BUSINESS POLICY AND STRATEGY

Business policy & strategic management. ... It permits the lower level management to deal with the problems and issues without consulting top level management every time for decisions. Business policies are the guidelines developed by an organization to govern its actions. Although different businesses may have different policies, any business policy has the same seven features. A business policy must be specific, clear, uniform, appropriate, simple, inclusive and stable. Specific: If a policy is not specific, implementation becomes inconsistent and unreliable. The purpose of a business policy is to enable the management to relate properly the organization's work to its environment. Business policies are guides to action or channels to thinking. Business Policy defines the scope or spheres within which decisions can be taken by the subordinates in an organization.