what is strategic decision making? give two examples of strategic decisions. course hero

What is strategic decision making process?

Jun 12, 2018 · Good examples of decisions are strategic decisions a. Good examples of _____ decisions are strategic decisions. A. nonprogra mmed B. programm ed C. insignifica nt D. recurring E. structured. A . When a small community hospital decides to add a radiation therapy unit, it is considered a: A. programmed decision. B. structured decision.

Which of the following is an example of strategic decision?

Jul 09, 2013 · An example of a strategic decision is to decide whether you should acquire another company or not . Strategic decisions are made by CEOs , boards of directors , or other top level teams . 139. Give an example of a tactical decision and indicate who makes it. A tactical decision is focused on how things get done.

What is the best and most effective strategic decision model?

A. Strategic decisions should be established in a distinctly separate manner without regard to other functional disciplines within an organization. B. Strategic decisions should be developed for each of the decision responsibilities of process, quality, capacity, and inventory. C. Strategic decisions should indicate how operations objectives would be achieved. D. Strategic decisions …

What are the 4 approaches to strategic decision making?

To become a strategic leader, according an article written by LTG Dubik, what is an important strategic decision making element? a. Leaders think in terms of decision space b. The problem set is well-defined c. The solution process remains unchanged d. The leadership space is limited

What is strategic decision-making example?

Strategic decisions are made based on of a company's mission and vision or its objectives. An example. A manager of a cat food company notices that his customers prefer higher quality and fresh food instead of cat food sold in very large quantities for a low price.

What is strategic decision-making?

Strategic decision-making is a process of understanding the interaction of decisions and their impact upon the organization to gain an advantage. Wrong decisions taken at the wrong time, may result in catastrophic consequences.Jul 24, 2021

What are the three strategic decisions?

To answer these questions, we propose the 'circle of strategic decisions' model, which is a three-stage process that involves analysing, decision-making and implementation.Nov 21, 2019

What are the four types of strategic decisions?

There are four types of strategic decisions you can begin to apply straightaway, whether you are dealing with a familiar situation or a novel one.Analytical Decision Making. ... Heuristic Decision Making. ... Expertise Decision Making. ... Random Choice Decision Making.

What are examples of operational decisions?

Examples of operating decisions are which customer orders to schedule for production, which components and raw materials to buy from suppliers, scheduling production equipment for use, deciding the nature of a marketing campaign, deciding where to invest excess funds, and determining how much inventory to keep on hand.May 13, 2017

What is strategic decision-making and why is it important?

Strategic decisions are intended to provide a competitive advantage and try to change the overall scope and direction of the company [4]. They are important for organizational health and survival [5]. In most businesses, however, strategic decision making is not about making those decisions.Sep 20, 2017

What are strategic choices?

Strategic choice refers to the decision which determines the future strategy of a firm. It addresses the question “Where shall we go”. A SWOT analysis is conducted to examine the strengths and weaknesses of the firm and opportunities that can be exploited are also determined.Aug 11, 2016

What is strategic decision-making explain the steps involved in strategic decision-making?

Making Strategic Decisions — 5 Steps for SuccessDefine the Problem — Consider these questions: ... Gather Information — Seek information on how and why the problem occurred: ... Develop and Evaluate Options — Generate a wide range of options: ... Choose the Best Action — Select the option that best meets the decision objective:More items...

What is a strategic decision and what are its three characteristics?

A strategic decision deals with a corporations long term future and is based on threecharacteristics; Rare, Consequential and Directive. Rare decisions are unusual and have nostandard to follow; basically, it is hard to see what “right” looks like.

What are the 2 types of decision-making?

The main types of decisions are as follows:Programmed and Non-Programmed Decisions: Professor Herbert Simon has classified all managerial decisions as programmed and non-programmed decisions. ... Basic and Routine Decisions: ... Policy and Operative Decisions: ... Individual and Group Decisions:

What is strategic decision-making tutor2u?

Johnson and Scholes define strategy as: "...the direction and scope of an organisation over the long-term: which achieves advantage for the organisation through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfil stakeholder expectations".Jul 28, 2019

What are the types of decision-making process explain with an example?

