Explain Business Policy And Strategic Management

979 Words4 Pages
1. Unit 1 1.1 Objectives of this unit • Explain business policy and strategic management basics • Understand the importance of business policy and its implementation • Differentiate between goals and objectives of the organization • Understand the basics of strategic planning • Understand importance of business ethics and CSR activities • Understand basics of strategy management 1.2 Business policy – Introduction to business policy In earlier days, when a person or a group of people were starting something of their own to generate income, it was considered as a business. With the passage of time, this definition has been modified. With increasing population, the business has also increased itself. Now business is handled by organizations…show more content…
It also analyzes the crucial problems that might create hurdles in the path of success for the organization and provide useful decisions that can direct the organization out of difficult times. It does not consider the present situation of the organization, but it focuses on upcoming future and related opportunities and threats. It concerns for availability or resources of the organization and its proper usage to achieve desired goals. It provides various alternatives to achieve the solution to problems of the organization. Business policies are designed by the general management to guide, direct and facilitate the thinking abilities of the middle and lower level of functional executives and to make them actionable, to ensure the optimization of resources to achieve corporate objectives and goals. Business policies can either formal or informal in nature. Policies are created for the sole purpose using the operational tools of the organization as effectively as possible. They also help to set objectives for each functional areas and for the whole organization as a unit. The direction to face the challenges, threats and utilization of opportunities is provided by business policies defined by the management. The scope of business policy is: • To create long term objectives of the organization based on its resources and external environment…show more content…
Neither very detailed business policy nor an unrealistic goal-centric business policy is useful to create a productive work environment. The management has to put the realistic goals on the board so as to provide clear vision to the employees and to guide them to achieve those goals. • Job description: The management should clearly mark the roles and responsibilities of each position in the organization and should be explained in the business policy. Each employee should be able to understand his line of work and should be able to fulfill the requirements. The reporting structure should be clear within departments, between departments and across the whole company. • Liability: The acceptable and expected behavior of all employees should be clearly demarked in the business policy. In case of misbehave by any employee, the employer is held responsible for its effects on other employees, clients and individuals as
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