Decision's Magnitude of Impact - Case Study Example

Table of Contents Introduction 02 Thesis Statement 02 Strengths and weaknesses 03 Article Viewpoint 05 Decision making processes 05 Conclusion 06 References 07 Introduction Strategic decisions are those which directly affect the long term performance of the business and are in relation to the aims and objectives of the organisation. This is taken by the senior most group of the organisation and involves high degree of risks and its effective brings high level of rewards (Kaplan and Beinhocker, 2003). For the purpose of this system many knowledgeable people have come up with different ideas presented through models and thesis and one among which has been studied in this project. The importance of taking effective decision is very easy but to actually arrive at one takes real knowledge and understanding (Lamb and Lachow, 2006). The project focuses on the model based upon control of the decision maker and the actual performance achieved through the decision. Thesis Statement In the first step the social, economic and personal factors regarding the strategic decision making are to be considered. Decisions are categorised as per the control and performance and this directly affects the outcome of the decision. A general thesis is to be initially followed to understand weather we are choosing from the options that we have in hand or are the decisions modified and shaped out as per the requirements. A strategic decision making in this article states a four type decision model and it is very necessary to recognise the different types. The steps are as follows: i. Making judgement and regular choices: Making the right choice and taking the correct decision is the demand for an apt decision making process. The choices are often not as per the control of the buyer and are made to choose from the options available. But the performance is absolute as the buying is as per individual’s own choice and pattern. The options are often framed and shaped up to influence the buyer’s decisions. This requirement of making regular choices demands routine follow up and a right balance between control and performance is to be attained. ii. Influence on outcome: Outcome is the ultimate desire from any decision made. In making certain decisions the options are out of control which pushes the performance to a rigid level. In such situations the judgements cannot be influenced or highly influenced. With control over the decision making, it helps in getting positive thinking matters and better control helps in improving performances and acting more optimistically. Applicability of the right set of factors for influencing the decision directly affects the results desired. Sometimes choosing a deliberate practice, a way between the two, become necessary and the ability to shift effectively between the options and developing a similar mind set helps in achieving better performance iii. Competitive dimension: Decisions are always made to bring out the most positive reply. So developing a sense of competitiveness is very essential in this stage of the decision making process. The best decision making involves the anticipation of the rivals move for that sort of problem to attain advantage which also is the importance of strategic thinking process. With the capability to think different and more advanced than the rivals in the market or at any business place helps gaining relatively better performance. Development of a competitive dynamic theory is very much required for making the strategic decision more effective and beneficial. iv. Decision making for success: A successful decision to win over the rivals is the ultimate result of the entire control and performance of the decision making process. A good strategic decision results in an efficient strategic management as decisions are the backbones for any business to meet its goals. A good decision making is the ability of the mangers to lead and execute in different situations. The fourth field of the decision making process was always less preferred to the first in many researches. Strengths and Weaknesses Every thesis has its strengths and weaknesses as anything which is arrived at a conclusion does not necessarily be devised as per the statement. Every theory that has been formulated at any level for any study has both advantages and disadvantages. Strengths The strengths of the thesis are: i. Making sense: The basic requirement for any thesis or model is to make sense in whatever is projected forward for the effective implementation (Nooraie, 2008). The same is the case for this explanation as the factors of control and performance have been made as the base for the evaluation of the accuracy for a strategic decision making process. ii. Must be predictable: The four model thesis statement is a predictable one as the decision making is a result of the interconnection between all the steps and the decision to be made becomes very clear with the learning from the second and the third stage. iii. Informative: The detailed linkage and a clear picture of the process makes the thesis statement informative in nature and the favoured factors behind the decision process becomes very informative. Also regular interval decision process and the competitive analysis nature help in other features of the managerial system. iv. Right factors to measure: The level of control over a decision