OBJECTIVES OF FINANCIAL MANAGEMENT
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Firms in practice state their vision, mission and values in broad terms and are also concerned about technology, leadership, productivity, market standing, image profitability, financial resources, employees satisfaction and so on. Some illustration of mission and incorporated purpose/ vision for future are depicted in Exhibits 1.1 to 1.3.
Exhibit 1.1 Ranbaxy’s Missions and Values
To become a research-based International Pharmaceutical Company
• Achieving customer satisfaction is fundamental to our business.
• Provide products and services of the highest quality.
• Practice dignity and equity in relationships and provide opportunities for our people to realize their full potential.
• Ensure profitable growth and enhance wealth of the shareholders.
• Foster mutually beneficial relations with all our business operations.
• Manage our operations with high concern for safety and environment.
• Be a responsible corporate citizen.
Exhibit 1.2 HILL’s Corporate Purpose
• Our purpose in Unilever is to meet the everyday needs of people, everywhere to anticipate the aspirations 01 our consumers and customers and to respond creatively and competitively with branded products and services which raise the quality of life,
• Our deep roots in local cultures and markets around the world are our unparalleled inheritance and the foundation for our future growth. We will bring our wealth of knowledge and international expertise to the service of local customer-a truly multi-local multinational,
• Our long-term success requires a total commitment to exceptional standards of performance and productivity, to working together effectively and to a willingness to embrace new ideas and learn continuously –
• We believe that to succeed requires the highest standards of corporate behavior towards our employees. consumers and the societies and world In which we live.
• This is Unilever’s road to sustainable, profitable growth for our business and long-term value creation for our shareholders and employees.
Exhibit 1.3 Vision of Future of Reliance Industries Ltd.
Reliance is an enterprise that contributes, in a modest way, to critical economic and social needs of India and attaining global leadership In all of its major initiatives. Pursuer this vision. over the next low years. Reliance will pursue a strategy of:
• Reinforcing competitive advantage of existing businesses through new capacities and synergistic acquisitions .
• Scaling sizable opportunities in petroleum exploration and production
• Forward integrate into retailing transportation fuels and creating new customer experiences.
• Building the bases acquisition now Reliance Energy. to a major electricity utility
• Addressing the significant information and communications market opportunity in India and in the world
• Leveraging its strong balance sheet cash flows and managerial capacity to create value by adding new capacities. acquisitions and turnaround of under peritonitis assets
• Developing strategic alliances in technology and product-market domains with global majors
• Fostering new higher education summations for knowledge creation and sharing
• Leveraging its formidable strengths beyond Indian borders. In this endeavor. Reliance will undergo an gradation: • _
• In addition to manufacturing products to developing manufacturing systems.
• From having a manufacturing orientation to providing technical solutions.
• From being an intermediate goods producer to being a final goods and services provider.
• From being a margin energy player to going a global energy major.
• In addition to vertical integration in hydrocarbon energy markets to horizontal integration over diverse energy markets.
• From licensing technology to developing technology.
• From being an intellectual property user to an intellectual property creator.
• In addition to operating in India to being a global company.
• From building financial equity to fostering social equity.
This change will entail creating new organisational competencies such as:
• Creating a customer-concentric organization.
• Developing new products and technologies.
• Exploring and producing oil and gas in demanding geological conditions.
• Fostering and sustaining globally-oriented management talent.
• Managing customer-contented supply chains.
• Developing and protecting intellectual capital.
• Managing strategic technology and product-market relationships.
Managing diversity in businesses technologies export markets and people is the primary challenge for Reliance as it marches ahead in realizing its vision.
This vision is the legacy of Shri Dhirubhai Ambani to all of us.
We are committed to pursue it with commitment and conviction.
Reliance is driven by his vision and continues to pursue a trajectory of growth productivity and global leadership.
We discuss in this section the alternative approaches in financial literature. There are two widely-discussed approaches: (i) Profit (total) Earning per share (EPS) maximization approach. and (ii) Wealth maximization approach.