37144642 Business Policy and Strategic Management

8/3/2019 37144642 Business Policy and Strategic Management

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Jyotsana khandelwal,aims jaipur

BUSINESS POLICY ANDBUSINESS POLICY ANDSTRATEGIC MANAGEMENTSTRATEGIC MANAGEMENT

AN INTRODUCTION


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IMPORTANT TERMSIMPORTANT TERMS

BUSINESS

POLICY

BUSINESS POLICY

ORGANISATION

RELATED TERMS

STRATEGY

BUSINESS

STRATEGY


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BUSINESS

Mfg,buying andselling ofgoods,services,ideas on the continuous

basis for the mainaim to earn profitthrough customersatisfaction and

long runcommitment bysocially responsible.


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POLICY

Policy mean a course of action adopted or

proposed by an individual or an organization.

It provides the guidelines for the decision making

to the members of the organization in respect of

any course of action.

Higher the level of the manager, more important

is his role in policy making.


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Characteristics of policyCharacteristics of policy

Relationship to

organization

objectives. Planned formulation

Clarity

consistency

Balanced

Written form

communication


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Business policyBusiness policy

The study of the

function and

responsibilities of the

senor mgmt , the crucial

problem that affect the

success in the total

enterprise, and the

decisions thatdetermines the direction

of the organization and

shape its future


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EVOLUTION OF BUSINESSEVOLUTION OF BUSINESS

POLICYPOLICY

PHASE I : TILL MID 1930

In 1911 HBS introduced the course in

mgmt aimed at providing generalmanagement capability, this course ison Business Policy

Attempts were made to forecast thefuture but the emphasis was put on ad-hoc policy making.


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PHASEPHASE II till end of 1940sII till end of 1940s

Due to increasing innovation &

competition pressure, ad-hoc policy

formulation was replaced by integratedpolicy

Long term emphasis.


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PHASE III till the end ofPHASE III till the end of

1960s &1970s1960s &1970s

Business policy and strategic mgmt took

a clear shape after the Ford foundation.

Business policy was integrated with

other areas like HR,Mktng,OB etc

In 1960s the business policy is known

as Strategy with contingency approach.


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PHASE IV 1980s onwardsPHASE IV 1980s onwards

Due to globalization, strategic mgmt

occupied the place where direct

involvement of the top mgmt in theformulation of strategy and resolving the

strategic issues.


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Nature of Business policyNature of Business policy

Business policy is the traditionally used

term

It concerned with the CSR and ethics of

the business

It contributes differently to the top level

and middle level mgmt.


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StrategyStrategy

A strategy is a unified,comprehensive andintegrated plan relating

the strategicadvantages of the firmto the challenges of theenvironment. Itdesigned to ensure thatthe basic objectives of

the enterprise areachieved throughproper execution by theorganization.


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Organization termsOrganization terms

Organization

philosophy

Mission Business definition

Purpose

Objectives

Policies

Procedures

Programmes

Goal

Strategy

Tactics

Documents

37144642 Business Policy and Strategic Management