(1) It is obvious that customer related claims are kept in center, if mission of the company is to bring life of the people high, by providing highest quality of the product and services to the customers.

(2) When mission of the company is to bring standard of the life of the society higher, by producing new product along with development of the employees, than claims of the employees and social claims are linked with business activities. Abilities of the employees are developed through special training and development programs. To increase productivity, to increase profit, to put new product in the market, through research and development division which may be prosperous and protective at the angle of the society.

In short, along with interest of the parties, productivity, profit, dividend of the company is increasing and company makes progress and expands, etc. all these matters are taken into account.

Conclusion: At the angle of the strategy, for the management, claim approach is very important. It is not easy to maintain balance among contradictory claims of various parties. For this, it is necessary to take current and future possible effects, into consideration. Moreover, compiled thinking of claims, keeping mission of the company in center, requires high intellectuality. It is necessary to call for expert opinions for this.

(1) When there is strategy of new product to be introduced in the market, importance is given claim of the client, to give satisfaction to the customer.

(2) A preference is given to the claim of employees and trade unions, when there changes are to be made in the technology and there are possibilities of oppose of the employees for this.

(3) When there is trade depression in the market and investors are to be attracted, a preference is given to their claims.

(4) When company requires a trade credit, a preference is given to the claims of creditors.

(5) When there is excessive stock in the company and when high sales turnover is to be increased, a specific attention is given to the claims of the debtors.

(6) When business activities of the company become problematic for the surrounding people and a confidence of the local society is to be obtained, social claims are taken into consideration.

(7) When company has to manufacture a special product and foreign market is to be obtained, permission and necessary license is to be obtained from the government and for this govt, claims are taken into account.

Sequence of selection of satisfaction of the claims of above stated various parties, is ascertained, keeping limitations of the company in respect of circumstances, requirement and capability of the unit into consideration. This also becomes matter of important strategy.

Parties	Claims	Balance among Claims
Customers Investors	Proper quality goods at fair price. More dividend and return.	High price can be recovered, by maintaining high and special qualities. On other side, high return to the investors can be paid.
Debtors Creditors	Good relationship with traders and clients. Regular payment of interest and re­fund of money.	To allow credit as per rules to the traders. For regular payment, by them, attractive cash discount to be allowed and to increase cash flow, and make payment of interest regularly.
Employees Shareholders	Job-satisfaction, more salaries and Reasonable facilities. More profit, more dividend and bonus.	To appreciate efficient employees and to pay salaries linking work factor, so that production may increase, cost may reduce more dividend and bonus would be possible.
Shareholders Government	Expansion and development of the company. Taxes, Regional development, opportunities of employment.	By making tax planning, profit to be reinvested. There will be expansion and development of the company. Resultantly, there will be development of region and opportunities of employment would be increased.
Trade unions Shareholders	Recognition of trade unions, and representation. Industrial peace, development and increase in production.	Code of conduct for peace to be formed, in consultation with trade unions. Industrial peace and productivity to be increased by necessary conditions formed through collective bargaining.

Management should make efforts to satisfy all parties, strategically, within above stated limitations of internal capabilities and laws, and maintaining coordination and balance among rivalry claims of various parties.

(1) Limitation of company’s capability: Limitations of internal capacity of the company known as capability limitation of the company. In which, limitations of resources, limitation of production capacity, limitation of employees force, limitation of facilities, location, financial resources, authority etc. are included. Sometimes, even management has desire to support claims of the parties and to satisfy them, they are unable to implement because of financial limitation and limitation of power. Such matters can be obstructive for providing special facilities to the employees.

(2) Contradiction among claims of the parties: Many claims, out of various claims of many parties, involved with the company come into clash with each other, e. g. if more facilities are provided to the employees of the company, some portion of the profit used for welfare activities, profit for distribution may reduce. Because of this, it is difficult to pay reasonable return on investment to the investors. If profit is used more for reinvestment, ratio of taxes may be reduced, and it makes claim of government useless. More than expected exports, may help government for foreign exchange earning, but it may create scarcity of the materials in the local market and public has to pay higher prices for the materials. Therefore expectation of customers for reasonable rate is not satisfied.

Keeping above limitations into consideration, after making proper analysis of claims of all parties, it is necessary to make reconciliation of their Claims.

