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Decision-Making and Corporate Restructuring - Essay Example

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Decision-making is an integral part of life as actions are usually based on decisions made by individuals or groups. The significance and complexity of this process are directly related to the level of impact - i.e. by the number of people to be affected once a choice had been made…
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Decision-Making and Corporate Restructuring
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Download file to see previous pages This relevant process is described based on the perception and management style of its influential leader, Mr William S. Stravopoulos.
In the past few years, Dow Chemical has been undergoing massive restructuring as indicated by the changes in its product lines. It is observed to be focusing on chemistry-related businesses for the company to achieve its goals - both in the short-term and long-term.
For Mr Stravopoulos, making major decisions should start with the critical analysis of the products offered by the company and the business in which it is in as a whole. This initially entails the identification of the company's strengths or core competencies. This stage also requires distinguishing the areas in which the company can never excel due to the presence of formidable competitors or lack of technical know-how. Decisions are then made based on these areas identified by the company where its core competencies or weaknesses lie. As per the CEO's style, Dow Chemical opted to divest business units with lackluster performance and focus its resources on the core competencies noted. This sets the general direction of restructuring (Hodgetts)
Moreover, decision-making should be planned carefully and done systematically. It involves systematic thinking in which a game plan is conceived. The game plan comprises of the step-by-step procedures or strategically phased courses of action. This means that after determining the company's business objectives, formulating of strategies for the achievement of these goals follows.
In the case of Dow Chemical, its business objectives emphasize improvement of quality, reduction of operating cost, change of company culture and fostering of growth. To achieve these, the company came up with a corporate plan divided into two phases - the positioning stage and growth stage. The positioning phase focuses on the achievement of the first three objectives. When these are accomplished, the growth phase wherein the company aims for expansion commences. (Hodgetts)
Another important factor in decision-making is the sharing of relevant information. Key people should be sufficiently aware of what is happening in the company. When people know what is going on, Mr Stravopoulos believes that they could make better decisions expediently. This is beneficial for the company because people are empowered to make good and timely decisions as well as lessen corporate bureaucracy. (Hodgetts)
Furthermore, the CEO believes that well-informed decision-making is an integral part of the business. As such, Dow Chemical invests substantially in research and development (Hodgetts). Not only would extensive research and development contribute valuable information for decision-making, but they also drive continuous product innovation.
In running a business, specifically for corporate restructuring, difficult decisions will have to be made. The Dow CEO is confronted with tough decisions like company downsizing, which is often a highly emotional undertaking (Hodgetts). However, such decisions would have to be made if the success of the company is desired. This means that in decision-making both the short term and long term aspects of the business should be taken into consideration. Employees may have a negative ...Download file to see next pagesRead More
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