The term Business Policy can be defined as a type of plan or as a subject/ discipline.
As a type of plan, Policy refers to the set of guidelines to decision making and action.
However, as a discipline, Business Policy is defined as “the study of the functions and responsibilities of senior management, the crucial problems that affect success in the total enterprise, and the decisions that determine the direction of the organization and shape its future.”
Mission refers to a special task one wishes to assign to oneself ultimately in the long run. It expresses the growth ambition of the firm and justifies the very existence of the firm.
A company’s Mission statement is typically focused on its present business scope-“who we are and what we do”; mission statements broadly describe an organization present capabilities, customer focus, activities and business makeup.
An example of mission statement is Reliance Industries-“To become a major player in the global chemicals business and simultaneously grow in other growth industries like infrastructure.”
Objectives and Goals:
Objectives are organizations’ performance targets-the results and outcomes it wants to achieve. They function as yardstick for tracking an organisations performance and progress.
Business organisation translates their vision and mission into objectives. They also act as benchmarks for guiding organisational activity and for evaluating how the organization is performing.
Objectives are open-ended attributes that denote the future states or outcomes. Objectives are different from goals in the sense that goals are close-ended, precise and expressed in specific terms.
Thus the goals are more specific and translate the objectives to short- term perspective. However, this distinction is not followed every time the two terms are used sometimes interchangeably. Objectives signify the strategic intent of the organization.
Strategic Management Model:
Strategic management model is a diagrammatic representation of the entire process of strategic management covering strategy formulation, strategy implementation as well as strategy evaluation.
Strategy refers to a specific plan developed to respond to a dynamic and often hostile environment for achieving stated mission. It is a long range blueprint of an organization’s desired image, direction and destination what it wants to be, what it wants to do and where it wants to go.
A Strategic vision is a road map of a company’s future-providing specifics about technology and customer focus, the geographic and product markets to be pursued, the capabilities it plans to develop, and the kind of company that management is trying to create. For instance, Ratan Tata’s vision of a small car for everyone.