Top-level managers, such as CEOs or presidents, will design and execute strategic plans to paint a picture of the desired future and long-term goals of the organization.
Essentially, strategic plans look ahead to where the organization wants to be in three, five, even ten years.
The issues can be fully addressed through 1) Development of strategic business management plans and policies and 2) Allocation of business resources.
Theses are the tools of the strategy for business management.
So much so, that planning is one of the four major functions of management.
In doing so, a manager can be certain that he or she is working toward some organization goal.To best understand the relationship between the different types of plans, let's start at the top.Strategic plans are designed with the entire organization in mind and begin with an organization's mission.Tactical plans support strategic plans by translating them into specific plans relevant to a distinct area of the organization.Tactical plans are concerned with the responsibility and functionality of lower-level departments to fulfill their parts of the strategic plan.Operational plans are necessary to attain tactical plans and tactical plans lead to the achievement of strategic plans.Then, in true planning fashion, there are also plans to backup plans that fail. To better understand how each type of plan is used by managers, let's take a look at an example from Nino's Pizzeria and how Tommy, Martha and Frank carry out their planning responsibilities.There are three main types of plans that a manager will use in his or her pursuit of company goals, which include operational, tactical and strategic.If you think about these three types of plans as stepping stones, you can see how their relationship to one another aids in the achievement of organizational goals.Business Management Strategy is a systematic high-level plan of actions aimed at planning and performing the business management process at the most efficient way to achieve strategic goals and objectives of an organization.It aims at establishing the organization’s business direction and specifying policies and management plans to follow this direction.