BBA 3rd Year Strategic Management Business Policy Long Question Answers Topic wise Notes Study materials 3 mock papers for self assessment last 3 year examination papers solved
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Q.1. Discuss the various types of policies.
Ans. Type: of Policies: There are many types of policies–marketing policy, financial policy production policy, personnel policy to name a few in every organisation. Within each of these areas more specific policies are developed. For example, personnel policies may cover recruitment, training, promotion and retirement policies. Viewed from a system’s angle, policies form a hierarchy O guides to managerial thinking. At the top, the policy statements are broad. The management is responsible for developing and approving major comprehensive company policies. Middle managers usually establish less critical policies relating to the operation of their sub-units.
Policies tend to be more specific at lower levels. The manager’s job is to ensure the consonance of these policies, each must contribute to the objectives of the firms and there should be no conflict between sub-system policies.
Although it is customary to think of policies as written statements, it is not necessarily the case. For example, a firm may simply decline to consider handicapped employees in the selection of new personnel. In effect, this becomes an effective policy even though the company has never verbalised its position.
Classification of Policies: A number of policies are used in an enterprise in order to attain the organisational objectives. Policies may be classified as follows:
1. On the Basis of Source
According to their source, origin or emergence, policies may be of the following kinds:
1. Originated Policy: It is also known as formulated policy. It is a policy deliberately formulated by top management to guide decision-making at lower levels, board of directors, the chief executive, the executive committee of the board or heads of the major departments or divisions. Such policies are broad in scope and affect usually the whole organisation or its major segments. These policies are often written ones, typically in the form of a policy manual of the organisation and flow down.
2. Appealed Policy: It is a policy formulated on the appeal or request of subordinates for filling the gaps left by originated policies. In other words, in this policy a subordinate refers an exceptional problem of recurring nature not covered by existing policies, to his superior and appeals for policy decision. When the superior makes decision in such a case, it becomes a precedent (policy) for future action. Such policies may be formulated at any level and are in the nature of flowing upward policies.
3. Imposed Policy: It is a policy, which an organization is compelled to adopt due to some outside forces, such as the government and its regulatory agencies, trade association and trade unions.
Policies are needed in all areas of business of an enterprise. These may be classified on the basis of different managerial functions as follows:
1. Production Policy: Raw material, purchase policy, repairs and maintenance policy, technology adoption and development policy, quality control policy, inventory policy and research and development policy are some examples in the category. Indent for the purchase of raw materials should be made at least a week in advance as an example of raw materials purchase policy.
2. Human Resource Policy: Examples in this category are recruitment policy, training policy, employee career development policy, wages and salary policy, placement policy, promotion policy, transfer policy and employee participation policy. Any vacancy shall be filled first by promotion from within the organization and then, if need be, from outside sources is an example of recruitment policy.
3. Marketing Policy: Capital structure policy, packaging policy, distribution policy, advertising policy, customer service policy, credit policy and market research policy are important examples in this category. Customer’s complaint responded within the next day is an example of customer service policy
4. Finance Policy: Capital structure policy, fixed capital policy, working capital policy, investment policy, research policy and dividend policy are some examples in this category. Excess capital, if any, invested for short-term only, preferably in limited company shares registered in stock exchange is an example of investment policy.
5. Accounting Policy: Inventory valuation policy, depreciation policy, provisions policy (for bad debts etc., deferred revenue expenditure policy etc.) are examples in this category. Deferred revenue expenditure (e.g. a huge amount spent on advertisement) should be spread over the years of its benefit generation and written off every year accordingly, which is an example of deferred revenue expenditure policy.
Q.2. What do you understand by development of business policy?(2015)
I. Background and Scope
This policy plots the issues that govern the association’s activities relating to new business and the procurement process. It relates in particular to how development opportunities are ‘discovered’, the various guises that business opportunities can take, how it is determined which venture can be progressed and ultimately how some new business proposals become a reality.
The new business development opportunities identified here include new build, major refurbishment/remodelling of housing stock and market purchases. In addition to the association’s ongoing provision of social housing, this policy focuses on non-traditional business-housing for key workers (e.g. police, teachers and nurses), care homes for the frail and student accommodation.
Other new business opportunities including service provision and the upgrading of the association’s accommodation for existing residents are contained in other relevant association policies, e.g. supported housing and property maintenance/improvements.
To demonstrate how the association identifies new business opportunities, how each is assessed and how those that best merit progressing are approved and developed.
1. Identification of Business Opportunities: The association looks to identify business opportunities both proactively and in response to information and suggestions from others. The way that such opportunities are identified include:
(a) Responding to invitations from local authorities, developers or service providers to
provide, or help to provide, accommodation on identified land or in a specific area or to meet a specific need, e.g. section 106 planning land usage, re-provision of care home
(b) Making use of likely grant funding or other financial backing available to produce a specific 1 housing outcome, e.g. acquisition of properties on the open market to meet homelessness
in the area. New business development policy review group will similarly consider specification improvements and there will be ongoing development team meetings to give
a continuous monitoring process to each scheme.
(C) Redevelopment of existing association land to produce asset management outcomes, e.g.
replacement of unpopular properties and/or better land usage.
(d) Unsolicited contact with owners of land adjacent to the associations to extend an area of association land for redevelopment.
(e) To achieve a specific outcome dictated by the likely availability of grant funding specific to the outcome, e.g. living over the shops initiative.
(f) Responding to proposals from prospective service providers or organisations having
a specific housing provision interest, e.g. YMCA, rural communities, charity and parish councils.
(g) Contact with key worker emplovees. This may be as a result of an unsolicited enquiry from an employer or by the association making contact to progress a possible provision of fund raising opportunity.
(h) Competition submissions, e.g. challenge fund bids or by promoting the use of development sites available to the association.
(i) Keeping track of professional journal entries that seek interest in development work, e.g.
PFI (OJEC) advertising of business opportunities.
(j) Work emerging as a result of discussions with partnership organisations to progress an
identified development opportunities.
(k) Identifying a package sales of property to other housing associations/organisations to
achieve a specific outcome, e.g. sale of low demand properties for remodelling or sale to
black and minority ethnic brousing associations.
(1) Speculative information from estate agents, valuers, landowners and agents to establish
any likely association interest in progressing property or land use.