Themanagement team in business isresponsible for developing strategic policies. This process involves the setting of organizational goals and developingplans on how to reach such goals. Meaning, in business,the management team creates strategieswhile the other departments establishtactics to actualize the company goals.
Strategy and tactic are words that are used interchangeably but they fundamentallyhave different meanings in the business environment. Some of the strategiesused in marketing are advertising, directmarketing and offering discount prices. These plans aim at increasing themarket share and sales volume. Besides, these approachesare long-term and future-oriented.
Alternatively, some of the tactics that acompany may use include leveraging the reviews of existing customers to spurthem to do online and word of mouth promotion. Another tactic may be providinglower cost solutions to consumers to attract a larger group of individuals.Therefore, tactics are tangible and short-term compared to strategies.Nonetheless, strategies precede tacticsto provide direction (Casadesus-Masanell, & Ricart, 2010). Strategy planning has various considerations.
It mustconsider sustainability, competitiveness and the organizational culture and structure (Ashwin, 2011). While makingstrategies, the management team must ensure that the implementation of thesepolicies is feasible and competitive. Oneof the areas that requires strategic planning is increasing sales. As such, the managementmay propose a reduction in the product prices to attract more customers. According to this sales strategy, the management has toensure that the new prices set to providefinancial viability.
Hence, the ratesmust result in a profit margin that ensures that the corporation is sustainable.Secondly, the strategy must consider the reaction of the competitors. It shouldensure that the competitive advantage is maintainedand avoid aggressive pricing by rivals. Finally, each approach planning must accommodate the culture and structure of theorganization.
Reducing product prices should not affect employees’ salaries andwages (Ashwin, 2011). Besides, the marketing and sales department should beinformed to ensure the coordinated implementation of strategies.