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Business Policy & Strategic

Management
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Unit-I
1) Introduction to business policy and strategic
management.
2) Evolution of business policy as a discipline.
3) Nature, Importance, Purpose and objectives of
business policy.
4) Conceptual foundation of business policy:
understanding strategy, defining strategy,
levels at which strategy operates.
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Unit-I
5) An overview of strategic management.
6) Nature of strategic decision making.
7) Approaches to strategic decision making
8) Patterns of strategic behaviour.
9) Process of strategic management.
10) Strategist and their role in strategic
management.
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1)Introduction to business policy & strategic
management.
The terms Business Policy and Strategic
Management are often used
interchangeably.
Business Policy is a term traditionally
associated with the course in business
schools devoted to integrating the
educational program of these schools and
understanding what today is called
strategic management.
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Business Policy as a course began to be
included in the curriculum of the business
Schools in the U.S. in the 1950s following the
Gordon- Howell research sponsored by the Ford
Foundation and Carnegie Corporation.
Objective:- To provide an integrated approach
by binding together appropriately the various
courses like, marketing, finance, organisational
behaviour, and operations management which
the students learn in their earlier semesters.
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2) Evolution of business policy as a
discipline.
The origins of business policy can be traced
back to 1911, when the Harvard Business
School introduced an integrative course in
management aimed at providing general
management capability. This course was based
on case studies which had been in the use at the
school for instructional purpose since 1908.
However, the real impetus for introducing
business policy in the curriculum of business
schools came with Ford Foundations in 1950s.
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2) Evolution of business policy as a
discipline.
Evolution based on Managerial Practices:-
Glueck has viewed the development in
business policy as arising from the use of
planning techniques by managers.
Starting from day to day planning in earlier
times, managers, till recently tried to anticipate
the future through the preparation of budgets
and by using control systems like capital
budgeting and MBO.
Strategic management forms the theoretical
framework for business policy courses today.


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3) Nature, Importance, Purpose and
objectives of business policy.

Business policy is the study of the function and
responsibilities of senior management, the crucial
problems that affect success in the total enterprise, & the
decisions that determine the direction of the organisation
and shape its future. The problems of policy in business,
like those of policy in public affairs, have to do with the
choice of purposes, the moulding of organisational
identity and character, the continuous definition of what
needs to be done, and the mobilisation of resources for
the attainment of goals in the face of competition or
adverse circumstances.
-- -------- Christensen
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Importance of Business Policy.
For Learning the course:-
Business policy seeks to integrating the
knowledge & experience gained in various
functional areas of management.
Business policy deals with the constraints and
complexities of real-life business.
It develop a theoretical structure of its own.
It makes the study and practice of management
more meaningful.
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Importance of Business Policy.
For understanding the Business
Environment:-
It helps to create an understanding of how
polices are formulated.
Managers become receptive to the ideas
and suggestions of the senior
management.

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Importance of Business Policy.
For understanding the organisation:-
It presents a basic framework for
understanding strategic decision-making.
It brings the benefit of years of distilled
experience in strategic decision-making to
the organisation.
It leads to an improvement in job
performance.
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The purpose of business policy:-
To integrate the knowledge gained in various
functional areas of management.
To adopt a generalist approach to problem-
solving.
To understand the complex inter linkages
operating within an organisation through the use
of a systems approach to decision-making and
relating these to changes taking place in the
external environment.
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Objectives of Business Policy:-
OBJECTIVES
In terms of
knowledge
In terms of
skills
In terms of
Attitude
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4)Conceptual foundation of business policy: understanding
strategy, defining strategy, levels at which strategy
operates.

Understanding Strategy:-
The term strategy is derived from the Greek word
strategos, which means generalship- the actual
direction of military force, as distinct from the
policy governing its deployment.
Therefore, the word strategy literally
means the art of the general. In business
parlance, there is no definite meaning assigned
to strategy. It is often used loosely to mean a
number of things.

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Defining Strategy
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.
-----------------Alferd D Chandler