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Analyse the contributions that strategic and tactical planning can make to the successful management of a business - Leaving Cert Business - Question B - 2010
Question B
Analyse the contributions that strategic and tactical planning can make to the successful management of a business. Use examples in your answer.
Worked Solution & Example Answer:Analyse the contributions that strategic and tactical planning can make to the successful management of a business - Leaving Cert Business - Question B - 2010
Step 1
Strategic planning is long term, made by management.
Answer
Strategic planning provides a framework for the long-term direction of a business, allowing leaders to establish objectives consistent with the mission statement. It enables management to create actionable strategies based on market analysis and competitive positioning.
For example, a strategic plan might include increasing market share through acquiring another company or expanding into new markets. A company like United Airlines could use strategic planning to identify opportunities for international expansion, directly aligning with its overall goals.
Step 2
Tactical planning is short term.
Answer
In contrast to strategic planning, tactical planning deals with shorter-term objectives and breaks down the overarching strategy into manageable actions. This allows businesses to respond swiftly to changing market conditions.
For instance, a business might develop a tactical plan to increase its customer base by 20% over the next year by launching targeted marketing campaigns and promotional offers. An example of this is a two-month advertising campaign aimed at boosting sales, which exemplifies tactical planning.