Explain the differences between strategic planning and operational planning?

Answer 1

Strategic planning is deciding what a company will do. Operational planiing is deciding how that will be done. For example, Kodak made a strategic decision to enter the digital Photography business when the tradition film market began to deteriorate. They decided what products offered opportunities in that industry. Then, they had to formulate an operational plan - product development, manufacturing process and location, etc. The operational plan will also include some strategic planning. For example, the Marketing department had to decide how to best position the products in the marketplace (and which markets or locations) and then plan how to design the marketing materials.

Answer 2

Strategic decisions are fundamental and directional, and over-arching. Operational decisions, on the other hand, primarily affect the day-to-day implementation of strategic decisions. While strategic decisions usually have longer-term implications, operational decisions usually have immediate (less than one year) implications.

Answer 3

A strategic decision is a decision that affects the overall longer term direction of a business. It is made by management of a business. The operational decisions are those that affect day to day running of a business and can be made by junior employees.

Answer 4

Strategic planning is done for more than one fiscal year and for long term while operational planning is done for one fiscal year and short term planning.

Answer 5

Strategic plan is a plan which handles the activities of medium to long range decision making while operational plan is prepared to handle the decisions regarding one fiscal year.