Lecture 2

Question 1

What is a strategy?

Answer 1

A Strategy is a long-term vision of the means that will be used to achieve a final objective
* Business strategy statements are often tied to the marketing mix (product, price, place, promotion):

• “We will increase market share by offering lower cost products to the market.”
• “We will diversify our customer base by expanding our product range.”
• “We will solidify our status as the best company through strategic promotion and collaboration.”

Question 2

What is a tactic?

Answer 2

A Tactic is a (usually temporary) element used within the strategy to achieve the final objective

• “We will use offshore manufacturing in order to produce lower cost products.”
• “We will introduce a new product in the first quarter of 2023”
• ”We will not offer any sales promotions in 2023”

Question 3

What is the difference between business strategies vs tactics?

Answer 3

A strategy differs from a tactic in that it is derived from all the means to be taken to achieve an end goal (e.g.,increase market share by setting the price as low as possible). Tactics, on the other hand, are one-time adjustments of an element of the strategy at a given time (e.g., inserting coupons in a magazine). Thus, without modifying the business strategy, the manager can take several tactical actions to achieve the desired results of the strategy