and the actual performance due that control are the main deciding factors which should always be accounted to study the likeliness of the decision (Page and Meyer, 2003). So this thesis analysis has considered the best factors for determining the decision. v. Wide scope of application: The thesis has a wide scope for application as it is not just restricted to managerial decision but also is helpful for investors in the stock market or even the general buying of any utility product and many more applications. This shows a wide range for application of the thesis. WEAKNESS With the advantages of the thesis also comes forward the weakness of the thesis. Some of them are: i. One of the major concerns of this statement is that studies have proved that the decision makers generally do not follow the entire process and arrive at a decision much before the last stage. This sometimes proves effective but does not necessarily ensure that the decisions made within it are always the one demanded by the situation. ii. Another drawback lies in the fact that the model only states that a mid way path is sometimes selected by the management but does not brings forward the factors to back it up. iii. Facility of adapt different models from one process cycle to another should be made and thus the model should have the option of greater flexibility. Article Viewpoint The viewpoint, on my part, about the article is that the model or the thesis statement which has been presented over here is quite detailed and simple for application. The model is based on the concept of researching the problems and improving decisions in the first stage. Then the idea of the decision which is to be made is studied through a four model process depending on the level of control and performance as the base measures. Lastly comes the part known as the advice in which the managers learn to identify the best decision to be made and the ability to change the approach as per the requirements (Roberto, 2004). So the model is quiet well structured apart from the few drawbacks and can be termed as a model apt with the view to make a strategic decision different. Decision making processes Decisions set the pace to any activity which is to be carried out and the rest is a follow through of the same made decision. A systematic approach should always be incorporated to make a decision correct and different. Management is a diverse functional unit and so the researchers have taken many multidisciplinary functions like economics, anthropology and mathematics into consideration to determine a thesis statement (Thompson, Gentner and Loewenstein, 2000). Different decision making process like the strategic managerial process, Harvard 5 step process, decision making loop process, the six step problem solving process can also be taken into consideration to make a strategic decision different and competitive to the rivals. The managers all across the world follow different process which is best suited to their structure. We in day to day life also knowingly or unknowingly take many decisions which are similar to some decision making process of one or some other thesis (Laseter, 2009). Conclusion Strategic decision making has always been a tough ask on the management. With the development of thesis and models the managers get some sort of assistance and can thus take better decisions. Understanding the risk factor the level of uncertainty is very necessary to make a decision effective. Based upon the factors of control and performance a manager is backed with a good model to make a decision with minimum of risk and favourable for the organisation. Leadership qualities of a leader should always be highlighted by the fact and ability to make decisions in a crisis situation and should have the knowledge of such thesis and models to back up the decision taken (Bazerman and Moore, 2008). With the project highlighting the control-performance model and helping in making strategic decisions through the four step model and also learning the strengths and weaknesses of the structure. We also come across the different models in approaching the decision making process and a self analysis of a different style of strategic decision making process. References Bazerman, M.H. and Moore, D. (2008). Judgment in Managerial Decision Making (7th ed.). Hoboken, NJ: John Wiley & Sons, Inc. Kaplan, S. & Beinhocker, E. D. (2003). The real value of strategic planning. MIT Sloan Management Review 44(2), 71-76. Lamb, C. J. and Lachow I. (2006). Reforming Pentagon Strategic Decision-making, Institute for National Strategic Studies, July. Laseter, T. (2009). An essential step for corporate strategy. Strategy + Business, issue 57, 26-31. Nooraie, M. (2008). Decision's magnitude of impact and strategic decision-making process output: the mediating impact of rationality of the decision-making process. Mangement Decision,46, 640-655 Page, C. and Meyer, D. (2003). Applied research design for business management [Book] . - Australia: McGraw Hill. Roberto, M. A. (2004). Strategic decision-making processes: Beyond the efficiency- consensus trade-off. Group & Organisational Management, 29(6), 625-658. Thompson, L., Gentner, D., & Loewenstein, J. (2000). Avoiding missed opportunities in managerial life: Analogical training more powerful than individual case training. Organizational Behavior & Human Decision Processes, 82(1), 60-75. Read More