close
This essay has been submitted by a student. This is not an example of the work written by professional essay writers.

Strategy Vs Tactical Decisions

downloadDownload printPrint

Introduction

Porter’s Generic Strategy framework (Porter M. E., 1985) describes how organizations pursue competitive advantage across the market scope and Bowman & Faulkner (1997) suggests a Strategic Clock approach. Looking at the latest, there are extended strategic positions than Porter’s generic strategies of how companies compete in the marketplace (Thompson, et al., 2013). Other approaches can be Ansoff’s Matrix and Mintzberg’s generic strategies (Mintzberg, 1988; Kotha & Vadlamani, 1995).

Ansoff’s matrix suggests different strategies based on the existence or new of the products and markets (FME, 2013). This way, opportunities and levels of risks associated with each strategy are considered (Thompson, et al., 2013). The danger that lies with this choice of some medium risk strategies lies on focus of organizations on one type of customers, so it is necessary to scan the environment actively (through analysis such as SWOT, PEST, etc). Looking for potential problems and action to respond to them is crucial in order to maintain a growth strategy.

Strategy vs tactical decisions

As per Bradford (2016), the execution is the main base and should be prioritized since the strategy is adaptable to the changing environment, however when chosen a strategy for the company, if the business mind is set to do all it takes to reduce the odds of failure, then the organization is half-way there to turn it into a successful one. It is necessary, however, a clear distinction between a strategy as Michael Porter defines and tactical decisions, which as often confused. Strategy is the overall campaign plan, which may involve complex operational patterns, activities and decision making that govern tactical execution. Tactical decisions are the actual means to gain an objective.

Tactical decisions are characterized as:

  1. Decisions that help reach long-term objectives;
  2. In aid to achieve goals that are SMART and maximize profits (notion of competitive advantage based on the efficiency and effectiveness of the business compared to others);
  3. Part of a plan, with vision and mission;
  4. Strategy is then the plan and direction for a long-term sustainable competitive advantage;

Consider planning distinct as doing: formulating a long-term plan is different than solving day-to-day problems and issues that arise (Harrison & Hoek, 2008). The tactical decisions are likely to be complex in nature (Johnson, Scholes, & Whittington, 2008). Since these decisions require an integrated approach, and by this, it is meant that both, inside and outside of an organization, it can affect operational decisions, done at uncertain situations and involve some considerable changes (Johnson, Scholes, & Whittington, 2008).

It leads to tackling changes in the business environment, building capabilities such as resources and competences and meets value and expectations of stakeholders. But most importantly, it gives the organization the advantages over competitors (competitive advantage). Competitive Advantage refers to the favorable position that an organization possess over their competitors due to the implementing of the following strategy (Harrison & Hoek, 2008).

Tactical decisions are also concerned with the scope of the activities regarding the organization. It refers to the importance to be given to one area of activity over the other, or to a portfolio of areas and vital to keep organization’s boundaries, product and service range and geographical coverage (Johnson, Scholes, & Whittington, 2008).

There are two models to obtain competitive advantage and those are:

Model 1: Externally

  • Common concepts and tools used are Resource-Based View Model and Porter’s Value Chain;
  • The aim is to determine strengths and weaknesses and create Competitive advantage.

Model 2: Internally

  • Concepts and tools used are Porter’s 5 forces and PEST analysis;
  • Aim: determine opportunities and threats dynamics and draw plan over that.

A strategy is only as strong as their weakest link (Bradford, 2016), being that one the different levels, activities and processes and the difficulty to copy for competitors and flexibility to adapt to market changes. Operational efficiency is essential, but no the main point since it is not enough to be a strategy, or at least an effective and sustainable one (Bradford, 2016). Strategies should not be turned into an optimization problem and be open to possible scenarios, therefore the focus on the integration of activities.

Remember! This is just a sample.

You can get your custom paper by one of our expert writers.

Get custom essay

121 writers online

Strategy Vs Tactical Decisions Essay

Remember: This is just a sample from a fellow student.

Your time is important. Let us write you an essay from scratch

experts 450+ experts on 30 subjects ready to help you just now

delivery Starting from 3 hours delivery

Find Free Essays

We provide you with original essay samples, perfect formatting and styling

Cite this Essay

To export a reference to this article please select a referencing style below:

Strategy Vs Tactical Decisions. (2018, December 17). GradesFixer. Retrieved March 22, 2023, from https://gradesfixer.com/free-essay-examples/strategy-vs-tactical-decisions/
“Strategy Vs Tactical Decisions.” GradesFixer, 17 Dec. 2018, gradesfixer.com/free-essay-examples/strategy-vs-tactical-decisions/
Strategy Vs Tactical Decisions. [online]. Available at: <https://gradesfixer.com/free-essay-examples/strategy-vs-tactical-decisions/> [Accessed 22 Mar. 2023].
Strategy Vs Tactical Decisions [Internet]. GradesFixer. 2018 Dec 17 [cited 2023 Mar 22]. Available from: https://gradesfixer.com/free-essay-examples/strategy-vs-tactical-decisions/
copy to clipboard
close

Where do you want us to send this sample?

    By clicking “Continue”, you agree to our terms of service and privacy policy.

    close

    Be careful. This essay is not unique

    This essay was donated by a student and is likely to have been used and submitted before

    Download this Sample

    Free samples may contain mistakes and not unique parts

    close

    Sorry, we could not paraphrase this essay. Our professional writers can rewrite it and get you a unique paper.

    close

    Thanks!

    Please check your inbox.

    We can write you a custom essay that will follow your exact instructions and meet the deadlines. Let's fix your grades together!

    boy

    Hi there!

    Are you interested in getting a customized paper?

    Check it out!
    Don't use plagiarized sources. Get your custom essay. Get custom paper
    exit-popup-close

    We can help you get a better grade and deliver your task on time!

    • Instructions Followed To The Letter
    • Deadlines Met At Every Stage
    • Unique And Plagiarism Free
    Order your paper now