Difference Between Strategy & Operational Decisions

Topics: Strategic management, Strategic planning, Management Pages: 2 (371 words) Published: April 17, 2014
Difference Between Strategy & Operational Decisions
by Brian Bass, Demand Media
The success of a business depends on the decisions made by key personnel in the organization. However, these individuals can make poor decisions that will be detrimental to the organization. Strategy and operational decisions address different aspects of the organization. Strategy influences the overall direction of the organization, whereas operational decisions affect its day-to-day operations.

Ads by Google
QuickBooks™ GoPayment™
Accept Credit Cards On Your Phone. Free Mobile Card Reader. Setup Fastintuit-gopayment.com​/​Card-Reader Strategic Decisions
Strategic decisions consider the entire organization and represent a complex aspect of business planning. Strategy entails making major changes for the organization and recognizing that the business environment is not static and will continue to evolve. The goal of making strategic decisions is to implement policy that aims to move the organization toward its long-term goals. Strategy takes into account an organization's resources, threats to it and available opportunities.

Risk of Strategic Decisions
A business always assumes risk when deciding to change its methods. Strategic decisions always represent a risk because these decisions deal with the future. While a company can make strategic decisions based on relevant information, the organization can never predict the future with certainty. Because of this, a business must take precautions when implementing strategic decisions.

Related Reading: What Is the Chief Difference Between a Low-Cost Provider Strategy and a Focused Low-Cost Strategy?

Operational Decisions
Operational decisions relate to the daily operations of an organization. The countless interactions that take place on a daily basis represent the result of operational decisions. These decisions, therefore, can bog down an organization and make it ineffective. To prevent this, operational decisions...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Essay on Explain the difference between operational effectiveness and strategy
  • Essay about Difference between strategy formulation & strategy implementation
  • Differences Between Generic Strategies and the Strategy Clock Essay
  • The Difference Between Strategy and Tactics Essay
  • Differences and Similarities Between Descriptive and Prescriptive Strategies Essay
  • Strategy Essay
  • Operational Decisions Essay
  • Difference Between Marketing Strategies & Sales Strategies Essay

Become a StudyMode Member

Sign Up - It's Free