It is claimed that data required to support strategic planning differs from data required to support operational decisions in terms of the time period referred to...

      

It is claimed that data required to support strategic planning differs from data required to
support operational decisions in terms of the time period referred to and the source or origin of the data.
Required:
Briefly describe how data required to support strategic planning differs from that required to
support operational
decisions in terms of:
(i) Time period referred to.
(ii) The source or origin of the data.

  

Answers


gregory
Strategic planning:
This refers to planning that covers a long period of time, usually 5 to 7 years. The planning
determines the long-term objectives, resources and policies of an organization.
OPERATIONAL DECISIONS
They are concerned with daily or routine operations of the organization relating mainly to its
primary activities. Examples include decisions to reorder stock when the stock is almost sold
out and decisions to suspend a client from purchasing goods and services on credit due to an
outstanding balance.
How data required to support strategic planning differs from that required to support
operational decisions in terms of:
(I) Time Period Referred To
Data required for operational decisions usually covers a short time period usually in days or
months. For example, data relating to the outstanding balance of a customer that determines
whether or not the customer should be allowed to purchase more goods and services on
credit usually spans a few days or utmost a month.
Data required for strategic planning usually covers a longer time period, usually in years.
From this data, forecasts can be made concerning market trends e.g. a plan to start another
branch needs forecasts into the future say, in terms of sales, expenses, etc
(II) The Source or Origin of the Data
Data required for operational decisions usually originates from within the organization. For
example, stock level data and clients outstanding balances can only be sourced from within
the organization in order to influence operational decisions.
Data required for strategic planning usually has a greater external orientation. For instance,
data about global markets that can influence an organization to globalize is external to the
organization.
gregorymasila answered the question on November 21, 2017 at 09:01


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