Content Introduction Evolution of Business Policy Concept of Strategic Management Objectives Understanding of various aspects
Introduction Why BPSM?It gives opportunity to pull together what you learned in different business fields and utilize that knowledge in the analysis of complex business problems.The BPSM considers the total organization and its environment as a single system.
Evolution In 1911, Harvard Business school introduced course in management aimed at providing general management capability. In 1959, two reports published related to business policy 1. Gorden and Howell Report sponsored by Ford Foundation 2. Pierson Report sponsored by Carnegie Foundation
Evolution Phases by Hofer First Phase (mid 1930’s) – Based on ad hoc policy making. This is because of nature of American business firm in that period. The firms expanded from single product line, same customer in the same area to multidimensional. Hence Policy-making become more important. Planned policy replaced by ad hoc policy making. Second Phase – An integration of functional areas with respect to changing environment. Third Phase (early 60’s) – Based on strategy – demand for critical look at the basic concept of business and its relationship to the environment. Fourth Phase (80’s) – Based on strategic management – Two fields – the strategic business processes of firms and the responsibilities of general management.
Concept of StrategicManagement It concerned with deciding on strategy and planning how the strategy is to be put into effect. It is continuous iterative, cross-functional process aimed at keeping an organization as a whole appropriately matched to its environment. - Samuel Certo & J. Paul Peter This is the continuous process of effectively relating the organization’s objectives and resources to the opportunities in the environment. - Schellenberger & Bosenan
Strategic ManagementProcessStrategic analysis Strategic Choice Strategic Implementation Evolution Process
Objectives of BusinessPolicy In terms of Knowledge:-1. To understand the various concepts like plans, programmes, policies, strategies etc. with respect to business policy.2. Knowledge of external and internal environment and its effect on organization.
Contd…3. Information related to environment for determination of mission, strategies and objectives of the firm.4. Implementation of strategy through knowledge.5. The knowledge / experience helpful in problem solving and decision- making.6. Survey the literature and research paper in business policy field.
In terms of Skills1. Attainment of knowledge to develop the skills in order to apply what has been learnt.2. It helps in developing analytical ability and to understand the situation in proper way.3. Lead to the skill of identifying the factors related to decision-making and implementation of the same.4. Case analysis helps in developing oral as well as written communication skills.
In terms of Attitude1. It develop generalist attitude through knowledge and skills2. As a generalist one can able to function with his/her own judgment and intuition.3. For a manager, it is important to look towards new information and ideas to process liberal attitude and receptive to new ideas.4. The attitude should be always – ‘Go Beyond and Think’ when come across problematic situation. It is necessary to have creative and innovative attitude.
Importance of BusinessPolicy For Learning the Course – integrates the knowledge and experience. For Understanding the Business Environment – create understanding how policies being formulated. For Understanding of Organization – presents a basic framework for understanding of strategic decision- making. For Personal Development
Strategy It is defied as a unified, comprehensive and integrated plan that relates to the strategic advantage of the firm to the challenges of the environment. It is designed to ensure that basic objectives of the firm are achieved through proper execution by the organization.
Definition The pattern of plan that integrate an organization’s major goals, policies and action sequences into cohesive whole. - James Brain Quinn The determination of the basic long term goals and objectives of an enterprise and the adoption of the courses of action and the allocation of resources necessary for carrying out these goals. - Alfred Chandler
Vision It is a description of something (an organization, corporate culture, a business, a technology etc.) in the future. - Kotler Vision being future aspiration that lead to an inspiration to be the best in one’s field of activity.
Mission It is a statement for the internal as well as external entities of what the company stands for – its purpose, image and character. It provides the link between organizational business and societal requirements. It is essential purpose of the organization, concerning particularly why it is in existence the nature of the business it is in, and the customer it seeks in serve and satisfy - Thomson
Objectives The desired or needed result to be achieved in a specific time. An objective is broader than a goal, and one objective can be broken down into a number of specific goals.
Goals When we talk about Goals, it means: An intended outcome that requires action that satisfies needs
Tactics Tactics are action programmes through which strategies are executed.
Plans A scheme, program, or method worked out beforehand for the accomplishment of an objective.