Business Policy1

download Business Policy1

of 23

Transcript of Business Policy1

  • 8/8/2019 Business Policy1

    1/23

    Page 1

    B U S I N E S S

    P O L I C Y

  • 8/8/2019 Business Policy1

    2/23

    Page 2

    What is Business Policy

    Guidelines Business policies are the guidelines developed by an organization togovern its actions.

    Scope Spheres within which decisions can be taken by the subordinates in anorganization.

    Permission It permits the lower level management to deal with the problems andissues without consulting top level management every time for decisions.

    Limits They define the limits within which decisions must be made

    Consist Study of the roles and responsibilities of top level management, thesignificant issues affecting organizational success and the decisions affectiorganization in long-run

    Ghar Se Permission Leke Chal

  • 8/8/2019 Business Policy1

    3/23

    Page 3

    Evolution Of Business Policy

    Beginning / Genesis

    First traced in 1911.Harvard business school introduce it as a course of bstudiesTo develop general management capabilities.

    In 1959 after the report of Pierson( Carnegie foundation) and Gordan and howell(fordfoundation) it was well established as a core subject.

    1969 American assembly of collegiate school of business made this coursemandatory.

    Nowadays BP is now knows as strategic management, corporate strategy ,corporatepolicy.

  • 8/8/2019 Business Policy1

    4/23

    Page 4

    vo

    lution based on practices.

    Paradigm of ad hoc policy (Mid 1930S)

    lanning was confined to day to day activity. Around 1930 attempts were made torecast the future for bit longer period.

    US firm them emphasis on ad hoc policy bcos of expansion in market n product.hey introduced budgeting and control system.

    .Paradigm of planned Policy.(1930 to 1940)

    ncrease in technical innovation and competitive pressure adholic policies were replacedy integrated policies in different functional areas.

    ong term planning which was based on forecasting future by using economicalnd technical tools.

    .Strategic Paradigm

    ith development of system and game theory of decision making people adoptedoncept of strategy in management.crease in competition forced companied to use corporate strategy.

    ocused on competitive environment and its factor

  • 8/8/2019 Business Policy1

    5/23

    Page 5

    4. Paradigm of strategic Management(1980 onward)

    As a result of globalization, Competition become fierce and international. The worldeconomy was open because of GATT and its successor WTO.

    SM focus on direct involvement of top mngmt in formulation and environmentalanalysis to develop likely future business plans.

    SM is now the core of BUSINESS POLICY

  • 8/8/2019 Business Policy1

    6/23

    Page 6

    Features Of Business Policy

    S P E C I F I C - Policy should be specific/definite. If it is uncertain, then theimplementation will become difficult.

    Ex- Airtel decide to operate predefined in 14 circles in India

    C L E A R - Policy must be definite. It should avoid use of jargons and connotatioThere should be no misunderstandings in following the policy.

    Ex Reliance

    Policy on Financial and Accounting Integrity We are committed to the maintenance of accurate and complete corporate records.

    R E L I A B L E - Policy must be uniform enough so that it can be efficiently followed

    by the subordinates.Ex- TCS committed to reducing environmental impact

    A P P R O P R I A T E - Policy should be appropriate to the present organizational goal.

    http://opt/scribd/conversion/tmp/scratch2448/slide21.xmlhttp://opt/scribd/conversion/tmp/scratch2448/slide22.xmlhttp://opt/scribd/conversion/tmp/scratch2448/slide22.xmlhttp://opt/scribd/conversion/tmp/scratch2448/slide21.xml
  • 8/8/2019 Business Policy1

    7/23

    Page 7

    S I M P L E - A policy should be simple and easily understood by all in theorganization.

    I N C L U S I V E / C O M P R E H E N S I V E - In order to have a wide scope, a policy

    must be comprehensive.

    F L E X I B L E - Policy should be flexible in operation/application. This does not implythat a policy should be altered always, but it should be wide in scope so as to ensurethat the line managers use them in repetitive/routine scenarios.

    S T A B L E - Policy should be stable else it will lead to indecisiveness and uncertaintyin minds of those who look into it for guidance.

  • 8/8/2019 Business Policy1

    8/23

    Page 8

    C u r r e n t T r e n d I n B u s I n e s s P o l I c y1.Focus on Strategic Management

    BP focus on SM unlike Operation Mngmt. Its deals with scritanising and changing withenvironment.

    Ex :- Videocon, LG entered into mobile manufacturing bcos of growing demand ofmrkt.

    2. Social and Ethical Consideration

    Now a days everything is not fair in corporate war. Companies are social and ethical

    Ex Classmate donate 1 Rs for every purchase of 2 notebooks for rural development.Nokia recycling phones. Pharma Co. organise free checkup camps.(Cipla, Ranbaxy)

    Profit is not only business of business. They started with some non profitBusiness too.

    3.Extended scope

    4.Emphasis on Research

    Before formulation and implementation lot of research activities is been done now.

  • 8/8/2019 Business Policy1

    9/23

    Page 9

  • 8/8/2019 Business Policy1

    10/23

    Page 10

    S T R A T E G Y

  • 8/8/2019 Business Policy1

    11/23

    Page 11

    Strategy

    Strategy is an action that managers take to attain oneor more of the organizations goals.

