HIERARCHY AND STRUCTURE
This outlines the standards for the expectations for corporate boards in protecting shareholder investments.
The GCG code refers to standards for good practices in relation to:
GCG Hierarchy and Structure
This is one of the tools of Good Corporate Governance (GCG), an elaboration, a general guidelines which refers to the Company's Articles of Association and best practices in the industry.
This is a text of agreement between the Board of Directors and the Board of Commissioners, which aims to:
1. become a reference / guideline for the main tasks and functions of each organ;
2. improve the quality and effectiveness of work relations between organs;
3. apply GCG principles: transparency, accountability, responsibility, independence and fairness.
By enacting Board Manual, it is expected that company's business activities can be carried out harmoniously in accordance with GCG principles in order to achieve the company's vision and mission.
Internal Business Process
Value is created through internal business processes. Internal business processes create and deliver the value proposition for customers, investors and stakeholders.
There are so many processes operating in our company at the same time, and each creating value in some ways. It is therefore important for us to focus on those processes that allow us to deliver on the strategy, which differentiate our organization in market competition. The challenge for our organization is selecting critical few processes that exceptionally drive value to stakeholders and enable us to achieve the desired financial results.
We have identified and grouped internal business processes into 4 (four) categories:
1. Operations Management Processes
These relate to the basic day-to-day processes which company use to produce products and deliver them to our customers. These include acquiring raw materials from suppliers, converting these raw materials to finished goods, distributing the finished goods to the market and managing corporate business risks. We are dealing with some objective parameters which appear on our strategy map under the internal processes perspective:
2. Customer Management Processes
These are the processes that enable company to grow and strengthen relationships with targeted customers. Normally customers hold more bargaining power position than suppliers and have an extensive say about the company’s products and services. It is therefore more critical to understand our customers and their behaviors in order to win the market crowd. Critical aspects in managing customers involve the process of :
d. relationship deepening
3. Innovation Process
These are the processes that focus more on creating new products, processes and services which ultimately help us to infiltrate new markets and customer segments. In a fiercely competitive environment, we must be creative and have the ability to identify opportunities for new products and services. We clearly understand home appliances industry, we engage our employees and customers to generate new ideas and apply innovative technologies in order to outshine our competitors. Having identified opportunities for new products and services and generated ideas, a decision has to be made on whether to finance the projects internally, work with joint ventures or outsource entirely. The next innovation sub-process includes design and development of the new products and services with objectives related to the introduction of new products to the market. Finally, the new products and services are delivered to the market. It is important to note that the innovation process, for a particular product or service, wraps up when you we achieved our sales and production targets at the desired levels of functionality, quality and cost.
4. Regulatory and Social Process
These help us to repeatedly earn the right to operate in the communities and countries in which we run the business. National and local regulations inflict standards on companies’ practices. Instead of just complying with the least standards established by regulations, we strive to go beyond minimal standards and perform better. Having an excellent reputation for performance along regulatory and social dimensions will help us attract and retain high-quality employees. Also, avoiding or lowering environmental incidents and improving employee health and safety improve productivity and lowers operating costs.