The business organisation

3. Strategic, tactical and operational planning levels in the organization

Strategic planning

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Tactical planning

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Operational planning

Levels	Definition
Strategic planning	Long term looks at the whole organization defines resource requirements
Tactical planning	Medium term Looks at department/divisional level specifies how to use resources
Operational planning	very short term Very detailed Mainly concerned about control

Strategic plans translated ---> Medium term tactical plans converted --->Detailed performance targets and budgets

3.2 The nature of strategic plan

3.3 The strategic planning process

Process	Definition
Strategic analysis	external analysis of markets,competitors, business environment--> identify opportunities & threats internal analysis of the firm’s resources, competences--> identify strength & weaknesses stakeholder analysis- to understand stakeholder expectations/influenc--> clarify objectives
Strategic choice-	What’s the basis of our strategy?How are we going to compete-high quality/low cost? Where do we want to compete? Which markets,countries,products? How do we want to get there? Organic growth,. Acquisition or joint arrangement such as franchising?
Strategic implementation	Once determined, the long-term strategy needs to be translated into plans for marketing, human resources management, IT, production, organizational structure, etc May involve major changes that have to be managed