Question

Define and give 2 examples each for strategic, operational, and administrative types of decisions.

Definition & Examples	Strategic Decisions	Operational Decisions	Administrative Decisions

Answer 1

Strategic decisions are long term decisions which influence any firm for many years. Strategic decisions are taken in Accordance with organizational mission and vision. These long-term decisions are hard to be changed or modified in a short period.

Examples: Decision related to the selection of plant location, sections of supply chain network etc.

Administrative Decisions are usually made under corporate legislation and are directed towards a particular person or organisation. These are generally related to working of employees in an Organization.

Examples: Decision regarding selection of body of legislation like Board of directors, Decision related to labour compensation or labour working time, decision related to conduct of affairs.

Operational decisions are generally related to production. These are taken in accordance with strategic and administrative decisions. Every day firms uses operational decisions to run day-to-day activities

Examples: Product line which should be offered to a group of customers, Use of method of production to decrease the overall cost, Decision related to calculation of revenue or taxes etc.