STRATEGY AND TACTICS

 Strategic management is the highest level of managerial activity.

 It is undertaken by, or at least closely supervised by, the chief executive officer and
approved by the board of directors.
 Tactics on the other hand are concerned with making small-scale decisions aimed at
reaching more limited and measurable goals which themselves are part of the longer-term
strategic aim.
DIFFERENCE BETWEEN STRATEGIC DECISIONS AND TACTICAL DECISIONS

STRATEGIC DECISIONS (e.g. to develop new
markets abroad)
Strategic decisions are long term.
The decisions are difficult to reverse once
made as departments will have committed
resources to it.
It is taken by directors and/or senior
managers
TACTICAL DECISIONS (e.g. to sell a product
in different sized packaging)
Tactical decisions are short to medium
term.
The decision is reversible, but there may
still be costs involved.
It is taken by less senior managers and
subordinates with delegated authority

It is cross functional and will involve all The impact of tactical decisions is often
major departments of the business. only on one department.

The need for strategic management

If a business did not undertake strategic management, it would fail to:

 Plan for the future

 Respond logically to changing business environment
 Make effective long-term decisions based on clear objectives.

Strategic Management
Mission and objectives -------- strategic analysis ---------strategic choice-----strategic
implementation-----control and evaluation