management team in business is
responsible for developing strategic policies. This process involves the setting of organizational goals and developing
plans on how to reach such goals. Meaning, in business,
the management team creates strategies
while the other departments establish
tactics to actualize the company goals. Strategy and tactic are words that are used interchangeably but they fundamentally
have different meanings in the business environment.
Some of the strategies
used in marketing are advertising, direct
marketing and offering discount prices. These plans aim at increasing the
market share and sales volume. Besides, these approaches
are long-term and future-oriented. Alternatively, some of the tactics that a
company may use include leveraging the reviews of existing customers to spur
them to do online and word of mouth promotion. Another tactic may be providing
lower cost solutions to consumers to attract a larger group of individuals.
Therefore, tactics are tangible and short-term compared to strategies.
Nonetheless, strategies precede tactics
to provide direction (Casadesus-Masanell, & Ricart, 2010).
Strategy planning has various considerations. It must
consider sustainability, competitiveness and the organizational culture and structure (Ashwin, 2011). While making
strategies, the management team must ensure that the implementation of these
policies is feasible and competitive. One
of the areas that requires strategic planning is increasing sales. As such, the management
may propose a reduction in the product prices to attract more customers.
According to this sales strategy, the management has to
ensure that the new prices set to provide
financial viability. Hence, the rates
must result in a profit margin that ensures that the corporation is sustainable.
Secondly, the strategy must consider the reaction of the competitors. It should
ensure that the competitive advantage is maintained
and avoid aggressive pricing by rivals. Finally, each approach planning must accommodate the culture and structure of the
organization. Reducing product prices should not affect employees’ salaries and
wages (Ashwin, 2011). Besides, the marketing and sales department should be
informed to ensure the coordinated implementation of strategies.