What is strategy ?
According to Alfred D. Chandler, ”
Strategy is the determination of the
basic long term goals and objectives of
an enterprise and the adoption of the
course of action and the allocation of
resources necessary for carrying out
these goal “.
Framework for operational planning
Clarity in direction of activities
To increase Organizational Effectiveness
› Organizational Mission and Objectives
› Environmental Analysis
› Corporate Analysis
› Identification of Alternatives
› Choice of Strategy
What is policy ?
According to Heing Weihrich and
Harold Koontz ,” Policies are general
statements or understandings which
guide or channel thinking in decision
A policy provides guidelines to the
members of the organization for deciding a
course of action and thus restricts their
freedom of action.
Policy limits an area within which a decision
is to be made and assures that the decision
will be consistent with and contributive to
Policies are generally expressed in
qualitative, conditional or general way.
Policy formulation is a function of all
managers in the organization.
Policy is made on the basis that it is a
guideline to the thinking and action of
those who make decisions.
Policy provides guidelines for decisions it
can be delegated downward in the
Strategy is made on the basis of direction
in which human and physical resources
Strategy cannot be delegated because
its formulation may require last minute
changes in the decision depending on
Relationship to Organizational
Fair Amount of Clarity
What is planning premises ?
According to Heinz Weihrich and
Harold Koontz,” Planning premises are
the anticipated environment in which
plans are expected to operate. They
include assumptions or forecasts of the
future and known conditions that will
affect the operation of plans “.
Tangible and Intangible Premises
Controllable and Uncontrollable
Selection of Premises
Collection of information
Premises for Contingency Planning
Communication of Planning Premises