Strategic Decision Making

Meaning, concept of strategic management, strategic decisions, Mintzberg model

1. Dr.S.PRIYA , Asst Professor, MG College Thiruvananthapuram

2. Meaning Strategic decision making are decisions  that are made according to a company's goals or mission. It takes courage for a manager to implement strategic decision making. These decisions could take the company into new directions that may or may not succeed. Dr.S.PRIYA , Asst.Professor,MG College, Thiruvananthapuram

3. Characteristics/Features of Strategic Decisions Strategic decisions have major resource propositions for an organization. These decisions may be concerned with possessing new resources, organizing others or reallocating others. Strategic decisions deal with harmonizing organizational resource capabilities with the threats and opportunities. Strategic decisions deal with the range of organizational activities. It is all about what they want the organization to be like and to be about. Strategic decisions involve a change of major kind since an organization operates in ever-changing environment. Strategic decisions are complex in nature. Strategic decisions are at the top most level, are uncertain as they deal with the future, and involve a lot of risk. Dr.S.PRIYA , Asst.Professor,MG College, Thiruvananthapuram

4. Dr.S.PRIYA , Asst.Professor,MG College, Thiruvananthapuram

5. Mintzberg’s Modes of Strategic Decision-Making Henry Mintzberg has given three most typical approaches of strategic decision making which include: 1. Entrepreneurial mode 2. Adaptive mode 3. Planning mode Dr.S.PRIYA , Asst.Professor,MG College, Thiruvananthapuram

6. Entrepreneurial Mode Strategy is made by one powerful individual who has entrepreneurial competencies like innovation and risk taking. The focus is on opportunities. Problems are secondary. Generally the founder is the entrepreneur and the strategy is guided by his or her own vision of direction and is exemplified by bold decisions.   The success of Biocon India founded by Kiran Mazumdur shaw is an example of this mode of strategic decision making. Dr.S.PRIYA , Asst.Professor,MG College, Thiruvananthapuram

7. Adaptive Mode Sometimes referred to as “muddling through,” this decision-making mode is characterized by reactive solutions to existing problems, rather than a proactive search for new opportunities. Much bargaining goes on concerning priorities of objectives. Strategy is fragmented and is developed to move the corporation forward incrementally. This mode is typical of most universities, many large hospitals and a large number of governmental agencies. Dr.S.PRIYA, Asst.Professor,MG College, Thiruvananthapuram

8. Planning Mode This decision making mode involves the systematic gathering of appropriate information for situation analysis, the generation of feasible alternative strategies, and the rational selection of the most appropriate strategy. It includes both the proactive search for new opportunities and the reactive solution of existing problems. Dr.S.PRIYA, Asst.Professor,MG College, Thiruvananthapuram

9. Strategic Intent Definition Strategic Intent can be understood as the philosophical base of the strategic management process. It implies the purpose, which an organization endeavor of achieving. It is a statement, that provides a perspective of the means, which will lead the organization, reach the vision in the long run. Dr.S.PRIYA, Asst.Professor,MG College, Thiruvananthapuram

10. Strategic intent gives an idea of what the organization desires to attain in future. It answers the question what the organization strives or stands for It indicates the long-term market position, which the organization desires to create or occupy and the opportunity for exploring new possibilities. Dr.S.PRIYA, Asst.Professor,MG College, Thiruvananthapuram

11. Strategic Intent Hierarchy Dr.S.PRIYA, Asst.Professor,MG College, Thiruvananthapuram

12. Vision Vision implies the blueprint of the company’s future position. It describes where the organization wants to land. It is the dream of the business and inspiration, base for the planning process. It depicts the company’s aspirations for the business and provides a peep of what the organization would like to become in future. Every single component of the organization is required to follow its vision. Dr.S.PRIYA, Asst.Professor,MG College, Thiruvananthapuram

13. Mission Mission delineates the firm’s business, its goals and ways to reach the goals. It explains the reason for the existence of the business. It is designed to help potential shareholders and investors understand the purpose of the company. A mission statement helps to identify, ‘what business the company undertakes.’ It defines the present capabilities, activities, customer focus and business makeup. Dr.S.PRIYA, Asst.Professor,MG College, Thiruvananthapuram

14. Business Definition It seeks to explain the business undertaken by the firm, with respect to customer needs, target audience, and alternative technologies. With the help of business definition, one can ascertain the strategic business choices. The corporate restructuring also depends upon the business definition. Dr.S.PRIYA, Asst.Professor,MG College, Thiruvananthapuram

15. Business Model Business model, as the name implies is a strategy for the effective operation of the business, ascertaining sources of income, desired customer base, and financing details. Rival firms, operating in the same industry relies on the different business model due to their strategic choice. Dr.S.PRIYA, Asst.Professor,MG College, Thiruvananthapuram

16. Goals and Objectives These are the base of measurement. Goals are the end results, that the organization attempts to achieve. On the other hand, objectives are time-based measurable actions, which help in the accomplishment of goals. These are the end results which are to be attained with the help of an overall plan, over the particular period. Dr.S.PRIYA, Asst.Professor,MG College, Thiruvananthapuram

17. Thankyou Dr.S.PRIYA, Asst.Professor,MG College, Thiruvananthapuram