Learn: Strategic, Tactical and Operational Decisions

Welcome!Today we'll explore Strategic, Tactical and Operational Decisions. These are essential in business planning and management, helping organisations achieve their goals effectively. Let's break this topic down step by step!

What Are Strategic Decisions?Strategic decisions are long-term decisions that affect the overall direction of a business. They are typically made by senior managers and focus on achieving major goals, such as entering a new market or launching a new product. These decisions are high-risk and require careful planning.

What Are Tactical Decisions?Tactical decisions are medium-term decisions made by middle managers. They focus on implementing the strategies set by senior managers, such as deciding on promotional campaigns or setting regional sales targets. These decisions are less risky than strategic ones but still require careful analysis.

What Are Operational Decisions?Operational decisions are short-term, day-to-day decisions made by lower-level managers or employees. They focus on routine tasks, such as scheduling staff or ordering supplies. These decisions are low-risk and help ensure the business runs smoothly.

Why Are These Decisions Important?Each type of decision plays a vital role in ensuring a business achieves its goals effectively. Strategic decisions provide a clear direction, tactical decisions turn strategy into action, and operational decisions keep daily operations running smoothly. Together, they create a cohesive management structure.

Review Time!Great work! You've learned about strategic, tactical and operational decisions. Let's test your understanding with a few questions.