Policy vs. Strategy – Differences & Comparison

Policy and Strategy are terms used in the organizations, businesses, and governance framework. Both of these terms are used to make decisions. Moreover, Policy and Strategy are similar and have some key differences.

Main Difference

The policy refers to a set of guidelines and rules by a system to apply laws. Strategy is a plan or idea of an action to achieve particular tasks and goals. The policy has a broader scope as compared to Strategy. The timeframe of Policy is long-term, while Strategy is made for the short term. Discuss the main differences between Policy and Strategy to clarify people’s confusion.

What is Policy?

Policy is a term people use to govern government, business, or organizational decision-making. Rules, laws, guidelines, and regulations may include in Policy. Moreover, it provides a framework for action and behavior. The policy is applied for the long term. Furthermore, it is used by procedures, standards, and guidelines.

In addition, Policy is influenced by economic, social, and political factors. Elected officers, senior leaders, official members, and chiefs of organizations create the Policy. To achieve goals, Policy is a good plan. It is the guideline for the overall direction of an institute. Lastly, Policy has a broad scope as compared to Strategy.

What is Strategy?

Strategy is a term that is widely using in all over the world to achieve goals and objectives. Strategy is a plan or idea of a behavior or action that a single person can create or create by a team or institute. Examples of Strategy are military Strategy for a particular operation and marketing strategy for launching a new product.

Moreover, Strategy can be changed as conditions and circumstances change. Strategy is mainly applied for the short term. Careful analysis of the situation is the base of this term, such as weakness, strength, risk, and opportunity. In addition, the influences of the Strategy are internal and external factors such as market trends, competition, and technological advancement.

Critical differences between Policy and Strategy

  1. Strategy is influenced by internal and external factors, while political, social, and legal influence policy aspects.
  2. The policy has a broader scope as compared to Strategy.
  3. The timeframe of Policy is long-term, while the timetable of Strategy is short-term.
  4. The policy is a set of guidelines by an organization, while Strategy is a plan to achieve goals.
  5. Senior leaders and officers create the policy. Another hand; Individuals or a team create the strategy.

Comparison chart

Features Policy Strategy
Definition Set of guidelines by an organization Particular plan of action to achieve goals
Influenced by Social, political, economic, and legal factors Internal or external factors
Created by Senior leaders Individually or team
Timeframe Long-term Short-term


We conclude that Policy and Strategy are entirely different terms. Both have different definitions, purposes, and timeframes.

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