Abstract

How can one tell which decisions are strategic? This article proposes a framework that helps distinguish strategic decisions from non-strategic ones. Whether a decision is strategic or non-strategic depends on how a decision arnks along two dimensions: its influence on the degree of commitment and its influence on the scope of the firm. Four distinct types of decisions emerge: strategic, neo-strategic, tactical, and operational. This categorization of decisions can help the firm prioritize decisions, allocate resources, and develop capabilities.