3.1 Decisions

Question 1

What does strategic decision-making involve?

Answer 1

Medium to long-term planning to achieve corporate functions in objective

Question 2

what does strategic decisions establish?

Answer 2

The action that the business intends to take to achieve the goal

Question 3

What kind of decision-making is strategic?

Answer 3

Pro-Active decision making

Question 4

What kind of thinking and planning is strategic?

Answer 4

Forwardthinking future planning

Question 5

What are the impacts that city to go tactical decisions may have on ?

Answer 5

Human financial and production/physical resources

Question 6

What is an example of a strategic decision on

human resources
financial
and production/physical resources

Answer 6

HR - Have a longtime workforce plan
training
Additional staff for language skills

Financial resources - May need to look at budgets
long term effect on liquidity - WC
Balance sheets

long-term source of finance working capital

Physical/production resources - long-term supply contract - more capital investment - plan WC

Question 7

What a tactical decisions?

Answer 7

Short-term medium term decisions on how the business it will implement the strategy

Question 8

What is tactical decisions reactive to?

Answer 8

Competitor actions

Question 9

What kind of thinking is tactical decisions?

Answer 9

Present day thinking what is happening now

Question 10

What is effect that tactical decisions will have on
human resources
financial resources
and production/physical resources

Answer 10

HR - recruit new workers redeployment or temporary employee

Physical /production - quality checks to be completed quickly or production channels may be changed temporarily

Financial - overdraft/credit something quick that can free up cash flow

Impact -cost may be significantly higher but future sales may be likely increase cost per unit