Business Policy And Strategic Management Essay

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 instead of persons. Business has not just remained limited for the benefit of people working for it, but it has changed itself for the

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