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1 What: Is The Significance

Business policy provides general guidelines for an organization to achieve its objectives. It establishes the framework for how objectives will be set and strategies selected and implemented. Business policy statements outline principles and rules of action for key areas like personnel, finance, production, and marketing. The objectives and nature of business policy are formulated as plans to guide an organization from top-level management down, in both how goals are reached and the manner in which work is conducted.

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Ritika Tamrakar
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18 views

1 What: Is The Significance

Business policy provides general guidelines for an organization to achieve its objectives. It establishes the framework for how objectives will be set and strategies selected and implemented. Business policy statements outline principles and rules of action for key areas like personnel, finance, production, and marketing. The objectives and nature of business policy are formulated as plans to guide an organization from top-level management down, in both how goals are reached and the manner in which work is conducted.

Uploaded by

Ritika Tamrakar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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BUSINESS POLICY AND STRATEGY

Q.1) What is the significance of Business Policy in any organization? What


are its objectives?

Ans) Introduction

Meaning - The word ‘Policy’ is derived from the Greek word ‘Politeia’
meaning policy or government. In the autocratic system the policies are
framed by the leader whereas in the democratic system the policies are
framed by the people
The Dictionary meaning of ‘policy’ is a ‘planned action’ and that plan is a
policy. Hence policy and plan are synonymous.
Hence, policies may be defined as general guides to action that outline the
framework within which objectives are established and strategies are
selected and implemented.

Definition - Policy is a statement of a principle or group of principles, with


their supporting rules of action that conditions and governs the
achievement of certain objectives to which a business is directed.
Policies are statements of the organization framed in light of its objectives
in the various areas with which its operation are concerned personnel,
finance, and production, marketing and so on

Business policy is a guideline that facilitate to reach a predetermined


objective both in mode and manner formulated from the top to lower
management while objectives are the endpoints to an end.
The nature and objective of business policy are both formulated as plans
and determined by business organization.
Procedures indicate certain steps to carry out a particular work. A
statement of procedure is more specific and concrete than policy. It
highlights the chronological sequence of carrying out a particular activity.

Importance of Business Policy

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