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- Business Policy and Strategy bba study notes
- BUSINESS POLICY AND STRATEGIC MANAGEMENT
- Strategy and Policy
- Business Policy and Strategy, System Dynamics Applications to
Business Policy and Strategy bba study notes
Unit IV Major business strategies Stability growth retrenchment disinvestment mixed strategies. Unit V Society and business business Social audit. It is the major economic activity in any society. Each one of us, making some dealing in our day-to-day life with a number of business concerns.
It includes activities concerned with production, trade, banking, insurance, finance, agency, advertising, packaging, and other related activities. What is important and what needs emphasis in the term business is that the above activities area being organized and carried on to satisfy the consumers needs.
Business Policy The origin of business policy can be traced back to , when the Harvard Business School introduced an integrative course in management aimed at providing general management capability. Policy making is one of the most important components of business planning. It provides guidelines as to how objectives of business are to be achieved. The necessity of guiding the future direction of business arises at some stage in the course of existence of every company.
Definition According to Terry, A business policy is an implied overall guide setting up boundaries that supply the general limits and direction in which managerial action will take place. According to Knoontz, Policies define how the company will deal with stock holders, employees, customers, suppliers, distributors and other important groups. Policies narrow the range of individual discretion, so that employees act consistently on important issues.
As defined by Christensen and Others, business policy is the study of the function and responsibilities of senior management, the crucial problems that affect success in the total enterprise, and the decisions that determine the direction of the organization and shape its future. Scope of Business Policy No business organization can either survive or grow without definite objectives which can only be accomplished by applying different policies from time to time, depending upon the working conditions.
Business policies are actually the guidelines for organizational thinking, behavior and action. Policies as such are formulated pertaining to different aspects of business organizations and therefore they enjoy a very wide scope in day-to-day life of any business unit. Policies in general, have a wide scope as they are concerned with.
Aim and objectives of a business unit Organizational structure Financial resources available Regional traditions and social values Fiscal and commercial policy of the government. Need for Business Policies It goes without saying that business policy and administration is part and parcel of management. No business enterprise can be managed, controlled and administered effectively if no definite policies are determined. In fact, it is the policy that guides the course of action Policies are so framed as to attain the goal of the enterprise and the pre-determined goal can be achieved only when actions are put into practice.
When the policies are to be implemented, every care should be taken by executives to see that implementation of policies will have no adverse effects on workers as well as on the management. Hence, to see that policies are effective as well as fruitful, implementation has been considered as an important aspect of management. The executives concerned with policy implementation should execute them in such a manner as would lead to maximum return on total investment with minimum amount of discontentment among people in the organization.
Features of Policy From the above definitions, following features of a policy can be identified A policy provides guidelines to the members of the organization for deciding a course of action.
Policy provides and explains what a member should do rather that what he is doing. Policy limits an area within a decision is to be made and assures that the decision will be consistent with and contributive to objectives.
Policies are generally expressed in qualitative or general way. The words most often used in stating policies are to maintain, to continue, to follow, to provide, to assist, to assure, to employ, to make, to produce or to be etc. Policy formulation is a function of all managers in the organization because some form of guidelines for future course of action is required at every level.
Policies serve an extremely useful purpose. They avoid confusion and provide clear-cut guidelines at all levels to subordinates; and therefore, they enable the business to carried on smoothly and often without break. They also lead to better and maximum utilization of resources, human, financial and physical, by adhering to actions for conservation. Decision-making, planning and coordination of any business organization are exclusively governed and controlled by Business Policies.
Consistency in the work performance by different members of firm is maintained because of clear-cut policies chalked out at executive level. Policies normally cover the study of the nature and process of choice about the future of a business enterprise and are to be handled by responsible executives. Business policies are framed at different levels of the management, and accordingly they may be classified as: Top management policies : These policies are derived from the top management planning.
The top management policies are concerned with the long-range such as product selection, diversification, acquisitions and mergers, extent and liability-sales forecasting, etc. Middle level management policies: These policies are the out come of the deliberations of the middle management consist of the deputy heads to the various sections and functional departments.
They frame policies on employment and training, industrial relations, labour welfare and social security etc. Lower level management policies: The lower level management people are men who have direct supervision over the working force. They chalk out policies for the assignment of the jobs to the best suited persons, the provision of adequate tools, raw materials, training the workers, issuing of orders, improving working conditions, etc.
On the basis of Functional Areas Policies relating to various functional areas of the management are called functional policies. Production and Purchase policies : The policies for operational are related to the production system, operational planning and control, and research and development.
The strategy adopted and affects the nature of product also the markets to be served and the manner in which the markets are to be served. Marketing Policies : Policies related to marketing have to be formulated and implemented on the basis of the marketing mix i.
