What is the Difference between Policy and Strategy?

A policy is a guide to thinking and action for those responsible for making decisions. On the other hand, a strategy deals with the allocation and deployment of physical and human resources so as to achieve the desired goals in the face of environmental pressures.

A strategy may exist without a policy. Strategy and policy may in some cases be coextensive. A strategy deals primarily with environmental constraints and opporĀ­tunities whereas a policy is concerned mainly with internal management.

A policy is a contingent decision and it lays down the response to be made whenever the specified contingency arises. But a strategy is designed to deal with situations about which all facts are not known and, therefore, alternatives can not be evaluated in advance.

The implemenĀ­tation of policy can be delegated but the execution of strategy cannot be delegated because it requires a last minute executive-decision.

However, both policy and strategy are designed to achieve organizational object- I lives. The process of their formulation is similar. In strategic decisions the identification and analysis of the factors bearing on the problem are more difficult than in case of policy decisions.