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Business Policy
Business Policy
Nature of Business policy:
Determines future course of action.
Setting Long-Term objectives of an enterprise
Study of functions & responsibilities of senior
management concerning crucial problems
Provides direction to the organization and
shape of future
Guiding Framework for repetitive decisions
Top Management to Lower Management
Involvement
Business Policy
Defines
Policies
View of Practitioner
Orientation of Professional Businessman
More Value to Creativity & Innovation than to maintenance of
Status quo
10.Objectives in Knowledge:
Knowledge of concepts
Knowledge of situations
11.Objectives in Skills:
Analytical Ability
Business Policy:
Importance of Business policy:
1. For learning purpose: It integrates the knowledge &
SILKY JANGLANI
Flexible-
Policy
should
be
flexible
in
operation/application. This does not imply that a policy
should be altered always, but it should be wide in scope so
as to ensure that the line managers use them in
repetitive/routine scenarios.
indecisiveness and uncertainty in minds of those who look
into it for guidance.
Strategy
STRATEGY:
Strategy (Strategos= direction of military force).
What is strategy?
1. Determination of basic long-term goals & objectives of an
enterprise and adoption of course of action and allocation of
resources to carry out these goals.
Alfred Chandler (1962)
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What is Strategy?
4. It is a unified, comprehensive and integrated plan designed to
assure that the basic objectives of enterprise are achieved.
William Glueck (1972)
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Levels of Strategy:
Corporate level
strategy
CORPORATE OFFICE
HRM
Marketing
SBU
B
Finance
SBU
C
Production
Business
level
strategy
Systems
Functional
level
strategy
Difference between
Policy and Strategy
Strategic Management
STRATEGIC MANAGEMENT:
What is strategic management?
1. It is a stream of decisions and actions which leads to strategy
development to achieve corporate objectives.
William Glueck
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Dimensions of Strategic
Management
Implement
strategies
Formulate
strategies
Strategic
evaluation
Strategic
control
Establish
strategic
Intent
Strategic Strategic
Strategic
SWOT Strategic
Analysis implementevaluation
analysis alternatives
& choice
ation
Strategic
control
SILKY
JANGLANI Management:
Working model of
Strategic
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strategi
c
control
Formulate strategies:
Environmental appraisal,
organizational appraisal, SWOT analysis,
Corporate & business level strategies,
Strategic choice, strategic plan.
Implement strategies:
Project, procedure, resource allocation,
Structural, behavioral, functional
and operational implementation.
Strategic evaluation
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Strategic Vision
Strategic Vision is a road map showing the route a company intends to take
in developing and strengthening the business. It defines Companys
destination and provides rational for going there. It culminates in to a Mission
Statement. Strategic Vision points an Organisation in a particular direction,
charts a strategic path to follow for future and moulds the organisations
identity.
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Vision Statement
"Year after year, Westin and its people will be regarded as the best and
most sought after hotel and resort management group in North America."
(Westin Hotels)
"To be recognized and respected as one of the premier associations of HR
Professionals." (HR Association of Greater Detroit)
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Mission
Thompson(1997) defines Mission as the essential purpose of the
organisation, concerning particularly, why it is in existence, the
nature of businesses it is in, and the customers it seeks to serve
and satisfy
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Mission Statement
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Mission
Characteristics of a Mission Statement
1.
2.
3.
It should be motivating.
4.
5.
6.
7.
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Next identify the key measures of your success. Make sure you
choose the most important measures (and not too many of them!)
Refine the words until you have a concise and precise statement of
your mission, which expresses your ideas, measures and desired
result.
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3.
4.
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Mission Statements
5.
6.
7.
8.
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Mission Statements
"FedEx is committed to our People-Service-Profit Philosophy. We
will produce outstanding financial returns by providing totally
reliable, competitively superior, global, air-ground transportation of
high-priority goods and documents that require rapid, time-certain
delivery." (Federal Express)
"Our mission is to earn the loyalty of Saturn owners and grow our
family by developing and marketing U.S.-manufactured vehicles
that are world leaders in quality, cost, and customer enthusiasm
through the integration of people, technology, and business
systems." (Saturn)
"In order to realize our Vision, our Mission must be to exceed the
expectations of our customers, whom we define as guests, partners,
and fellow employees. (mission) We will accomplish this by
committing to our shared values and by achieving the highest levels
of customer satisfaction, with extraordinary emphasis on the
creation of value. (strategy) In this way we will ensure that our
profit, quality and growth goals are met." (Westin Hotels and
Resorts)
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Values
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Values
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with
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Areas of Objectives
: Profitability
: Markets
: Productivity
: Innovation
: Product
: Financial Resources
: Physical facilities
: Customer Service
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: Social Responsibility.