ppt related to business policy subject in management

2.  Business policy is the study of the roles and
responsibilities of top- level management, the
significant issues affecting organizational success and
the decisions affecting organization in the long-run.
 Business Policy defines the scope or spheres within
which decisions can be taken by the subordinates in
an organization.
 It permits the lower level management to deal with
the problems and issues without consulting top level
management every time for decisions.
 Business policies are the guidelines developed by an
organization to govern its actions. They define the
limits (Do’s & Don’t’s) within which decisions must be
made.

3.  Business Policy includes guidelines, rules and
procedures established to support efforts to
achieve stated objectives.
 Business Policy & Strategic Management Policies
are guides to decision making and address
repetitive or recurring situations.
 Policy defines the area in which decisions are to
be made, but it does not give the decision.
 A policy is a verbal, written, or implied overall
guide, setting up boundaries that supply the
general limits and direction in which managerial
action will take place.

4.  Vision can be defined as the description of an
organizational, an activity, a technology in
the future.
 The purpose the organization to strives is to
reach the end point and that end point is
vision. It is what the firm would ultimately
like to become.

5.  Good visions are
 Inspiring
 Competitive
 Original
 Unique
 Foster risk taking and experimentation

6.  Thompson (1997) defines mission as the
“essential purpose of the organization,
concerning particularly why it is existence,
the nature of the business it is in, and the
customers it seeks to serve and satisfy”.
Hunger and Wheelen (1999) say that mission
is the “purpose or reason for the
organizations existence.

7.  It should be feasible: A mission should always aim high but
it should not be an impossible statement.
 It should be precise: A mission statement should not be so
narrow as to restrict the organization’s activities nor
should it be too broad to make itself meaningless.
 It should be clear: A mission should be clear enough to lead
to action.
 It should be motivating: A mission statement should be
motivating for the members of the organization and of
society.
 It should be distinctive: A mission statement which is
indiscriminate is likely to have little impact.
 It should indicate major components of strategy: A mission
statement, along with the organizational purpose should
indicate the major components of the strategy to be
adopted.

8.  Goals denote what an organisation hopes to accomplish in a future period
of time. They represent a future state or outcome of the efforts put in
now.
 Objectives are the ends that state specifically how the goals shall be
achieved. They are concrete and specific in contrast to goals which are
generalised .
 The objective makes goals operational.
 The goals are qualitative and objectives tend to be mainly quantitative in
specification. Due to which objectives are measurable and comparable.

9.  Objectives define the organisation’s relationship with its environment.
 Objectives help an organisation to pursue its visions and mission.
 Objectives provide the strategic decision making.
 Objectives provide the standards for performance appraisal .

10.  Objectives should be understandable .
 Objectives should be concrete and specific.
 Objectives should be related to a time frame .
 Objectives should measurable and controllable.
 Objective should be challenging.
 Different objective should correlate with each other.
 Objectives should be set with constraints.

11.  Developing several goals that will enable to
accomplish each of strategies.
 Goals should be SMART:
Specific, Measurable, Achievable, Relevant and
Time-based.

12.  1) Time Frame: goals are temporal, time-
phased, and intended to be superseded by
subsequent goals.
 2) Specificity: Goals are much more specific,
stated in terms of particular result that will
be accomplished by a specific date.

13.  3) Focus: goals are more internally focused
and carry important implications about how
resources of the organization are utilize or
will be utilized in future.
 4) Nature: A goal may imply a resource
commitment requiring the organization to
use those resources in order to achieve the
desired outcomes.
 5) Measurement: goals can be stated in
terms, which are quantitatively measured.

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