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CHAPTER 1

Evolution of Business Policy and Strategy

Members:

Alcid, Andrea Marie

Alfaro, Analyn D.

Atchico, Jenica D.

Cabilangan, Crispin Jay C.

Calacal, Angelica D.

Ignacio, Michelle P.

Manalo, Jerico T.

Murillo, Donnalyn C.

Ramos, Crislaine M.

Tablatin, Rex Jasper C.

BSA 3-B

Reporting Dates:

August 1 and 3, 2020


Objectives:

1. Explain the evolution of business policy and strategy;

2. Discuss the concept and relevance of strategic management;

3. Distinguish business policy from strategy and tactics;

4. Discuss some aspects of policy identification and development; and

5. Appreciate the role of the employees, top management and Board of Directors of the business
organization in relation to strategic management.

1.1 BACKGROUND

Reporter: Alcid, Andrea Marie

1.1.1. Business policies

 the set of rules that guides the decisions and actions of the members of the organization
 “Always do this, never do that.”
 may be (a) informal or (b) in writing (formal)

a. Informal Business Policies

 act as the company's social control by defining what is acceptable behaviour. It is done
collectively as an organization and in individual departments. It is then passed on from
generation to generation. The most pronounced effect on the company's values and culture
stem directly from these informal policies.

 often psychologically internalized: not merely unwritten, but beneath people’s conscious
attention.

b. Formal Business Policies

 These written documents generally comprise the rules and procedures in the conduct of the
business and how officers and employees of the organization should act from day-to-day.

Written document examples:

 operational manual
 personnel handbook
 memoranda
 minutes of the meetings
 documentation of other forms of formal discussions (e.g. workshops and year-end
activities)

1.1.2 Strategies

 Over time, it is realized that it is not enough to have a set of business policies, written or
unwritten, but is more important to address operational strategies knowing that business is not
a short-term but a long-term journey to seeking profit.

 Prior to the onset of strategic management concepts, management or higher level of personnel
in the organization are simply concerned with internal business policies.

 Globalization trends e.g. (e-Commerce/ e-Business) alarmed business executives to be more


externally-oriented and specifically concerned with strategic management concepts.

Globalization

 technologies
 Increasing number of establishments
 continuous change of customers’ taste and preference

Concern for being more creative and innovative as well as adopting strategic
management principles and concepts is now being adopted by business organizations-
or any type of organization for that matter- if only to survive and stay competitive in the
sector or industry where it belongs.

 Given the system of doing business these days along with a variety of intervening factors
including of a number of stakeholder groups never thought to be relevant decades ago,
embracing theories and principles behind strategic management is not only an option but a
“necessity”.

References:

Informal Regulation. (2018, February 02). Retrieved August 30, 2020, from
https://www.marketlinks.org/good-practice-center/value-chain-wiki/informal-regulation

M. (n.d.). Impact of Informal Policies. Retrieved August 31, 2020, from


http://www.mlderryai.com/consulting_impactpolicies.html

Orcullo, N. A. (2007). Fundamentals of strategic management (2007 ed.). Manila: REX Book Store.
Retrieved August 31, 2020, from https://books.google.com.ph/books?id=xr64aks8wCEC

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