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School of Business and Law Assignment On: Strategic Decision
School of Business and Law Assignment On: Strategic Decision
Assignment
On
Strategic Decision
Name
ID
Semester
Group
Module
Lecturer
Due Date
Table of content:
Page Number
1.0.
Introduction.4
1.01. Why strategic management?............................................................................4
1.02. What is strategic management?.......................................................................4
2.0.
Company audit..5
2.01. Michael Porters approach to industry analysis ..5
2.02. Strategic positioning.6
2.02.01. Positioning process.6
2.03.
Strategic planning..6
3.0.
Literature review.9
3.01. Characteristics of strategic decisions..9
3.02. School of strategy..10
3.02.01. Three schools in prescriptive.10
3.02.02. Seven schools in descriptive..11
4.0.
Critical analysis..12
4.01. Mintzberg strategic decision-making process12
4.01.01 Mintzberg Seven path configurations using the general strategic
decision-making model.13
4.02. The classic decision making process...13
4.03. Pricing strategy and approaches.13
4.04. Modes of foreign market entry14
4.04. Benefits of social networking in web base business market15
4.05. Globalisation15
5.0
Recommendation15
6.0.
Conclusion..16
1.0.
Introduction:
In every company, they have a management structure and model to build up their business
and for gain the business goal. Vision, mission statement is the important statement for any
organisations. Entrepreneurs and industry managers are often so lost in thought with in
need of attention issues that they lose view of their eventual objectives. That is why a
business re-evaluates or groundwork of a strategic plan is a fundamental necessity. This may
not be a formula for success, but not including it, an industry is to a great extent more likely
to fail. By applying, any type of strategic decision company can full fill their vision and
mission. Either its big or small organisations, they have managed to achieve their
aspirations, or the management set up a decision to achieve that aspiration.
1.01. Why strategic management?
Strategic development and administration are more than a set of administrative
instruments. They represent a approach, an approach to looking at the alterations in the
inner and outer situation that meet the administrator. Using planning and administration
tools tactically, then, engage fundamentally a technique of opinion, a psychological
structure or approach, as well as a set of logical tools. For strategic management to be
successfully used the manager must build up a strategic attitude or viewpoint. The difficulty
for the professional is how to help the manager obtain that attitude
1.02. What is strategic management?
Strategic management: Strategic management process is the pattern or plan of an
organisation by which the organisation can achieve their desired goal. This process is
involved in the top-level management, decision-making management, led by the Chief
Executive officer or the President of the company. If business organisations have the strong
strategic management then the company can get the strong output, what is a main aim of
the business.
Strategic management is defined as the combination of formulating, implementing,
evaluating cross-functional decisions that make possible a company to accomplish its
objective.
Strategy formulation involves:
Doing a circumstances study.
Synchronized with this consideration, objectives are set.
These objectives must, in the light of the circumstances investigation, recommend a
strategic plan. The arrangements supply the elements of how to gain these
objectives.
This three-step strategy formation system leads us to determine that at which stage a
business is now, determined where the business want to go and how they can achieve the
goal point.
Strategy implementation involves:
Strategic evaluation: Strategic evaluation is the last stage of strategic management process.
The management need to know in which particular strategies are not performing well. By
evaluating, the business can achieve their success in an easy way.
2.0.
Company audit:
01. Rivalry.
02. Supplier power.
03. Threat of new entrants.
04. Threat of substitute.
05. Buyer power.
2.02. Strategic positioning: Strategic situation is anxious with the collision on strategy of
the outer situation, inner resource and competences, and the prospect and persuade
of stakeholders. Mutually, a deliberation of the situation, strategic ability, the prospect
and the principles within the cultural and political construction of the administration
supply a source for considerate the strategic position of an administration.
Overview:
Exclusive rights.
Strong brand name.
Excellent standing among consumers.
Cost advantage.
Exclusive surplus to high category natural assets.
Favorable right of entry to supply network.
Threats: External environmental changes also may present threats to the firm. Example of
threats are:
2.05. The PESTLE analysis: PESTLE analysis stand for political, economical, social,
technological, legal and environmental. PESTLE analysis using from last ten years. This
analysis is used for taking the business organization decision either the company
establishes their business or they should think in another way. It is an important
analysis for taking organizational strategic decisions.
Political factors: This factor characterize the technique and the aim to which a government
power the financial system and a convinced industry. Political factor is characterized by
particular region, such as employment rule, tax rule, trade limitations and even ecological
regulation.
Economical factor: economical factors demote to region exclusive to the financial system
and straight prejudiced by the economy, areas such as increase rate, curiosity rate, and
financial development or replace rates. All these areas can seriously influence a industry or
corporation, which makes them an tremendously significant part of the PESTLE analysis.
Social factors: social factors refer to the demographic factors. This actor considers the social
culture, populations.
