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1. Define the term Business Policy.

The term Business Policy can be defined as a type of plan or as a subject/ discipline.

Objectives are organizations’ performance targets-the results and outcomes it wants to achieve. They function as a yardstick for tracking an organization’s performance and progress.

It is important for any organization to have a mission. The reasons for an organization to have a mission are as follows:

The strategy-making/strategy-implementing process consists of five interrelated managerial tasks. These are as follows:

The Strategic management process can be described in a sequence of five stages which can also be shown as a Framework of strategic management. These five stages are as follows:

Decision making is a managerial process. It is the function of choosing a particular course of action out of several alternative courses for the purpose of accomplishment of the organisational goals.

In general, a corporate strategy has the following characteristics:

1. Define the term business? What are the objectives of a business?

Such activities include exchange of goods and services on a regular basis and carry an element of risk and uncertainty. Manufacturing, trading, mining, banking, transport, insurance etc are the different types of business.

Porter’s five forces model of competitive analysis is a powerful and popular tool for assessing the main competitive forces in any industry and their strength and importance to an organization.

Socio-cultural environment is a collection of social factors affecting a business and includes social traditions, values and beliefs, level of literacy and education, the ethical standards and state of society, the extent of social stratification, conflict and cohesiveness, and so forth.

Political-legal Environment is a collection of factors, such as the general state of politics, the degree of politicalisation of business and economic issues, the level of political morality, the law and order situation, political stability,……..

The relationship between an organization and its environment may be discussed in terms of interactions between them in several areas, which are as follows:

The term ‘demographic’ denotes characteristics such as age, income, education, asset ownership, home ownership, employment status, etc. of the population in an area, district, country or world.

Micro-environment is the specific or the task environment of a business which affects its working or operations directly on a regular basis. While the changes in the macro-environment affect business in the long run, the effects of changes in the micro-environment are noticed immediately.