Tactical decision making for the firm in a competitive environment

The author draws a distinction between the short-term tactical decisions and the longer-term strategic decisions for a firm operating within a competitive environment. The two key areas for short-term tactical decision making are seen to be pricing and resource allocation, and the author focuses on pricing. He outlines in particular how two specific knowledge support systems, for tactical pricing enable firms in the petroleum and retail banking sectors to improve profitability despite competitor moves and other perturbations within a firm´s operating environment. Specific examples are given from real life studies from the two industries where these systems have been used to improve profitability