Question

Explain the following types of plans:
(i) Strategy
(ii) Procedure

Hint:

A strategy provides the overall direction for achieving goals, whereas a procedure ensures systematic execution of specific tasks. Both are essential for effective planning and management.

Answer 1

(i) Strategy
- A strategy is a comprehensive plan formulated by an organization to achieve its long-term objectives while considering the dynamic business environment.
- It provides the overall direction for decision-making and defines how resources should be allocated to achieve competitive advantage.
- A good strategy takes into account external factors such as market trends, competition, and government policies.
- Example: A company deciding to expand into international markets as a part of its business growth strategy.

(ii) Procedure
- A procedure is a step-by-step sequence of activities required to perform a specific task or function in an organization.
- It ensures uniformity, efficiency, and standardization in work processes, thereby reducing errors and improving productivity.
- Procedures are designed to ensure consistency in operations and compliance with company policies.
- Example: The procedure for hiring employees in an organization, which includes steps like job posting, shortlisting, interviewing, and final selection.