Technological factors: this factor refers to the new technology, computerization. Technical
factors consider the cost, productivity, brand level.
Legal factor: legal factors demote to all the law straight linked to a business and its area of
action, together with customer law, antitrust law, favouritism law and health and safety law.
Environmental factors: environmental factor related with all others factors. Its consider the
environmental weather, location, climate changes etc.
3.0.
Literature review:
Strategic decision: strategic decision is a plan by which company direction is affected. The
decisions apprehension areas such as new product and market, product development,
strategic alliance, joint venture, find out a new channel of business and others factor.
Strategic decision is the pathway, which concern with the completely organisational
environment, the full resources and the people who work in the company to gain their
companys goal.
Strategic decisions are those that determine the overall direction of an enterprise and its
ultimate viability in the light of the predictable changes that may occur in its most important
surroundings environments.
Qinn.
Strategic management is the process of making and implementing strategic decisions...(It)
is about the process of strategic change.
Bowman and Asch.
3.02. School of strategy: There are 10 schools of managerial thinking, and that is divided
into 2 major parts.
01. Prescriptive (based on customs) and
02. Descriptive.
3.02.01. Three schools in prescriptive:
01. The Design School: Strategy formation is achieving the necessary fit among inner
strengths and weaknesses and outer pressure and opportunities. The higher
management defines clear, simple and unique strategies through a planned thinking
process - which is not formal-analytical, nor informal-intuitive so everyone can
execute the strategy. This was the leading sight of the strategy process at least into
the 1970s given its implicit influence on most teaching and practice.
02. The Planning School: planning is designed parallel with the design school. It was
outweighed middle of seventys and started to decline from 80s. Nowadays it is
again starting implementing by the organisations and getting importance in the
specialized literature. This process be redesigned by the organisations to meet their
new challenges.
03. The Positioning School: in 80s this school was the dominant outlook of strategy
formulation. It was given impulsion by Professor Michel Porter in 1980. This school
sees as an analytic process. It is placing the business within the context its industry. It
looks forward that how the business can improve its strategic positioning within the
industry. Positioning is useful in early stage of business strategy process
development, when the data are analysed. Positioning does not consider the politics,
power, culture, social elements.
nourish confrontation to change and can be abused to justify the status-quo. Give a
small number of clues how should possessions become. The culture is the big issue in
Japan, United State and Europe.
06. The environmental school: Environmental school strategy process is as a reactive
process. Conceivably not strictly strategic management, if one takes that term as
anxious with how business uses their degrees of autonomy to generate strategy; the
environmental school however deserves awareness for the brightness it throws on
the anxiety of the situation. Along with its most conspicuous theories is the
"contingency theory", that believe what responses are expected of business that
face individual environmental situations, and "population ecology", writings that
claim severe limits to strategic option.
07. The configuration school: Configuration school is as a form of process
transformation. This strategy considers the business to transform the organisation
from one type of decision-making structure to another. The configuration school get
pleasure from the most wide-ranging and integrative fiction as well as training at
present. One side of configuration school, more educational and expressive, sees
business as constitution - rational gather of attributes and actions - and so provides
as single manner to combine the maintain of the other schools. Every construction,
in cause, in its hold situates preparation for example, in machine-type business
below circumstances of comparative constancy, private enterprise beneath
additional energetic constitution of commence with swivel. However, if business can
be explained by such situations, after that alteration should exist explained as
somewhat theatrical alteration - the bound commencing one position to one more.
Therefore, a fiction and exercise of transformation - more narrow and practitioner
oriented urbanized as the other surface of the penny. These two very dissimilar
fiction and training however set off one another and so belong to the similar school.
4.0.
Critical analysis:
Many kind of strategic decisions makes the firm to involve the discrete choice. By the
strategic decision firm take the decisions to open a new business in a new place, determine
that where the product should be place or what option to offer in a service contract. These
decisions are typically involved with the consideration of a number of demands, cost, and
competitive factors. The learning of consistent distinct decisions poses several procedural
challenges such as large state spaces, the incidence of various stability and dynamics in firm
decisions.
The interrelation in selection performance staunch from the fact that firm takes into
account the action of their opponents when building their won judgment. For example, firm
are prejudiced of their selection of position by their anticipation of where their competitors
will situate. In the same way, when deciding what kind of pricing strategy to implement
firms base their decisions on what they anticipate their competitors will do.
4.01. Mintzberg strategic decision-making process: Mintzberg divided his strategic decision
making process in five stages. Those steps are:
4.01.01 Mintzberg Seven path configurations using the general strategic decision-making
model:
4.02. The classic decision making process: there are seven steps of classic decision
making. These are:
4.03. Pricing strategy and approaches: The main approaches to take the pricing decision:
Cost based pricing: price is adding by calculating the cost and level of profit. This
involves setting a price by adding the percentages to the cost or a fixed amount of
making the products. Cost-plus pricing is widely used in retailing. The advantages of
this process that the company will know that the product cost are covered.
