c) Good links between operational and strategic planning help in the execution of corporate strategies. However, managers gain from knowing the difference between strategic and operational objectives because this distinction plays a major role in the conversion of an overarching vision into specific tasks.

Required:
Distinguish between a strategic plan and an operational plan.
(5 marks)

  • Strategic Plan: A strategic plan is a long-term plan developed by the organization to achieve its objectives and covers the entire firm. It typically spans about five years and is stated in general terms.
  • Operational Plan: An operational plan, on the other hand, is a short-term plan developed by a middle manager that concentrates on a specific functional area. It is stated in specific terms and covers a shorter period.

(5 marks)