Discuss the differences between strategy and tactics and how

Discuss the differences between strategy and tactics and how effective planning improves the successful utilization of both.

Solution

Every businesses uses various business intelligences i.e. any information or process to analyze the available data to support better decision making, identify new business opportunities and reduce costs. These data help the business to achieve targets and increase operational efficiencies by using available data intelligently and in an efficient manner. Tactics and strategy are two aspects of business intelligence a company uses to develop and implement business plans.

Strategy may be defined as planning or forecasting a company\'s future course of action and tactics may be defined as physically carrying out the strategy.

Strategy is future-oriented directional statement. It allows a company to make informed decisions based on available data, on its own performance and also the market conditions including competitors, customers, and economy, regarding future growth and direction. It enables the company\'s senior leadership team i.e the decision makers, to decide on the direction which the business will take in future by recognizing emerging trends and patterns within the particular industry as well as the potential problems that may emerge in future. This enables the company to forecast the end result of the planned projects based on the growth strategy adopted by it and also formulate any fall back plan in case the preferred course of action does not work out due to unforeseen developments beyond the control of the Company. It basically deals with planning for the future direction and growth of the company, in line with its predetermined missions and goals. Strategic plan produces clear organizational goals, plans, maps, and key performance measurements. It makes use of experience, research, analysis and communication to educate people at all levels in the organisation abut the plans put in place. Strategic plans are long term in nature and does not change frequently.

Tactics is more concerned with the current operations of the business and the current operating environment. It utilizes specific resources to achieve sub-goals predetermined by strategic planning. It deals with real time operating conditions and offer data analysis of competitive conditions as it exists today within the particular industry. It involves marshalling the limited resources at its disposal to achieve the pre-set goals. It deals with the actions that need to be taken to achieve the company\'s strategic objectives. It helps the company to make efficient use of available resources achieving the objectives laid down under the strategic plans as well as handling any risks and challenges that may be involved in achieving the same. These are short-term in nature and are flexible to specific market conditions.

Strategy and Tactics must work in tandem for any organization to achieve its goals efficiently and efficiently. For effective implementation of strategic and tactical plans the effective planning in the following areas are important