2. IMPORTANCE OF PREPARING
STRATEGIES
• Business need to implement sound strategies to succeed. It means
that we should have a well-thought-out and effective plans and
approaches in place for a business to achieve its goals and thrive in
a competitive environment.
• This strategies helps in connecting with customers, surviving in the
market competition, generating profits and managing resources.
3. BUSINESS POLICY
Business policy refers to a set of guidelines, principles, and
procedures that an organization follows to make decisions, set
objectives, and allocate resources.
It tends to emphasis on the use of logical, analytical and data driven
approaches in the process of formulating and executing strategies.
It presents a framework for strategic decision making.
Such a framework enables a person to make preparations for
handling general management responsibilities
4. Four most important business policy
process are:
Environmental scanning
Policy Formulation
Policy implementation
Evaluation and Control
5. ENVIRONMENTAL SCANNING
• Environmental scanning is the process of systematically gathering
and analyzing information about the external factors and forces that
can impact a new or existing business venture.
• Its purpose is to identify strategic factors those external and
internal elements that will determine the future of the business.
• Generally environmental scanning describes on the basis of
strengths, weaknesses, opportunities, and threats that are strategic
factors for a specific company.
6. POLICY FORMULATION
• It is the development of long term plans for the effective
management of environmental opportunities and threats, in light of
corporate strength and weaknesses.
• It includes defining the corporate mission, vision, specifying
achievable objectives, developing strategies, and setting policy
guidelines.
7. POLICY IMPLEMENTATION
• The process by which strategies and policies are put into action
through the development of programs, budgets, and procedures.
• This process might involve changes within the overall culture,
structure, and management system of the entire organization.
8. EVALUATION AND CONTROL
• The process in which corporate activities and performance results are
monitored so that actual performance can be compared with desired
performance. managers at all levels use the resulting information to take
corrective action and resolve problems.
• Evaluation involves measuring and assessing various aspects of the
business's performance. For ex: revenue, profit, operational efficiency,
market share, and other key performance indicators
• They enable entrepreneurs to track progress, make data-driven
decisions, adapt to changing circumstances, and ultimately
increase the likelihood of long-term success for their ventures.
10. WHAT IS NEGOTIATION
• Negotiation is open process for two parties to find an
acceptable solution to a complicated conflict.
• We often step in and negotiate when a conflict is taking
place, but conflict doesn‘t have to exist for there to be an
opportunity for negotiation. It can be a discussion of an
exchange of goods and services.
11. Examples of Negotiation
• Here are a few examples of negotiation in business:
• Salary negotiation: Candidates for jobs can bargain with an employer about
their salary and benefits.
• Vendor negotiation: Many businesses negotiate with vendors on the pricing
and services provided in contracts.
• Conflict-resolution: Often, conflict-resolution in the workplace involves a
negotiation between two or more parties that can result in an agreement.
12. All negotiations share four common
characteristics:
The parties involved are somehow interdependent.
The parties are each looking to achieve the best
possible result in the interaction for themselves.
The parties are motivated and capable of influencing
one another.
The parties believe they can reach an agreement.
13. STAGES OF NEGOTIATION
• There are 5 Steps of Negotiation which are shown in the image below.
14. PREPARATION AND PLANNING
• Inthepreparationandplanningstageneedtodetermine and
clarifycompany‘sowngoalsinthenegotiation.
• Thisisatimewhenyoutakeamomenttodefineandtruly
understandthetermsandconditionsoftheexchangeandthe
natureoftheconflict.
