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Friday, 6 September 2019

How business tactics arise from business strategy?

There cannot be any haphazard tactics in business that are divorced from overall business strategy. All tactics get cue from one or more principles of the company business strategy. Here are six ways tactics are developed from business strategy:

1.        Business tactics are defined as ”specific moves, manoeuvres and actions taken in isolation or as in a series by line managers in order to move from one milepost to another in the pursuit of operationalizing strategy”. By this definition it is clear that tactics are short-term, linear, single and with localised focus and having fairly limited impact on business performance in pursuance of overall corporate plan

2.        It is the action part of the business plan process and driven by mission related to a particular set of circumstances

3.        Tactics are in a state of constant of flux keeping in line with changes taking place in the environment; these symbolise movement towards goals and mileposts within business objectives 

4.        Value maximization is the anchor on which tactics are knotted, by this, business seeks best possible benefits in the short-term, and so that trend curve of business never falters

5.        Decomposition is the means whereby tactics dissect a single part from the whole strategy that needs correction or adjustment. In other words, tactics allow you to excise a part from the whole strategic plan, work on it and re-fix without upsetting the overall gist of the strategy. An apt example is the pricing policy adopted in a business. When an existing old customer comes with a special order for a large quantity of a popular product, tactics allow you to consider a special discount in addition to the usual ones

6.        Tactics are by nature short-term affairs that function in consonance with all-inclusive strategic policy that tweak it each time business faces an issue or snag. When you face a crisis situation you come out with a tactic that takes care of it adequately. Admittedly, tactics are sometimes developed on the spur of the moment but definitely should fit overall strategy. What matters is that you have to quickly adjust to changing business environment.

Cheers!

Muthu Ashraff Rajulu
Business Strategist
Mobile: + 94 777 265677


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