Question
It is critical for the company to reduce the price of
its product in order to sell the product. This will be a ______ decision.Solution
Tactical decisions are short-term, specific actions designed to achieve broader, strategic goals. In this scenario, the strategic goal might be to maintain cash flow, clear inventory, or avoid losses on obsolete stock. The immediate price reduction is the specific, short-term tactic used to meet that goal. Decisions can be classified into three categories based on the level at which they occur. • Strategic decisions set the course of an organization. These are made by top management • Tactical decisions are decisions about how things will get done. These are made by middle management • Operational decisions refer to decisions that employees make each day to make the organization run. These are made by lower management or employees across the organisaton.
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