what is difference between policy and strategy?
Answers
Strategy is the best plan opted from a number of plans, in order to achieve the organizational goals and objectives. Policy is a set of common rules and regulations, which forms as a base to take day to day decisions. Strategy is a plan of action while the policy is a principle of action.
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Definition of Strategy
Strategy is a game plan, chosen to achieve the organizational objectives, gain customer’s trust, attain competitive advantage and to acquire a market position. It is a combination of well thought intent and actions which lead to the organization towards its desired position or destination.
Definition of Policy
The policy is also regarded as a mini – mission statement, is a set of principles and rules which directs the decisions of the organization. Policies are framed by the top level management of the organization to serve as a guideline for operational decision making. It is helpful in highlighting the rules, value and beliefs of the organization. In addition to this, it acts as a basis for guiding the actions.
Key Differences Between Strategy and Policy
The following are the major differences between strategy and policy
1)Strategy is the best plan opted from a number of plans, in order to achieve the organizational goals and objectives. Policy is a set of common rules and regulations, which forms as a base to take day to day decisions.
2)Strategy is a plan of action while the policy is a principle of action.
3)Strategies can be modified as per the situation, so they are dynamic in nature. Conversely, Policies are uniform in nature, however relaxations can be made for unexpected situations.
4)Strategies are concentrated toward actions, whereas Policies are decision oriented.
5)Strategies are always framed by the top management but sub strategies are formulated at the middle level. In contrast to Policy, they are, in general made by the top management.
6)Strategies deals with external environmental factors. On the other hand, Policies are made for internal environment of business.