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Policies are formally established guidelines that direct employees' decisions within an organization

Policies are made by top-level management or middle-level management to help standardize internal decision-making in the organization.

Conversely, strategies are designed to support staff in addressing challenges to the corporate environment or uncertain situations as they develop.

Strategies aid the company in responding to environmental threats or seizing opportunities when they present themselves.

The differences between policy and strategy are:

1. Policy is guidelines for decision-making in the organization while a strategy is a specific action required to achieve a specific goal of the organization or deal with a specific environmental threat.

2. A strategy is a plan of action, as opposed to a policy, which is a principle for action.

3. Policy is typically less flexible than strategy, while strategy is typically more flexible than policy.

4. A policy is usually formulated to deal with recurring situations in the organization.

In contrast, strategy is typically formulated to counter threats and capitalize on opportunities in the business environment.

5. Strategy is action-oriented, whereas policy is thought-oriented because it is only concerned with thought and decision-making.

6. Strategy deals with the organization's strategic activities, whereas policy deals with routine activities of the organization.

7. Policy implementation can be delegated downward to lower levels of management, but strategy implementation cannot be delegated downard since it involves critical decisions that demand the attention of top management

8. Although policies can be made by top-level management, most policies are usually made by middle-level management.

In contrast, strategy is usually made by top-level management.

9. Policies are directional because they frequently direct organizational decision-making.

Conversely, strategies are typically operational since describes specific action that must be performed to realize an organization's objectives or deal with specific threat

10. Policies are usually formal and/or written whereas a strategy may be informal.

11. While strategies are typically confidential and only known to the top people of the organization, policies are typically known to everyone in the organization.

12. Policy describes what is to be done whereas a strategy describes why it should be done.

13. While strategy is more or less related to the organization's goals, policy is more or less related to the organization's vision.

14. Despite the fact that the majority of strategies are standing plans, a strategy may be single-use plan if it is utilized to counter an non-recurring threat.

On the other hand, because policies are typically created for repeated situations, they are always standing plans.


As a way of concluding, the main difference between policy and strategy is that policy is focused on decision making whereas strategy is focused on actions.

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