Chapter 8, Problem 1DQ

What is the difference between tactical and strategic decisions?

To determine

State the differences between tactical and strategic decisions.

Explanation of Solution

Tactical and Strategic decisions:

Tactical decisions are known as short-term decisions because the alternatives are selected within a limited time frame whereas strategic decisions are generally the long-term decisions because the selection of an alternative is done between different strategies.

The following table represents the difference between tactical and strategic decisions:

Basis	Tactical decisions	Strategic decisions
Nature	Short-term decision making that is the immediate selection of alternatives is done.	Long-term decision making that is alternatives are selected from various strategies.
Example	Special sales decision	Make-or-buy decision

Table (1)