(A) Clarification of claims of each claimant
(B) To understand each claims, within capacity of the company.
(C) To maintain balance among rival claims.
(D) To decide selective sequence of the satisfying of the claims.
(E) To link claims with the mission.

Study of the above stated stages are thought strategically as under.

A. Clarifications of claims of each claimant: Parties involved with the company, having their interest, are claimants. They expect that, their special interest be protected. Special interest of each party can be stated, in details, as under.

(1) Claim of shareholders: Equity holders are true owners of the company. They remain involved with the company from establishment of the company till its dissolving. Not only that they take risk of capital loss. Under the circumstance, they claim for satisfaction of following expectation before the company. (1) They should be given right of voting per share. (2) They should have right of transfer of shares. (3) Right of electing management group (4) Right of getting accounts. (5) Sharing in the profit (6) Right of getting bonus (7) Right of getting right shares (8) Right of asking questions in the meeting of the company. (9) Right of nomination of proxy (10) Right of getting share in assets of the company at last, if in case, company goes in liquidation.

In India, most of the shareholders have interest in dividend and bonus shares. Therefore, companies in India, viz. Reliance, Tata iron & steel, A.C.C., Hindustan liver, Nestle India, Cadbury India, Bajaj Auto, Glaxo India, Colgate, Nirma, Larsen & Tubro, Hindustan Motors, Co chi refinery, Wipro, M.R.F. etc. are paying considerable dividend. Not only that, some companies out of above, have issued bonus shares also. Management of these companies has made successful efforts to satisfy equity shareholders by paying higher dividend, beyond prevailing interest rates in the market, through accepting strategic angle. On account of such policy of the companies, price of the shares of the companies, in the market, have remained higher, compared to other companies. According to this shareholders have got capital gain.

(2) Claim of employees: There is a considerable increase in expectation of the employees, on account of various provisions in labour laws, education & awareness. In current employees have claims ad under. (1) Quality of working conditions should be maintained. (2) Other allowances over 7 above salary should be received. (3) Owners should follow conditions of contract of service. (4) Officers should show humanitarian behavior and should maintain self-respect. (5) Proper policy for promotion and transfer. (6) Arrangement for getting work satisfaction. (7) Independence for being member of labour union. (8) Arrangement for safety of employees. (9) Employees welfare schemes. (10) Over time wages.

Out of above stated claims, laws protect most of them now. Even though present management has accepted plans, strategically, for issue of equity shares to the employees at lower rates, for the satisfaction to the employees and their cooperation to the management. This planning is known as “ESOP” means, ” Employees Stock Option”. Moreover, officers, who have put up hard work for development of the company, planning is implemented for issue of equity shares, without any consideration in cash to them. These shares are known as “Sweet Equity Allotment” it means issue of equity against hard work for the company. Moreover, many companies have implemented various schemes, viz. providing, resident at relief rates, facility of teen, medical aids, requirement of the things for life.

(3) Consumers ‘Claims: Consumer is king in the market. Company, which does not keep them happy, cannot keep existence in the business world for long period. There is increase in awareness among clients. In current period, following claims can be noted. (1) Goods are obtained of proper qualities at fair rare. (2) Company should provide necessary parts & instruments along with its product. (3) Improvement, in product, should be made as per suggestions and complaints of the customers. (4) Company should provide credit. (5) Facility of payment in installments for high value product. (6) After sales, service. (7) Guarantee and warranty in respect of product.

In current period, management has accepted customer oriented marketing approach, keeping above stated claims of customers into account. Proper care should be taken, while increasing prize of the product in the market; even there is increase in price of materials and instrument related to the product. Efforts are made to provide product at fair rates, of proper quality, keeping control on the cost, through strategic planning of product and control.

(4) Claims of competing units: There will be competition in the business world. Competing units also have certain expectations from the company, that there may be healthy competition and to avoid improper tactics, so that units have not to suffer. These expectations can be stated as under, according to the claims of competitors. (1) To form trade union of having common interest and to be it’s member. (2) Each competing units have to follow decided code of conduct by the trade union. (3) Improper trade tactics should not be followed (4) to cooperate, while submitting common interest problems to the government. (5) To be away from separating and attracting employees of the competing units. (6) To produce internal understanding and to protect interest of each other

In current period, keeping above stated claims of competitors into account, management becomes member of the trades’ associations and Chamber of commerce. Cooperation is given for market research, to protect common interest.

