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Tactical Decisions are those decisions that are made on a lower level than strategic decisions. Strategic decisions are those decisions that are taken by top-level management. The strategic decision of a company manufacturing electronic appliances would be to top the sales in the region or the market territory. In other words, the strategic decisions of the management are not specific and are irrevocable.
Tactical Decisions on the other hand are taken by middle-level management. These decisions of the management are very specific and include, in this case, the product list that has to be manufactured and sold. Tactical decisions are more specific and concrete. They are action-oriented.
Tactical Decision Making consists of choosing among alternatives with an immediate or limited end in view. Tactical decisions are short-term in nature. They are short-term actions that serve a larger purpose in the long run. For example, if a company decides to manufacture a component that the company used to buy from outside. This decision might be taken because of the excess capacity which the company wants to utilize and avoid extra costs. Now, this is an example of establishing a cost leadership position for the firm.
Tactical Decision Making involves recognizing and defining problems, identifying alternatives as possible solutions to the problem, identifying predicted costs and benefits associated with feasible alternatives, comparing the relevant costs and benefits for each alternative, and relating each alternative to the overall strategic goals of the firm and other important qualitative factors and selecting the alternative with the greatest benefit which also supports the organization’s strategic decisions.
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