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Difference between Policy and Strategy A major distinction between policy and strategy is that former is a guide to the

thinking and action of those who make decisions, while strategy concerns the direction in which human and physical resources will be deployed and applied in order to maximise the chance of achieving a selected objective in th face of difficulties. Policy is contingent decision, whereas strategy is a rule for making decision. A contingent even is recognised because it is repetitive, but the time of its specific occurrence cannot be specified. It is not worth while to require a new decision on what should be done each time when a contingency arises. It is better to prescribe, in advance, the response to be made whenever a specified contingency occurs. This is done through policy formulations. Specification of strategy is forced under conditions of partial ignorance when alternatives cannot be arranged and analysed in advance. The strategy decision is taken under the conditions where all the facts are not known, which may not be lasting because of the further knowledge of the facts. The distinction between policy and strategy is made in the context of delegation or implementation. The implementation of policy can be delegated downward in the organisation, while the strategy cannot, since it requires a last-minute executive decision. The term policy should not be considered as synonymous to the term strategy. The difference between policy and strategy can be summarized as follows1. Policy is a blueprint of the organizational activities which are repetitive/routine in nature. While strategy is concerned with those organizational decisions which have not been dealt/faced before in same form. 2. Policy formulation is responsibility of top level management. While strategy formulation is basically done by middle level management. 3. Policy deals with routine/daily activities essential for effective and efficient running of an organization. While strategy deals with strategic decisions. 4. Policy is concerned with both thought and actions. While strategy is concerned mostly with action. 5. A policy is what is, or what is not done. While a strategy is the methodology used to achieve a target as prescribed by a policy. A strategy is a plan to do things a certain way to achieve a desired outcome. A policy is a rule designed to ensure consistency in governance and to avoid undesirable outcomes.

Example: The strategy might be to phone 100 people everyday to meet the sales target. The policy might be that I am not allowed to phone them after 9 pm. Strategy is the process of specifying an organization's objectives, developing policies and plans to achieve these objectives, and allocating resources to implement the policies and plans to achieve the organization's objectives. On the other hand, a policy is a plan of action to guide decisions and actions. The policy process includes the identification of different alternatives, such as programs or spending priorities, and choosing among them on the basis of the impact they will have. Policies can be understood as political, management, financial, and administrative mechanisms arranged to reach explicit goals. Anonymous What Is The Difference Between Mission And Objective? An objective is a goal planned that you can get it in a period of time There are mainly two classes of objectives: General and specific but depend what is the specific field that you need to establish them. A mission is something more general than an objective, A mission can have many objectives because a mission is an organized work, assignment or operation but to complete a mission you must complete steps or specific objectives to get the whole mission. Anonymous Goal is a state of affairs, or a state of concrete activity, which an organization or system wishes to achieve or obtain. Objective is the plan, to involve and implement specific actions which must be taken to close the gap between the current realities and the ideal state. Mission is the process of defining objectives and developing strategies to reach those objectives. Vision involves the foresight needed to acquire the necessary expertise to organize existing resources, to accomplish the desired results. Anonymous Goal is a position or place which an organization wants to attain. Goal is close to reality and is achievable by people. Objective is the plan, to make and execute particular actions which must be taken to finish the gap between the current state and the desired one. Mission is the method of defining objectives and making strategies to get those objectives. Vision includes the foresightedness which is required to get the essential skill to organize existing resources, to achieve the desired outcome. Company first make a Vision, then mission, in order to accomplish mission they make objectives and at the end they make goals (end result/place which organization want to get). Anonymous

Distinction between policy and strategy:


1. Policy of an organization is prepared to deal with the internal affairs generally. Whereas strategy generally deals with the affairs and events that are external to the firm. 2. Strategy produces the policies but policies do not produce strategy. 3. Policies must be within the power of the boss and can be executed by exercising the power of the boss. But strategies cant be executed by exercising the power of the executives because many external events affect the attainment of objectives. 4. A strategic process goes through analysis and diagnosis, choice, implementation and evaluation to complete. But in framing the policies the executive does not need to scan the environment. 5. A policy is framed for recurring activities but a strategy is not formulated for recurring activities. It is formulated to meet the events that may arise in near future and also in the long ran. 6. The strategy of a company can be known if we analyze the policy followed by a company. 7. The policy is in fact a sub-function of strategy. When recurring problems arise frequently then a best standard solution is found out and is termed as policy. So, policy implements strategy but strategy does not implement policy. 8. Examples of policies are product policy, sales policy, purchase policy, personnel policy. Whereas, examples of strategy are stability strategy, growth strategy retrenchment strategy and combination strategy.
9. Policy is a blueprint of the organizational activities which are repetitive/routine

in nature. While strategy is concerned with those organizational decisions which have not been dealt/faced before in same form. 10.Policy formulation is responsibility of top level management. While strategy formulation is basically done by middle level management.
11. Policy deals with routine/daily activities essential for effective and efficient

running of an organization. While strategy deals with strategic decisions.

12.Policy is concerned with both thought and actions. While strategy is concerned mostly with action. 13. The distinction between policy and strategy is made in the context of delegation or implementation. The implementation of policy can be delegated downward in the organization, while the strategy cannot, since it requires a lastminute executive decision.