    Its A general direction set for the company and its various

    components to achieve a desired state in the future .

    A strategy is all about integrating organizational activities and utilizing andallocating the scarce resources within the organizational environment so as tomeet the present objectives.

    Strategy can also be defined as knowledge of the goals, the uncertainty of event

  • 8/8/2019 Business Policy1

    12/23

    Page 12

    Strategy is the blueprint of decisions in anorganization that shows its objectives and goals,

    Plans for achieving these goals,

    The type of economic and human organizationit wants to be,

    Contribution it plans to make to itsShareholders, customers and society

  • 8/8/2019 Business Policy1

    13/23

    Page 13

    Strategy is a well defined roadmap of an organization. It defines the overall mission, vision and

    direction of an organization .

    The objective of a strategy is to maximize an organizations strengths and to minimize the

    strengths of the competitors.

    Strategy, in short, bridges the gap between where we are and where we want to be.

  • 8/8/2019 Business Policy1

    14/23

    Page 14

    F e a t u r e s o f S t r a t e g y

    Strategy is Significant

    Because it is not possible to see the future. Without a perfect foresight, thefirm must be ready to deal with the uncertain events which consist of Businessenvironment

    Visionary

    Strategy deals with long term developments rather than routine operations,

    i.e. it deals with probability of innovations or new products, new methods ofproductions, or new markets to be developed in future.

    Predictive

    Strategy is created to take into account the probable behavior of customers

  • 8/8/2019 Business Policy1

    15/23

    Page 15

    Thank You

  • 8/8/2019 Business Policy1

    16/23

    Page 16

    Strategic Management

    It is the process of specifying the organization's mission, vision and objectives, developin

    policies and plans, often in terms of projects and programs, which are designed toachieve these objectives, and then allocating resources to implement the policies andplans, projects and programs.

    Managerial decisions & actions that determines the long-run performance of a business

    a bundle of decisions and acts which a manager undertakes and which decides theresult of the firms performance.

    planning for both predictable as well as unfeasible contingencies.

    It deals with making and implementing decisions about future direction of an organization

  • 8/8/2019 Business Policy1

    17/23

    Page 17

    S M is a continuous process that evaluates and controls the business,evaluates its

    competitors and sets goals and strategies to meet all existing andpotential competitors.

    Re-evaluates strategies on a regular basis to determine how it hasbeen implemented

    and whether it was successful or does it needs replacement.

  • 8/8/2019 Business Policy1

    18/23

    Page 18

    Why SM

    better performance and a sustainable competitive advantage for their organization.

    make use of arising opportunities from the business environment and shouldnt ignore tBy SWOT analysis

    It helps us to identify the direction in which an organization is moving.

    evaluates its competitors and sets goals and strategies to meet all existing and potenti

    gives a broader perspective to the employees of an organization and they can betterunderstand how their job fits into the entire organizational plan and how it is co-relatedto other organizational members.

    strategic management is to integrate various functional areas of the organization compl

  • 8/8/2019 Business Policy1

    19/23

    Page 19

    P r o c e s s o f S t r a t e g I c m a n a g e m e n t

    Strategic management process has following four steps:

    1.Environmental Scanning

    Environmental scanning refers to a process of collecting, scrutinizing and providinginformation for strategic purposes. It helps in analyzing the internal and externalfactors influencing an organization. After executing the environmental analysisprocess, management shouldevaluate it on a continuous basis and strive to improve it.

    2.Strategy Formulation- Strategy formulation is the process of deciding bestcourse of action foraccomplishing organizational objectives and hence achieving organizationalpurpose. After conductingenvironment scanning, managers formulate corporate, business and functional

    strategies.3.

    Strategy Implementation- Strategy implementation implies making the strategywork as intended orputting the organizations chosen strategy into action. Strategy implementationincludes designingthe organizations structure, distributing resources, developing decision makingprocess, andmanaging human resources.

  • 8/8/2019 Business Policy1

    20/23

    Page 20

    ategy Evaluation- Strategy evaluation is the final step of strategy managemcess. The key strategy evaluation activities are: appraising internal and externtors that are the root of present strategies, measuring performance, and takingedial / corrective actions. Evaluation makes sure that the organizational strate

    well as its implementation meets the organizational objectives.

    Cli k t dit M t t t t l

    http://www.managementstudyguide.com/strategy-evaluation.htmhttp://www.managementstudyguide.com/strategy-evaluation.htm
  • 8/8/2019 Business Policy1

    21/23

    Page 21

    Click to edit Master text stylesSecond level Third level Fourth level

    Fifth level

    Cli k t dit M t t t t l

  • 8/8/2019 Business Policy1

    22/23

    Page 22

    Click to edit Master text stylesSecond level Third level Fourth level

    Fifth level

    Cli k t dit M t t t t l

  • 8/8/2019 Business Policy1

    23/23

    Page 23

    Click to edit Master text stylesSecond level Third level Fourth level

    Fifth level