3.1 Business Policy as a Discipline
Business policy is a compulsory course in management education, usually taught toward the end of degree or diploma programmes. According to Kazmi (2006), most universities and management institutes in Nigeria include it in their curriculum because it integrates knowledge gained from different areas of management and prepares students for general management responsibilities.
3.2 The Genesis of Business Policy
The origin of business policy dates back to 1911 when Harvard Business School introduced an integrative management course using case studies. Its major development occurred in 1959 following the Gordon and Howell Report and the Pierson Report, which recommended a capstone course to help students combine knowledge from different business fields and solve complex managerial problems.
3.3 Evolution Based on Managerial Practices
Business policy evolved from managerial planning practices. Initially, managers relied on day-to-day planning, budgeting, and control systems. These later developed into long-range planning, then strategic planning, and finally strategic management. Today, strategic management provides the theoretical foundation for business policy courses.
3.4 Historical Perspective of the Evolution of Business Policy
The evolution of business policy followed four major phases:
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Ad-hoc policy-making (1930s): Informal policies created to manage expanding firms.
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Planned policy formulation: Greater integration of functional areas due to environmental changes.
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Strategy paradigm (1960s): Focus shifted to understanding business–environment relationships.
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Strategic management (1980s–present): Emphasis on strategic decision-making and general management responsibilities.
The development of business policy closely reflected real business needs and environmental changes.
3.5 Pointers to the Future
The future of business policy lies in strengthening strategic thinking and adapting to complex organizational challenges. Modern strategic management considers psychological, social, political, and environmental factors. Businesses are increasingly expected to address social and global issues beyond profit-making. As a result, business policy education is expanding into multiple strategic courses such as competitive strategy and global strategy. Key future concerns include understanding firm behavior, differences in performance, corporate strategy roles, and success in global competition.
