Strategy vs Policy
The following are some of the differences between strategies and policies.
1. Policies are guidelines or paths of action to reach the goals, while strategies are major courses of action or patterns of successful action to achieve the objectives. They are intended to meet and fight against a certain competition, much larger and apparently more powerful than the enterprise itself by using its resources in the best possible manner.
2. A policy embraces both thought and action, while strategy concentrates mostly on action, i.e.,it is most action-oriented.
3. A policy usually spells out a certain course of action/approach to reach the set objectives, the strategy outlines one’s approach to meet competitive situations, uncertainties, risk and insecurity likely to arise in the future.
4. Business policy lays emphasis mainly on long-term growth, through a set path of action for achieving the goal; whereas strategy’s main concentration is on meeting a competitive situation; and therefore, they have a short or medium-term target before them.
5. Business policy is an overall guide/path of action that sets the limits and the direction of managerial action; while a strategy is deployed to mobilize the available resources in a marketing campaign to explore new markets or to consolidate the existing one in the face of free competition through a vigorous dvertising campaign.
6. In business policy, some of the implementation part of the process can be delegated to the subordinates, such delegation is not possible in business strategy, nor even desirable.
7. Finally, whereas a policy is concerned with the estimation, availability, application, conservation, and improvement of resources of a firm to utilize them to the optimum benefit of all, a strategy is only concerned with the mobilization of available resources and their deployment on different aspects of competition.
Thus, it should be noted that a strategy is:
- An action plan of the firm, and action decisions in specific directions;
- A long-term design chartered to fight competition in marketing campaigns;
- An application of available resources for effectively meeting a competitor in the market;
- The result of policies; and
- A broad line of action to meet uncertainty, risk and insecurity that may arise in future so that these can be met effectively.
Policies cover the broad aspects and strategies are specific oriented.
The differences between policies and strategies in a nut shell.