Decision Making

Question 1

Strategic decision

Answer 1

Long term basis, made by top management, lack specific details, often proactive

Question 2

Examples of strategic decisions

Answer 2

To increase market share, profitability, diversify into a new product range, improve organisations image, change organisations structure

Question 3

Tactical decision

Answer 3

Set out in the mid term, detailed to describe how decision will be implemented, made by senior management, are proactive medium level of risk

Question 4

Examples of tactical decisions

Answer 4

Who to give contracts to, when and where to open a new branch, decision to launch new products, looking to source cheaper suppliers of raw materials

Question 5

Operational decisions

Answer 5

Are routine decisions, made by all levels of staff, address problems that can arise each day, are reactive