(5) Claims of the suppliers: Materials suppliers to the business units, also have certain expectations. Such as, (1) Company should make payment of purchase bills in regular manner. (2) Intesest on extra period i. e. beyond credit period allowed should be paid. (3) Proper arrangement should be made for taking delivery promptly, from the carrier vehicle of the supplier. (4) For inspection of materials, prompt arrangement should be made. (5) Permanent nature of trade relations lip should be maintained.

Present management, keeping above stated claims into consideration, takes strategic steps for purchase of materials. A condition is agreed to consider increase in price, within a fixed period, so that, there may not be loss to the suppliers or there may not be any exploitation. Moreover, on the event of credit purchases, payment is made on the regular basis, or post-dated cheques are issued altogether on making purchases. Statements of due bills are sent to the suppliers of the materials.

(6) Claims of the creditors: Provider of the borrowed capital is also considered creditor of the company. Such creditors also have certain expectations from the company; their claims can be noted as (1) regular interest must be received on lended amount. (2) Lended amount should be refunded timely. (3) Before raising fresh debt, consent of creditors should be obtained. (4) Large creditors should receive report on company’s affairs.

Keeping above stated claims of creditors into consideration, management enters into contract, company versus moneylender institutions, stating therein-complete details. And ac-cordingly pays interest and principal amount regularly. It is also clarified in the contract that under what circumstances rate of interest would be changed. Company submits statement of annual accounting i. e. copy of balance sheet, along with report of meeting to the large creditors.

(7) Claims of trade unions: In each region or state, labour unions are established for protection of interest of labours. These labour unions also have certain expectations from the company Viz. (1) to recognize their labour union. (2) To invite for collective bargaining. (3) To give representation in the company. (4) To make partner in important decisions related to labours etc.
In respect of above stated claims related to labour unions, present management recognizes them Company follows provisions of Trade union laws., It creates separate funds for labour welfare. In India Trade unions, viz. Indian National Trade Union, Ahmedabad textile labour union, Akhil Bharat Mazdur Sangh, Hind Mazdur Sangh etc. have good control.

(8) Claims of tax authorities: Each business unit, working in India, has to pay-taxes on income as per provisions of laws. Not to pay taxes is stealing of tax, which becomes crime, but to reduce liabilities of taxes, by tax planning is a right. State & central government, which have made arrangement of facilities viz. road, post& telegraph, electricity, water etc. and which is used by all business units, and therefore tax authorities expect that (1) each company has to prepare trustworthy statement of accounts, and calculate taxes on it. (2) To follow accounting standards published by Institute Of Chartered Accountants, and to arrive profit accordingly. (3) To pay income tax, calculating the same as per provisions of income tax act. (4) To pay sales tax as per laws of state & central govt. (5) to pay excise duty and custom duty as per law.

(9) Claims of local society: Business unit comes into existence in the local society, and it develops with their help only, and therefore local society also has various expectations from the business unit. Viz (1) Company should take interest in social activities of the society and should give contribution to it. (2) In local area, facilities of gardens, schools, public toilets etc. should be provided. (3) Atmosphere free from pollution should be created for maintenance of health of local society.

Keeping above claims into account many companies viz. Ashima group, Torrent group, State Bank, Bank of Baroda, Birla group, Ambani, Cedilla, Bajaj, Hindustan liver etc. has taken up social welfare activities.

(10) Government Claims: Business activities should be done, within observing limitations of govt, rules, ethics and code of conduct etc. To maintain law & administration is responsibilities of the government. Therefore government has certain expectation from business unit, which can be stated as: (1) Business should follow provisions of various laws made by the government. (2) To follow strictly, consumer protection act. (3) By export activities, to earn foreign exchange for the benefit of the nation. (4) To contribute in progress of region as well nation (5) To increase employment opportunities by development planning.

In respect of above stated claims, in present period, progressive companies have taken up various developing planning. In which, Ambani group, Tata group, Birla, Bajaj group have remained ahead. These companies have made considerable increase in export business. To the angle of providing employment, many companies have created considerable opportunities.

