Give the meaning of 'policy' and 'strategy' as types of plans.

Policy: These are the general guidelines which facilitate uniformity in decision-making for the attainment of objectives of the organisation. It can be defined as organisation's general response to a particular problem or situation. Policies are made at every level because the managers at every level need to decide or predetermine the way of handling a situation and policy acts as a guide to take decisions in an unexpected situation.

Strategy: A strategy is a comprehensive plan to achieve the organisational objectives. The dimensions of strategy are :

(i) Determining long-term objective.

(ii) Adopting a particular course of action.

(iii) Allocating resources for achieving the objectives.

(iv) The strategy is formulated after scanning the business environment.