Strategic Management And Decision Making Essay

1926 words - 8 pages

Strategic management and decision making
Strategic management is a disciplined effort or control to make necessary decisions that have an effect on a business or an organization; the aim of strategic management is mainly to develop new, innovative or diverse ideas and opportunities for potential or development, and facilitates or assists an organization to achieve its goals (SM, 2010). In reality, strategic management not only can be used or applied to determine mission, vision and values or objectives, but it also establishes roles and responsibilities or timelines in a business (David, 2009). In the following sections, this study will focus on and examine the nature of strategy formulation, implementation, and evaluation activities, and analyze the potential pitfalls or risks in using a strategic-management approach to decision making.
Strategy formulation is the process of establishing the firm's mission, goals, and choosing among alternative strategies or plans; it involves and implies that preparing the best approach to respond to the circumstances of a firm's environment, whether or not its conditions are known in advance; being strategic and tactical, then, means being clear about the management's aims; being aware of the company's resources, and incorporating both into being consciously responsive to a dynamic environment (SM, 2010). As nearly all businesses have limited resources, top leaders and management must determine which alternative plans or strategies will do well to the organization most; strategic management requires attention to the big picture and the motivation to adapt to circumstances, and consists of the following aspects:
Formulation of the organization's future mission in light of changing external factors such as regulation, competition, technology, and customers development of a competitive strategy to achieve the mission creation of an organizational structure which will deploy resources to successfully carry out its competitive strategy. Strategic management is adaptive and keeps an organization relevant (S.M, 2010, p.1).
There are three main processes of strategic formation, Kim and Mauborgne (2005) suggests:
1) Carrying out situation and competitor analyses with self-evaluation (both internal and external, and in cooperation with micro-environmental and macro-environmental);
2) Simultaneous with this assessment, business goals are set; all objectives (short-term or long-term) should be parallel to a time-line--this includes creating vision statements (long term view), mission statements (the role that the firm gives itself in society), company and business unit strategic and tactical objectives; and
3) Together with the situation analysis, these objectives should put forward a strategic plan which presents the aspects and details of how to accomplish these goals or targets.
Overall, strategic management not only can help management focusing its energy, and ensure...

Find Another Essay On Strategic Management and Decision Making

knowledge management for decision making Essay

1746 words - 7 pages , as huge amounts of information runs through the various divisions of an organization, which can be integrated and used for making more profitable, strategic and constructive business decisions. Thus, the need for knowledge management arose, wherein, chunks of codified knowledge has to be appropriately managed for ease of retrieval and use. The influential paper, "Managing Codified Knowledge" by Zack (1999) is reviewed here. The definition of

Thinking and Decision Making Essay

1610 words - 6 pages think about a problem, they all begin by examining and evaluating all options and possible solutions. Critical thinking, in any form, is an important part of the decision making process.ReferencesKirby, G.R., & Goodpaster, J.R. (2007). Thinking (4th ed) . [University of Phoenix Custom Edition e-Text]. Upper Saddle River, NJ: Prentice Hall. Retrieved April 15, 2008, from University of Phoenix, rEsource, MGT350 Web site.CONSULT-IIDC MANAGEMENT. (2008). Persuasive thinking. Retrieved April 24, 2008, from

Emotion and Decision Making

2958 words - 12 pages compare the present situation to the past one to initiate emotion. The same argument has also been used to supported emotion as an intuitive process. The proponents of this view argue that at times the retrieval of the memories that lead to emotion occurs without involvement of the conscious mind (Blackhurt and Stein, 2004). How Intuition Affects Decision Making Each and every day, a person will be faced with multiple alternatives which may be

Emotions And Decision Making

816 words - 3 pages A recently published article seems to lend new information as to the way in which emotions influence our decision-making process. While emotions and reasoning are considered inherently separate by some, new experiments are challenging that perception. A series of studies done by experimental psychologists now show us that emotion plays a very natural role in decision-making situations. The experiments, ranging in type from neuroimaging to

Thinking and Decision Making

1366 words - 5 pages Running head: THINKING AND DECISION MAKING PAGE \* MERGEFORMAT 1 THINKING AND DECISION MAKING PAGE \* MERGEFORMAT 4 Thinking and Decision MakingUniversity of PhoenixCritical Thinking: Strategies in Decision MakingMGT 350June 17, 2010AbstractDecision-making and critical thinking are both used daily, if people realize it or not. People go through their daily lives thinking critically and making decisions. Knowing that there are many different

