Business Policy Concepts Essay Example | Topics and Well Written Essays - 2250 words

Business insurance policy Concepts - Essay ExampleA good corporate strategy should integrate an cheeks goals, policies, and action sequences (tactics) into a viscous whole. The victory of Japanese companies revealed implementation policies which appe ard to be unique but have now been shown to be validated in many business environments, for example management by walking around (MBWA) proved to be a successful technique for Honda. Senior managements contacts with key people resulted in appropriate choice of policies and to the success of the company philosophy. This shows that corporate choice of strategy and implementation of that strategy involves many different concepts, theories and frameworks. An understanding of major(ip) choices of corporate policies and their advantages and disadvantages is critical to the understanding of business policy process Johnson et al, 2005.In a perfect earthly concern a strategy planned by the management will proceed according to plan and be im plemented. Unfortunately any belief that strategy can be formulated on the basis of mean and deliberate actions to result in commercial success is far from the truth. This concept rules out any fortune to adapt to a changing market situation. In a number of cases a situation may develop where incremental changes in the strategy may result in a more discriminatory position for the company. This is a positive example of strategical pad. A preplanned and formulated strategy also assumes an organization to be homogeneous where management decisions from the top can be implemented in full. In get along the decisions are effected by major power behavior, cultural and political factors. Quinn cited in Peppard et al, 1996 argued that strategy develops incrementally as a result of decision made due to developing market situations and other organizational experiences. This strategic drift results in a course which is often significantly different from formal planning. Drift in strategi c planning is a fact of organizational strategy. It does not mean that strategic policy making is a customless process as it will eventually drift into something new. It only recognizes that changes often become demand due to extraneous factors and require adjustments to the strategy to keep the broader strategy on course.Porters 5 ForcesPorters five forces is a useful tool for analyzing the factors impacting on strategy formulation. Porter, 1980 identified forces that impact every business. The objective of the strategy is to use these competing forces to result in a positive impact on the business. These forces identified by Porter are the driving forces of the industry. The strategy analysis thus analyses the impact of these forces on a particular business and how to background the impact of the negative forces and maximize the benefits of the positive forces. The five forces are1. The threat of new entrants2. Bargaining power of suppliers3. Bargaining power