Basic-Concept-of-Business-Policy.pptx

BASIC CONNCEPT OF BUSINESS POLICY

1. Basic Concept of Business Policy BA 291 Business Policy 6:00 pm – 9:00 pm

2. Basic Concept of Business Policy Concept of Business Policy Concept of Strategy The study of Strategic Management

3. Concept of Business Policy Business policy provides an opportunity to put together what you have learnt in the separate business fields and utilize this knowledge in the analysis of complex business problems . Business policy focuses on top management functions. Top management is responsible for overall management of the organization. General Management Business policy focuses on general management rather than any specific functional area. General management is concerned with the total business system and an understanding of system.

4. Concept of Business Policy Objectives of Business Policy: A. KNOWLEDGE basic objective of any discipline. The basic objective is to gain knowledge and understand the central significance of policy and strategy to top management and its organization. to understand how various steps of strategic management process can be carried on. emphasizes understanding of interrelationships among subsystems in the organization. emphasizes the limitations of specialized knowledge in solving complex business problems.

5. Concept of Business Policy Objectives of Business Policy: B. ATTITUDE develops the attitudes of making decisions under the condition of partial ignorance, which is the reality of business system in any country to develop professional orientation among managers C. SKILLS The major contribution of the Business Policy lies in developing appropriate skills necessary for viewing the total organization .

6. Concept of Business Policy Objectives of Business Policy: C. SKILLS Technical skills – are concerned with what is done. Proficiency in activities involving methods, processes and procedures. Such skills are developed by the actual practice on the job. Human skills- is concerned with how it is done. Conceptual skills - general management skills are concerned with why it is done. Technical skills deal with things, human skills deal with people, and conceptual skills deal with ideas.

7. Concept of Strategy The concept of strategy helps us to grasp why some firms succeed and others fail. In simple terms, strategy explains how a firm makes money. Good strategies produce high profits and bad ones threaten the firm’s existence . Business strategy is the pattern of objectives, purposes or goals and major policies and plans for achieving these goals, stated in such a way as to define what business the company is in or is to be in and the kind of company it is or is to be.

8. Concept of Strategy Strategy is the determination of organizational objectives in the light of environmental variables and determination of course of action and commitment of organizational resources to achieve these objectives . “Strategy means deciding the basic mission of a company, the objectives which it seeks to achieve its objectives” – George. A. Steiner

9. The Study of Strategic Management Strategic Management is the set of managerial decisions and actions that determines the long – run performance of an organization. It includes: environmental scanning; strategy formulation; strategy implementation; e valuation; and Control. Thus the study of strategic management therefore emphasizes the monitoring and evaluating of external opportunities and threats and internal strengths and weaknesses.

10. The Study of Strategic Management Nature and Scope : Acts as a decision for long term. Aims to achieve advantage. Issues are future oriented. Stress both efficiency and effectiveness. It is a process.

11. The Study of Strategic Management Importance : To shape the future of business. To have effective strategic data. To have decentralized management. To increase productivity. To make discipline .

12. The Study of Strategic Management Functions : Establishing the mission. Formulating company philosophy. Establishing policies. Setting objectives. Developing strategy. Planning the organization structure.

13. The Study of Strategic Management Advantages : Financial benefits. Problem prevention. Improved decision making. Greater employee motivation. Minimum resistance to change

14. The Study of Strategic Management Disadvantages : Expensive . Unintended negative – *If expectations not reached. Unintended effect – *If proper involvement is not shown. Danger of rigidity – *Which won’t bend in some people. Process is a difficult exercise.