The process of strategic decision making consists of :
Awareness of strategic issues :Issues are problems.
Awareness of strategic issues :Issues are problems.
- 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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