Customer-based pricing: where prices are strong-minded by what a business believes
consumers will be ready to pay.
Penetration pricing is the pricing system by which the company set a introductory
offer to the customer for their product popularity. This technique is to set a lower
price to attract the new customer.
Price skimming is the technique that set a higher price before any competitor coming
in the market.
Price leader: An surveillance made of oligopolistic trade performance in which one
company, usually the leading competitor among numerous, leads the way in
determining prices, the others soon subsequent. The circumstance is a state of
limited opposition, in which a small number of manufacturers or trader shares a
market.
Competitor based pricing: if there is two or more company for one product, the
consumer could be confused for from whom they should buy. The simple choice is
the cheapest one. In this circumstance, the company set up a going-rate pricing
process. Going-rate is the setting price that is in line with the price charged by direct
competitors.
4.05. Benefits of social networking in web base business market: now a day the social
network is most important network for any kind of business for expand their businesses by
doing the online marketing. Social network is the most valuable and strong way to connect
the people with each others. For online communications people mostly choose the social
network such as facebook, twitter, badoo, linkedin etc. so if any business company do their
advertising in the social network most of people can see the advertise every day, people can
know about the company and their activity also they can get all informations about the
company.
4.06. Globalisation: globalisation is the important things in the business. the process of
connectivity and independence of the world markets and business is called business
globalisation. By globalise the business can expand their business. people can connecting
more often with each others in a single period of time in globally, goods and services
produces in one side of the world and increasingly available in all parts of the world.
5.0.
Recommendation:
Now a day there are many developed country in the world. And the developed country
people can survive themselves in general but they are not too strong economically for
getting the higher degree from high class University from outside of their country. For this
type of country they need some types of institute from whom they can get the academic
knowledge as international university also can achieve the international degree, this type of
learning is called distance learning, which one is providing by the DL limited. So as new
market DL limited can choose the Bangladesh and India for expand their business.
Why they should choose these two markets?
India and Bangladesh both is the developing country. In this two country huge amount of
people. Their literacy rate is going up. Many students are able to study in high-class
university in the worldwide but because of financial problem; they cannot get any chance to
get the higher degree from international universities. Because maximum are from the
middle class family for whom it is not possible to go abroad for higher degree. However, if
they got chance for the distance learning that is a big chance for them and they should be
ready for get the chance. As DL limited providing the distance learning, they can help those
students by providing the distance learning opportunity. Students can get the higher degree
from their own country.
As demand of distance learning in India and Bangladesh DL limited can use the FDI entry
mode because of the high profit rate, maintain control over operations, avoid tariff and
NTBs, and acquire knowledge of local market.
6.0.
Conclusion:
Any business they should have vision, mission, objective and organisational structure. For
cover the all of Criteria Company need to make or build up a strategic decision by which
they can reach in their main goal point. Company should maintain all major process also the
others factors.
III.
IV.
V.
http://mystrategicplan.com/resources/internal-and-external-analysis/
http://allaboutwatersheds.org/groups/2010Forum/2010-new-mexico-watershed-forumpresentations/workshop-presentations/organizational-development-educational-outreachworkshops/Shelli%20Bischoff-Turner-The%20New%20Strategic%20Planning.pdf
http://articles.mplans.com/the-power-of-product-positioning/
http://managementstudyguide.com/swot-analysis.htm
http://aux.zicklin.baruch.cuny.edu/tkdas/publications/das-teng_jms99_cognitivebias_757778.pdf
VI.
VII.
VIII.
IX.
X.
XI.
XII.
XIII.
XIV.
XV.
XVI.
XVII.
XVIII.
http://www.oup.com/uk/orc/bin/9780199216468/haberberg_ch02.pdf
http://www.wordiq.com/definition/Strategic_management#The_strategy_hierarchy
http://www.scribd.com/doc/48491435/What-is-strategic-management
http://www.sajim.co.za/index.php/SAJIM/article/view/426/490
http://www.planware.org/strategicplan.htm
http://www.quickmba.com/strategy/vision/
http://www.lachsr.org/documents/introductiontostrategicmanagement-EN.pdf
http://site.ebrary.com/lib/westminsterintl/docDetail.action?docID=10149910&p00=strategi
c%20management
http://homepages.inspire.net.nz/~jamckinnon/business/DecisionMaking%20in%20Organisations.pdf (important)
http://www.businessdictionary.com/definition/strategic-decision.html
http://www.managementstudyguide.com/strategic-decisions.htm
http://www1.ximb.ac.in/users/fac/dpdash/dpdash.nsf/pages/BP_Decision
http://site.ebrary.com/lib/westminsterintl/docDetail.action?docID=10287990&p00=strategi
c%20decision%20making