Chapter 1: Over View of Business Policy and Strategic Management

Overview cont’d…

• Research reveals that organizations that engage in strategic management generally outperform those that do not.
• A survey of nearly 50 corporations in a variety of countries and industries found the three most highly rated benefits of strategic management to be:
• Clearer sense of strategic vision for the firm.
• Sharper focus on what is strategically important.
• Improved understanding of a rapidly changing environment.

Activity

• What are differences between business policy and strategic management? What are their similarities?
• Are they mutually exclusive?

Business Policy VS Strategic Management

• Strategic Management Deals with strategic decisions that decide the long- term health of an enterprise. It is a comprehensive plan of action designed to meet certain specific goals.
• Business Policy offers guidelines for managers to take appropriate decisions.