3.1.2 Corporate Strategy ( Strategic and tactical decisions )

Question 1

Strategy

Answer 1

A long term direction that a firm wants to take to achieve its objectives and aims.It’s forward thinking and involves pro-active decision making.

Question 2

Tactics

Answer 2

short term/medium responses that tend to be day to day decisions.It’s linked to present time thinking and in the now.

Question 3

2 Impacts of strategic decisions on human resources

Answer 3

1) Hiring new staff as part of a long term strategy to improve productivity
2) Training staff to achieve business objectives of long term efficiency

Question 4

2 impacts of tactical decisions on human resources

Answer 4

1) Having to hire a new network manager/ employee because the previous one quit
2) Having to train staff because a new IT system has been introduced

Question 5

1 impact of strategic decisions on physical resources

Answer 5

Moving a factory location to another country to achieve the long term-objective of cost cutting and profit maximisation

Question 6

1 impact of tactical decisions on physical resources

Answer 6

Moving a factory layout around to accommodate a new product being manufactured

Question 7

2 impacts of strategic decisions on financial resources

Answer 7

1) Issuing shares to raise capital to achieve a long term objective of growth and expansion
2) Allocating budgets to the R&D projects which help the business to achieve the long-term objectives of expanding the product portfolio

Question 8

2 impacts of tactical decisions on financial resources

Answer 8

1) Agreeing an overdraft with the bank to cover a shortfall in a cash flow forecast
2) Arranging a bank loan to buy some office furniture to replace the broken ones.