BUSINESS

POLICY AND
STRATEGIC
MANAGEMENT
ALVAREZ, LYKA B.
BUSINESS POLICY

– Set of rules that guides the conduct of the

business in pursuit of profit and other objectives of
the business organization.
STRATEGY- Top management’s master plan
stating how the corporation will attain the
outcomes consistent with the organizations
missions and goals.

Strategy - at the operational level refers to a

of competitive moves and business
approaches that management is employing
to run the company.
Three types of Strategy:
 Describes the company’s
Corporate overall direction in terms of
its general attitude towards
Strategy growth and the
management of its various
business and product lines.
 Usually occur at the business
Business unit or product level, and it
Strategy emphasizes improvements of
competitive position of a
corporations products or
services in the specific
industry.
 Is the approach taken by
the functional area to
Functional
achieve corporate and
Strategy business unit objectives
and strategies by
maximizing resource
productivity.
Strategic Management - Set of
managerial decisions and actions
that determines the long run
performance of a corporation.
STRATEGIC
MANAGEMENT
PROCESS
 THE
STRATEGIC
MANAGEME
NT PROCESS
Environmental
Scanning- monitoring,
evaluating and
disseminating
information from the
SITUATION ANALYSIS
external and internal
environment to key
people within the
corporation.
Purpose of Situational
Analysis
Identify strategic factors
that would determine
the future of the
corporation through
SWOT ANALYSIS.
 Internal Environment –
External Environment –
consists of variables
consist of variables
(strength and weaknesses)
(opportunities and threats)
that are within the
that are outside the
organization itself and are
organization and not typically
not usually within the short
within the short run control
run control of top
of top management.
management.
 Development of long-
range plans for the
STRATEGY FORMULATION
effective management
of environmental
opportunities and
threats, in light with
corporates strength and
weaknesses.
Operational Strategies – short term strategies
that are associated with various operational
departments of the company such as human
resources, finance, marketing, production and
accounting.
Competitive Strategies – techniques in competing in
certain industry through identifying the strengths and
weakness of its competitor to gain competitive
advantage.
Is the process by
which strategies STRATEGY
and policies are IMPLEMENTATIO
N
put into action
through the
development of
programs,
budgets and
procedures.
 Is the process in
STRATEGY which corporate
EVALUATION AND activities and
CONTROL performance results
are monitored so
that actual
performance can be
compared with
desired
performance.
Performance – Is the end result of activities.
Includes actual outcomes of strategic
management process.

Strategic management is justified through

managements ability to improve an
organizational performance.