The major issues and decisions related to these marketing mix factors. The following are considered as major marketing policies. Financial Policies : This policies may be regarded as the most important business policies, as the entire success or failure of a business unit depends upon these.
Properly framed financial policies result in prosperity and long survival, while faulty policies result in the units run. The financial policies of an organization are related to the availability, usage and management of funds. Financial policies have therefore to be determined is the areas of Sources of Capital Policies Working Capital Policies Profit distribution Policies Depreciation allowances Policies Personnel Policies: Personnel policies are the tools for the personnel department to achieve the objectives of the organization.
Personnel policy provides guidelines for a wide variety of employment relationship in the organization. The personal policy of the organization should have two types namely General Objective : The statement of general objective should express the top managements basic philosophy of human resources and reflect its deep underlying convictions as to the importance of people in the organization. Specific objectives: The statement of specific objectives should refer to the various activities of personnel administration connected with staffing, training, developing, wage and salary benefits, employee records and personnel research.
The major areas of the personnel policies are Recruitment and Selection Policy Training and Promotion Policy Remuneration and Benefit Policy Industrial relation Policy On the basis of Expression Business policies may be either express or implied, which in turn may be oral or written. Oral Policies : Oral policies are those, which are issued or stated by the word of mouth.
Such policies are generally adopted when an organization is small and face-to-face communication is desired. They are often not remembered for long and easily forgotten. Therefore, usually oral policies are not in popular use. Written Policies : Written policies are those, which are normally put in black and white and stated in clear terms so that personal whom they are addressed to easily understand them.
For putting the policies in writing, much care to be taken. Implied policies : These are the policies, which are implied from the code of conduct or from the behavior of business employees; but they are expressed. They generally flow from the philosophy of the business, its social values and even traditions.
For example, smoking and drinking may be prohibited not in writing but it is implied by the conduct of the executives who refrain theses habits while on duty. On the basis of nature of Origin On the basis of nature of origin business policies can be classified in to three types. They are as follows Formulated Policy : A formulated policy is one, which is specified by the organization for providing guidelines to its members.
Most of the policies in private sector organizations fall in this category as every organization formulate various policies on different aspects. This policy may be broad giving general guidance for the action. Appealed Policies : Sometimes, policies may not be clearly stated and the actions of managers particularly at the higher levels provide guidelines for actions at lower levels. In such a case, the action of a decision maker, consciously or unconsciously, depends on his own guidelines.
Moreover, in the absence of any specific guidelines, decision is based on individual interpretation of the situation and consequent actions. Imposed Policies : imposed policies arise from the influence of some outside agencies. Such agencies may be government which provides policies for all public-sector organizations, parent organizations overseas in the case of multinational companies operating in a country. On the basis of scope of Organization Business policies may also be categorized as basic policies, general policies and specific policies.
Basic Policies : These policies are basis of the organization and are framed by the top management. They spell out the approach of a company to its activities. For example, marketing policy of a firm may be consumer-oriented as against product-oriented, with the main purpose of competing with the products of competitors.
General policies : Such policies are generally more specific and apply to large segments of organization. The middle level management, e. Specific or Departmental Policies : A departmental policy is specific in nature.
The foremen and supervisors formulate it. It applies to routine activities in the department. On the basis of Management Functions The management undertakes functions, viz. Accordingly the policies may be planning policies, organizing policies, actuating or directional policies and controlling policies. Planning Policies : These policies are concerned with the path of action, which lead to company activities and attainment of its objectives.
Planning policies decide the objectives to be achieved; the policies paths that should be followed to achieve the objectives and how the objectives set are to be achieved through programs and process. Organizing Policies : Organization is another management function, which is concerned with the division or allocation of necessary competent activities to members of the group so that through collective efforts, the objectives may be achieved.
Actuating Policies : The actuating policies, therefore include: providing effective leadership; integrating people and task and convincing them to assist in the achievement of the overall objectives; effective communication with the members; and providing climate for the subordinates development and their motivation to work. Controlling policies: Controlling is the process of measuring actual result, comparing with standard of performance, finding out deviations and taking corrective action when necessary.
Controlling policies involve a series of activities; continuous observation and study of periodic result of performance in order to identify potential problems; selection of the best mode of control. Importance of Business Policy Business policy is important as a course in the management curriculum and as a component of executive development programmes for 10 P a g e.
To highlight the importance of business policy, we shall consider four areas where this course proves to be beneficial. For Learning the course Business policy seeks to integrate the knowledge and experience gained in various functional areas of management.
