BU288 Lecture Notes - Lecture 2: Strategic Management, Swot Analysis
Document Summary
1. 12 summary: business policy is a set of principles and rules which directs the decisions of the subordinates. Policies are framed by the top level management to serve as a road map for operational decision making. It deals with strategic decisions that decide the long term health of an enterprise. It maximizes competitive advantage and tries to minimize competitive disadvantages: strategy is foundation of the company"s success. It should be properly formulated, executed, modified or changed constantly depending on the changing environment. Well-formulated strategies create distinctive companies, helping the employees and stakeholders to set a clear division between company and its competitors: the difference between strategy and policy is little complex because policies come under the. They are made to support strategies in numerous ways like accomplishing organizational goals and securing a valuable position in the market. Both of them are made by the top management as well as made after a profound analysis.
