Strategies Helps Managers to Make Decisions

Strategies Helps Managers to Make DecisionsStrategies Helps Managers to plan properly by guiding them to make operational decisions. The basic principle of the strategy and policy framework is as follows;

The more strategies and policies are clearly understood and implemented in practice, the more consistent and effective will be the framework for enterprise plans.

For example;

if a company has a major policy of developing only new products that fits its marketing organization, it will avoid wasting energy and resources on new products that do not meet this test.

Strategies and policies, to be effective, must be put into practice by means of detailed plans embodying minutest of ingredients necessary for operation.

These detailed plans, also called tactics, are the action plans through which strategies are pursued and implemented. Hence strategies must be supported by effective tactics.

Dunham and Pierce have defined strategic planning as the top management’s active and conscious effort to design a plan in order to place an organization within its external environment.

A strategic plan outlines a long term perspective for the organization. It specifically states the organization’s reason for existence, its strategic objectives, and its operational strategies.

A strategic plan of an organization, therefore, answers a set of fundamental questions;

  • What business is it doing or does it want to do in future?
  • What kind of organization is it or does it like to be? How is it going to conduct itself to achieve this strategic position?

Strategic planning process is a comprehensive framework that guides the decisions that determine the nature and direction of organizational activities and undertakings.

For a broader and better understanding of strategic planning, the following three concepts need to be appreciated,

  1. Organizational Mission
  2. Strategic Objectives, and
  3. Operational Strategies.

lets know briefly about them;

An organizational mission is a statement specifying the kind of business it wants to undertake.

It puts forward the vision of management based on internal and external environments, capabilities, and the nature of customers of the organization.

Particular mission statement, however, does not necessarily state specific strategic objectives or operational strategies or tactics.

A strategic objective provides statements of definable and measurable achievements. Realization of such achievements marks the fulfillment of an organization’s mission statement.


Operational strategies specify the actions that are to be taken in order to attain objectives.


Operational strategies or tactics mean the same things which are action plans designed to execute or implement strategies.

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