Decision making and conflicts in decision making

Question 1

What is a strategic decision?

Answer 1

Long term decisions which affect the whole of the business

Taken at board or at management

Question 2

What is a tactical decision?

Answer 2

Taken by middle management affecting a particular part of the business
Medium term decisions

Question 3

What is an operational decision?

Answer 3

Taken on a day to day basis by managements of departments

Question 4

What techniques help aid decision making?

Answer 4

SWOT analysis
Financial accounts
Market research information
Porters 5 forces

Question 5

What are the 4 factors of Ansoff’s Matrix and what do they mean?

Answer 5

1. Market Penetration- existing P+M
2. Market development- existing P, new M
3. Product development- change existing P e.g. packaging
4. Diversification- new P+M