The origins of business policy can be traced back to 1911, when Harvard Business School introduced an integrative course in management aimed at the creation of general management capability. This course was based on interactive case studies which had been in use at the school for instructional purposes since 1908.

The course was intended to enhance general managerial capability of students. However, the introduction of business policy in the curriculum of business schools/management institutes came much later. Business policy tends to emphasise on the rational analytical aspect of strategic management. 

It presents a framework for understanding strategic decision making. Such a framework enables a person to make preparations for handling general management responsibilities.  

Strategic Management enables an organisation to develop and maintain competitive a advantage so that it can outperform its competitors and to have dominant role in the market. Strategic Management guides the company successfully through all charges in the environment.