Business Policy 1) Art and science of formulating, implementing, and evaluating cross functional decisions that enable an organization to achieve its objective, AKA Strategic planning. 2) To help compete successfully, eliminate errors and help managerial decision making. 3) Purpose of Strategic management is to exploit and create new and different opportunities for tomorrow; Long-range planning, in contrast, tries to optimize for tomorrow the trends of today. 4) Strategy Formulation – Includes developing a vision and mission, identifying an organization external opportunities and threats, determining internal strengths and weaknesses, establishing long term objectives, generating alternative strategies, and choosing particular strategies to pursue. Strategy Implementation – requires a firm to establish annual objectives, devise policies, motivate employees, and allocate resources so that formulated strategies can be executed. Strategy Evaluation – Includes three activities 1) Reviewing external and internal factors
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