BUSINESS POLICY

PURPOSE OF BUSINESS POLICY

 CLARIFY OBJECTIVES.
 GUIDE PLANNING.
 HELP SUBORDINATESIN MAKING OPERATING DECISIONS.
 FACILITATES OVERALL COORDINATION.
 FACILITATES CONTROL.
 ACTS AS A DIRECTION FOR EXECUTIVE DECISION
MAKING.
 BUILD UP EMPLOYEE LOYALTY AND ENTHUSIASM.
 SEEK TO ENSURE CONSISTENCY AND UNIFORMITY IN
DECISIONS.
EFFECTS OF INADEQUATE POLICIES
• THE ORGANISATIONS WHICH DONOT
HAVE AN EFFECTIVE BUSINESS POLICIES
CAUSE-
 UNPROFITABLE OPERATION.
 FAILURE OF BUSINESS.
 INSUFFICIENT CAPITAL.
 POOR LOCATION.