POLICY AND STRATEGY

FORMULATION
SUMMITED BY: TAKHE RILA,
ANNSH JAISHWAL,
SAMLIN KUNGKHO
B.COM 1ST SEM
 CONTENTS

 INTRODUCTION
 KEY DIFFRENCES
 IMPORTANCE
 FEATURES
 NEED FOR CLEAR POLICIES
 DEVLOPING STRATEGY STEPS
 ALIGINING POLICIES WITH GOALS
 POLICIE FORMULATION CHALLENGES
 PUTTING POLICIES INTO ACTION
 CONCLUSION
INTRODUCTION

 POLICY: Business policies are the guidelines developed by an organization to

governs it action. They define the limits within decision must be made. Business
policy also deals with which organizational goals can be achieved. Business
policy is the study of the roles and responsibilities of top level
management ,the significant issue affecting organizational success and the
decision affecting organization in long run.
 STRATEGY:A general direction set for the company and its various components to
achieve a desired state in the future. Strategy results from the detailed strategic
planning process. A strategy is all about integrating organization activities and
utilizing and allocating the scarce resource within the organization environment
so as to meet the present objective, strategic and be defined as knowledge of
the goals, the uncertainty of events and the need to take into consideration the
likely or actual behavior of others.
KEY DIFFERENCES:

1. Scope policies are generally board guidance everyday decisions and actions,
while strategy are more specific and focused an achieving long-term goals.
2. Timeframe policies lead to be relatively stable and have a longer-term
orientations strategies are dynamic and adapted to changing circumstances.
3. Nature policies are prescriptive, stating what must or must not be done
strategies are proactive, outlining how an organization will achieve its
objectives.
4. Focus policies emphasize compliance and consistency whereas strategies
emphasize competitive advantage and differentiations.
IMPORTANCE OF POLICY AND STRATEGY OF AN ORGANIZATION

 POLICY
Business policy are important and affect everything from legal liabilities to employee satisfaction and a positive
public image, policies make sure everything is on the same page when it comes to expectation of certain things .A
business might have policies to different aspect of the company. There may be safety policies, human resource
hiring policies and anti discrimination policies .There may also be policies that pertained to employee’s Dress code,
lunch scheduled , time of and holidays .Other policies are relevant to the customer experiences including greeting
customers ,phone call management and product delivery specifies.
 STRATEGY
In the initial phase of business ,a lot of planning is required .while a plan clarifies the goals, it is the strategy that
helps in executing and reaching the vision. When leaders formulate the strategy, it helps them understand this
strength and weakness. This way they can capitalize on what they are good at and improved on their weaker
aspects.it ensures that every aspect of business is planned this means more efficiency and better and more
effective plans. Everyone in the team is aware of what they need to do, and the capital is allocated properly.
 FEATURES OF POLICY AND STRATEGY OF AN ORGANIZATION
 POLICY
I. Specific-Policy should be specific . If it is uncertain, then the implementation will become difficult.
II. Clean-policy must be anautogenous .it should avoid the use of connotation. They should be no
misunderstanding in the following policy.
III. Uniform-policy must be uniform enough so that it can be efficiently followed by the subordinates.
IV. Appropriate-policy should be appropriate to present organizational goal.
V. Comprehensive-in order to have a wide scope a policy must be comprehensive.
 STRATEGY
I. About winking-strategy is all about winning .it is about matching the strength and competencies of a firm
in order to win competition.
II. Long term focus- strategies are formulated and implemented for long term growth and development of
business firm. Strategies help the computes achieved their long term goal and objective.
III. Top management decision-strategy is a product of top management thinking , strategies are developed
by top level executives who have the knowledge and necessary information to plan for the organization
as a whole.
 NEEDS FOR CLEAR POLICY
1. Direction and focus: Policies and strategies provide a clear sense of direction for the organization.
They outline the goals, objectives, and priorities, ensuring that everyone in the organization is working
towards a common purpose.
2. Efficient Resource Allocation: Having clear strategies helps allocates resources (financial, human, and
time) effectively. Without a strategy, resources may be wasted on initiatives that not align with the
organizations goals.
3. Risk Management: Well-defined policies and strategies include risk assessment and mitigation plans.
This helps the organization anticipate potential challenges and plan for contingencies.
4. Consistency And Accountability: Policies set the rule and standard for behavior and decision-making
within the organizations. They promote consistency and provide a basis for holding individuals and
team accountable for their actions.
5. Competitive Advantages: Effective strategies can give organizations a competitive edge. They enable
companies to identify opportunities in the market, develop unique value propositions, and stay ahead
of competitors.
DEVELOPING STRATEGY STEPS
1. Assess the situation: Understand the current state of your organization or project. Analyze internal
strengths and weakness. Evaluate external opportunities and threats.
2. Set clear objectives: Define specific, measurable, achievable, relevant, and time-bound objectives.
Ensure alignment with your organization’s mission and vision.
3. Gather Information: Collect data and research relevant market trends and competitors. Understand
customers needs, preferences, and behaviors.
4. Identify strategic options: Brainstorm different approaches or strategic to achieve your objectives.
Consider various alternatives and innovative ideas.
5. Evaluate and prioritize: Assess the feasibility and potential risk of each strategy. Prioritize strategies
based on their impact and resource requirements.
ALIGNING POLICIES WITH GOALS

 Clearly define organizational goals: Being by precisely define your organization’s shorts-term and
long-term goals. These goals should be specific, measurable, achievable, relevant, and time
bound(SMARAT)
 Develop a strategic plan: create a strategic plan that outline how the organization will achieve its
goals. This plan should include the allocation of resource , timeline, and key performance
indicators(KPIS).
 Policy development: Develop policies that support the objectives outline in the strategic plan. This
policies should guide decision making and actions within the organization.
 Regularly review and update policies: Ensure that policies are periodically reviewed and update to
remain in sync with changing goals and external factors.
 Communication and education: Communicate the policies and strategies to all members of the
organization to ensure everyone understand their rules and responsibilities in achieving the goals.
 POLICY FORMULATION CHALLENGES
 Complicity of issues: Many policy and strategy decision involve multi face it and identify problems,
making it difficult to identify the most effective solution
 Lack of data: Inadequate or unreliable data can hinder evidence based decision making it challenging to
assess the potential impact of policies and strategies accurately.
 Political consideration: policy and strategies are obtained influence by political ascends which can lead to
decision that priority short term political gains over long term benefits .
 Stakeholder divergence : the drivers interest and opinions of various stakeholders including government
agencies business and the public can be challenging.
 Resource constraints :limited budget and resources may restrict the implementation of ambitious policies
and strategies forcing compromise or delay.
 PUTTING POLICY INTO ACTION
 Policy and strategy development :policies are high level guidelines or rules that an organization or
government stabilized to specific goals. Strategies are delight plans that outline how policies will be
excluded to achieve those goals.
 Planning :once policy and strategies are formulated delight plans are created this plants breakdown the
strategies into actionable step allocate resources and set-timelines.
 Monitoring :continuous monitoring is crucial to ensure that the implemented actions telling with the
policies and strategies this involves collecting data and assessing processes
 Feedback and adjustment: based on monitoring results feedback is provided to decision maker if deviation
or issue arise adjustment to the strategies
 Implementation :this is the stage where the actual execution of the plants take place resources such as
personal funding and technology are mobilized to carry out the planed action
CONCLUSION
 In conclusion, policy and strategy formulation are vital processes for
organizations and governments in today's dynamic and competitive
environment. These processes play a crucial role in defining an organization's
direction, goals, and actions to achieve its objectives.