Thinking and Decision Making

1262 words - 5 pages PAGE Thinking and Decision Making Paper Page PAGE 2 of NUMPAGES 7 Thinking & Decision Making PaperMGT 350September 29, 2008Introduction"We are what we think. All that we are arises with our thoughts. With our thoughts, we make the world" Buddha (Brainy Quote, 2008).Thinking is a fact of life. We think about what we want to eat, what we are going to wear, or what type of job we want. These are all simple thoughts that people have on a

Thinking and Decision Making - 1576 words

1576 words - 6 pages is comprised of a step-by-step guideline. Observation, hypothesis formulation, experimentation and verification are the four major steps involved in making a decision based on this style. Observing is simply looking for a connection that needs to be made, helping to find the cause of a problem as well as framing the anticipated outcome of what the decision will be. The second step would be hypothesis, stemming from "if" and "then" statements

Decision-Making Case Study Health Care Management

1386 words - 6 pages Question Behind the DecisionBefore making an informed decision, the manager must formulate a research question out of the management question. In this case study the management question is "How will the Young and Middle Aged Adult Department operate with a 15% budget cut?" The research question is "What clinical services should be eliminated or added to allow for the 15% budget cut within the Young and Middle Aged Adult Department's and how will it

Decision Making and Planning Process

1195 words - 5 pages Running head: Decision Making and Planning ProcessDecision Making and Planning ProcessAndrea JonesUniversity of PhoenixDecision Making and Planning ProcessDecision making and planning are a critical processes in any organization. Decision making is the foundation of planning. All organizations engage in planning activities, but no two organizations plan in exactly the same manner. The purpose of strategic management is to develop an effective

Critical Thinking and Decision Making

789 words - 3 pages environments. Moreover, both processes are a central part of my work environment on a daily basis.My job requires critical thinking and good decision making on a daily basis. Depending on the expected time frames or the difficulty of a job it is common practice to prioritize tasks. Unclear or confusing information cannot be accepted.ReferenceArsham, H. Applied Management Science: Making Good Strategic Decisions. Retrieved April1, 2008,, D. F. (2002). Thought and Knowledge: An Introduction to Critical Thinking. Published by: Routledge

Critical Thinking and Decision Making.

1564 words - 6 pages problem. It also includes a method to evaluate the final decision and measure the impact of that decision.Decision-making is central to human activity. Thus, we are all decision-makers. However, "good" decision-making starts with a consecutive, purposeful, strategic-thinking process. (Arsham, H.) Decision-making can be applied to many of the problems we encounter on a day-to-day basis. However, we must ensure we are solving the main problem and not

Similar Essays

External Analysis – Theories, Frameworks And Its Relevancy In Strategic Decision Making

1485 words - 6 pages provide information for planning, decision making and strategy formulation by acquiring controlling needed resources and be cautioned by the forecast and trends. External analysis can be done either formally or informally.Good performances within a company are the results of correct interaction of the business management with its internal and the external environment. Responding to internal strengths and weaknesses is therefore an essential

Ethics And Management Decision Making Essay

4688 words - 19 pages contextualized. The solutions should be evaluated from all the angles, keeping in mind the moral aspects so that those do not bring forth aftermaths on humanity. In our country Pakistan Easy Paisa is one the biggest example of moral imagination and management decision-making. This came in existence with the joint venture of Telenor and Tameer bank. Easy Paisa helps the poor especially in getting the salary of their kids on time and students can also take a

Management Accounting And Business Decision Making

2081 words - 8 pages MANAGEMENT ACCOUNTING AND BUSINESS DECISION MAKING - ASSIGNMENT 2NAME: AlexGROUP NUMBER: BLEVEL: IntermediateHAND IN DATE: 13/01/2006Task 1Objectives: 1. To be able to demonstrate the ability to critically analyse given data using ratio analysis techniques.Profitability1. Return on ordinary shareholders' funds= ROSFROSF= Net profit after taxation and preference dividendOrdinary share capital plus reserves2004= 1,123* 100 = 3.91%28,7242005= 1,655

New Public Management And Decision Making In Uk Public Policy

1326 words - 5 pages Discuss how the tendency of New Public Management has impacted on decision making in UK public policy. New Public Management is generally used to describe a management culture that emphasises upon the citizen or customer as being central, as well as having accountability for results. It also suggests organizational structures and promotes decentralized control, many different types of service delivery mechanisms, including quasi-markets