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Evolution of Business Policy and Strategy

Strategic management is a continuous, dynamic process of analyzing external and internal factors to stay competitive in the long term. Business policies provide guidance for decisions and set organizational culture and objectives, while confidential business strategies are the driving force for achieving goals. Tactics are shorter-term actions formulated within and to achieve strategies, while strategic decisions consider long-term future factors and require significant commitment of resources from the whole organization. The key players in strategic management are owners, board of directors, and different levels of management, each contributing recommendations based on their role and expertise.

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Garcia, Ralph Gio P.
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200 views2 pages

Evolution of Business Policy and Strategy

Strategic management is a continuous, dynamic process of analyzing external and internal factors to stay competitive in the long term. Business policies provide guidance for decisions and set organizational culture and objectives, while confidential business strategies are the driving force for achieving goals. Tactics are shorter-term actions formulated within and to achieve strategies, while strategic decisions consider long-term future factors and require significant commitment of resources from the whole organization. The key players in strategic management are owners, board of directors, and different levels of management, each contributing recommendations based on their role and expertise.

Uploaded by

Garcia, Ralph Gio P.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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MODULE 1

Evolution of Business Policy and Strategy

Self-check and Reflect Questions:

1. Discuss the concept of policy as distinguished from strategy.

As stated in the discussion, business policies set rules of guidance in making


decisions and actions by the member of an organization. Also, policies tend to be observed and
followed by the members and to be implemented and controlled by the management. Business
policies are considered to guide entity in different types of objectives, especially in making
profits for the company. Nevertheless, policies are created for guidance and harmonious culture
of an entity. On the other hand, business strategies tend to be the driving force in attaining
organizational goals and objectives. Business strategies will likely take more steps because it
requires massive, logical and analytical skills in order to a company stay being competitive.
Unlike business policies, strategies tend to be confidential due to the fact that it will be the
reason why an entity will survive for such amount of time.

2. Briefly describe the context of strategic management.

Strategic management of entities requires to view this concept as continuous dynamic


process of surviving in the business industry mandates analysis of external and internal factors.
It also portrayed as necessity in staying competitive and sustainable for long-term concern.
Many authors have described what strategic management is, but all of them emphasized that
it’s all about staying competitive, sustaining position and guiding business towards its goals and
objectives. Strategic management analyzes threats and opportunities of external factors,
determine strengths and weaknesses of internal factors, establishes missions and goals of
entities of entity and implement strategies that will ensure growth and success.

3. Differentiate tactics from strategy.

The studies about the difference between strategies and tactics mainly criticized that the
former is broader than the latter one. Strategic management are formulated by top-level
management in continuous and irregular period, viewed as more confidential and essential tool
and constructed as unstructured in nature due to unmodified variables that can affect the whole
structural formulation. While tactical management are employed by departmental functions in
periodic cycle, contemplated as common aspect of an entity and built as structured in nature
because of its repetitive nature that usually used as foundation in concretizing the intents and
purposes of business policies and strategic management. Lastly, tactics are formulated within
and in pursuit of strategies.
4. Discuss the nature of strategic decision.

Strategic decision considered all internal and external factors to deal with long-term
future of an organization. Decisions like this will likely to be formulated for where it meant to be
used and it’s to solve problems and existing variables that can hinder in attaining organizational
goals. Also, it requires substantial resources and demand great deal of commitment from the
entire organization for the benefit as a whole. Lastly, if strategic decisions were made, it set as
basis and standards where the company will follow in making business actions in the future,
either to modify the existing or to used it for years of time.

5. Find out the key players in managing strategic decisions.

The key players of managing strategic decisions are the owners, board of directors, top-
level management, middle-level management and functional management. Owners tends to
demand on how the business culture will be. Board of directors and top-level management as
prescribed by the owners to formulate strategic decisions to satisfy the demand of the latter one.
Middle-level management specifies the orders of top-level managers and also gives
recommendations in the formulation of strategic decisions based on his control. Functional
managers tends to optimize tactics that will pursuit the strategic decisions bestowed upon them
and also they voice out what will be beneficial for the organization for conducting actions in their
respective functions.

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