Business Policy

In: Business and Management

Submitted By benjirobagio
Words 1088
Pages 5
What is the relationship between business policy and business strategy?

Organisations, institutions and government have to make decisions and actions (or inaction) which will result in a desired outcome. Before organisations, institutions and government can make those decisions they need to establish policies. Companies use policy to make sure that employees take actions that support the corporation’s goals, mission and strategy. The Encarta dictionary defines policy as a program of actions adopted by a person, group, or government, or the set of principles on which they are based. A policy is a broad guideline for decision-making that links the formulation of strategy with the implementation. Certain procedures are normally implemented to support each policy explaining how to apply the policy to the business’s customers, employees and products, and the instructions necessary to follow the policy.

Business policies are broad guidelines for managers, supervisors, and other employees in their action (activities) for the achievement of objectives. Policies indicate how resources are to be allocated, and how task assigned to the organisation might be accomplished so that functional level managers execute the strategy properly. Business policy has general management orientation and tends primarily to look inward with its concern for properly integrating the corporation’s many functional activities. Business policy also deals with acquisition of resources with which organizational goals can be achieved. Business policy is the study of the roles and responsibilities of top level management, the significant issues affecting organizational success and the decisions affecting organization in long-run. For a business policy to be effective it should possess certain features. Some of the features are: it should be specific and definite so that the implementation will not be…...

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