Applied Business - Unit 10

Strategic decisions are long termdecisions made by senior management. These decisions will affect the entire direction of the firm. For example expansions overseas which means find new suppliers, set up new factory/store and employees.

Tactical decisions are short term decisions made by middle managers. They follow on from strategic decisions and aim to meet the objectives stated in any strategic decision. For example in order to expand, a firm may have to do research in the area before settting up.

The micro environment  is the immediate environment that impacts a business. This includes considerations related to suppliers, customers and local stakeholders and local government agencies.This is the local environment where the business operates and the business owner is likely to be aware of the impacts that they are faced with.

The macro environment includes those things that may impact small businesses but which are outside of their control. It is the larger, external environment within which businesses operate from an industry or economic standpoint.