Decision-making can be mainly done in the day-to-day operations of the business or a long-term decision of the business which affects the long terms goals of the company. The nature of the decision made affects the impact on the business and the outcome of the operations of the business. Business decisions which have a long-term impact on the business are known as Strategic Decisions and decisions with a shorter impact are known as operational decisions.
Decision-making can be broadly divided into 3 categories namely, strategic, tactical and operational. Strategic decisions are made on the main affairs of the company by senior executives of the firm. Tactical decisions are made by middle managers regarding the different tactics that are to be implemented for the betterment of the firms. Operational decisions as the name suggests are decisions taken regarding the day-to-day operations of the firm by the junior managers.
The decision made in an enterprise should be carried out by experts with business diligence. These decisions are taken regarding different sectors of the business. Business decisions are mainly taken regarding the price, place, product and promotion. A business needs to analyse the current market and take a decision regarding what type of product will be profitable in the market, the competitive price which will make the product sustainable in the market, the place in which the product should be introduced and what is the promotion activity that the firm should carry out for the benefit of the firm. All these decisions play a vital role in the sustainability of the business in the market.
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