Strstegic & operational control PDF

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Strategic,*Tactical,*and*Operational* Control* Organizational*control*involves*using*strategy,*tactics,*and*operational* oversight*to*monitor*and*improve*company*processes.*

LEARNING*OBJECTIVE* Illustrate*the*varying*levels*of*control*utilized*by*organizations,*notably* strategic,*tactical*and*operational*strategy*

KEY*POINTS* • Organizations*are*built*with*the*goal*of*profitability*through* processes*in*mind.*The*organizational*control*approach* incorporates*goals*and*the*strategy*used*to*reach*them.* • Strategic*management*is*a*level*of*managerial*activity*below* setting*goals*and*above*tactics.*Strategic*management*provides* overall*direction*to*an*enterprise.* • A*tactic*is*a*method*intended*to*fulfill*a*specific*objective*in*the* context*of*an*overall*plan.* • Operational*control*regulates*dayMtoMday*output*relative*to* schedules,*specifications,*and*costs.* • Good*managers*have*a*broad*vision*of*the*process,*a*series*of* embedded*tactics*for*efficiency*and/or*differentiation,*and*a* careful*operational*control*for*cost*control.*

TERMS* • efficient** Making*good,*thorough,*or*careful*use*of*resources;*not*underM* or*overMconsuming.*Making*good*use*of*time*or*energy.* • vision** An*ideal*or*goal*toward*which*one*aspires.* • operational*planning** The*process*of*linking*strategic*goals*and*objectives*to*tactical* goals*and*objectives.*

Control* Organizations*are*built*with*the*goal*of*profitability*through*processes* in*mind.*The*organizational*control*approach*incorporates*goals*and* the*strategy*used*to*reach*them.*These*strategies*and*tactics*are* developed*with*the*foresight*of*specific*operational*objectives,*such*as* market*share,*return*on*investments,*earnings,*and*cash*flow.*As*a* result,*organizational*control*consists*primarily*of*reviewing*and* evaluating*overall*performance*against*the*strategies,*tactics,*and* operations*used*to*define*the*organization*itself.*Tactics*for* organizational*control*are*developed*based*on*existing*goals*and* strategies*to*establish*specific*objectives*in*the*context*of*an*overall* strategic*plan.*Organizational*control*is*essentially*a*benchmark,* moving*the*company*toward*optimal*levels*of*operation.*

Strategy* Strategic*management*provides*overall*direction*to*the*enterprise.*

Strategy*formulation*requires*examining*where*the*company*is*now,* deciding*where*it*should*go,*and*determining*how*to*get*it*there.* Strategic*assessment*involves*situation*analysis,*selfMevaluation,*and* competitor*analysis,*both*internal*and*external,*microMenvironmental* and*macroMenvironmental.* Objectives*are*determined*by*the*results*of*the*strategic*assessment.* These*objectives*should*run*parallel*on*a*timeline,*some*shortMterm* and*others*longMterm.*This*involves*crafting*vision*statements*(longM term*projections*for*the*future),*mission*statements*(describing*the* organization's*role*in*society),*overall*corporate*objectives*(both* financial*and*strategic),*strategic*business*unit*objectives*(both* financial*and*strategic),*and*tactical*objectives.*These*objectives* should*suggest*a*strategic*plan*that*provides*details*(tactics)*for* achieving*these*objectives.*

Tactics* Strategy*involves*the*future*vision*of*the*business;*tactics*involve*the* actual*steps*needed*to*achieve*that*vision.*For*example,*a*marketing* strategy*for*a*motel*might*be*to*develop*a*business*package*targeting* travel*agents*that*includes*an*eMcommerce*solution.*Tactics*are* practical*steps*for*implementing*strategy.*Other*tactics*for*the*travelM agent*strategy*might*include:* • building*a*list*of*local*travel*agents* • preparing*a*business*incentive*scheme* • outlining*how*they*can*use*the*motel*website*to*make* reservations*and*keep*upMtoMdate* • personally*visiting*the*agents*to*follow*up* • monitoring*the*response*to*determine*if*the*sales*target*is*met* One*can*see*from*this*that*strategy*always*comes*first,*followed*by* tactics.*For*example,*a*valueMbased*commitment*to*environmentally* responsible*hospitality*could*be*reflected*strategically*by*working* toward*Green*Globe*certification*and*tactically*by*incorporating* energy*efficient*appliances*in*the*motel*retrofit.*

Operational*Control* Operational*control*regulates*the*dayMtoMday*output*relative*to* schedules,*specifications,*and*costs.*Are*product*and*service*output* highMquality*and*delivered*on*time?*Are*inventories*of*raw*materials,* goodsMinMprocess,*and*finished*products*being*purchased*and* produced*in*the*desired*quantities?*Are*the*costs*associated*with*the* transformation*process*in*line*with*cost*estimates?*Is*the*information* needed*in*the*transformation*process*available*in*the*right*form*and* at*the*right*time?*Is*the*energy*resource*being*used*efficiently?* Operational*control*can*be*a*very*big*job,*requiring*substantial* overhead*for*management,*data*collection,*and*operational* improvement.*The*idea*behind*operational*control*is*streamlining*the* process*to*minimize*costs*and*work*as*quickly*and*efficiently*as* possible.* Citation:*Boundless.*Strategic,*Tactical,*and*Operational* Control.(2014).*Retrieved*April*9,*2015*from:* https://www.boundless.com/management/textbooks/boundlessM managementMtextbook/controlM8* /typesMofMcontrolM62/strategicMtacticalMandMoperationalMcontrolM313M 3960/***...