Strategic Management & Business Policy
Dimitrios Shistohilis
Policies help businesses reach goals.
"Strategic management" is a term used to describe the concepts associated with managing a strategy and using that strategy to make day-to-day business decisions. It is an approach to decision making and business operations that focuses on achieving a result. Often the more well thought out the strategy, the more likely it is successful. Research further defines "gray" areas and helps to determine specific business approaches.
Business Policies
o An organization should develop business policies based upon the strategy it decides to use to meet its strategic objectives. Policies and procedures give daily direction and definition to the approaches that managers and employees follow in the course of a work day. When policy is strong, it is followed because it is useful and beneficial. Weak policies, however, might be skirted or abandoned for something more practical.
Market and Product
o A business analyzes the market and determines the best approach to earn the most money from a product. Developing a goal with that product helps the organization determine a strategic objective. For example, you might have a goal to sell more widgets and services because they are in demand in the market.
Strategic Objective
o Further defining a goal determines the strategic objective of an organization, department or operation. The strategic objective is a specific approach to the market using a goal. For example, you may desire to increase market share by 5 percent by selling more of a particular widget. You determined through your market analysis that you can do this better by using local stores and outlets. Therefore, your strategic objective is to increase market share by 5 percent for the product by putting it on local store shelves.
Business Policy Development
o Once you have your strategic objective, you can determine your policy. For example, each sales representative must contact five local stores in order to increase market share on a product or service by 5 percent. The business policy is the approach your managers and employees use to achieve this objective.
Follow-Up
o Policies, standard operating procedures and other procedures should be put into written form and given to managers and employees. Without making them an official guide of the company, it is doubtful that the organization's members will follow them. Performance appraisals, raises, discipline and general expectations should support following the policies and meeting the strategic objectives.
Dimitrios Shistohilis
Policies help businesses reach goals.
"Strategic management" is a term used to describe the concepts associated with managing a strategy and using that strategy to make day-to-day business decisions. It is an approach to decision making and business operations that focuses on achieving a result. Often the more well thought out the strategy, the more likely it is successful. Research further defines "gray" areas and helps to determine specific business approaches.
Business Policies
o An organization should develop business policies based upon the strategy it decides to use to meet its strategic objectives. Policies and procedures give daily direction and definition to the approaches that managers and employees follow in the course of a work day. When policy is strong, it is followed because it is useful and beneficial. Weak policies, however, might be skirted or abandoned for something more practical.
Market and Product
o A business analyzes the market and determines the best approach to earn the most money from a product. Developing a goal with that product helps the organization determine a strategic objective. For example, you might have a goal to sell more widgets and services because they are in demand in the market.
Strategic Objective
o Further defining a goal determines the strategic objective of an organization, department or operation. The strategic objective is a specific approach to the market using a goal. For example, you may desire to increase market share by 5 percent by selling more of a particular widget. You determined through your market analysis that you can do this better by using local stores and outlets. Therefore, your strategic objective is to increase market share by 5 percent for the product by putting it on local store shelves.
Business Policy Development
o Once you have your strategic objective, you can determine your policy. For example, each sales representative must contact five local stores in order to increase market share on a product or service by 5 percent. The business policy is the approach your managers and employees use to achieve this objective.
Follow-Up
o Policies, standard operating procedures and other procedures should be put into written form and given to managers and employees. Without making them an official guide of the company, it is doubtful that the organization's members will follow them. Performance appraisals, raises, discipline and general expectations should support following the policies and meeting the strategic objectives.
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