Which type of decision involves planning for a long-term goal?

Strategic decisions are those that focus on the long-term goals and direction of an organization. These decisions are generally made by senior management and are often complex, considering the broader picture of where the organization wants to be in the future. They involve significant resource allocation and commitment, laying the groundwork for the organization’s future success.

For instance, when a company decides to expand into a new market or develop a new product line, it is making a strategic decision. The implications of such decisions can be far-reaching, affecting various aspects of the organization, such as operations, finances, and marketing strategies, over a lengthy period.

In contrast, operational decisions pertain to the day-to-day functioning of the organization and focus on short-term objectives. Tactical decisions are more about the implementation of strategies and may involve medium-term planning, but they do not cover the long-term vision as comprehensively as strategic decisions. Ad-hoc decisions, on the other hand, are made spontaneously in response to immediate issues or situations, lacking the foresight and planning associated with long-term decision-making.

Therefore, focusing on long-term goals aligns with the essence of strategic decision-making.