In managerial decision-making, which type of decision involves establishing organization-wide objectives and creating long-range plans to achieve those objectives?

Introduction / Context:
Managers make decisions at different levels. Some choices are day-to-day and highly structured, while others determine the organization’s overall direction for years to come. This question checks whether you can correctly identify the type of decision associated with defining objectives and crafting long-range plans.

Given Data / Assumptions:

• The focus is organization-wide direction, not a single department.
• The time horizon is long term (multi-year), not weekly or monthly.
• The activity includes setting objectives and choosing high-level policies.

Concept / Approach:
Decisions are commonly grouped into three levels: operational (short-term execution), tactical/management control (resource allocation and medium-term coordination), and strategic (long-term goals and policies). Strategic decisions are broad in scope, future oriented, and made under uncertainty. They commit major resources and shape markets, capabilities, and competitive positioning.

Step-by-Step Solution:

Verification / Alternative check:
Classic frameworks (e.g., Anthony’s) define strategic planning as setting objectives and policies for the enterprise, while tactical/management control ensures resources are used effectively to meet those objectives.

Why Other Options Are Wrong:

• Tactical: Medium-term allocation and coordination, not enterprise-wide objective setting.
• Prompt: Describes timeliness, not a decision class.
• Relevant: A quality of information, not a decision type.
• None of the above: Incorrect because “strategic” is the standard term.

Common Pitfalls:
Confusing tactical budgeting or scheduling with long-range strategic positioning; assuming any significant decision is “strategic” even when it is about mid-term resource allocation.

Final Answer:
strategic