1/19/2013

There is a difference between a Strategy and a Tactic and we need to use them correctly in the business world.
Strategy refers to a plan of action designed to achieve a particular goal and overall outcome. It involves thinking in order to formulate ideas for creating a plan. It includes ways and methods to help that organization reach specific goals. A strategy may consist of sub plans and levels and contain both internal and external data from the business. Strategic plans are usually done by the “thinkers” in an organization. (E.g. Managers, Board of Directors) who are responsible for directing the business in a certain direction with clear objectives and in a specific time frame. Data collecting is very important when it comes to a strategic plan. Tactics refers to an action or strategy carefully planned to achieve a desired end result. Basically a tactical plan is the actions taken to make a strategic plan successful. It is developed by a team or individual who is responsible for getting the work done. Tactical plans are the action steps taken to achieve a successful strategic plan. One way a business strategy can be different from a tactical plan is that several tactics may need to be planned to accomplish one single strategy.

Below are three examples of a general Strategic goal (plan) and then examples of Tactics (actions) that could be used to accomplish each of them: 1) Strategy -Increase Profitability Tactic used- Reduce cost through operation, restructure jobs to reduce salary expense, buying material and supplies from lower cost suppliers 2) Strategy -Market Share Growth Tactics used- Reduce prices at start in the growth period (penetration pricing) to allow customers to try product and like it, invest in advertising and press to build awareness of product or service, offer promotions 3) Strategy -Quality Control Tactics used- Adding or