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Strategy vs. Tactics

Organizations create strategies to define overarching goals and how they intend to reach them. Tactics describe the individual steps and actions that allow the Strategy to be carried out.

Understanding the relationship between strategy and tactics

Strategy and tactics are military terms that have now made their way into Business and professional contexts.

With that said, consider a quote from the Chinese military treatise The Art of War by Sun Tzu: “Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat.

From the above, we can surmise that strategy and tactics work to reinforce each other when used in unison.

Companies develop strategies to define their long-term goals and how they intend to fulfill their vision or mission.

Tactics are the often smaller, more sequential steps that the business must perform on the way to realizing its strategy.

Some planners call them initiatives, but whatever the name, tactics usually incorporate best practices, resources, or concrete plans.

To further differentiate between strategy and tactics and how they may interact, consider the following statements:

  1. Strategy is a long-term vision based on extensive research, while tactics concern more immediate, short-term actions. If a marketing strategy aims to improve social media engagement, one tactic may involve responding to every user comment. Strategies can be altered to reflect external conditions, despite assurances to the contrary. But a better way to increase the success of a strategy is to alter the tactics instead.
  2. Strategy and tactics must be aligned to ensure the company is acting in accordance with its core values. There must be organization-wide awareness of what the company is doing, why it is doing it, and how (the tactics).
  3. Strategy and tactics will never cover everything. Finite resources must be directed to the initiatives that will allow the company to achieve its goals in the most efficient manner.

Examples of strategy and tactics

Let’s conclude by taking a look at two examples of strategy and tactics in hypothetical real-world scenarios.

Education

In the first example, we have a school that is looking to improve its standardized test scores across every year level.

Strategy

To implement the smart education system in classrooms and connect and engage with the next generation of students via technology.

Tactics

  • Purchase interactive displays, interactive whiteboards, and teacher training software.
  • Onboard teachers to the technology and provide professional development for teachers to improve their delivery skills.

Local government

Local government, like all tiers of government, should be built on the cornerstones of responsiveness and accountability.

Here is the strategy and tactics for a government that wants to increase its transparency among ratepayers. 

Strategy

To meet transparency-based goals, government representatives convene and decide that a broader strategy emphasizing two-way communication is ideal.

This will enable the government to better understand ratepayer concerns, keep them informed of any developments, and provide clarity on where rates are spent.

Tactics

  • Create a local government dashboard where constituent members can stay abreast of the government’s latest projects and keep it accountable.
  • Create a marketing plan that outlines how ratepayers can communicate or interact with the government. The Hinchinbrook Shire Council, for example, developed a marketing plan that promoted council-owned services to create awareness in the community. These services, where locals can interact with council representatives, include art galleries, hireable venues, museums, and libraries.

Key takeaways:

  • Organizations create strategies to define overarching goals and how they intend to reach them, while tactics describe the individual steps and actions that determine how the strategy will be accomplished.
  • Strategy is a long-term vision based on extensive research, while tactics concern more immediate, short-term actions. While strategies can be altered to reflect external conditions, it tends to be easier and more cost-effective to alter the tactics within a strategy instead.
  • A school that wants to improve student test scores may develop a strategy that calls for smart technology implementation in classrooms. Tactics that support this strategy include teacher training, professional development, and the purchasing of interactive displays and whiteboards.

Key Components of a Business Model

Value Proposition

Your UVP is the exclusive feature or benefit you offer to your customers. It could be anything at all. If you offer a service, it could be “100% pay after satisfaction”. It could be a time factor offers. Say you provide a service that reviews CV. Your UVP could be “Get a revamped résumé in 24 hours”. This makes you stand out from every other person offering that service, as your unique offering is the ability to deliver in 24 hours. Your slogan could also be your UVP, as it automatically gives your audience what to expect from you.

Cost Structure

The cost structure is one of the building blocks of a business model. It represents how companies spend most of their resources to keep generating demand for their products and services. The cost structure together with revenue streams, help assess the operational scalability of an organization.

Pricing Strategies

A pricing strategy or model helps companies find the pricing formula in fits with their business models. Thus aligning the customer needs with the product type while trying to enable profitability for the company. A good pricing strategy aligns the customer with the company’s long-term financial sustainability to build a solid business model.

Financial Structure

In corporate finance, the financial structure is how corporations finance their assets (usually either through debt or equity). For the sake of reverse engineering businesses, we want to look at three critical elements to determine the model used to sustain its assets: cost structure, profitability, and cash flow generation.

Technological Modeling

Technological modeling is a discipline to provide the basis for companies to sustain innovation, thus developing incremental products. While also looking at breakthrough innovative products that can pave the way for long-term success. In a sort of Barbell Strategy, technological modeling suggests having a two-sided approach, on the one hand, to keep sustaining continuous innovation as a core part of the business model. On the other hand, it places bets on future developments that have the potential to break through and take a leap forward.

Distribution Channels

A distribution channel is the set of steps it takes for a product to get in the hands of the key customer or consumer. Distribution channels can be direct or indirect. Distribution can also be physical or digital, depending on the kind of business and industry.

Marketing Channels

A marketing channel represents the set of activities necessary to create a distribution for a product and make sure that the product is delivered in the hands of the right people and that the potential customer is satisfied with it. The marketing channel also needs to be aligned with the brand message of the company.

Other related business frameworks:

  • AIDA Model
  • Ansoff Matrix
  • Business Analysis
  • Business Model Canvas
  • Business Strategy Frameworks
  • Blue Ocean Strategy
  • BCG Matrix
  • Porter’s Five Forces
  • VRIO Framework

Additional resources:

  • Business Models
  • Business Strategy
  • Distribution Channels
  • Go-To-Market Strategy
  • Marketing Strategy
  • Market Segmentation
  • Niche Marketing

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Strategy vs. Tactics

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