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Lecture 1 Introduction

The document outlines the concepts of business policy and strategy, defining business policy as internal guidelines for decision-making and business strategy as a plan of action to achieve organizational goals. It discusses the ongoing process of formulating, implementing, and controlling strategies while considering internal and external environments. Additionally, it highlights the phases of strategy management, including formulation, implementation, and evaluation.

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Hussain Jaghrani
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8 views

Lecture 1 Introduction

The document outlines the concepts of business policy and strategy, defining business policy as internal guidelines for decision-making and business strategy as a plan of action to achieve organizational goals. It discusses the ongoing process of formulating, implementing, and controlling strategies while considering internal and external environments. Additionally, it highlights the phases of strategy management, including formulation, implementation, and evaluation.

Uploaded by

Hussain Jaghrani
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Business Policy and Strategy

MGT599

Lecture 01

Business Policy and Strategy - MGT 599 1


Business policy
• Business policy essentially is a set of
guidelines which is internal to an organization
and defines the decision making process and
procedures of the organization. It is a
blueprint defined by the top management
which is executed by the levels below for a
smooth day-today functioning of the business

Business Policy and Strategy - MGT 599 2


What is Business Strategy

• A plan of action or policy designed to achieve


a major or overall aim

• The on-going process of formulating,


implementing and controlling broad plans of
management that guides the organizational in
achieving the strategic goods given its internal
and external environment

Business Policy and Strategy - MGT 599 3


Business policies
• Business policies are the guidelines formulated by
an organization to govern its actions. They define
the limits and the scope within which decisions
must be made by the subordinates

Business Policy and Strategy - MGT 599 4


A procedure is a series of sequential steps a manager uses to respond to a structured
problem

Business Policy and Strategy - MGT 599 5


Business Policy and Strategy - MGT 599 6
Business Policy and Strategy - MGT 599 7
Business Policy and Strategy - MGT 599 8
• Regulatory – Bulk of the policies as discussed above fall in
this bucket. These policies ensure that organization
functioning is in accordance with the regulatory
requirements and local laws. Some organizations go
beyond the basic legal requirements in framing their
policies. For example, Policy for Prevention of Sexual
Harassment·
• Advisory – These are policies which prescribe certain way
of functioning or certain behavior from employees. These
policies advise acceptable standards and also advise
consequences thereof. For example, social media policy·
• Informative – These are designed primarily for
information dissemination. These policies typically cover
processes such as customer complaints redressal policy
etc. Business Policy and Strategy - MGT 599 9
Business Policy and Strategy - MGT 599 10
Interpretation of Definition

1. On-going process:
Business Strategy is an on-going process,
which is in existence through out the life of
organization.
2. Shaping broad plans:
First, it is an on-going process in which broad
plans are firstly formulated than implementing
and finally controlled.

Business Policy and Strategy - MGT 599 11


Interpretation of Definition

3. Strategic goals:
Strategic goals are those which are set by top
management. The broad plans are made in
achieving the goals.
4. Internal and external environment:
Internal and external environment generally set
the goals. Simply external environment forced
internal environment to set the goals and guide
them that how to achieve the goals?
Business Policy and Strategy - MGT 599 12
Business Policy and Strategy - MGT 599 13
Environment Scanning

Strategy Fermentation

Strategy Implication

Evaluation

Control

Business Policy and Strategy - MGT 599 14


Phases of Strategy Management

Business Policy and Strategy - MGT 599 15


Strategy Formulation

• Vision and Mission


• Strength and Weaknesses
• Opportunities and Opportunities
• long term goals and objectives

Business Policy and Strategy - MGT 599 16


Strategy Implementation

• Establish annual objectives


• Devise policies
• Motivating employees
• Resources allocation to execute formulated
strategies

Business Policy and Strategy - MGT 599 17


Strategy Evaluation
• Strategy evaluation is the final stage
• Management evaluate when particular
strategies are not working well
• As internal as well as external environment
never remain constant, therefore, mostly
organizations have to modify their strategies
from time to time

Business Policy and Strategy - MGT 599 18


Strategy Implementation
Strategy
Formulation HR Practices
Recruiting Job Design Labor
Mission Selection Relations
Training
Development
Performance Pay Structure Employee
SWOT

Management Incentives Relations


Goals
Job Analysis Benefits

Strategic Choice Firm


Human Human Performance
Human Resource Resource Productivity
Resource Capability Actions Quality
Needs Skills Behaviors Productivity
Skills Abilities Results
Behaviors (Productivity,
Knowledge
Absenteeism, Strategy
Culture Turnover) Evaluation
Business Policy and Strategy - MGT 599 19
Emergent Strategies
Next Lecture

• Nature of Business Strategy


• Importance of Strategic policy making
• Key terms in Business Strategy and Policy
– Adopting change
– Strategies
– Mission & Vision statement
– SWOT

Business Policy and Strategy - MGT 599 20

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