A Decision making is the process of selecting the one alternative among the different alternatives. A strategic decision making in an important task for managers and top management. Strategic decision making is the process of the organization that adopts the best course of action.
Strategic decision making involves three essential things:
· Selection of Proper Markets
· Long term goals of the company
· Products and services that needed for the succession of the company
Strategic decision making is very important for the succession of an enterprise. It considers the long term decisions that affect the company moves forward. For example – If the business wants to become the Top Product Manufacturers, then it will concentrate on the consumer focusing products.
Some important features of strategic decision making are –
· Strategic decision making is always at the Top level and involves the complex decisions
· Strategic decision making always considers the long term decisions. Example launching an innovative product, changing the existing product line etc.
· Strategic decision making involves a huge risk wile implementing any type of plans.
Strategic decision making is the process that provides a framework for decision making by leaders of the organization. It comprises the four elements such as – Scan Internal and external factors, understand the strategy fundamentals, formulate strategy and implement the structure. These elements are elaborated as -
· Understand the fundamentals of the strategy – Managers must understand the fundamentals of strategy by identifying the organizational mission, organizational values and the principles of the organization.
· Scan Internal and External factors – SWOT analysis is a common tool which scan the External and Internal factors in the decision making. It analyzes the strengths, weakness, opportunities and threats of the organization.
· Formulate strategy – It begins with discussing the strategies of the business, recognizing the activities of the competition and the respond of the business.
· Implement the strategy – The implementation of strategy includes –operational strategic plans, long term goals and leadership decision making affecting the stakeholders.