INTRODUCTION TO BUSINESS

POLICY AND STRATEGIC

MANAGEMENT

SUBMITTED TO: DR.NEETI GUPTA

SUBMITTED BY :NANCY THAKUR

EVOLUTION OF BUSINESS POLICY AND STRATEGIC
MANAGEMENT
Definition: Business policy is the study of roles and responsibilities of top level management the significant issues affecting the
organisational success and the decisions affecting the organisation in the long run .

ORIGIN:1911- Harvard business school: integrated course in management aimed at providing general
management capability. This course was based on case studies which had been in use at the school for
instructional purpose since 1908.
Evolution based on managerial practices :Glueck has viewed the development in business policy in terms of
four paradigm shifts
First Phase:1900-1930:Era of Mass Production :need for policy making arose due to the nature
business firm of that period in America. Policy making became prime responsibility of the entrepreneurs who
later assumed the role of senior management.
Second Phase:1930-1940:increasing complexity and accelerating changes in the environment
made planned policy paradigm irrelevant. Since the needs of business could no longer be served by policy
making and functional area integration only.

Third phase: The concept Strategy:1940-1960:by 1960 there was a demand for a critical look at the
basic concept of business and its relationship to the environment.
Fourth phase:1980 onwards: The focus of business policy and strategic management is on
strategic process of business firms and responsibility in general management.
PROCTER AND GAMBLE : POLICIES
Procter and Gambles reputation is earned by the conduct by what they
say and by what they do the products they make the services they
provide and the way they act and treat others .As conscientious citizens
and employees they do what is right . For P and G that is the only way to
do business. To conduct business with integrity in a lawful manner it is
important to be alert to situations that pose ethical questions. We need
to have a good understanding of the values and the policies pertinent to
work and deciding what course of action is most appropriate. Illegal or
unethical behaviour is not tolerated in the premises of P n G. No single
set of rules and policies can provide explicit guidance to every situation
that may be faced by complex global company like Procter and
gamble .acting P and G relies on every employee to use good judgement
in everything he or she does. By acting consistently with these guidelines
the company earns its reputation as a company which conducts its
business with integrity. P and G policies are aspirational statements of
the principals values and purpose to broad major issues and societal
expectations.