POLICY AND STRATEGY

1. POLICY AND STRATEGY
Ramya B
Assistant Professor
B.com(PA)
Sri Ramakrishna College of Arts and Science
Coimbatore - 641 006
Tamil Nadu, India
1

2. Definition of Strategy
 The strategy is a game plan, chosen to achieve the
organisational 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 organisation towards its desired position
or destination.
 It is a unified and integrated plan made to achieve the
basic objectives of the enterprise like:

3. • Effectiveness
• Handling events and problems
• Taking advantage of opportunities
• Full resource utilisation
• Coping with threats

4.  The strategy is a combination of flexibly designed
corporate moves, through which an organisation can
compete with its rivals successfully. lowing are the
features of the Strategy:
 It should be formulated from top-level management.
However, sub-strategies can be made by middle-level
management.
 It should have a long-range perspective.
 It should be dynamic in nature. The main purpose is to
overcome from uncertain situations.
 It should be made in such a way, to make the best
possible use of scarce resources.

5. Definition of Policy
 The policy is also regarded as a mini-mission statement,
is a set of principles and rules which direct the decisions
of the organisation.
 Policies are framed by the top-level management of the
organisation to serve as a guideline for operational
decision making.
 It is helpful in highlighting the rules, value and beliefs of
the organisation. In addition to this, it acts as a basis for
guiding the actions.

6.  Policies are designed, by taking the opinion and general
view of a number of people in the organisation regarding
any situation.
 They are made from experience and basic
understanding. In this way, the people who come under
the range of such policy will completely agree upon its
implementation.

7. COMPARISON BETWEEN STRATEGY AND
POLICY
BAS
IS
FO
R
CO
MP
ARI
SON
STR
ATE
GY
POL
ICY
Mea
ning
Strat
egy
is a
com
preh
ensi
ve
plan,
mad
e to
acco
mpli
sh
the
orga
nizat
ional
goal
s.
Polic
y is
the
guidi
ng
prin
ciple
, that
help
s the
orga
nizat
ion
to
take
logic
al
deci
sions
.
Wha
t is
it?
Acti
on
plan
Acti
on
prin
ciple
Natu
re
Flexi
ble
Fixe
d,
but
they
allo
w
exce
ption
al
situa
tions
Rela
ted
to
Org
aniz
ation
al
mov
es
and
deci
sions
for
the
situa
tions
whic
h
have
not
been
enco
unte
red
prev
iousl
y.
Org
aniz
ation
al
rules
for
the
activ
ities
whic
h
are
repe
titive
in
natu
re.
Orie
ntati
on
Acti
on
Tho
ught
and
Deci
sion
For
mula
tion
Top
Lev
el
Man
age
ment
and
Mid
dle
Lev
el
Man
age
ment
Top
Lev
el
Man
age
ment
App
roac
h
Extr
over
ted
Intro
vert
ed
Des
crib
es
Met
hodo
logy
used
to
achi
eve
the
targ
et.
Wha
t
shou
ld be
done
and
what
shou
ld
not
be
done
.
BAS
IS
FO
R
CO
MP
ARI
SON
STR
ATE
GY
POL
ICY
Mea
ning
Strat
egy
is a
com
preh
ensi
ve
plan,
mad
e to
acco
mpli
sh
the
orga
nizat
ional
goal
s.
Polic
y is
the
guidi
ng
prin
ciple
, that
help
s the
orga
nizat
ion
to
take
logic
al
deci
sions
.
Wha
t is
it?
Acti
on
plan
Acti
on
prin
ciple
Natu
re
Flexi
ble
Fixe
d,
but
they
allo
w
exce
ption
al
situa
tions
Rela
ted
to
Org
aniz
ation
al
mov
es
and
deci
sions
for
the
situa
tions
whic
h
have
not
been
enco
unte
red
prev
iousl
y.
Org
aniz
ation
al
rules
for
the
activ
ities
whic
h
are
repe
titive
in
natu
re.
Orie
ntati
on
Acti
on
Tho
ught
and
Deci
sion
For
mula
tion
Top
Lev
el
Man
age
ment
and
Mid
dle
Lev
el
Man
age
ment
Top
Lev
el
Man
age
ment
App
roac
h
Extr
over
ted
Intro
vert
ed
STR
ATE
GY
POL
ICY
Strat
egy
is a
com
preh
ensi
ve
plan,
mad
e to
acco
mpli
sh
the
orga
nizat
ional
goal
s.
Polic
y is
the
guidi
ng
prin
ciple
, that
help
s the
orga
nizat
ion
to
take
logic
al
deci
sions
.
Acti
on
plan
Acti
on
prin
ciple
Flexi
ble
Fixe
d,
but
they
allo
w
exce
ption
al
situa
tions
Org
aniz
ation
al
mov
es
and
deci
sions
for
the
situa
tions
whic
h
have
not
been
enco
unte
red
prev
iousl
y.
Org
aniz
ation
al
rules
for
the
activ
ities
whic
h
are
repe
titive
in
natu
re.
Acti
on
Tho
ught
and
Deci
sion
BASIS FOR
COMPARISON
STRATEGY POLICY
Meaning Strategy is a comprehensive plan,
made to accomplish the
organizational goals.
Policy is the guiding principle,
that helps the organization to
take logical decisions.
What is it? Action plan Action principle
Nature Flexible Fixed, but they allow exceptional
situations
Related to Organizational moves and decisions
for the situations which have not
been encountered previously.
Organizational rules for the
activities which are repetitive in
nature.

8. BASIS FOR
COMPARISON
STRATEGY POLICY
Orientation Action Thought and Decision
Formulation Top Level Management and Middle
Level Management
Top Level Management
Approach Extroverted Introverted
Describes Methodology used to achieve the
target.
What should be done and what
should not be done.