Strategic Management & Business Policy (2024)

FAQs

Strategic Management & Business Policy? ›

1) Strategic Management Deals with strategic decisions that decide the long-term health of an enterprise. It is a comprehensive plan of action designed to meet certain specific goals. Business Policy offers guidelines for managers to take appropriate decisions.

1) Strategic Management Deals with strategic decisions that decide the long-term health of an enterprise. It is a comprehensive plan of action designed to meet certain specific goals. Business Policy offers guidelines for managers to take appropriate decisions.

Strategic management provides overall direction by developing plans and policies designed to achieve objectives and then allocating resources to implement the plans. Ultimately, strategic management is for organisations to gain a competitive edge over their competitors.

Strategic management involves setting objectives, analyzing the competitive environment, analyzing the internal organization, evaluating strategies, and ensuring that management rolls out the strategies across the organization.

Four types of policies include Public Policy, Organizational Policy, Functional Policy, and Specific Policy.

Examples of company policies include employee conduct policies, dress code, attendance policies, equal opportunity policies, and other areas related to the terms and conditions of employment.

A strategic policy example is a written statement of an organization's choices in its operating environment. For example, a public or nonprofit agency chooses which of society's problems to address through public services.

The benefits of using strategy management include improved decision making, increased efficiency, better coordination between departments, and improved alignment with organizational goals. It can also help organizations to anticipate market trends and respond quickly to changing conditions.

Policy deals with routine/daily activities essential for effective and efficient running of an organization. While strategy deals with strategic decisions. Policy is concerned with both thought and actions. While strategy is concerned mostly with action.

What are the five objectives of strategic management? ›

There are five essential tasks of strategic management. They include developing a strategic vision and mission, setting objectives, crafting tactics to achieve those objectives, implementing and executing the tactics, and evaluating and measuring performance.

Four most Important business policy process are: 1. Environmental Scanning 2. Policy Formulation 3. Policy Implementation 4.

A business policy must be specific, clear, uniform, appropriate, simple, inclusive and stable.

Over time, some organizations master the linear, adaptive, interpretive, and expressive types of strategic management.

Some of the most important company policies involve discipline and employee conduct. Before you can hold your employees accountable for their actions, it's important to record your expectations in terms of performance and behavior in your employee handbook or individual employee contracts.

Business policy is a set of principles and rules which directs the decisions of the subordinates. Policies are framed by the top level management to serve as a road map for operational decision making. It is helpful in stressing the rules, principles and values of the organization.

Strategy is a comprehensive plan, made to accomplish the organizational goals. Policy is the guiding principle, that helps the organization to take logical decisions.

The three tenets of successful initiative execution are discipline, transparency, and efficiency.

Strategic management process is a continuous culture of appraisal that a business adopts to outdo the competitors. Simple as it may sound, this is a complex process that also covers formulating the organization's overall vision for present and future objectives.

The seven elements (7 C's) are: customers, competitors, capabilities, cost, channels, communication, and coordination.

What are the 6 pillars of strategic management? ›

Strategic management serves as the foundation for every important decision an organisation makes. It gives overall direction by creating plans and policies intended to achieve goals and then assigning resources to implement the plans.

Before we further discuss strategic management, we should define nine key terms: competitive advantage, strategists, vision and mission statements, external opportunities and threats, internal strengths and weaknesses, long-term objectives, strategies, annual objectives, and policies.

Strategies should map long-term plans to objectives and actionable steps, foster innovative thinking, as well as anticipate and mitigate potential pitfalls. Strategic plans often look out 3-5 years, and there may be a separate plan for each individual objective within the organization.

1) It is directed toward overall organizational goals and objectives; 2) It includes multiple stakeholders in decision making; 3) It requires incorporating both short-term and long-term perspectives; 4) It involves the recognition of trade-offs between effectiveness and efficiency.

A SWOT analysis helps you assess internal factors that might affect your business (strengths and weaknesses) and external factors (opportunities and threats). You will need to review and act on the results from the SWOT analysis.

First you formulate a policy which is the principles or the protocols to guide decisions and next we can make a strategy and finally a detailed plan to achieve the strategy.

A Strategy is a special plan made to achieve a market position and to reach the organizational goals and objectives, but Policy refers to a set of rules made by the organization for rational decision making. Many people have confusion regarding the two terms, but they are not alike.

What are the 8 major areas for strategic goals? ›

The basic strategic variables for consideration as you make a plan for the future are products, services, customers, markets, finances, people, technology, and production capability.

A business policy outlines which decisions the employees can take themselves and which decisions require approval or input from the manager. This decreases the breaks in the work process because the employees don't have to wait for their busy manager's time unless it is absolutely needed.

Three fundamental principles: Severability, Accommodation, and Wholeness, form the basis of all fundamental business rules and policies.

Policies help the firm to clarify its objectives, guide planning for future operations, aid subordinates in reaching operating decisions, facilitate overall coordination and control and act as yardsticks for evaluating the quality of executive decision-making and action.

Stable and future proofed. Developed considering the impact of policy on different groups. Known and understood by all that are affected by the policy. Written in clear, concise and gender-neutral language.

10 Policies All Companies Should Have

Personnel Policies – Clearly state business hours, code of conduct, terms of employment (hiring and termination), wages or salary (and bonuses, if any), insurance and health benefits, paid vs. unpaid vacation days, sick leave, and retirement.

Successful strategic management involves three steps: Planning, Execution and Monitoring Developments & Progress. With strategic management, actions speak louder than words. Even effective strategic planning that yields the appropriate decisions can come up short on delivering performance improvements.

Eleven types of strategies are listed (forward integration, backward integration, horizontal integration, market penetration, market development, product development, relation diversification, unrelated diversification, retrenchment, divestiture, and liquidation).

Policy is the spheres or scope within which decisions are taken by the employees in the organization. Strategy is an action that managers and directors take to achieve one or more of the organizational goals. A policy is a guide to thinking and action for those responsible for making decisions.

Is strategic management originally called business policy? ›

Strategic management was initially known as business policy. The study of strategic management focuses on monitoring of business environment for opportunities and threats in line with organization's strengths and weaknesses.

Tip. The four phases of strategic management are formulation, implementation, evaluation and modification.

Although different businesses may have different policies, any business policy has the same seven features. A business policy must be specific, clear, uniform, appropriate, simple, inclusive and stable.