3. 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.
4. 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
5. 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.
6. Concept of Strategic
Management
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
8. Objectives of Business
Policy
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.
9. 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.
10. In terms of Skills
1. 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.
11. In terms of Attitude
1. It develop generalist attitude through
knowledge and skills
2. 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.
12. Importance of Business
Policy
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
13. 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.
14. 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
15. 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.
16. 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
17. 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.
18. Goals
When we talk about Goals, it means:
An intended outcome
that requires action
that satisfies needs
