It deals with Advance issues in Strategic Decision making.

1. ADVANCE
DISCUSSION IN
STRATEGIC DECISION
MAKING

2. 5 Ps of strategic decisions
1.Plans -the decision is an intended course
of action carried out in advance with a
clear purpose
2.Ploys- set of actions designed to outwit the
competition, which may not be the
‘obvious’ content of the decision
3.Pattern -decisions taken over time form a
pattern. It is this pattern of resulting
(emergent) behaviour that we call the
strategy of the firm.

3. 4.Position- a match between the organization and its
environment.
5.Perspective- How strategists percieve their environment
and themselves
For example –
• strategic perspective of Nokia is one of continuous and
sometimes radical change (Nokia began as a paper and
pulp company)
• Hewlett-Packard favours an engineering excellence
perspective

4. • Nokia started by making paper – the original
communications technology
• The history of Nokia goes back to 1865. That was when
Fredrik Idestam built a wood pulp mill on the banks of the
Tammerkoski rapids, in southern Finland. A few years
later, he built a second mill by the Nokianvirta river – the
place that gave Nokia its name.
• Idestam named his company Nokia Ab in 1871
• Nokia Ab added electricity generation to its business
activities in 1902

5. Different type of strategic
Decision makers
• Rational Decision makers
• Behavioral decision makers
• Adaptive decision makers use frugal
heuristics that best suits the demand and
information structure of environment. This
is ecological rationality
• Politically aware decision makers-
influence of multiple contending
stakeholders and coliations

6. • Natural decision makers- use of laboratory
methods to understand and context and
issue
• Intuitive decision makers

7. Context of decision making
• Boom and bust behavior
Boom – firms expand their capacities
Bust – limited operations
• Information overload situation – decision
depends on ability to interpret and
interpretation
• Decision making with unreliable data-
Seek more data, use ideology.
• Hazardous situations- analysing small
failures, mobilizing support, using local
expertise to mitigate risk

8. POLITICS IN STRATEGIC DECISION
MAKING
What is politics?
• occurrence of certain forms of behaviour( conflict
on scarce resources) associated with the use of
power or influence,
• consciously self-serving behaviours against others
in the organization.

9. Organizations Are Political Arena
Sharing Of Scarce
Resources/positions/privileges.
1.Between Individuals
2.Organizational units -
SBUs, Departments, Business zones
3. External Parties- government
agencies, unions, and customers

10. • Strategic Decisions change the
Structure- distribution of authority
Process- Technology, rules and policies
Culture
So politics is inevitable .

11. Political activities in phases of Strategic
Decision Making
Phases of S.D.M Focus of political
action
Examples of political
activity
1. Identification of
strategic issues
Control of: issues to be
discussed ,Cause and
effect relationships to
be discussed
Control agenda.
Interpretation of past
events
2Narrowing the
alternative strategies for
serious consideration
Control of alternatives Mobilization:
Coalition formation
Resource commitment
for information search
3.Examining and
choosing the strategy
Control of choice Selective advocacy of
criteria, search and
representation of
information to justify
choice

12. Phases of S.D.M Focus of political
action
Examples of
political activity
4.Initiating the
implementation of
strategy
Interaction
between winners
and losers
winners attempt to
betray losers
Losers attempt to
thwart decisions
and trigger fresh
strategic issues.
5.Designing
procedures for the
evaluation of
results
Representing
oneself as
successful
Selective
advocacy of
criteria