Ib 1.6 - Organisational Planning Tools Essay

2200 Words Aug 7th, 2013 9 Pages
Review Questions 1.6 1. Explain the meaning of ‘operational’, ‘tactical’ and ‘strategic’ decision-making.
Operational Decisions refer to the routine and day-to-day decisions, such as those handled by junior management, e.g. deciding when a worker should go for their break and how to deal with customer enquiries and complaints
Tactical Decisions refer to regular and short-term decisions that are normally handled by middle management, e.g. decisions about pricing strategies or recruitment and selection of staff
Strategic Decisions refer to high-level and long-term decisions that set the overall direction for a business. Such decisions are dealt with by senior management since they carry more risk, e.g. which products to be developed,
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What is a ‘SWOT Analysis’?
SWOT Analysis is a simple yet extremely useful decision-making tool. SWOT is an acronym for Strengths, Weaknesses, Opportunities and Threats. It can be used to assess the current and future situation of the product, brand, company, proposal or decision. A SWOT Analysis considers both internal factors (the strengths and weaknesses) and external factors (the opportunities and threats) that are relevant to the issue or problem under investigation 5. Outline three advantages and two disadvantages of using a SWOT analysis.
Advantages of SWOT: * Completing a SWOT Analysis can be quite simple and quick * It can be used for a wide range of decisions, such as how to react to the threat of a competitor entering the market * SWOT Analysis helps to determine the organisation’s position in the marketplace and therefore aids the formulation of corporate strategy for its long-term survival * The SWOT framework encourages foresight and proactive thinking, rather than relying on emotional or intuitive feelings * It can help to reduce the risks of decision-making by demanding objective and logical thinking
Limitations of SWOT: * Critics of SWOT Analysis argue that it is too simplistic and does not demand detailed
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