Strategic, Tactical and Operational planning

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Strategic Planning

Senior management formulate long-term (e.g. 5 to 10 years) objectives and plans for an organisation.

Such plans include overall profitability, the profitability of different segments of the business, capital equipment needs and so on.

It can also include qualitative information, for example, plans to enter into a new market, or create a new product.

Tactical Planning

Senior management make medium-term, more detailed plans for the next year

e.g. decide how the resources of the business should be employed, and to monitor how they are being and have been employed.

Operational Planning

All managers are involved in making day-to-day decisions.

'Front-line' managers such as foremen or senior clerks have to ensure that specific tasks are planned and carried out properly within a factory or office.

Operational information is derived almost entirely from internal sources.

It is prepared frequently and is highly detailed.

ACCA MA F2 A1d study material operational planning graph
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