Strategies as Guides

Strategies and policies assist managers to Properly by guiding them to make operational decisions. The basic idle of the strategy and policy framework, is as follows : the more gives and policies are clearly understood and implemented in practice, more consistent and effective will be the framework for enterprise For example, according to Weihrich and Koontz. "If a company has major policy of developing only new products that fits its marketing inaction, it will avoid wasting energy and resources on new products do not meet this test."

Strategies and policies, to be effective, must be put into practice by mans of detailed plans embodying minutest of ingredients necessary for operation. These detailed plans, also called tactics, are the action plans d rough which strategies are pursued and implemented. Hence strategies must be supported by effective tactics.

Dunham and Pierce have defined strategic planning as the top management's active and conscious effort to design a plan in order to place an organization within its external environment. A strategic plan outlines a long term perspective for the organization. It specifically states one organization’s reason for existence, its strategic objectives, and its operational strategies.

A strategic plan of an organization, therefore, answers a set of fundamental questions: What business is it doing or does it want to do in future? What kind of organization is it or does it like to be? How is it going to conduct itself to achieve this strategic position? "A strategic plan, therefore, is a comprehensive framework that guides the decisions that determine the nature and direction of organizational activities." 12 For a broader and better understanding of strategic planning, the following three concepts need to be appreciated. Viz. organizational mission, strategic objectives and operational strategies.

An organizational mission is a statement specifying the kind of business it wants to undertake. It puts forward the vision of management based on internal and external environments, capabilities. And the nature of customers of the organization. Particular mission statement, however. Does not necessarily state specific strategic objectives or operational strategies or tactics. A strategic objective provides statements of definable measurable achievements. Realization of such achievements marks fulfillment of an organization’s mission statement.

Finally operational strategies specify the actions that are to taken in order to attain objectives. Therefore. Operational strategies Or tactics mean the same thing which is action plans designed to execute implement strategies.