Tactical decision
Tactical decisions resolve mostly conflicts between strategy and its implementation. They also apply to conflicts between individual objectives and objectives of the whole company.
Types of tactical problems
Tactical decisions are short-term, specific actions that a company takes to achieve its strategic goals. Some examples of tactical decisions include:
- Marketing: Deciding on the best marketing channels to reach target customers, such as social media, email marketing, or paid advertising.
- Product Development: Deciding on the features and design of a new product, or how to improve an existing one.
- Distribution: Deciding on the best ways to distribute a product, such as through retail stores, online, or through a direct sales force.
- Production: Deciding on the most efficient methods of production, such as outsourcing, automation, or using a just-in-time manufacturing system.
- Pricing: Deciding on the price of a product or service, taking into account costs, competition, and customer demand.
- Human Resources: Deciding on the best ways to attract, retain, and motivate employees, such as by offering competitive compensation and benefits, or providing opportunities for professional development.
- Technology: Deciding on the best technology to use in order to automate or improve processes, reduce costs, or increase efficiency.
- Financing: Deciding on the best ways to secure funding, such as through loans, equity, or crowdfunding.
- Logistics: Deciding on the best ways to move products, such as by using a third-party logistics provider, or by creating a dedicated fleet of delivery trucks.
- Customer service: Deciding on the best ways to handle customer complaints, and how to provide excellent customer service.
Essence of the problem
Tactical decisions relate mostly to acquisition of company's resources
Objectives
The purpose of decision making at the tactical level is to ensure that structure of information, accountability, resources (people, money, tools and items) are consistent with the objectives of company.
See also:
Examples of Tactical decision
- Deciding which markets to target and how to penetrate them.
- Setting pricing and promotional strategies for products and services.
- Allocating resources (people, money, and time) to various projects.
- Developing new product or service offerings.
- Establishing performance objectives and standards.
- Establishing operational processes and procedures.
- Deciding which suppliers and vendors to use.
- Deciding which new technologies to adopt.
- Choosing which new initiatives to pursue and which to drop.
- Deciding how to respond to competitive pressures.
- Establishing customer service policies.
- Making changes to organizational structure.
Advantages of Tactical decision
Tactical decisions allow for more specific and short-term actions, allowing companies to quickly react to changes in the environment. This can help them stay competitive in a dynamic market. Here are some of the advantages of tactical decisions:
- They enable businesses to quickly adjust to changes in the market or environment. Tactical decisions are more agile and can help businesses stay competitive in a rapidly changing market.
- They are easier to implement as they are more focused on short-term objectives. Tactical decisions can be implemented quickly and do not require long-term commitments.
- They are more cost-effective as they focus on short-term objectives. Tactical decisions can help a business save money by avoiding costly long-term investments.
- They provide the necessary flexibility to quickly switch strategies when needed. Tactical decisions are more flexible, allowing businesses to quickly change strategies when needed.
Limitations of Tactical decision
Tactical decisions have several limitations. These include:
- Lack of information: Tactical decisions are often made with limited information and may not take into account all the external conditions and factors that could affect the outcome.
- Short-term focus: Tactical decisions are usually short-term solutions and may not be suitable for long-term objectives.
- Limited resources: Tactical decisions often have to be made with limited resources, which may restrict the range of possible options.
- Unforeseen consequences: Tactical decisions may have unforeseen consequences which may be difficult to deal with later.
- Lack of flexibility: Tactical decisions may be inflexible and may not be able to adapt to changing circumstances.
A tactical decision involves more than just the resolution of a conflict between strategy and its implementation. There are several other approaches that can be used to make a tactical decision:
- Analyzing current resources and capabilities: This involves examining the strengths and weaknesses of the company or organization, such as its financial resources, physical assets, and workforce. This allows the decision-maker to determine which resources are available and which are not, and thus make a more informed decision about how to move forward.
- Evaluating alternative options: This involves considering the various possible options and determining which is the best option to pursue. This can involve weighing the pros and cons of each option, as well as considering the risks and rewards of each.
- Establishing objectives: This involves setting specific goals and objectives that the company or organization is aiming to achieve. These objectives must be realistic and achievable.
- Developing strategies: Once the objectives have been set, the next step is to develop strategies to achieve them. This involves creating a plan of action which outlines the steps that need to be taken to reach the objectives.
In summary, tactical decisions involve more than just resolving conflicts between strategy and implementation. They also involve analyzing current resources and capabilities, evaluating alternative options, establishing objectives, and developing strategies. By utilizing these approaches, decision-makers can ensure that their decisions are well-informed and will help the company or organization reach its goals.
| Tactical decision — recommended articles |
| Strategic option — Strategic decision — Operational decision — Strategic intent — Development by restructurization — Strategy of the organization — Transformational outsourcing — Tactical plan — Strategic decision making |
References
- Ohbuchi, K. I., Fukushima, O., & Tedeschi, J. T. (1999). Cultural values in conflict management goal orientation, goal attainment, and tactical decision. Journal of Cross-Cultural Psychology, 30(1), 51-71.
Author: Krzysztof Wozniak
