STRATEGY AND POLICY

Strategy and Policy

Strategy and Policy

Introduction

This paper will explain the concept of strategy and policy. The increasing competition has highlighted the importance of devising and implementing policies and strategies. Business policies and strategies are intertwined. Therefore, businesses need to comprehend the significance and implications of these core concepts.

The paper has also discussed the interaction between strategy and policy. Strategy and policy making are two core processes of an organization. These two processes are intertwined, and each has an impact on the other.

Discussion

Strategy

Strategy is defined as the process of identifying the long term objectives of an enterprise. Strategy also involves adopting different courses of action. When devising and implementing a strategy, it is imperative to allocate resources efficiently (John, 1988, pp. 56). On the other world, policy is defined as specific statements that guide the decision making process of managers (Ring & Perry, 1985, pp. 276).

Strategy formulation is the process that involves the development of long-term plans for the successful analysis and management of environmental opportunities and threats. Strategies are formed after considering corporate strengths and weakness. The process also involves defining the corporate mission, and specifying achievable objectives. The definition of Strategy states that it is strategy is an overall plan of development. Strategy describes the effective utilization of resources in order to support the long-term objectives of the organization.

In organizational level, strategy can be classified into diverse types. The strategy that is implemented for the overall organization is corporate strategy. Similarly, for the effectiveness of human resource system, organizations devise and implement human resource strategies. The human resource systems devise strategies according to the human resource policies of the organization. The focus of business strategies is to support the future development of the organization. Every organization process needs effective strategies (Hayes, 1986, pp. 71).

Policy

Policy is concerned with the effective use of organizational resources. The field of business policy was originated in 1911. The academic importance of business policy increased when an integrated course in management was introduced at Harvard Business School. After that, business policy course was made compulsory for all business schools. Business Policy is defined as decisions related to the future of organizations. The decisions of business polices are taken by the top management. The decisions of business policy are often made when an enterprise has a market opportunity and required resources. In this situation, the company integrates the current and future opportunities.

The decisions of business policy are vital since they determine the relationship between an organization and its environment. Business policy of an organization determines the future actions of the organization. In addition, these policies determine how the company should position itself according to the environment. It depicts that business policy is a process that required decision makers to set long term objectives. These policies determine the future of organizations. Business policy involves the decisions of top decisions that relate the future of business with the available opportunities.

The need of directing the future of businesses arises ...