Types of decisionsBasic decisionsRoutine decisionsDecisions made after careful and systematic analysis of a problem and evaluation of several alternatives based on rational and logical facts and figures.Decisions based on intuition or experience of the decision maker and not based on relevant facts and figures.8 more rows•Dec 18, 2017

Why is strategic decision important?

The importance of strategic decisions is undeniable, so it is worth exploring its process and any factor pertaining to it.

How many steps are there in decision making?

In this model, the process of decision making has seven steps and the entire model is divided into three main stages which are defining the situation, identifying, and developing the actions (Figure 1).

What are the three concepts of rationality?

Herbert Simon, Nobel Laureate, criticized the rational decision making approach and introduced the concept of “bounded rationality” (5-4). According to this concept: 1 Humans cannot make fully rational decisions mainly because they can process and consider a little amount of data at the moment. 2 Expertise, information, and time in each situation are limited; therefore the comprehensive analysis is very hard and almost impossible in most cases. 3 Humans can not consider and recognize all possible limitations and constraints of an issue, thus not all of the possible alternatives are analyzed in the rational decision making process.

What is administrative decision?

Administrative decisions are organization’s routine decisions that facilitate execution of the operational decisions. Operational decisions are made upon technical knowledge of employees and facilitate execution of the strategic decisions.

What is behavioral model?

Unlike the rational model, the behavioral model does not address just one best solution for a problem. The advocates of this theory believe that managers based on the factors such as managers’ characteristics, organization’s situation, and other factors can find various solutions for their problems.

What is the most democratic decision making model?

The bargaining decision making model is expanded and formed the participative decision making model. The participative decision making model tries to bring all the people who directly influenced by the decision into decision making process. This model is known as the most democratic decision making process. However, the participation of people in the process of decision making in this model plays just the “consultation” role and not “deciding” role. In other words, this model provides people the opportunities to bring ideas and information to the table but they do not have real decision making power. Any stakeholder group within the organization may have its own agenda and interests to pursue; therefore in this model, the stakeholders are encouraged to present their key concerns before decisions are made. It is worth mentioning that stakeholder groups are sometimes strong enough to hinder the process of decision making if they are not included in the process of decision making. Participative decision making model can be seen in NATO, United Nations, and other global bodies.

How is life made?

Life is made upon the decisions. Individuals, regardless of their age, career, and any other factor, make decisions on almost daily routine. Decisions may have small or big scopes with short term or big term impacts on individuals or group of people. No one can deny the role of decisions, either made by him/herself or someone else, on his or her life.

What are the steps of decision making?

The 7 Steps of the Decision Making Process#N#Describe the problem#N#Create potential solutions#N#Collect data#N#Evaluate the options#N#Choose an option#N#Take action#N#Evaluate the impact 1 Describe the problem 2 Create potential solutions 3 Collect data 4 Evaluate the options 5 Choose an option 6 Take action 7 Evaluate the impact

What is qualitative data?

Qualitative data is expressed in words. It often tells you why it’s happening. There are many ways to collect data. Some of the most useful and easiest to implement are surveys, interviews, and observations.

Can you try something to see if it works?

You can try something to see if it works, then try something else later if it doesn’t. But if the decision is permanent and a matter of great consequence, then you need to be very careful choosing. Example. Zappos famously found success by offering insanely easy exchanges and returns for their shoes.

What is a decision making style?

Each decision-making style is characterized by either a task or social focus and a high or low tolerance for ambiguity. Styles with a high tolerance for ambiguity can work with unknown variables as they come to a conclusion. Those with a low tolerance for ambiguity want as much clarity as possible in all the circumstances and information ...

What is analytical decision making?

Analytical decision-makers carefully analyze data to come up with a solution. They are careful and adaptable thinkers. They will invest time to glean information to form a conclusion. These decision-makers are task-oriented, but have a high tolerance for ambiguity.

What is a directive decision maker?

A directive decision-maker has a low tolerance for unclear or ambiguous ideas. They are focused on the task and will use their own knowledge and judgment to come to a conclusion with selective input from other individuals. Directive decision-makers excel at verbal communication.

What is behavioral style?

