Management of TCS

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1.

Management: Importance of management for every business organization are:


1. Management helps in Achieving Group Goals
2. Management Increases Efficiency
3. Management Creates a Dynamic Organisation
4. Management helps in Achieving Personal Objectives
5. Management helps in the Development of the Society.
In absence of efficient management, the resources will remain resources and cannot
be converted into finished products.
Management Of TCS:
Tata Consultancy Services (TCS) is an Indian multinational information technology
(IT) services and consulting company, headquartered in Mumbai, Maharashtra, India
and largest campus and workforce in Chennai, Tamil Nadu, India. As of May 2021,
TCS is the largest company in the IT sector in the world by market capitalization of
$169.2 billion. It is a subsidiary of the Tata Group and operates in 149 locations
across 46 countries. The company has a bunch of strategies their entire business
depends on. These strategies are carefully formulated and implemented after careful
consideration of all the possible factors which can affect and be affected by. The
company has a global presence, expertise in a list of varied domains and a rich
portfolio of services. They aim to deliver high quality, high impact situations to
provide the most improved services to worldwide consumers. Emphasis was laid on
team building, resource allocation, and learning opportunities to improve morale
and productivity.

Management of HUL:

Hindustan Unilever Limited (HUL) is an Indian consumer goods company


headquartered in Mumbai, India. It is a subsidiary of Unilever, an Anglo-Dutch
company. Its products include foods, beverages, cleaning agents, personal care
products, water purifiers and other fast-moving consumer goods. As of 2019
Hindustan Unilever's portfolio had 35 product brands in 20 categories. The company
has 18,000 employees and clocked sales of ₹34,619 crores in FY2017–18. The
network of Hindustan Unilever Limited is about 7000 redistribution stockists that are
covering about 1 million direct outlets. Hindustan Unilever Limited has over 2000
suppliers as well as over 7500 distributors who serve Hindustan Unilever limited’s
hundreds of decentralized factories. The point of purchase for Hindustan Unilever’s
products is at a higher level of direct constant through in-store facilitators,
education, experiences, and sampling. Their supply chain capabilities are such that it
leads to self-service stores and supermarkets.
Global management consultancy, Hay Group, on 16 July released the findings of the
second edition of India's Most Admired Companies (IMAC) research. Business
solutions major Tata Consultancy Services (TCS) has topped the ranking, followed by
Hindustan Unilever (HUL), ITC, and Infosys. The study has been conducted in
association with Fortune India.

2. Business Model: The world is an extremely competitive market. Every company


needs to have an edge over the other so that it can progress. A balanced
combination of the right strategies is what makes it tick.

Business Model of TCS:

TCS sets industry standards through an innovative solution delivery model. It is trying
to create a unique business model so that competitors cannot imitate it. The
business model of TCS is what has caused its flourishing success over the past years.
The company deals in delivering products and services all over the world in the
sectors of Information Technology and Consultancy. In the year 2018, TCS was
positioned at the eleventh position on the Fortune India 500 list. They decided to
have an intervention at the organizational level by giving the four factors of
consumers, employees, technology, and wealth attuning. This would strengthen the
business model of TCS. Some of the strategy shafts of TCS are as follows:

1) Revenue Recognition
2) Corporate Clientele
3) Seller’s market
4) Distribution of Earnings
5) Global Strategy Execution
6) Alliance Strategies

Business Model of HUL:

Business Model of HUL revolves around the production of fast-moving consumer


goods. It governs a massive range of products, including foods, cleaning agents,
beverages, personal care products, fast-moving consumer goods, and water
purifiers. Hindustan Unilever Limited identified its purpose as making sustainable
living a commonplace. It, though, was further accentuated by their 2009 tag- ‘Our
strategy for sustainable growth.’ They believed profoundly in sustainable living.

Hindustan Unilever Limited has several business-model patterns that can be


analysed and individually dissected as prime examples of business strategies that
enable the world as well as gain profit. They are:
1. Reverse innovation
2. Target the poor
3. Giving importance to other areas of the Triple Bottom Line
4. Massive Distribution Strategy
5. Project Shakti Amma

Thus, Hindustan Unilever leverages on a direct-to-consumer business model


generating a high amount of revenue. With a large assortment of products achieving
high income as well as building relations with customers, Hindustan Unilever Limited
made its success through innovative distribution models like Shakti Amma and other
such methods.

3. Corporate Governance: Corporate governance is the system of rules, practices,


and processes by which a firm is directed and controlled. Corporate governance
essentially involves balancing the interests of a company's many stakeholders, such
as shareholders, senior management executives, customers, suppliers, financiers,
the government, and the community. Corporate governance is important because it
creates a system of rules and practices that determine how a company operates and
how it aligns the interest of all its stakeholders. Good corporate governance leads to
ethical business practices, which leads to financial viability.

Corporate Governance of TCS:


TCS has inherited a legacy of fair and transparent ethical governance, as embodied in
the Tata Code of Conduct (TCoC). As a signatory of the UN Global Compact, the
company has aligned its corporate governance strategy with the 10 principles
espoused in the document. TCS has a unitary Board comprising 11 members, of
whom eight (including the Chairman) are non-executive directors and six are
independent directors. The Board carries out the dual functions of overseeing the
management of the company and representing shareholder interests.

TCS has built a strong, highly successful global business, and sustains its leadership
position by adhering to high standards of principled conduct. We include relevant
clauses in all contracts with associates, customers, suppliers, and partners. TCS also
reviews its policies and training modules regularly to comply with legislation relating
to corruption and improved norms on business ethics. At the Board-level, the Ethics
and Compliance Committee oversees TCS' adherence to the TCoC.

TCS has also established a global policy on the Prevention of Sexual Harassment
(POSH) at the workplace. This document was updated in February 2014 to align with
current legal mandates, in particular the Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013, enacted in India, where a majority
of our workforce is located. In addition to this, employees can report serious
violations of the TCoC directly to the Board without fear of reprisal under our
Whistle Blower Policy.
Corporate Governance of HUL:
Transparency and accountability are the two basic tenets of Corporate Governance.
People at Hindustan Unilever feel proud to belong to a Company whose visionary
founders had laid the foundation stone for good governance long back and made it
an integral principle of the business, demonstrated in the words above.
To succeed, HUL believe, requires the highest standards of corporate behaviour
towards everyone they work with, the communities they touch, and the
environment on which they have an impact. This is the road to sustainable,
profitable growth and creating long-term value for the shareholders, the people, and
the business partners. The principles of Corporate Governance are based on
transparency, accountability and focus on the sustainable success of the Company
over the long-term.

References:

https://www.firstpost.com/business/tcs-indias-most-admired-company-hul-itc-infy-follow-
study-958641.html

https://www.financialexpress.com/market/four-of-top-10-firms-add-rs-68458-72-cr-in-m-
cap-hul-infosys-biggest-gainers/2274833/

https://www.marketing91.com/business-model-of-tcs/

https://www.marketing91.com/business-model-of-hul/

https://www.tcs.com/corporate-sustainability-governance

https://www.hul.co.in/Images/corporate-governance-report-2019-20_tcm1255-
554765_1_en.pdf

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