Strategic Management
2
BUSINESS POLICY AND STRATEGIC MANAGEMENT
Learning Objectives • • • • • Learn what business policy and strategy is all about. Know the framework and importance of strategic management. Know the strategic management process. Have an understanding of corporate vision and mission. Learn how strategy operates at different levels of the organization.
Without a strategy the organization is like a ship without a rudder. Joel Ross and Michael Kami Strategic management is not a box of tricks or a bundle of techniques. It is analytical thinking and commitment of resources to action. Peter Drucker
1.
Introduction
This chapter introduces the concept of business policy and strategic management. With the increased competition, the management of business has acquired strategic dimension. All professionals, including the Chartered Accountants, working towards growth of their businesses must possess sound knowledge of strategic management. Business policy and strategic management are highly intertwined.
2.
Business Policy as a Discipline
The origins of business policy can be traced back to 1911, when Harvard Business School introduced an integrative course in management aimed at the creation of general management capability. This course was based on interactive case studies which had been in use at the school for instructional purposes since 1908. The course was intended to enhance general managerial capability of students. However, the introduction of business policy in the
© The Institute of Chartered Accountants of India
Business Policy and Strategic Management curriculum of business schools / management institutes came much later. In 1969, the American Assembly of Collegiate Schools of Business, a regulatory body for business schools, made the course of business policy, a mandatory requirement for the purpose of recognition. During the next few decades, business policy as a course spread to different management institutes across different nations
BUSINESS POLICY AND STRATEGIC MANAGEMENT
Learning Objectives • • • • • Learn what business policy and strategy is all about. Know the framework and importance of strategic management. Know the strategic management process. Have an understanding of corporate vision and mission. Learn how strategy operates at different levels of the organization.
Without a strategy the organization is like a ship without a rudder. Joel Ross and Michael Kami Strategic management is not a box of tricks or a bundle of techniques. It is analytical thinking and commitment of resources to action. Peter Drucker
1.
Introduction
This chapter introduces the concept of business policy and strategic management. With the increased competition, the management of business has acquired strategic dimension. All professionals, including the Chartered Accountants, working towards growth of their businesses must possess sound knowledge of strategic management. Business policy and strategic management are highly intertwined.
2.
Business Policy as a Discipline
The origins of business policy can be traced back to 1911, when Harvard Business School introduced an integrative course in management aimed at the creation of general management capability. This course was based on interactive case studies which had been in use at the school for instructional purposes since 1908. The course was intended to enhance general managerial capability of students. However, the introduction of business policy in the
© The Institute of Chartered Accountants of India
Business Policy and Strategic Management curriculum of business schools / management institutes came much later. In 1969, the American Assembly of Collegiate Schools of Business, a regulatory body for business schools, made the course of business policy, a mandatory requirement for the purpose of recognition. During the next few decades, business policy as a course spread to different management institutes across different nations