Summary:

Instead of making decisions based solely on recent market conditions, investors should be thinking about their specific risk profile, and their long term financial goals. As your risk profile and financial needs may have changed in recent years, it is a good idea to revisit those elements to be sure you are making the right strategic investment needs.

When re-balancing ones portfolio, the various asset classes need to be considered and should be driven by your investment needs as well as your investment vehicle. A well diversified portfolio should contain some exposure to alternative investments that are not correlated to our equity market as well as offshore investments.

Article Quote:

“With the strong performance from the equity market over the last few years, Now may be a good time to rebalance your portfolio, however it is important to remember that this should tie in with your long term investment strategy and not an attempt to time the market. “Investors should not extrapolate the outstanding performance of over 40% in the last year to future returns, especially with rising long term interest rates locally and internationally, the market may run into significant head wind in the short term. Even so the market does not look extremely overpriced.”

Link:http://www.magdalenaduhagon.com/strategic-investment-plan-time-to-release-your-investments.html

Investors can overreact amidst economic turmoil. That is why it is so important to develop long term investment goals and to diversify your portfolio. Thinking strategically without making emotionally driven financial decisions will see the investor through the rough economy and will keep the portfolio in better shape.

For more on strategic planning, see http://www.performancesolutionstech.com/category/strategicplanning/

Summary:

The strategic manager must develop a plan, one that incorporated the company’s vision. Beyond that, the strategic manager must decide who or what needs resources to be allocated, how much to allocate and who and how many personnel will be needed to reach the strategic goals. Therefore, strategic management is performed at a higher level of management than that of tactical management.

Tactical managers are typically middle management, or non management. They are the ones that take the plan, as outlined by upper-management, and execute the specific steps outlined by the strategic plan.  They are the people in the organization that perform the daily tasks and ultimately see the strategic plan to completion.

Article Quote:

“Strategic is focused on finding a path to reach specific goals. Once the path has been defined, steps must be decided to move along the path. Tactical management is moving the organization along the path, using the established steps.”

Link:http://www.it-rules.com/policies-procedures/what-is-the-difference-between-strategic-and-tactical-management-policies-and-procedures-in-a-high-quality

The duties of the strategic manager are to envision where the company wants and what steps are necessary to get the company there. They perform scenario analysis and develop contingency plans when a threat or opportunity presents itself. Once the plan is in place, the strategic manager needs to get everyone in the organization on board with the plan. Without company-wide support, the plan will likely fail.

For more on strategic planning and execution, seehttp://www.performancesolutionstech.com/category/strategicplanning/