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Purposes of Strategic management

Purposes of Strategic management

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Study Guide

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CHAPTER ONE

INTRODUCTION TO STRATEGIC MANAGEMENT AND BUSINESS

POLICY

BUSINESS POLICY: ITS MEANING AND DEFINITIONS

There are several meanings and definitions of Business Policy. Some authors refer it as a course

of study in management. Among these are Azhar Kazmi (1994) and Schndel and Hatten (1972).

R .E. Thomas refers Business Policy as “decisions about the future of an ongoing enterprise”.

Christensen et al define Business Policy as the study of the functions and responsibilities of Senior

Management, the critical problems that affect success in the total enterprises, and the decisions

that determine the direction of the organization and shape its future.

Haner defines it as “a statement, verbal, written, or implied of those principles and rules that are set

by managerial leadership as guidelines or constraints for the organization’s thought and action”.

Policy is a guide to decision making at all levels within an organization. It is a basic organizational

concept which is documented and applicable to all the internal and external relations of the

organization. Policy is a guide to action, a constraint of behaviour, and an aid to decision making.

BUSINESS POLICY: ITS PURPOSE AND OBJECTIVES

The relevance of Business Policy is seen in terms of its purpose and objectives.

Objectives are classified into knowledge, skills and attitude which help in the understanding of the

Business environment and the determination of organizational mission, purpose, objectives and

strategies.

With regard to skill, the study of Business Policy enables one to develop analytical ability and

provides the means of identifying factors relevant to decision making.

The situational objective relates to the use of personal judgement and instruction. The possession

of liberal attitude and openness to new ideas are equally important.

PURPOSE OF BUSINESS POLICY

Azhar Kazmi classified the purpose of Business Policy into three fields namely:

1. To integrate the knowledge gained in various functional areas of management.

2. To adopt a generalist approach to problem solving, and

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3. To understand the complex inter-linkages operating within an organization through the use

of systems approach to decision making and relating them to changes taking place in the

external environment.

BUSINESS POLICY: ITS OBJECTIVES

Azhar Kazmi in his text Business Policy amplified Business Policy objectives in terms of

knowledge, skills and attitude. These are discussed below:

KNOWLEDGE OBJECTIVES

1. Understanding the various concepts such as strategy, policies, plans and programmes

involved in Business Policy which are also inherent in other functional areas is very

essential.

2. Environmental analysis (i.e. internal and external) awareness is of prime important to the

organization because it affords the organization the opportunity of knowing its

relationship with the environment.

3. With the adequate knowledge of the organization’s mission, purpose, objectives, goals,

strategies and policies is guaranteed.

4. The execution of the complex task of strategy implementation by the strategies becomes

easier because of Business Policy knowledge.

5. The uniqueness of the knowledge of real-life business problems and solutions are

exciting experiences to al learners. This is so because it assists them in their approach to

problem-solving and decision making.

6. Business Policy enables learners to search for relevant literature thereby knowing the

researches available in the field.

SKILLS OBJECTIVES

1. Knowledge leads to skills development and its applications in terms of case studies

analysis, their interpretation and also the business event analysis.

2. The students are provided with the analytical ability skills required in management

cases / incidents analysis through the knowledge of Business Policy.

3. Business Policy provides relevant factors identification skills requires in decision making.

4. Theory which is very essential of practice is guaranteed by students / learners due to the

three skills mentioned above. The mental ability skills acquired will enhance managerial

decision – making processes since Theory and practice go together.

5. Both oral and written communication skills will be developed with case studies in

Business Policy field.

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CHAPTER ONE INTRODUCTION TO STRATEGIC MANAGEMENT AND BUSINESS POLICY BUSINESS POLICY: ITS MEANING AND DEFINITIONS There are several meanings and definitions of Business Policy. Some authors refer it as a course of study in management. Among these are Azhar Kazmi (1994) and Schndel and Hatten (1972). R .E. Thomas refers Business Policy as "decisions about the future of an ongoing enterprise". Christensen et al define Business Policy as the study of the functions and responsibilities of Senior Management, the critical problems that affect success in the total enterprises, and the decisions that determine the direction of the organization and shape its future. Haner defines it as "a statement, verbal, written, or implied of those principles and rules that are set by managerial leadership as guidelines or constraints for the organization's thought and action". Policy is a guide to decis ...
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