Online MBA Forum

Monday, April 17, 2006

Strategic Thinking

I had a student ask me what I meant by strategic thinking as opposed to tactical thinking - they commented that they always thought of military battles when these two terms were used. Actually they probably started as military, but they apply to business very well.

Tactics are the every day operations of a business - how things get done in order for the business to be able to produce the goods or services that they sell in order to make a profit. Strategy is about what the business is, and where it is going in the future. For instance, if a product ceases to make a profit, it would be a strategic decision to change the product, or even change the kinds of products that the company produces.

These two kinds of thinking are different but linked. It is possible to learn how to deal with these different kinds of thinking, and study programs such as MBAs aim to teach these different kinds of processes and how to deal with them.

# posted by Mary @ 3:50 PM

Comments:

To continue the military analgoy. Tactics are what corporals to captains do, strategy majors and up.

Another way is to think of the little picture and the big one. Again, in the military, tactics is "How are we going to take that hill" while strategy is "Should we take that hill? Or the one next to it? Or not bother at all? "

Back to business a salesman talking to a customer must be thinking tactically. What does the customer want to buy and what have I got to sell him that’s close enough? And how do I convince him of this, that he’d really like what I have to offer?

The strategy comes rather earlier in the process and defines what products the salesman really does have in his kit bag to sell. And, of course, how those products will change over time.

# posted by failingeconomist : 10:12 AM

Online MBA Forum

Monday, April 17, 2006

Strategic Thinking

Archives