BUSINESS POLICY

EVOLUTION OF BUSINESS POLICY

 According to Gordon & Howell report,

B.P is a subject introduced in the
curriculum of B’schools.
 The study of this subject gives the
students an opportunity to pull together
what they have learned in separate
business fields and utilize them in the
analysis of complex business problems.
EVOLUTION OF BUSINESS POLICY

 According to Glueck, development in

B.P have arisen from the use of
planning techniques by managers.
 Planning in earlier times were through
preparation of budgets using capital
budgeting and MBO.
 Long range planning was replaced by
strategic planning and later by strategic
management.
DEFINITION OF B.P
 BUSINESS POLICY is the study of
functions and responsibilities of senior
management related to those
organizational problems which effect the
success of total enterprise.
 Deals with the determination of future
course of action that the organisation
has to adapt.
IMPORTANCE OF BUSINESS POLICY

 B.P is a component of executive

development program for middle level
managers preparing to move up to the
senior management level.
 B.P seeks to integrate knowledge and
experience
 Deals with constraints and complexities
of real life business
IMPORTANCE OF BUSINESS POLICY

 Creates an understanding of business

environment(i.e., how policies are
formulated.)
 Presents a basic framework for
understanding strategic decision
making.
 Personal development (understanding
senior management’s view point.)
PURPOSE OF BUSINESS POLICY
 A course in B.P helps in understanding
business as a system consisting of a
number of sub systems.
 To integrate the knowledge gained in
various functional areas in management.
 To adopt a generalist approach to
problem solving.
 To understand complex linkages
operating within an organization.
OBJECTIVES OF BUSINESS POLICY

1) IN TERMS OF KNOWLEDGE
 Knowledge about environment –
External and internal and how it effects
the functioning of organization.
 Determination of mission, objectives
and strategies of a firm.
 To improve the ability of visualization for
implementation of strategies.
OBJECTIVES OF BUSINESS POLICY

 To survey the literature and learn about

researches taking place in business
policy.
2) IN TERMS OF SKILLS
 To develop analytical ability.
 To identify relevant decision making
factors.
 Case analysis improves oral as well as
written communication.
OBJECTIVES OF BUSINESS POLICY

3) IN TERMS OF ATTITUDE
 To possess liberal attitude and be
receptive in new ideas, information and
suggestions.
 Developing a creative and innovative
attitude.