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Policies are guides to action that define the Strategic objectives the ends that the
boundaries within which objectives are organization hopes to achieve in fulfilling its
established and strategies are determined, basic mission. A strategic objective should
implemented, and controlled. The purpose be consistent with and derived from the
of the policies is to limit the scope of mission, philoshopy, and policies of the
alternatives that must be considered in organization. In recommending strategic
making and implementing strategic objectives, senior management takes into
decisions. Policies may be divided into account the forces in the internal and global
strategic and implementation. external environments that present threats
1. Strategic policies guide the planning and opportunities to the firm.
process
2. Implementation policies guide the
strategy implementation process.
Formulating Organization Strategy
The organization strategy of a company is the method that the company uses to achieve
its strategic objectives. level of organization strategy
Be on the offensive
Dominant firm fortify against the enemy
confort enemy by promotion
Segment market
Low market-share firms Build image
Channel innovation
Identify, create, and exploit growth segments in the
Firm in stagnant indsutries
industry
Stages of product life cycle and competitive strength Contingent upon where product is in life cycle and
of firm firm’s competitive position
Implementing Organization Strategy