The Nature Of Strategic Management Decisions, Which Are Of Concern To The Top Management Of An Organization?


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Nature of Strategic Decisions and Nature1 of Strategic Management
Strategic decisions are also known as top-level management decisions.
However, the decision-making is made in different levels of management.
Strategic planning, corporate planning, strategic decisions are some
synonymous words used to refer top-level management decisions and
planning. In general, strategy formulation, especially, defining vision,
mission, objectives, and strategies are area of top-level management.
Promoters or entrepreneurs design vision and mission at the very beginning.
Objectives are sometimes reviewed and changed but strategies are timely
reviewed and changed. Therefore, in this whole process middle and bottom
level management also take part directly and indirectly.
Strategic issues require top-management decision and involve the allocation
of large amount of company resources. Strategic decisions have significant
impact on long-term prosperity of the firm and they are future oriented in
nature having multifunctional consequences. Strategic decisions are corporate
level decision therefore they tend to be value oriented and conceptual. Such
decisions are also characterized by greater risk, cost, and profit potentials. At
the other end of continuum, functional decisions are action oriented; and they
have relatively sort-rang focus, involve low risk and modest cost. 2
Strategic decision also covers strategy evaluation, choice, implementation,
and evaluation. Strategy formulation is not the solution unless the formulated
strategies are properly implemented. Thus strategic decision also covers how
strategies are implemented designing effective organizational structure,
designing required resources, defining plans and policies, and many others.

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