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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 top management.
Answer
Strategic planning is crucial for establishing the direction of a business over the long term. It involves top management defining where the business is headed and how to get there. A strategic plan identifies the objectives of the business and aligns them with the mission statement.
For example, a company may seek to expand into emerging markets, which would be clearly laid out in the strategic plan. Additionally, management can monitor progress through benchmarks, enabling necessary adjustments. Strategic plans may also identify potential acquisition opportunities to further growth.
Step 2
Tactical planning is short term, dealing with specific objectives.
Answer
Tactical planning breaks down the long-term strategic goals into manageable short-term objectives. This method allows the management team to focus on specific actions that contribute to the overarching strategic plan. An example would be setting a tactical plan to increase the customer base by targeting new segments within a year.
For instance, a business might outline a tactical approach to implement a new advertising campaign with a goal to boost sales by 20% over the next two months. This focused action plan is vital for achieving the long-term strategic objectives.