2. The claimant approach of company’s liability:  The claimant approach means company to keep into account, claims in respect of taking care of interest of various parties, while performing social responsibility of the business. While taking decision of what type of social responsibilities to be performed, company should keep into account that parties, involved with company, have expectations from the company. Generally, Stakeholders of the company expect their interest as under.

Management specifies company’s mission, keeping claims of above stated various par­ties into consideration, but this work is not is easy, because claims of each other, of different party, come into conflict, e. g. if employees are paid high remuneration and more social activities are performed for the society by the company, than profit, distributable to shareholders , for the company may be reduced. If liberal policies for suppliers are decided, than requirement of working capital may increase in the business. Its effect may come on cash liquidity for dividend. Even though management tries to satisfy all parties, maintaining balance, towards claims of all parties in strategic manner.

(1) Time Consuming: For taking a strategic decision, the managers make a study of internal and external environments. For this, a process of forecasting is being used.
Besides this, interacting process is being done with various officers and employees. For all these works a lot of time is being consumed.

(2) Ignorance of other Managerial Functions: The responsibility of the chief officers is more who are connected with framing and implementation of strategy and due to continuously following the work of strategies they are unable to concentrate on other managerial works.

(3) Unsatisfaction in employees: The non-fulfillment of the expectations of the employees is the main reason for the unsatisfaction among employees. Many times officers use to say the employees that due lo strategies they will also have some advantages and if they do not get those advantages, then unsatisfaction takes place among them, which creates unfavorable attitude towards work and unit.

(4) Depression due to failure in target: Many times during the framing of strategy high targets are being fixed. If these targets are not achieved then dissatisfaction takes place among the employees.

(5) Protest of employees: When officers and employees are included in strate¬gic decisions process, they use to take more interest in some plans and methods. If the managers select any other plan except those which are related, then employees use to oppose them and criticize their decisions.

(6) Demand for more reward and facilities: The extent to which the strategies depends on financial resources, to that extent the employees also demand more remuneration and facilities.. If their demands are not fulfilled industrial disputes and unrest are created.

(7) Dependability: If the employees are continuously demanded for co-operation for the framing and implementation of strategy then they also feel the dependability of managers over them and in these circumstances the demands of employees go on increasing.

(8) Non-practical planning: In the strategic management by considering the external environment planning the long-term planning is done to achieve the long-term objective. After the planning done on the top level the operational planning is being prepared by considering the special functions of the middle and bottom level. It is argued that during the planning due to the consideration of many questions of lower level it becomes non-practical. The quick changes are difficult to be done at the lower level in the technical process. Besides this the flexibility of the activities creates the question of co-ordination and control.

To overcome these limitations the middle and lower level managers and officers are advised to keep co-ordination with the implementation of strategy and formation activities. If the strategy is prepared after considering their suggestions, then up to some extent there will be an increase in the success of strategic management.

(9) Changes in technical factors: In the study of the external environment, the study of the technical matters are also included. But accordingly for management to make the changes in the present structure is not difficult but it becomes very expensive. Besides this though the strategy is formed by making these changes the executives are unable to make necessary changes again according to new technology because it requires heavy capital investment.

Against this limitation it is suggested that the executives must take advice of technicians and experts while forming the strategy and should also be aware of the researches taking place for it. e.g. Many changes are taking place in the printing technology and laser composing method. Those who are not aware of these changes their present capital investment fails in future.

(10) It gives only a guideline: The strategies of the strategically management are also not giving the guarantee of the successes but it guides the executives in proper direction and in sequence of work So, it can be said that the implementation of the strategy will be definitely benefitted. Due to this the strategic management only be taken as a guidance.

(11) Changes in the attitudes of employees: The idea of the strategic management is considered in context to the large plans. In these plans the capital investment is done on a large scale and the executives also insist co-operation from the employees. Considering this matter the employees pressures on executives to increase their salaries and their facilities. The employees are in the belief that the executives will have to sanction their demands if they want to be successful in their strategic plans.

(12) Adverse attitude of trade unions: Because of the strategic management if the new technology is implemented then many employees will become unemployed and such circumstances also may occur that the other employees will have to compulsorily accept the training and transfer. Due to this dissatisfaction arises among the employees and for this the labor unions also oppose the management.

