Why study business Policy?

1. To be able to identify the activities of strategic level managers in the organization.
2. To be able to define the operational boundaries or the scope of operations for different organizations.
3. To justify the existence of the business i.e. legitimize.
4. The manager is able to develop policies that are customer focused hence long term in nature.
5. Helps managers make choices amongst competing alternatives focuses within and outside organization.
6. Helps management to have a policy document that can be used for reference in case there is a conflict amongst the stakeholders.
7. Helps the management in the identification acquisition, allocation, utilization, mobilization and control of the factors of production.
8. Helps policy makers in formulating activities such that they are able to incorporate all the factors that are likely to influence the performance of the business.
9. Helps management when identifying needs of different stakeholders.
10. Helps policy makers crate and maintain relationships within and outside the business.
11. Helps managers in the evaluation of business performance
12. Helps to identify the SWOT of the business.
13. Help to identify the SWOT of the competitors.
14. Helps the management to identify the environmental trends that may enhance or hinder the performance of policies.
15. Helps managers to be progressive and proactive in their decisions as opposed to be reactive and parodal in decision making.
16. Helps managers scan environments on a continuous basis so as to have data banks that can be used for making up to date decisions.
17. Helps management make socially responsible decisions
18. Helps management understand implementation process used and to access their effectiveness and efficiency levels.

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Titany answered the question on November 29, 2021 at 12:52