A. Strategic Control vs Tactical Operational Control

Question 1

What is the time horizon for planning at the strategic and operational level?

Answer 1

S - Long-term, typically 3-5 years or more.

O - Short-term, ranging from daily to monthly or annually.

Question 2

What is the scope of planning at the strategic and operational level?

Answer 2

S: Broad and organizational-wide, focusing on overarching goals like market positioning and global expansion.

O: Narrow, focusing on specific tasks, processes, and day-to-day operations necessary to run the business.

Question 3

Who are the key decision-makers at the strategic and operational level?

Answer 3

S: Top management, such as CEOs, board of directors, and senior executives.

O: Middle and lower-level managers, such as department heads and team leaders.

Question 4

What is the focus of planning at the strategic and operational level?

Answer 4

S: Future-oriented, emphasizing growth, sustainability, and competitive advantage.

O: Efficiency, productivity, and executing strategies set by the strategic plan.

Question 5

What is the nature of decisions made at the strategic and operational level?

Answer 5

S: High-level decisions focused on vision, objectives, and priorities, like entering new markets or investing in innovations.

O: Detailed, tactical decisions on resource allocation, staffing, and optimizing processes for efficiency.

Question 6

What is the purpose of control at the strategic and operational level?

Answer 6

S: To ensure the organization stays aligned with its long-term goals, monitoring performance and adjusting the strategic plan if needed.

O: To ensure daily activities are efficient and according to plan, keeping the organization on track to meet short-term goals.

Question 7

What metrics are used at the strategic and operational level for control?

Answer 7

S: Key Performance Indicators (KPIs) related to growth, profitability, market share, and customer satisfaction.

O: Operational KPIs such as production rates, cost control, employee performance, and process efficiency.

Question 8

How frequently is control exercised at the strategic vs. operational level?

Answer 8

S: Periodically, often annually or biannually, with flexibility to adapt to significant changes.

O: Continuously, often daily, weekly, or monthly, with immediate feedback loops to address inefficiencies.

Question 9

What is the focus of control at the strategic and organization level?

Answer 9

S: Monitoring trends, external environments, and managing risks to make major course corrections if needed.

O: Optimizing resources, reducing waste, improving workflows, and ensuring operational excellence.

Question 10

What tools are used for strategic and operational control?

Answer 10

S: Balanced scorecards, dashboards, and high-level performance management systems.

O: Budget control systems, quality control procedures, process audits, and performance reviews.

Question 11

Why is aligning objectives important in managing conflicts between strategic and short-term decisions?

Answer 11

Ensure that short-term decisions are aligned with the strategic objectives of the organization. Clearly define how short-term actions contribute to long-term goals.

Question 12

What causes conflict between strategic business plan and short-term localized planning?

Answer 12

Conflicts between strategic business plans and short-term localized decisions can arise due to differences in goals, timelines, and priorities

Question 12

How does integrated planning help manage conflicts between strategic and short-term decisions?

Answer 12

Alignment of Goals: Integrated planning ensures that short-term actions are aligned with long-term strategic goals. This means that every short-term decision supports the overall strategy, reducing conflicts between immediate needs and future objectives.

Holistic View: By considering both strategic and operational aspects, integrated planning provides a comprehensive view of the organization. This helps in identifying potential conflicts early and addressing them proactively.

Resource Allocation: It ensures that resources are allocated efficiently to support both short-term and long-term goals. This prevents situations where resources are diverted from strategic initiatives to meet immediate needs, or vice versa.

Question 13

List potential conflicts between strategic business plans and short-term localized decisions

Answer 13

1. Objective Alignment
2. Resource Allocation
3. Risk Management
4. Performance Metrics
5. Cultural and Operational Output
6. Change Management

Question 14

How can conflicts between strategic business plans and short-term localized decisions be better managed.

Answer 14

1. Effective Communication
2. Prioritize and Alignment of Goals
3. Integrated Planning
4. Cross Functional Teams
5. Risk Management
6. Resource Management
7. Performance Measurement
8. Change Management
9. Scenario Analysis

Question 15

Resource Allocation Conflict

Answer 15

Strategic plans may require significant investment in long-term projects (new technologies, new markets), while short-term decisions might prioritize immediate needs (staffing shortage, urgent production issues), leading to conflicts over resource distribution.

Potential Conflict: Redirecting resources to address short-term issues might delay or derail strategic projects. For instance, reallocating budget to fix a temporary production problem could delay funding for a strategic marketing campaign.

Question 16

Goal Misalignment Conflict

Answer 16

Long-term strategic goals might focus on market expansion or innovation, whereas short-term decisions might aim at quick wins or cost-cutting, causing a misalignment in objectives.

Potential Conflict: Short-term decisions focused on immediate gains might undermine long-term strategic objectives. For example, cutting costs aggressively to meet a quarterly financial target might negatively impact long-term investment in R&D or customer service.

Question 17

Risk Management Conflict

Answer 17

Strategic plans might involve taking calculated risks for future growth, while short-term decisions might be risk-averse to avoid immediate losses, leading to a conflict in risk tolerance.

Potential Conflict: Short-term risk aversion might prevent the organization from pursuing bold strategic initiatives. For example, avoiding a high-risk, high-reward investment could hinder long-term growth potential.

Question 18

Performance Metrics Conflict

Answer 18

Strategic plans might emphasize metrics like market share, growth profitability and brand reputation, while short-term decisions might focus on quarterly profits or sales targets, causing a clash in performance evaluation.

Potential Conflict: Focusing on short-term metrics might lead to decisions that are not aligned with long-term goals. For instance, prioritizing short-term sales targets might result in aggressive sales tactics that damage long-term customer relationships.

Question 19

Change Management Conflict

Answer 19

Strategic Plans: Involve significant changes and transformation efforts to achieve long-term objectives. Short-Term Decisions: Focus on incremental improvements and maintaining stability.

Potential Conflict: Short-term focus on maintaining stability might impede necessary changes for strategic progress. For instance, resisting changes to long-standing processes might prevent adopting new technologies critical for future success.