Definitions “Business policy is one which focuses attention on strategic allocation of scarce resources – human, financial, physical and intangible. Conceptually speaking strategy is the direction of such resource allocation and policy is the time of allocation.”-Rodgers
“It is a unified, comprehensive and integrated planning designed to assure that the objectives of the organization are achieved.”In simple words strategy is a package of measures to attain the objectives. –Glueck
A common sense definition of both policy and strategy is “the pattern of an organization response to its internal and external environment over a period of time.” But “Policy” and “Strategy” are different only in definition. Thereafter throughout the subject they are used interchangeably.
“The study of the function and responsibilities of senior management , the crucial problems that affect success in the total enterprise, the decisions that determine the direction of the organization and shape its future. The problems of policy in business , like those of policies in public affairs, have to do with the choice of purposes , the moulding of organizational identity and character , the continuous definition of what needs to be done , and the mobilization of resources for the attainment of goals in the face of competition or adverse circumstance” -Christensen
Nature and Scope of the Subject:
• It deals with organization responses to changes. Sometimes organization responds after the change has taken place (reactive).But good organization anticipate change plan ahead and excel (proactive).
• It is top management view point.
• Broad perspective and comprehensive approach
• Long range impact
• Involves huge resources and large segments of the organization
• Multi-disciplinary approach-involving