Leading Report
1.0 Summary
Institutional shareholders are more and more significant in companies. Most of them have a large proportion of shares. So the role of institutional shareholders has been sparked debate in the world. Whether the institutional shareholders have the responsibility to influence strategy of company should consider the strengths and weaknesses of the institutional shareholders and comprehensive analyze the situation of their investee company. Positive institutional shareholders should be encouraged to make decision, because they would benefit the long-term interests of company and maximize the shareholders interests. However, negative institutional shareholders who only pursue immediate interests would have bad effect on company’s development.
In the case study, Hermes desired to intervene in Total’s activities of which invest in Burma. Total is giant French oil company with government support, but it had been claimed CSR problems and was laggard of reputation compared with the peers. Although Total has some competitive advantages in Burma, but Burma is unrest country and ruled by a military dictatorship, forced labors issue has not been solved yet, and few laws were passed to enforce this. So Total would face a lot of problems in Burma and difficultly gain profits. In addition, through the macro environment analysis and SWOT analysis, Burma is a trouble region where it is hard to operate company. Hermes realized this problem and seeks to persuade Total to reduce investment in Burma, which would be the positive behavior for both shareholders and company.
Table of content
1.0 Summary 1 2.0 Introduction 3 3.0 Institutional shareholders 3 4.0 The role of institutional shareholders 4 4.1 The strengths of shareholders influencing on strategy of company 7 4.2 The weaknesses of shareholders influencing on strategy of company 8 5.0 The background of case study 8 6.0 Macro environment Analysis of Total Oil in Burma 9 7.0 SWOT analysis of
Institutional shareholders are more and more significant in companies. Most of them have a large proportion of shares. So the role of institutional shareholders has been sparked debate in the world. Whether the institutional shareholders have the responsibility to influence strategy of company should consider the strengths and weaknesses of the institutional shareholders and comprehensive analyze the situation of their investee company. Positive institutional shareholders should be encouraged to make decision, because they would benefit the long-term interests of company and maximize the shareholders interests. However, negative institutional shareholders who only pursue immediate interests would have bad effect on company’s development.
In the case study, Hermes desired to intervene in Total’s activities of which invest in Burma. Total is giant French oil company with government support, but it had been claimed CSR problems and was laggard of reputation compared with the peers. Although Total has some competitive advantages in Burma, but Burma is unrest country and ruled by a military dictatorship, forced labors issue has not been solved yet, and few laws were passed to enforce this. So Total would face a lot of problems in Burma and difficultly gain profits. In addition, through the macro environment analysis and SWOT analysis, Burma is a trouble region where it is hard to operate company. Hermes realized this problem and seeks to persuade Total to reduce investment in Burma, which would be the positive behavior for both shareholders and company.
Table of content
1.0 Summary 1 2.0 Introduction 3 3.0 Institutional shareholders 3 4.0 The role of institutional shareholders 4 4.1 The strengths of shareholders influencing on strategy of company 7 4.2 The weaknesses of shareholders influencing on strategy of company 8 5.0 The background of case study 8 6.0 Macro environment Analysis of Total Oil in Burma 9 7.0 SWOT analysis of
References: Johnson, G. et al (2010) Exploring Corporate Strategy with My Strategy Lab, 8th Edition, Prentice Hall, P.54. Morris, G. and Dunne, P. (2008) Non-executive Director’s Handbook, Second Edition, Jordan Hill, Oxford. Posner, C. (2012) Are Institutional Shareholders Part of the Problem or the Solution? Board Member, available from: https://www.boardmember.com/Article_Details.aspx?id=6894&page=1, accessed 23 December 2012 Pehlchen, B. (2007) Analysis of the Chilean Tourism Market – Products and Opportunities for the Destination Pucon and the Ixth Region, GRIN Berlag. Reckinger, C. (2008) Burma’s Forced Labour, Newstatesman, 09 June, available from: http://www.newstatesman.com/asia/2008/06/forced-labour-burma-work, accessed 25 December 2012. Sullivan, R. (2011) Big Investors: Part of the Problem or the Solution? Regulation & Governance, 16 Oct, available form: http://www.ft.com/cms/s/0/09a74c00-f58f-11e0-94b1-00144feab49a.html, accessed 23 December 2012. TOTAL (2012), Oil and Gas in Myanmar, available from: http://burma.total.com/myanmar-en/oil-and-gas-in-myanmar/oil-and-gas-in-myanmar-900130.html, accessed 27 December 2012 11.0 Appendix