Lesson 2

Types of Planning — Strategic, Tactical, and Operational

Imagine you're planning a vacation:

  • Strategic planning — deciding where and when to go, like "Italy in July".
  • Tactical planning — booking tickets and hotels, choosing your route.
  • Operational planning — deciding what to pack, when to leave, and which sandals to wear in Venice.
The same applies to business — from high-level vision to daily actions, everything starts with planning.

🔍 Theory: Three Levels of PlanningIn business, planning is divided into three main levels:

Level

Time Horizon

Objective

Key Participants

Strategic (Strategic Planning)

1–5 years

Define long-term goals and allocate resources

Top management, executives

Tactical (Tactical Forecast)

3–12 months

Allocate resources and plan details

Middle management (marketing, finance)

Operational (Operational Forecast)

1 day – 3 months

Daily and weekly execution

Operations, logistics, sales


Business Example: Mars
Mars uses Strategic Forecasts to plan 2–5 years ahead:
  • track long-term trends in confectionery,
  • invest in automation and supply chains,
  • shape product portfolio (e.g., sugar-free).
Tactical plans are updated quarterly for marketing and SKU launches. Operational adjustments are made weekly, reflecting promos, weather, and SKU-level sales.

🛠 Tool: Excel Matrix of Planning LevelsCreate a simple matrix in Excel:

Planning Level

Time Frame

Example Product

Participants

Update Frequency

Strategic

3 years

New candy line

CEO, finance, marketing

Yearly

Tactical

12 months

Category forecast

Demand planner, sales

Monthly

Operational

2 weeks

SKU-level promo

Logistics, demand team

Weekly


📎 Use color coding and filters for clarity and segmentation.

🚫 MythMyth: "Forecasts are only needed one month ahead."
Reality: One-month outlook is operational. Without strategic direction and tactical structure, daily firefighting takes over the business.

🧠 Practice TaskImagine you're in an FMCG beverage company:
  1. Strategic: What product assortment is needed in 3 years?
  2. Tactical: How to allocate production across factories?
  3. Operational: How many pallets are needed for tomorrow’s shipment to a major retailer?
📌 TakeawaysStrategy = where we go, Tactics = how we go, Operations = what we do today.
All levels must coexist and align.
The Demand Planner operates across all levels, though with different depth and scope.
Download file Forecast Levels.xlsx
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