Friday, February 5, 2010

Process of strategic decisions making


The process of strategic decision making consists of :
Awareness of strategic issues :Issues are problems.
  1. Strategic decisions maker must have awareness of strategic issues.Such awareness is the result of:
  • Previous experience and "got feeling"of decisions makers.
  • Deviations in sales,profit performance,productivity.
  • Budget variance.
  • Customer relation on quality,prices,and services.
2.Formulation of strategic decisions :Strategic decisions maker should formulate and defined strategic decisions issues.It can be based on :
  • Information gathering and analysis
  • Debate and discussion of issue with stakeholder
  • Making sense of information,debated and discussion about strategic issue
  • Formulation of key strategic issue 3.Solution development :Alternative solution for strategic problem are developed.They ca be based on:
  • Known and tried solution servicing as precedents
  • drawing on experience
  • collective wisdom of management
  • strategic work shop to developed alternative solution
4.Solution selection :Strategic choice for solution selection is made from among the alternative solution.It can be based on :
  • Judgement :experience,hunch and rule of thump of managers.
  • Negotiation :with stakeholder.
  • Bargaining :With various SBUs and functions.
Strategic decisions are very much outcome of managerial experience within a social,political an cultural context.
Process of strategic decisions making

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