Business Policy and Strategy

2502 WordsApr 14, 201411 Pages
Assignment The mission statement addresses the following: What are our economic goals? What is our operating philosophy in terms of quality, company image, and self-concept? What are our core competencies and competitive advantages? What customers do and can we serve? How do we view our responsibilities to stockholders, employees, communities, environment, social issues and competitors? The Role of Top Management and the Importance of Company Policy Introduction to Business Policy Chief Executive – serves as the head and has the knowledge about the nature of the company. Responsibilities of the Chief Executive 1. Elaborate the major policies of the firm. 2. Define the objectives of the firm. 3. Develop strategies…show more content…
The strategic management model shows the external environment as three interactive segments: the remote, industry, and operating environments. Strategic Analysis and Choice Simultaneous assessment of the external environment and the company profile enables a firm to identify a range of possibly attractive interactive opportunities. These opportunities are possible avenues for investment. However, they must be screened through the criterion of the company mission to generate a set of possible and desired opportunities. This screening process results in the selection of options from which a strategic choice is made. The process is meant to provide the combination of long-term objectives and generic and grand strategies that optimally position the firm in its external environment to achieve the company mission. Strategic analysis and choice in single or dominant product/service businesses centres around identifying strategies that are most effective at building sustainable competitive advantage based on key value chain activities and capabilities – core competencies of the firm. Multi business companies find their managers focused on the question of which combination of businesses maximizes shareholder value as the guiding theme during their strategic analysis and choice. Long-term Objectives These are the results that an organization seeks

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