Types of decisions
Decisions are part of the manager's remit. Difficult choices may have to be made for the common good of the organisation. There are three types of decision in business:
- strategic
- tactical
- operational
See Also
Understanding Financial Management: Scope, Objectives, and ImportanceThree basis decisions must be made by all economies. What are they ?what to produce, how it is produced, and who consumes it.what the price of each good will be.how the opportunity cost principle will be applied; and how the law of comparative advantage wWhat Does Finance Mean? Its History, Types, and Importance ExplainedWhat Is Financial Management?
| strategic | tactical | operational |
| long term | medium term | day-to-day |
| complex | less complex | simple and routine |
| made by senior managers | made by middle managers | made by junior managers |
| eg aiming to be market leader | eg launching new product/opening new branches | eg regular ordering of supplies/creating staff rota |
| strategic | long term |
|---|---|
| tactical | medium term |
| operational | day-to-day |
| strategic | complex |
|---|---|
| tactical | less complex |
| operational | simple and routine |
| strategic | made by senior managers |
|---|---|
| tactical | made by middle managers |
| operational | made by junior managers |
| strategic | eg aiming to be market leader |
|---|---|
| tactical | eg launching new product/opening new branches |
| operational | eg regular ordering of supplies/creating staff rota |
Mission statement
A mission statement is a formal written statement of the objectives and aims of a company. The BBC's mission statement is:
To enrich people's lives with programmes and services that inform, educate and entertain.
