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Business-studies-CBSE-class-12-2017-->View question

Asked On2017-07-19 05:31:22 by:milan-ransingh

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i. Strategy and rules as types of plans
Strategy refers to a broad outline for the business of an organisation. Strategic decisions mainly include the decision whether to continue on the same business lines or to adapt new organisational activities or to bring about any major kind of change so as to make a dominant stand for itself in the competitive market. It has three broad objectives:
a. To determine the objectives
b. To decide the course of action
c. To allocate necessary resources for the achievement of the objectives
Few strategic decisions which a business organisation may look out for are:
a. Deciding about which line of business should be taken
b. Whether a new line of production should be adopted or not
c. What position the company should aim for in the existing market
d. What kind of pricing policy should be used
ii. Rules
Rules refer to standard or specific statements which inform us about what is to be done. It is quite similar to plans because both of them facilitate the achievement of objectives. Rules state what need not be done and what needs to be done, whereas planning points out what to do and how to do. They can be viewed as the simplest of plans. However, rules are rigid in nature, i.e. do not allow flexibility or discretion and are to be followed as is, unless a change is stated by the organisation. Non-compliance of rules leads to disciplinary actions by the organisation. For example, an organisation may have rules regarding the punch-in timings of the employees and every employee of the organisation must follow this rule. Rules act as a guide for general behaviour of the employees in the organisation.

Answerd on:2017-07-20 Answerd By:Aparna-Dasgupta

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