Business Policy as a Field of Study
I. Introduction
The Chief Executive Officer (CEO) is accountable for managing the overall business organization. He is considered as the ultimate salesperson to the customers, main spokesperson to the market, and the leader in the business organization. Having such accountabilities is a real burden to business organization leaders, particularly if they were founders of their business desiring the “freedom they experienced during the organizations” formative years.
During the 1960s, Kenneth Andrews first defined the concept of corporate strategy as “the goals of the firm and the pattern of policies and programs designed to achieve those goals”. During this time, the idea of corporate strategy was a novel idea.
II. Concept and Definition of Business Policy as a Field of Study Business policy, as a field of business management, is the study of the: 1. Functions and responsibilities of top management. 2. Major problems that affect the success and failure of the total organization 3. Determine the direction of the organization.
Importance of Studying Business Policy 1. Deals with the constraints and complexities of real-life businesses.
In contrast, the functional area courses are based on a structured, specialized and well-developed body of knowledge, resulting from a simplification of the complex overall tasks and responsibilities of the management.
2. Cuts across the narrow functional boundaries
It draws upon a variety of sources-other courses in the management curriculum and a wide variety of disciplines, like economics, sociology, psychology, political science, and so on. In so doing, business policy offers a very broad perspective to its students. 3. Makes the study and practice of management more meaningful
One can view business decision-making in its proper perspective. 4. Create an understanding of how policies are formulated.
This helps in creating an appreciation of the complexities of the environment that the senior management
The Chief Executive Officer (CEO) is accountable for managing the overall business organization. He is considered as the ultimate salesperson to the customers, main spokesperson to the market, and the leader in the business organization. Having such accountabilities is a real burden to business organization leaders, particularly if they were founders of their business desiring the “freedom they experienced during the organizations” formative years.
During the 1960s, Kenneth Andrews first defined the concept of corporate strategy as “the goals of the firm and the pattern of policies and programs designed to achieve those goals”. During this time, the idea of corporate strategy was a novel idea.
II. Concept and Definition of Business Policy as a Field of Study Business policy, as a field of business management, is the study of the: 1. Functions and responsibilities of top management. 2. Major problems that affect the success and failure of the total organization 3. Determine the direction of the organization.
Importance of Studying Business Policy 1. Deals with the constraints and complexities of real-life businesses.
In contrast, the functional area courses are based on a structured, specialized and well-developed body of knowledge, resulting from a simplification of the complex overall tasks and responsibilities of the management.
2. Cuts across the narrow functional boundaries
It draws upon a variety of sources-other courses in the management curriculum and a wide variety of disciplines, like economics, sociology, psychology, political science, and so on. In so doing, business policy offers a very broad perspective to its students. 3. Makes the study and practice of management more meaningful
One can view business decision-making in its proper perspective. 4. Create an understanding of how policies are formulated.
This helps in creating an appreciation of the complexities of the environment that the senior management