BBA 3rd Year Corporate Planning Short Question Answer

BBA 3rd Year Corporate Planning Short Question Answer

Q.6. What are the differences between strategic and tactical planning?

Ans. Tactical planning is informal and exist very often in planners mind. Tactical planning is done at functional level or lower level. It is concerned more with the present than the future. It implies an ad hoc approach based on expediency with a time schedule. The focus is on managing the day-to-day affairs of the company.

Difference between Strategic and Tactical Planning: Strategic planning differs from the tactical planning in the following ways:

1. Regularity: Strategic planning is a systematic and logical process. Tactical planning is ad hoc as it is based on whims. Strategic planning has a leisurely pace whereas tactical planning is characterised by time boundedness.

2. Process: Strategic planning is a continuous process while tactical planning has fixed time schedule such as the budget process.

3. Nature: Strategic planning is a formal process based on assumptions. The reasons and the plans themselves are all set down in writing and in figures to serve as record for future reference whereas the tactical plans are informal and exist very often in planner’s mind. Assumptions of tactical plans are not put in record. Strategic planning involves setting up of goals while tactical planning takes goals as starting point.

4. Scope: Tactical planning focuses on the short-term (budgets) and tends to be fragmented. Strategic planning is comprehensive as it encompasses both long and short term and covers all geographic areas of the business. Thus, strategic planning is broader in scope than tactical planning.

5. Time span: Strategic planning is concerned with decisions having long-term and endurine effect whereas tactical planning deals with decision having short-term planning covers a shorter time span than strategic planning.

Like our Facebook PageBLike our Facebook Page

Leave a Comment

Your email address will not be published. Required fields are marked *