Planning at Different Levels in the Firm

Question 1

Strategic Planning

Answer 1

• Top level management planning
• Long term planning of business strategies to accomplish strategic goals

Process:
1. Strategy Formulation: analyze a company’s situation through internal and external audit to create a strategy
2. Strategy Implementation: putting the strategy into action, maximizing resources, and establishing specific targets or goals
3. Strategy Evaluation: evaluating the strategy after it is implemented to make it more effective

Question 2

Tactical Planning

Answer 2

• Middle level management planning
• Response to a specific situation/opportunity in the business/ short term business plan
• Real-time/ deals with immediate realities (ex. Christmas Season sales strategy, trends on social media, etc)

Question 3

Operational Planning

Answer 3

• middle to lower management planning
• Plans to deal with the company’s day to day operations (ex. manufacturing, communication, and fundamental operations)