Nature & Purpose of Strategies &Policies

The Nature and Purpose of Strategies and Policies Strategy : Derived from Greek Word strategos, meaning "general"
Strategy refers to the determination of the
purpose (or mission) and the basic long-term objectives of an enterprise, and the
adoption of course of action and allocation
of resources necessary to achieve these aims. Therefore, objectives are a part of the strategy formulation.

Policies are general statements or understandings that guide managers' thinking in decision making. They usually do
not require action but are intended to guide
managers in their commitment to the
decision they ultimately make.

Strategies and policies must be put into
practice by means of plans, increasing in
detail until they get down to the nuts and
bolts of operation. Tactics then, are the
action plans through which strategies are
executed. Strategies must be supported by
effective tactics.
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Fundamentals of Management : Planning [BBA 2305]