How Business Strategy and Choices should be made
Business policies refer to the guidelines which are developed by an organization in order to govern its actions/operations. They help in defining the limits within which decisions can be made in accordance with Management Study Guide, (n.d). On the other hand, business strategy refers to a long term plan of action/s designed to achieve a certain goal or set of goals or even objectives (Rapid Business Intelligent Success, RBIS (n.d). The policies and strategies should be made in line with guiding principles.
In business sphere, a business policy should be specific or definite. Making policy choices that are uncertain would imply that implementation would be difficult. Additionally, a business policy should be reliable so that it can be followed by the rank-and-file staff. A reliable policy gives no room for misunderstandings. Furthermore, always choose a clear policy. Ambiguity in the policy can also result in misunderstanding. When choosing a business policy, it should be as appropriate as possible. It should be in line with the present organizational goal/s. what this implies is that a policy is supposed to be simple. However, the simplicity of a policy should be accompanied with comprehensiveness and flexible in operation- it should be wide in scope to enable the line managers use them routinely. When all the above is achieved, then it means that the policy is stable and guiding in itself.
On the other hand, a business has to make strategic choices. In doing so, it must consider several things. For instance, the broad aspirations for the organization and the goals for measuring progress should be a guiding principle. For instance, Corning Incorporated’s aspiration was to become the world’s leading in materials production and supply. Strategic choices are made in regard to the current potential field that is available. Whether to decide to play in a certain field or not, that solely depends on the internal strengths and opportunities of the business so that the can achieve optimum venture. Additionally, strategic choices should be made in reference to the competitors in market. The choices are to be made in such a manner that the business is put on a competitive edge. Moreover, strategic choices are made according to the capabilities of the business to build and maintain in the competitive environment. Lastly, it is of great importance to consider the available management systems which are...