1. Strategic and operational planning Business success requires careful planning Successful organizations should conduct at least two levels of planning: strategic and operational Identify the following differences between strategic and operational plans Strategic plans 1. Are based on a firm's long-term goals and embody its 2. Should consider a firm's capabilities and outcomes Operational plans necessary to get there 1. Specify where a firm wants to be at the end of the planning horizon and the 2. Should serve as both a device Consider the following statement and indicate whether it would be included as part of a firm's strategic ar operational plan Undertaken prudent and reasonable cost-cutting program that will increase the firm's operating income by 30% each year for the next four years Operational plan Strategic plan