A behavioral style of decision-making focuses on relationships more than the task. It evaluates the feelings of others as part of their decision-making process. Behavior decision-makers have a low tolerance for ambiguity and a social focus as they evaluate solutions.

What is a persuasive communicator?

They are persuasive communicators who value decisions based on a team consensus. Their decisions are often based on how the choice will impact relationships. Example: As HR manager, Kate has been asked to decide which week employees should get as a bonus paid vacation days before the end of the year.

What is a low tolerance for ambiguity?

Those with a low tolerance for ambiguity want as much clarity as possible in all the circumstances and information that lead to their decisions. Decision-making styles also vary in a social or task-driven focus. Social-driven decisions consider the behavior of others involved in the outcome. Those who are task-driven make decisions based on how ...

What is strategic decision?

1. Strategic decision is a major choice of action which affects the entire organization or major parts of it. 2. It affects the long-term prosperity of the organization because the commitment is for long term.

What is the basis of decision making?

The basis of decision-making is intuition, judgement or hunch, which are the result of long years of experience in dealing with a variety of strategic problems. A few authors, including Herbert Simon, Rechard Cyert, James March and Henry Mintzberg have contributed to an understanding of this approach.

What is the environment in strategic management?

The environment is a mixture of the analysable and of chaotic change and pressures. Strategic management decisions are, therefore, made in a typically human way i.e. using the rational, conscious analysis and intuitive, unconscious “gut” in light of political realities.

What is adaptive approach?

This adaptive approach is reactive rather than proactive and tries to collect and mix the variant factors influencing the strategic decisions. It touches the very root of changing context of decision-making. This approach is very common in case of public sector enterprises where decision-making power is divided amongst different constituents.

What are external factors?

External factors are economic, technological, socio-cultural, political, and ecological and the internal are related with firm’s strengths and weaknesses. ii. Systematic and Structured Approach: Planning approach to strategic decision making involves systematic and structured approach to the solution of problems.

What is formal structured approach?

Formal-structured (or simply formal) approach involves strategic decision making in anticipation of the future state that the organization wants to be in. Strategic decisions are based on socio­economic purposes of the organization, values of top management, external opportunities and threats, and organization’s strengths and weaknesses.

What is the difference between a decision maker and a decision maker?

Decision-maker takes decisions based on intuition which is characterised by the use of hunches, inner feelings or the ‘gut-feeling’ of the decision-maker. Decision-maker who makes decisions based on intuition, practices management exclusively as an art. This decision-maker prefers habit or experience, relative thinking, and instincts using the unconscious cognitive process.

What are the elements of a strategic plan?

Although objectives, strategies, and tactics are core elements in any example of a strategic plan, they are not the only elements. Many plans are more robust and include additional levels in the hierarchy. These levels are usually referred to as strategic themes and goals, and they come before objectives. As such, a fully developed plan would look ...

What is strategic plan?

There are simple strategic plans that include goals, objectives, strategies, and tactics, as well as complex plan structures that include multiple levels and layers. How developed your plan needs to be depends on several factors, including the level of accountability you are trying to create, the time frame for implementing the plan, ...

How many levels are in a strategic plan?

At a minimum, strategic and operational plans contain three levels that serve specific functions. These are listed in inverse order as they appear in a plan, to demonstrate the linkage from bottom-up:

What is a goal statement?

Goals: These are broad statements that translate the organization’s vision statement into something more meaningful and time-bound. If strategic themes are also used, goal statements are used to translate the vision to specific strategic themes.

What is the purpose of objectives?

Objectives: Similar to above, Objectives are the quantifiable items that measure the success of your Goals, and ultimately your strategic plan. They should measure how you plan to increase, decrease, or maintain some key performance indicators critical to the success of the goal.

What is tactic in marketing?

In many cases, these are your tactics. Tactics are the core components of your strategies that will help measure success towards completion. Tactics are NOT quick tasks that can be completed by checking a box and instead are milestones or key deliverables of the strategies. FREE RESOURCE.

What is achieveit platform?

AchieveIt is the platform that large organizations use to get their biggest, most important initiatives out of the boardroom and into reality. Too many great ideas never quite make it across the finish line, because there’s no real way to keep everyone on course and keep everything on track.