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  • Essay / Strategy vs tactical decisions

    Introduction Porter's generic strategy framework (Porter ME, 1985) describes how organizations seek competitive advantage across the market and Bowman & Faulkner (1997) suggest a clock approach strategic. Looking at the latest developments, there are broader strategic positions than Porter's generic strategies on how companies compete in the market (Thompson et al., 2013). Other approaches can be the Ansoff Matrix and the generic Mintzberg strategies (Mintzberg, 1988; Kotha & Vadlamani, 1995). Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essay The Ansoff Matrix suggests different strategies based on the existence or novelty of products and markets (FME, 2013). In this way, the opportunities and risk levels associated with each strategy are taken into account (Thompson, et al., 2013). The danger that lies in this choice of certain medium risk strategies lies in the concentration of organizations on only one type of customers, therefore it is necessary to actively analyze the environment (through analyzes such as SWOT, PEST, etc.). Researching potential problems and actions to address them is crucial to maintaining a growth strategy. Strategy vs tactical decisions According to Bradford (2016), execution is the main basis and should be prioritized since the strategy is adaptable to the changing environment, However, when choosing a strategy for the business, if the mind of If the company is willing to do whatever it takes to reduce the risk of failure, then the organization is halfway to making this a successful strategy. However, a clear distinction must be made between a strategy as defined by Michael Porter and tactical decisions, which are often confused. Strategy is the overall campaign plan, which may involve complex operating models, activities, and decision-making that govern tactical execution. Tactical decisions are the real way to achieve a goal. Tactical decisions are characterized as follows: Decisions that help achieve long-term goals; Helps achieve SMART objectives and maximize profits (notion of competitive advantage based on the efficiency and effectiveness of the objective). company compared to others); Part of a plan, with a vision and a mission; Strategy is then the plan and direction for long-term sustainable competitive advantage; Think of distinct planning as action: formulating a long-term plan is different from solving today's problems and issues (Harrison & Hoek, 2008). Tactical decisions are likely to be complex in nature (Johnson, Scholes, & Whittington, 2008). Since these decisions require an integrated approach, this means that, both inside and outside an organization, they can affect operational decisions, taken in uncertain situations and involve considerable change (Johnson, Scholes and Whittington, 2008). .This leads to coping with changes in the business environment, strengthening capabilities such as resources and skills and meeting the values ​​and expectations of stakeholders. But most importantly, it gives the organization advantages over its competitors (competitive advantage). Competitive advantage refers to the favorable position that an organization has over its competitors through the implementation of the following strategy (Harrison & Hoek, 2008). Tactical decisions also concern the scope of activities concerning the organization. It refers to the importance to be given to a field of activity.