Hi students after understanding business environment and business objective now let’s check business policy now this thing originated in 1911 at “Harvard Business School” right it was develop specifically for general management capability, later on it was been made compulsory in all management administrative causes round the globe so bachha log let see now the definition of business policy it is nothing but a set of instructions to be given now as definned here business policy “the study of functions and responsibilities of senior management, the crucial problem that affect the success in the total enterprise, and the decisions that determine the directions of the business organisation and shape its future” now this is the definition for business policy what it means we need to think on how we can change and achieve our business objectives for that reason we study business policy. Right its very very important from the point of view of achieving objective now policy is guideline for decision making, determines the broad framework with in which managers have to function or work right or take some decisions, policies help decision making for repetitive or recurring situations. Now here in I am reminded of and example right some aound in 2000 when “Head and Shoulder’ entered for the first time in the Indian market they came up with bottels of 250 rupees wo zamane mein 2000 ke saal mein do you belive that Indians will spend 250 rupees for shampoo No now this company tried have number of different things but later on they felt after 12 months we are not able to crack this market right so they changed their policy right and they develop small small sachets after how long after spending 12 months in the market right Indian market and once they came into small small sachets of 1 rupee and as you are aware India is having a population of Right “To sab log agar ek ek sachet bhi karidtte hai” you imagine right the turn over for that particular company Yes that is business policy right so “Areas” now remember that HUL right very very sharp and smart company in marketing so their business policies are very very good right even financial policies cash or may be credit, production always quality purchases, R&D similarly all the companies from Japan like Sony, Toyota, Honda all these companies they spend lot of money in research and development thats their business policy so that they come closer and closer to their objectives right kids so purchases stock levels every thing is checked properly by these companies HR, promotions, recruitment they have the awesome policies for all such things. Now lets check the present status

Today irrelevant evironmet changes as I told you previously “Head and Shoulder” right was totally a disaster why 250 rupees for a bottel of 100 ml nobody would like to buy such a product in India. We dont spend so much, so what was the next option for them to come down to sachets of one one rupee, so demands critical look