STRATEGY VS POLICY

MHEL ROSE T. ORCEO

 DIFFERENCES BETWEEN POLICY AND
STRATEGY

• 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
the same form.
• Policy formulation is responsibility of top level management. While
strategy formulation is basically done by middle level management.

• A policy is what is, or what is not done. While a strategy is the

methodology used to achieved a target as prescribed by a policy.

 SITUATIONS WHERE STRATEGY AND
POLICY COME N COLLISION

In many instances, business policies exist amidst absence of

business strategy and strategies may exist without established

business policy.

If ever they exist, business policies are generally directional in

nature and strategy is more operational in context.

Business policies are often formal or written and strategies may be

informal and not necessarily written and often confidential.

 • In this book, policy is viewed as internal matters that guide the
operationalization of the business organization whereas
strategy is viewed more as an external orientation that the
firm’s management should practice to competitive in the
industry or sector it belongs.

ORIGIN AND NATURE OF STRATEGY

The historical development of the concept of strategic management was

elaborated by Jeffrey Bracker of Georgia State University .
Bracker cited that the word strategy originated from the Greek word
“stratego” referring to a “general” which in turn traces its root from the
word “army” and “lead” . Stratego means “to plan the destruction of
one’s enemies through effective use of resources.
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