POWER POINT PRESENTATION

NAME :L.JEEVAKLANDARAJ ROLL.No :10MD023 TOPIC :STRATEGIC DECISION MAKING

Strategic thinking:
Strategic thinking focuses on finding and developing unique opportunities to create value by enabling a provocative and creative dialogue among people who can affect a companys direction. Strategic thinking is a way of understanding the fundamental drivers of a business and rigorously (and playfully) challenging conventional thinking about them, in conversation with others.

Strategic decision making:

The strategic decision making (SDM) process is recursive or iterative; it keeps looping around instead of simply unfolding in a linear fashion. A decision isnt necessarily a choice from among alternatives but it is always a commitment to a particular course of action.
The trigger event or initiating factor might be almost anything an opportunity, a problem, a crisis, a set of choices presented by someone anxious to have a decision, a request for alternatives from someone who feels the need to do something, etc, etc. So, the most likely identifiable starting point for any SDM process model is when someone recognizes that theyre caught up in the making of a strategic decision.
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 Strategic decisions are marked by ambiguity and uncertainty; clarification is almost certain to prove a requirement. The process has to accommodate the generating of possible courses of action, whether one or many, whether custom, ready-made or adaptive.

Somewhere, someone has to engage in evaluation; a judgment has to be reached that this is what were going to do. The making of strategic decisions is (or can be) a hotly and intently political activity; its not all neat and rational, man-as-economic-actor stuff; theres bargaining, persuading and co-opting to consider.
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Mintzbergs General Model of the Strategic Decision Process : Defines decision as a commitment to a course of action instead of simply a choice from among alternatives Draws attention to many key aspects of strategic decision-making Three phases: identification, development, selection Seven routines: recognition, diagnosis, search, design, screen, evaluation-choice, authorization Highlights the dynamics of the decision-making process: interrupts, timing delays and speed-ups, feedback delays, comprehension cycles, failure recycles

 Highlights the importance of decision control, decision communication and political supporting routines: planning, switching, exploration, investigation, dissemination, bargaining, persuasion, co-optation The research on which it is based suggests seven useful patterns of strategic decisions: simple impasse, political design, basic search, modified search, basic design, blocked design, dynamic design.

Game Trees
A game identifies:
Players, feasible actions, and payoffs The sequence of moves (who knows what at the time of their move)
3. Payoffs

2. Actions 1. Players Pull ball away

Lucy
Accept Allow kick

Charlie Brown
Reject

Strategic v Tactical
Strategic decisions Long term view Visualising what you want to achieve SWOT analysis Carried out on a range of senior & junior staff
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Tactical decisions Short term issues, Concerns day to day issues taken by a manager.

To seize the opportunity to open the first chain of luxury ice cream outlets in China
Strategic: Part of a long-term goal, difficult to reverse and requiring substantial resources
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Other examples:
SBI- FLOATING ATM BHARATHI MITTAL - push-button phones replacing the old fashioned, bulky rotary phones

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THANK YOU
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