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Compare operational and strategic decisions. - Scottish Highers Business Management - Question c - 2019
Question c
Compare operational and strategic decisions.
Worked Solution & Example Answer:Compare operational and strategic decisions. - Scottish Highers Business Management - Question c - 2019
Step 1
Operational Decisions
Answer
Operational decisions are primarily concerned with routine tasks that occur on a day-to-day basis. They are typically short-term in nature and focus on the immediate functioning of the organization. These decisions are often made by lower-level supervisors or employees and usually involve low risk, given their routine nature.
Step 2
Strategic Decisions
Answer
In contrast, strategic decisions focus on the overall goals of the organization. These decisions are long-term in orientation and are primarily made by senior managers. Strategic decisions usually involve high risk due to their impact on the future direction of the organization.
Step 3
Comparison of Operational and Strategic Decisions
Answer
In summary, operational decisions are about managing daily activities while strategic decisions are about guiding the long-term vision of the organization. This distinction highlights the different levels of planning and risk associated with each type of decision.