Questions and Answers available free with soratah aard provided in the book. Please
Instructions provided for downloading
1 Define business policy. Explain its features
2. What are the features of a sound business policy?
3. Explain the importance of business policy to the manager
4. State the determinants of a business policy
3. What do you mean by strategy? List its features
6. Define strategic management. Explain its features
7. What are the advantages and limitations of strategic management?
8. Explain the need and importance of strategie management
9. Explain the process of strategie management.
10. What are the various levels of strategy
11. Explain in detail the concept of Strategic Business Unit (SBU)
12. Explain the importance of SBU
13. Explain the concepts:
1) Strategy
ii) Strategic Intent
iii) Mission
iv) Vision
v) Goals
vi) Objectives
vii) Strategic Plan
.
Answers
1)Business policies are the guidelines developed by an organization to govern its actions. They define the limits within which decisions must be made. Business policy also deals with acquisition of resources with which organizational goals can be achieved.
2)A policy can be called sound when it contains the following characteristics: (i) Policies should be based on objectives and they should contribute towards the attainment of objectives. (ii) Policies should be properly planned instead of being the outcome of opportunistic decisions. Different policies must be.
3)Increase Operational Efficiency and Productivity with Better Business Policy Management. Business policies are an important tool to ensure that the business operates at maximum efficiency. Written in these policies is the blueprint for the whole organization's expected behavior, role, and reporting.
4)These determinants include the corporate mission, corporate objectives, corporate resource and the management values which are all internal to the organization and play a very important role in the formulation of the corporate policy. All the above factors influence the corporate decision directly.
5)Features of Strategy
Specialized plan to outperform the competitors. Details about how managers must respond to any change in the business environment. Redefines direction towards common goals. Reflects the concern to effectively mobilize resources. Maximizes the organization's chances to achieve the set objectives.
6)Strategic management include a set of decisions and actions resulting in the formulation and implementation of strategies designed to achieve the ultimate objectives of an organisation. The strategic management encompasses tasks pertaining strategic planning, implementation planning and monitoring.
7)The Steps with Advantages and Disadvantages of Strategic Management; Strategy: The word “strategy” derives from the Greek word “stratçgos”; stratus (meaning army) and “ago” (meaning leading/moving). A strategy is an action that managers take to attain one or more of the organization’s goals. The strategy can also be defined as “A general direction set for the company and its various components to achieve a desired state in the future. Strategy results from the detailed strategic planning process”.
8)Strategic management is an essential component of businesses. ... Strategic management therefore entails evaluating business goals, the organisation's vision and objectives as well as the future plans. In addition, a strategic management process is employed to ensure that the business runs effectively and efficiently.
9)Strategic management process is a continuous culture of appraisal that a business adopts to outdo the competitors. Simple as it may sound, this is a complex process that also covers formulating the organization's overall vision for present and future objectives.
10)Strategy can be formulated at three levels, namely, the corporate level, the business level, and the functional level. At the corporate level, strategy is formulated for your organization as a whole. Corporate strategy deals with decisions related to various business areas in which the firm operates and competes.
11)In business, a strategic business unit (SBU) is a profit center which focuses on product offering and market segment. SBUs typically have a discrete marketing plan, analysis of competition, and marketing campaign, even though they may be part of a larger business entity.
12)SBUs give an organization a chance to create a mission, vision, and goals which are clearly defined for each subunit. This allows each strategic business unit the opportunity to define objectives which are realistic for their segment of the parent organization.