What Is Strategic Management & Business Policy?

Strategic management simply means applyling a strategy or strategies to the management process, to resolve a problem or meet a goal.
Business Policy means the agreements, rules and ways of operating that a company has decided to adopt.
An example of Strategic Management could be that a  British company decides to get a jump on their competitors in China, by employing  top level staff from China to make it easier to access that market.  However, Strategic management can be applied  in any management situation.
An example of business policy, could be a decision made by the company to treat their customers in a particular way, or to apply certain credit limits, or margins. Within a set of parameters in other words.