The Difference between Strategy and Tactics

Zach DeGregorio, CPA

Strategy and tactics are ideas that confuse a lot of people. I think part of the problem is people talk about these terms in a theoretical sense. I want to give you a definition that is practical in the day to day operations of your business.
Let us start with Strategy. Strategy is the description of your ideal market position. This is made up of a several different things:
1) SWOT Analysis. Understanding your strengths, weaknesses, opportunities, and threats. This tells you your competitive advantage in the market.
2) Customers. What is your target market?
3) Product. What are you selling?
4) Value Proposition. How does your product fit the customers need in a valuable way?
Strategy is the description of where your company is going. All this information is contained in a strategic plan. The point of the strategic plan is to communicate and focus everyone on the same goals.
Let’s talk about tactics. Tactics describes how to achieve the strategy. These are step-by-step tasks you are going to do in order to achieve the goals in the strategic plan. So you might look at the next quarter, and make a list of the things you will do to achieve company goals. That list is your tactics.
Strategy is the destination. Tactics are the journey. Let us use the example of a roadtrip. Imagine your goal was to take a trip to Yellowstone National Park. That is the destination. Your tactics would be, planning the route, gathering supplies, and fueling up your vehicle. Tactics are the things you are going to do to achieve the strategy.

Neither Zach De Gregorio or Wolves and Finance Inc. shall be liable for any damages related to information in this video. It is recommended you contact a CPA in your area for business advice.

[teresalorico]

As a ABM student, I would to like to thank you for this video for making it easier to understand and to applied it in our future.

[pienter]

I love how he smiles the whole video. Very clear explanation and examples. Ive not only gained knowledge but also a bit of happiness thnx to this vid.

[jaydejong]

"Strategy is the destination, tactics are the journey" I don't really agree with this statement and i would like to hear your opinion on mine.
The destination is the goal and a strategy is not a goal i.m.o. the strategy in this case would be: taking the fastest route, taking the most beautiful route, drive from A to B without a stop, saving as much fuel as i can etc. then the tactics would be the actual roadplanning, do i ride a car or a motorcycle etc. What is your opinion on this?

[claudiod.]

Thanks a lot. Yours is the best explanation I could find around and the simplest as well ! It is amazing how simple concepts can be as long as they explained properly.

[dennis]

Great presentation! Very clear and precise . 👍

[truthinreality]

Outstanding for my knowledge, alhamdulillah.

[felixomokaro]

Very clear for anyone to understand and implement from.

[curiouscatlabinc]

Ouch! Right in solar plexus. I know somebody who needs to change my ... eeeerrr, his, yep, ideas about the world NOW! Thank you very much. Clear as sausage broth as we say in Sweden! :D

[moviestrailers]

thank you so much sir for describe the difference between strategy and tactics very best examples

[wiranelauzon]

Thank you so much. This is very helpful.

[taliagreene]

I like these practical definitions. As always, thank you!

[claudiod.]

What is the difference between Vision and Goal ? Is Mission, Dream, Aim the same? And how everything stack together into a pyramid?

[plebula_]

Surprisingly well said even though the video is clearly about business it’s said well enough to be applied to anything

[sociallyhostileelement]

Would the goal and the strategy really be synonymous though? In the example used, wouldn't it be more like this: the goal is to get to Yellowstone, the strategy is to get there with a car, and the tactics are the specific things you do with that car to keep it running and reach the destination.

Can you do when to capitalise interest in the balance sheet?

[aghawaseem]

Love this video - especially because I love Strategy. I love the game Civ 6 - Gathering storm. You should play it sometime.

Can you do what is a SWOT analysis or CAPM?