Strategic Management (BBA 601) UNIT – I The term "Business Policy" comprises of two words, Business and Policy. Business: "Business means exchange of commodities and services for increasing utilities. " Policy: Policies may be defined as "the mode of thought and the principles underlying the activities of an organization or an institution." Policies are plans in they are general statements of principles which guide the thinking, decision- making and action in an organization. Business policy as a principle or a group of related principles, along with their consequent rule (s) of action that provide for the successful achievement of specific organization / business objectives. Accordingly, a policy contains both a "principle" and a "rule of action." Both should be there for the maximum effectiveness of a policy. Due to the increasing environmental changes in the 1930s and 40s in the US, planned policy formulation replaced ...
