Decision making - objectives and strategic decisions

Question 1

What are strategic decisions?

Answer 1

Long term decisions affecting the whole of the business - they are long-term decisions that are taken at board or senior management level.

This could include a decision about growth of the business or diversification.

Question 2

What are tactical decisions?

Answer 2

Taken by middle management affecting a particular part of the business; they are medium-term decisions affecting a particular department.

E.g. deciding to increase training given to a particular group of workers.

Question 3

What are operational decisions?

Answer 3

Those taken on a day-to-day basis; these decisions are taken by mangers of departments.

E.g. moving personnel to different jobs on a production line or in a supermarket.