Business Policy and Strategy

In: Business and Management

Submitted By pinkykaaaren
Words 2502
Pages 11
Assignment

The mission statement addresses the following:
What are our economic goals?
What is our operating philosophy in terms of quality, company image, and self-concept?
What are our core competencies and competitive advantages?
What customers do and can we serve?
How do we view our responsibilities to stockholders, employees, communities, environment, social issues and competitors?

The Role of Top Management and the Importance of Company Policy
Introduction to Business Policy Chief Executive – serves as the head and has the knowledge about the nature of the company.
Responsibilities of the Chief Executive 1. Elaborate the major policies of the firm. 2. Define the objectives of the firm. 3. Develop strategies and the long-range plan for achieving these objectives. 4. Must develop an organization which most efficiently carries out the company’s strategic plan. 5. Must develop the operating policies which ease the burden of decision-making to carry out the plan. 6. Be involved in controlling the operations of the firm and in problem solving.
Definitions
1. Major Policies
Major policies (or “company” policies) deal with the firm’s fundamental nature, its identity, and the direction in which it is expected to move. They provide a framework within which the objectives can be established. 2. Objectives
The firm’s objectives or goals (these are two terms used interchangeably) specify, usually in quantitative terms (e.g., dollars, percentages, or time periods), where the firm is expected to be at some time in the future. 3. Strategy
Business strategy is the approach developed to achieve the objectives which have been defined. The development of the strategy is a critical part of long-range planning. A firm’s strategy (its strategic plan) defines in detail how the firm is to get from where it is now to where the…...

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