Business
Policy analysis plays an important role in the achievements of goals and targets set by the top level management of any business. The core purpose of any business in to make profits and to increase the worth of shareholder’s equity. To achieve this goal, it is very important to make such policies, which do not conflict with the policies of International Accounting Standards and specially with the policies of governments. It is in a view that any new or revised policy from government usually creates problems for the businesses to achieve their short term and long term goals. It is very important to state that most of the times the policies of government are out of control of the management. (Santa)
Policy analysis can be divided into several parts to achieve the main goal of the business. There are many departments in the business and every department must make their own policy to perform according to the goals of the company. For example, the marketing department must advertise the products according to the policy and plans. Similarly, production department must maintain and improve the production quality and capacity. Another important part of policy analysis is to review the progress of different departments. If any department is performing weaker or slower, then the management must identify this problem to the department manager, to improve their performance. ("Business policy -," )
The management of business normally defines the casual or expected constraints during the making of policy at planning stage. However, when unexpected constraints occur then it is very important for the management to revise the policy of the business. This revised policy is also known as alternative policy. For example, the business is dealing in shoe making and they are selling their products in the local market at affordable prices and in these circumstances, if the government announces that they are going to minimize the subsidy on leather imports then it will be very difficult for the business to survive at the current market prices of their products. Therefore, management of business must revise their policy and search for the local suppliers of leather to compete in the market at current rates. (Santa)
References
Santa, E. Business policy analysis. Retrieved from
http://www.ehow.com/about_5437200_business-policy-analysis.html
Business policy - definition and features. Retrieved from
http://www.managementstudyguide.com/business-policy.htm
