businesspolicy.ppt

5/19/2018 businesspolicy.ppt

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Business PolicyBusiness Policy


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A Policy is a Statement, verbal, written or Implied, ofthose principles and rules that are set by ManagerialLeadership as guidelines & constraints for theorganizations houghts and actions

he purpose of the policy is to enable the managementto relate properly the organization!s wor" to itsob#ectives

he e$istence of practical and comprehensive policiestends to increase efficiency

%ecisions made within a policy framewor" have ahigher probability of being synchronized with otherdecisions within the company


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efers to decisions about future of an enterprise

'uiding (ramewor" for repetitive decisions

op Management to Lower Management

Involvement

Setting Long)erm ob#ectives of an enterprise

Study of functions & responsibilities of senior

management concerning crucial problems

It Provides direction to the organization and

shape of future


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Policies are set at different levels of Managementconcerning different responsibilities*

%ividend Policy* +oard of %irectors

apital Allocation for -$pansion* op Management

evenue Matters. Sales Administration/ Middle

Management

outine Actions* Lower Management


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Characteristics of BusinessCharacteristics of Business

PolicyPolicy

Policy refers to total enterprise or a large

segment of it I0e change in organizational goals

Long erm perspective & commitment

1sage of critical resources vis)2)vis environment

ontinuous process in nature

Identification of opportunities & choosing theright strategy

Adaptation to the hanging -nvironment


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Business Policy as a Field ofBusiness Policy as a Field of

StudyStudyIt gives an Integrated view of management

based "nowledge & e$perience

omple$ities of business & its constraints wrt

environment+roader perspective of Management Learning

Study of op Mgmt0 & esponsibilities &

decision ma"ing process

onceptualization of 3ey +usiness processes


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Business Policy as a Field of StudyBusiness Policy as a Field of Study

A preparation for performance as a 'eneral manager and

broadening of perspective of specialist

1nderstanding & Implementation of SM Process

4b#ectives in Attitudes*5 'eneralist rather Specialist

5 6iew of Practitioner

5 4rientation of Professional +usinessman

5 More 6alue to reativity & Innovation than to maintenance of

Status 7uo


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Business Policy as a Field of StudyBusiness Policy as a Field of Study

4b#ectives in 3nowledge*

5 3nowledge of concepts

5 3nowledge of situations

4b#ectives in S"ills*

5 Analytical Ability

5 Strategic Analysis Ability


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StrategyStrategy

Strategy is defining & achieving an organization8s

ob#ectives & implementing its missions

Large scale, future oriented plans for interacting with

competitive environment to optimize achievement of an

organization!s ob#ectivesPattern of an organization8s responses to its environment

over time

Long erm ob#ectives or Purposes of an organization

%ifferent from 4perating decisions I0e day to day related

activities


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Strategic ManagementStrategic Management

Set of decisions & actions resulting informulation & implementation of strategies

designed to achieve the ob#ectives

e7uirement due to comple$ity &sophistication of +usiness decision Ma"ing

process

-ffective dealing with environmentalchallenges with given orgn0 esources


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Dimensions of StrategicDimensions of Strategic

ManagementManagementop Management %ecisionsAllocation of Large Amount of ompany!s

resources

Significant Impact on the Long erm Prosperityof the (irm

(uture 4riented

Ma#or Multifunctional or Multi businessconse7uences

onsideration of factors corresponding to(irm!s e$ternal environment

businesspolicy.ppt

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