(13) Political Pressure: In the strategic management at all the levels of the unit interposes has to be done with the working officers. Not only that but for the formation of the strategy the top level managers and experts are being included. In these circumstances, the political pressure and interference also plays an important role in decision making.

It is not completely true to say that strategic management process will always be profitable. In reality the study of environment is an intellectual process based on estimates. The estimates may be as much logical but uncertain changes always occur in environment. Because of it many times the changes are to be made in strategic plans. Most of the changes become expensive. Not only that but many problems also occur in organization.

Advantages of Strategic Management: Due to the strategic management company receives the following type of economic and non-economic advantages.

(1) Increase in rate of return on investment: Due to the strategic management there is a noble increase in the rate of return on investment made in the project. On the basis of the information received through analysis of internal and external environment the managers can increase the rate of return on investment by making a maximum use of resources.

(2) Reduction in Cost of Capital: It is a fact that the unit which is successful in raising the capital of the lowest possible cost is almost eligible to face the competition right from the beginning. After getting the estimate of capital requirement the managers select the sources of capital from where they can acquire the capital in a strategically manner. The strategic management has been proved to be very useful to raise the estimated capital at lowest possible rate, simple conditions for mortgage, return of borrowed capital and conversion of borrowed capital into owner’s capital.

(3) Increase in Trading on Equity: Trading on equity depends upon many factors. Among to this, by making a maximum use of borrowed capital in a creative manner through strategic management process, the profitability of the unit can be increased and the equity share holders can be paid maximum dividend. If an appropriate strategically arrangement is not made for the use of financial resources, then its profitable use will not be successful and the interest on the borrowed capital will also become burdensome.

(4) Increase in Profitability: The profitability of a unit depends upon the maximum use of limited resources. Through strategically management process, the managers cannot only make the maximum use of financial resources but also they can use maximum man power to increase the overall productivity and profitability of the unit.

(5) Reduction in fixed and flexible expenses: The capital invested in the fixed assets is a fixed capital. Instead of purchasing the fixed assets, the managers may buy such assets on rent to decrease the fixed capital investment. In the same way, the flexible expenses can also be reduced through collection arrangement. Making changes in packing, of making changes in full, by acceptance, the strategy of machinery resources in management etc.

(6) Motivation to group activity: By taking strategic decisions through the group, integration between group members increases on accepting various optional strategies which result in to co-operation and unity. Not only that, but the managers can also get the advantage of special strength of group members.

(7) Increase in the efficiency of the employees: The officers and experienced employees of all the three levels of reengagement are included in strategic management process. The necessary inter-process is being done with them and for the success of strategy necessary training is also given to them. By this there is a notable increase in efficiency of employees and they get inspiration to work more.

(8) Alertness in employees: The alertness among the employees increases the success of objectives and targets due to strategic management. While framing the strategy management studies the capability and weaknesses of employees and resources and taking the steps to improve them, the employees become more alert about their own performance and the group activity.

(9) Prevention of overlapping of work: Due to the interaction with employees and officers working at all the levels of the organization the question does not arise at all for the distribution of one work to more than one employee or even the overlapping work is also not possible. When the same activity is done by more than one employee At that time there is a wastage of time and materials. The problem of co-ordination also arises. With the help of strategic process, the managers can prevent the overlapping of work.

(10) Prevention of organizational gap: Out of the departmental activities o organization if any activity is not allotted to any employee, that activity is known as organizational gap. If the allotment of any work is left out by mistake, then none of the employees can be held responsible for it. In strategic management process, because of the interacting process being done with each employee, all the employees are given equal works and so there does not arise a question of organizational gaps.

(11) Acceptance of Organizational Changes: Normally the employees do not accept the changes made in the organization, because due to that the change occurs in their roles also. As a result the necessity to giving training of the new work to the employees arises. Not only that but because of such changes many departments also have to be closed. In these circumstances the problem of the safety of job arises. In strategic management process the capability of employees is also considered. Not only that, but for its development, efforts are made through training programme so no question arises for the employees for not accepting the changes.

The concept of strategic management is connected with the development and profitability of business unit. By adopting this concept cost of production can be reduced and business competition can be faced. Efforts are made for the success of strategic decisions at the all three levels of strategy. Hence, more alertness seen in the employees of this companies.