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. Such issues are discussed in the strategy implementation unit of this book. Nature3 of Strategic Management Management is everywhere in our life. Day to day management is required at the personal life as well as in corporate life. Strategic management is related to the formal and organized sector, especially in corporate sectors. Furthermore, strategic level refers top-level, thus, this management process is very comprehensive. It covers all the areas of the business. It is not specific but a holistic in nature. A broad and top-level strategic management can be compared with the specific and functional management sectors. Strategic management is relatively more important than any special functional area because all the functional areas come under the strategic management focus. Strategic management gives the ideology and basic guideline to all other functional areas. Nowadays, each functional area is directed towards the strategic focus. Subjects such as finance, marketing, accounting areas are shaping into strategic finance, strategic marketing, and strategic accounting. Generally, strategic management focuses into long-term goals, relatively broad, and is also very important for the success of an organization. Hence, strategic management is concerned to whole organization whereas operational management is related to any specific functional area. Further, it is more complex and ambiguous than the operational managements. In general, strategic management covers all the areas of business and focuses into the broad organizational issues.
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Some of the synonymous words used for "nature" in this area are essence, characteristics, and features in many of the textbooks. 2 Jhon A. Pearce and Richard B. Robinson, JR. Strategic Management: Strategy Formulation and Implementation. A.I.T.B.S. Publishers and Distributors, Delhi, 1998, pp. 7-8. 3 Some of the synonymous words used for "nature" in this area are essence, characteristics, and features in many of the textbooks.