It enables the learner to understand and make sense of the complex interaction that takes place between different functional areas. Business policy deals with the constrains and complexities of real-life business. In contrast, the functional area courses are based on a structured, specialized and well developed body of knowledge, resulting from a simplification of the complex overall tasks and responsibilities of the management.
For Understanding the Business Environment Regardless of the level of management of person belongs to, business policy helps to create an understanding of how policies are formulated.
BUSINESS POLICY AND STRATEGIC MANAGEMENT
System Dynamics pp Cite as. A strategy may also define the organization structure, systems, and policies which implement the strategy. Nevertheless, these operational policies can be important in determining business performance. Business dynamics is the study of how the structure of a business or a part of the business , the policies it follows, and its interactions with the outside world customers, competitors, suppliers determine its performance over time. Business structure consists of feedback loops surrounding the stocks and flows of resources, customers, and
All successful business ventures are based on pre-determined mission, vision and other policy statements. Most companies have got clearly outlined business strategies and policies. The strategies and policies are incorporated into business plans. The means by which the strategies and policies are developed vary from company to company. The case study of Corning has identified how some organizations craft their policies and strategies. This discussion focuses on the difference between a policy and strategy; then go on to look at how these can be crafted. There is a strong link between a policy and a strategy.
This chapter on academic publishing covers the origins of the field; the impact of the two major drivers of change—the printing press and the Internet—on the spread of knowledge; Open Access; the monograph; university presses; academic libraries; commercial academic publishers; trade publishers and the cross-over book; peer review; journals; HE textbook publishing. It looks at all these areas through the lens of change, stressing the need for greater connectivity between the various communities of practice involved in the academic publishing field, and underlines the historic and existing collaborative and innovative strengths it contains. This article discusses how the shift to a knowledge-based economy has propelled firms' human capital HC and associated intellectual resources to center stage. It notes that while organizational researchers have highlighted the increasingly strategic role of HC, and despite a growing realization among firms that their human-knowledge resources are becoming more important, managerial awareness of the value of HC remains low. The article suggests that HC management, measurement, and reporting are increasingly vital capabilities that all organizations will need to acquire. It proceeds to analyse the nature of HC, trace the evolution of HC accounting, identify current accounting challenges, and describe contemporary frameworks that are seeking to address these challenges.
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Business Policy and Strategy, System Dynamics Applications to
Unit IV Major business strategies Stability growth retrenchment disinvestment mixed strategies. Unit V Society and business business Social audit. It is the major economic activity in any society. Each one of us, making some dealing in our day-to-day life with a number of business concerns. It includes activities concerned with production, trade, banking, insurance, finance, agency, advertising, packaging, and other related activities. What is important and what needs emphasis in the term business is that the above activities area being organized and carried on to satisfy the consumers needs.
Business Policy defines the scope or spheres within which decisions can be taken by the subordinates in an organization. It permits the lower level management to deal with the problems and issues without consulting top level management every time for decisions. Business policies are the guidelines developed by an organization to govern its actions. They define the limits within which decisions must be made. Business policy also deals with acquisition of resources with which organizational goals can be achieved. Business policy is the study of the roles and responsibilities of top level management, the significant issues affecting organizational success and the decisions affecting organization in long-run. If it is uncertain, then the implementation will become difficult.
Тело Грега Хейла растворилось в темноте, и Сьюзан, инстинктивно поджав ноги, прикрылась пиджаком Стратмора. В шифровалке никогда еще не было так тихо, здесь всегда слышался гул генераторов. Теперь все умолкло, так что можно было различить облегченный вздох раненого чудовища - ТРАНСТЕКСТА, постепенно стихающее шипение и посвистывание, сопутствующие медленному охлаждению. Сьюзан закрыла глаза и начала молиться за Дэвида. Ее молитва была проста: она просила Бога защитить любимого человека.
Он отбросил бесполезный мотоцикл и пустился бежать со всех ног. К несчастью для Беккера, вместо неуклюжего такси Халохот обрел под ногами твердую почву. Спокойно подняв пистолет, он выстрелил. Пуля задела Беккера в бок, когда он уже почти обогнул угол здания.
Последний щит угрожающе таял. Сьюзан и Соши занялись поисками во Всемирной паутине. - Лаборатория вне закона? - спросила Сьюзан.
- Бринкерхофф посмотрел на нее осуждающе. - Дай парню передохнуть. Ни для кого не было секретом, что Мидж Милкен недолюбливала Тревора Стратмора. Стратмор придумал хитроумный ход, чтобы приспособить Попрыгунчика к нуждам агентства, но его схватили за руку.
То есть вы хотите сказать, что эти знаки имеют множественное значение. Беккер кивнул.