Strategic Decision Making: Proper Formulation of Strategy
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Q1.
What information is needed for the proper formulation of strategy? Why? Do you think that you should be able to conduct an internal strategy audit by the end of this course?
Q.2
For this assignment, you will be reading the following journal article that has been provided in the Student Resources and search in the library for one additional resource. You must have at least two references in your paper. Be sure that you include information from the journal article and your other reference and synthesize the articles as you respond to the questions.
Read: Franklin, C. L. (2013). Developing expertise in management decision-making. Academy of Strategic Management Journal, (1), 21. Available from http://search.proquest.com/abicomplete/docview/1369310720/abstract/embedded/DQAZYQP5WY798MVG?source=fedsrch
The text states that strategic decisions are (1) rare, (2) consequential, and (3) directive. These deal with the long-term future of the entire organization. To aid in the decision making, the authors suggest an eight step decision-making process. Found on page 25 in the text, these include: (1) evaluating current performance results; (2) reviewing corporate governance; (3) scanning and assessing the external environment; (4) scanning and assessing the internal corporate environment; (5) analyzing the strategic factors; (6) generating and selecting the best alternative strategy; (7) implementing selected strategies; and (8) evaluating implemented strategies. These guidelines for making and evaluating decisions at a strategic level can be important for leaders.
Most people in business on most days deal with company tactics and decisions at a level that is not strategic. However, every decision made by every employee in a company ultimately impacts the success of the strategy for that company. As pointed out by Malcolm Gladwell in his book The Tipping Point, it is the collection of thousands of decisions all aimed in relatively the same direction that can lead a company to the achievement of a strategy. How do you decide what type of decision is strategic?
Search in the library/online and look for an article about new moves being made by a corporation, specifically the decisions that are strategic. TIP - try to find something in the Wall Street Journal. At what level is each of the decisions that you identified? Functional/Business/Corporate? Why do you believe this to be the case? What is your assessment of these decisions? Will they be effective? Why? How have you decided this?
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Solution Summary
The response provides you a structured explanation of strategy formulation, and strategic decision making. It also gives you the relevant references.
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1.
You should say that Information that is required for the formulation of strategy include the following. First, the long term objectives of the company should be known. The strategy is the means of achieving those objectives. There should also be information about the organizational environment(1). This includes the company's competitive position, the economic environment, and industrial environment of the company. Critical information is the setting of quantitative targets and these should be supported by divisional plans. Further, information relating to the past performance must be available and the selection of the strategy based on company goals, company strengths, and limitations.
You may say that information required for formation of strategy includes information relating to customers, competitors, and the organization. This information is required for maintaining important management practices. The information about objectives is required to get closer alignment of policies and strategy. Information about its resources, budgets, and constraints is required for strategy formulation. What is required is to know the mission of the organization, its strategic objectives, and its competitive strategy. Information relating to the customers of the organization is required. Information relating to the value the company is creating, and the benefits its products/services are providing to the customer. The information relating to the target segment is required. Information relating to the latest technology, new products, and inventions in the industry should be known(2). At the same time information relating to values that the company upholds, the special abilities and core competencies of the business, and the direction in which the organization wants to be in future should be known.
Yes, a corporate strategic audit can be carried out at the end of this course. I will be able to evaluate if the strategy is practical. I will be able to assess the evidence. Further, I will be able to evaluate if the corporate objectives, goals, and policies, are aligned with programs. In addition, I will be able to appraise the business ...
Education
- BSc , University of Calcutta
- MBA, Eastern Institute for Integrated Learning in Management
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