Strategy is defined as determining long term goals and objectives of an enterprise and adopting actions to carry them out. It involves environmental and corporate analysis to identify alternatives and choose a strategy, then implementing it. Strategy cannot be delegated and may require changes depending on decisions. Policy provides guidelines for decision making to be consistent with objectives. It can be delegated downward and is generally expressed qualitatively. Planning premises are assumptions about the anticipated environment plans will operate in, including external factors and internal conditions affecting plans.

2. 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 “.

3. Framework for operational planning
 Clarity in direction of activities
 To increase Organizational Effectiveness
 Personal Satisfaction
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4. › Organizational Mission and Objectives
› Environmental Analysis
› Corporate Analysis
› Identification of Alternatives
› Choice of Strategy
› Implementation

5. Institutionalization of Strategy
 Setting Proper Organizational Climate
 Developing Appropriate Operating Plans
 Developing Appropriate Organization
Structure
 Periodic review of Strategy


6. What is policy ?
According to Heing Weihrich and
Harold Koontz ,” Policies are general
statements or understandings which
guide or channel thinking in decision
making “.

7. 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
objectives.
 Policies are generally expressed in
qualitative, conditional or general way.
 Policy formulation is a function of all
managers in the organization.


8. Policy


Strategy


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
organization
Strategy is made on the basis of direction
in which human and physical resources
are deployed.
Strategy cannot be delegated because
its formulation may require last minute
changes in the decision depending on
the decisions.

9. Relationship to Organizational
Objectives
 Planned Formulation
 Fair Amount of Clarity
 Consistency
 Balanced
 Written
 Communication


10. Formulated Policy
 Implied Policy
 Imposed Policy
 Appealed Policy


11. 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 “.

12. External Premises
 Internal Premises
 Tangible and Intangible Premises
 Controllable and Uncontrollable
Premises


13. Selection of Premises
 Collection of information
 Premises for Contingency Planning
 Communication of Planning Premises
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