Factors Influencing Strategic Making Process-Myassignmenthelp.Com

Question: Discuss About The Factors Influencing Strategic Making Process? Answer: Introducation Decision-making is an important function of the management in nearly every business. With the rapid changes experienced in the market, businesses are striving to adjust to the new economic order and information technology needs. The businesses are also struggling to adjust to the dynamics associated with increased population, limited scarce resources, social consumption, and inflation.[1] Studies have reported that many managers have to make many decisions relating to unfamiliar issues too fast thus introduce new elements into management.[2] Given this unpredictable business environment requiring more decisions made faster, the management has to understand the context. This has made strategic decisions critical in advancing the interests of investors. Strategic decisions (SDs) are inherently risky, complex, long-term, and unstructured thus bearing a significant impact on the firm. These decisions are unique and require large organizational resources.[3]The executives make decisions based on the features of SDMP. The SD-specific characteristics are stimuli perceptions. The SD features motive, uncertainty, decision matter, time pressure, and importance.[4] For instance, the decision matter depends on the political and complexity of the situation thus determines the SDMP. [5] Depending on the complexity and politicality level, the decision matter could be familiar, tractable, or vortex.[6] The SD uncertainty also promotes problem-solving dissension, politicization, and formalization because any action taken by the firm requires decision-making. The external environment also has a direct impact on the SDMP. Hostile environments expose the organization to challenges because the executives find it difficult to collect and analyze the information.[7] Without detecting the environmental hostility effects, strategic decision-making would be impossible. Unstable, dynamic, and high-velocity environments are caused by competition, inaccurate information, or obsolete thus affecting the SDMP.[8] The external environment also presents a direct effect on the outcomes of SDMP. The environmental dynamism compels the management to seek solace in insignificant SD. Therefore, hostility and dynamism in the environment leave the CEOs the least opportunity to make erratic SDs.[9] The management needs to focus on customers, competitors, and technology to improve the SDMP outcomes. The characteristics affect the SDMP characteristics and outcomes depending on the contextual variables. The performance of an organization has resulted in profits and return on assets thus influencing the characteristics of SDMPs. Importantly, centralizing power in an organization triggers political behavior.[10] The structure of a firm would determine the aspects of rationality and influence the participants in the decision-making process. Large companies use comprehensive SDMP. The executives must consider the firms characteristics and the environment when making strategic decisions based on the SDMP. References Elbanna, Said, and Yasir Fadol. The Role of Context in Intuitive Decision-Making. Journal of Management Organization 22, no. 5 (2016): 652-661. Nooraie, Mahmood. Factors Influencing Strategic Decision-Making Processes. International Journal of Academic Research in Business and Social Sciences 2, no. 7 (July 2012): 405-429. Papulova, Zuzana, and Andrea Gazova. Role of Strategic Analysis in Strategic Decision-Making. Procedia Economics and Finance 39, (2016): 571-579. Rosenzweig, Phil. What Makes Strategic Decisions Difference. Harvard Business Review, November 2013. Accessed 16 September 2017. https://hbr.org/2013/11/what-makes-strategic-decisions-different. Shepherd, Neil Garth, and John Mynard Rudd. The Influence of Context on the Strategic Decision-Making Process: A Review of Literature. International Journal of Management Reviews 16, (2014): 340-364 [1]Neil Garth Shepherd and John Mynard Rudd, The Influence of Context on the Strategic Decision-Making Process: A Review of Literature, International Journal of Management Reviews 16, (2014): 345. [2]Ibid. 351. [3]Phil Rosenzweig, What Makes Strategic Decisions Difference. Harvard Business Review, November 2013, accessed September 16, 2017, https://hbr.org/2013/11/what-makes-strategic-decisions-different. [4] Shepherd and Rudd, 347. [5]Mahmood Nooraie, Factors Influencing Strategic Decision-Making Processes, International Journal of Academic Research in Business and Social Sciences 2, no. 7 (July 2012): 415. [6] Shepherd and Rudd, 346. [7] Shepherd and Rudd, 352. [8]Said Elbanna and Yasir Fadol, The Role of Context in Intuitive Decision-Making, Journal of Management Organization 22, no. 5 (2016): 656. [9] Shepherd and Rudd, 355. [10]Said Elbanna and Yasir Fadol, The Role of Context in Intuitive Decision-Making, Journal of Management Organization 22, no. 5 (2016): 656.