Strategic decision-making involves thinking about the long-term course one will take through a broad competitive landscape. Strategy provides the direction for operations. Operational planning and decision-making, in turn, guide tactical decisions made in the heat of battle.
When strategy is in place, the organization sits in a position that Sun Tzu called shih. Sun Tzu's army did not have a specific program or plan, but understood the compeititive landscape and all of its options. As the battle begins, decision-makers high and low know what to do as each contingency plays out.
Strategy is, simply, the art and science of options. It is a matter of understanding current options, creating new options, and choosing among them.