company must redesign its relationship with shareholders by making strategic decisions to maximize the shareholders' value even at the expense of lowering the short term earnings
• The organization can adapt the acquisition strategy before the election to maximize its expected brand value. It may cause the sacrifice of near-term earnings. However, the acquisition must be performed by the company.
• It can be a wise decision for the company by carrying only the acids that maximize value instead of operating in diversified services.
• The company can return the cash to shareholders when there are no proper credible value-creating opportunities to invest in the business. It can be helpful for the organization to improve its relationship with shareholders before the elections.
• Rewards should be provided to the operating unit executives, CEOs, and other employees who are involved in organizational development.
• Middle managers should also be provided incentives and rewards along with Frontline employees for expanding their value in the organization which can help in improving the brand loyalty of the company.