Page 43 - Introduction to strategic management

9- Business Policies

Policy vs. Strategy

The term “policy” should not be considered as synonymous to the term
“strategy”. The difference between policy and strategy are as follows:

Policy Strategy

Policy is a blueprint of the organizational Strategy is concerned with those

activities which are repetitive/routine in organizational decisions which have not

nature. been dealt/faced before in same form.

Policy formulation is the responsibility of Strategy formulation is basically done by
top level management. middle level management.

Policy deals with routine/daily activities Strategy deals with strategic decisions.
essential for effective and efficient running

of an organization.

Policy is concerned with both thought and Strategy is concerned mostly with action.

actions.

A policy is about ‘what is’ or ‘what is not A strategy is the methodology used to
done’. achieve a target as prescribed by a policy.

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