Dimensions of strategic decisions

Everyone wants their business to flourish. That includes me, you and everybody else. But you can not flourish unless you have a proper understanding of the business environment around you.

Consider your entity for once. If you don’t have an entity, consider your life.

You have to take a series of strategic decisions in your entity. Such decisions may relate to your product line, your place of business, the customer groups you focus on, and the prevailing laws of the land. You have to keep all these things in mind while taking important decisions, and be careful while you’re at it, because a decision to boost one aspect of your business may cause another aspect to collapse.

Now coming to the point, every strategic decision taken in an entity to grow it's operations should be carefully planned and structured, after analysis of both internal and external environment of the entity.

This world is the world of competition.

Competition is increasing day by day and new entrants are  performing very well in the market, now its your turn to decide how you deal with these things .

The strategic decision based on the environment in which you operate is what justifies your existence and helps you find the way for future. Here, in this article we shall talk on the major dimensions of strategic decisions. Before we jump into this topic, let’s understand what strategic decision is.

What is strategic decision ?

Decision may be related day to day operations,major or minor decisions or strategic decision. Strategic decisions are about an organization’s strategy. It is obvious that strategic decisions have a major impact on any organization. In order to develop great strategies, it is essential to comprehend the true nature of strategic decisions.

Further, strategic decision making is combination of strategy and management. It is a managerial process and function of choosing a particular course of action out of several alternatives in order to achieve organizational goals. Major dimensions are as follows.

Strategic decision require top management involvement

It is impossible to form a strategy in an organisation without the involvement of top management. Since strategic decisions consider the organization in totality, and since there is lot of risk involved, involvement of top management is practically inescapable.

Strategic decisions involves the allocation of large resource:

Just making a decision makes no sense at all unless it is executed in the fashion the strategy was framed.

In order to execute the decision effectively, the entity may require huge investment or a huge number of manpower. Further, there is the need to manage funds to venture into a new area business

Strategic decisions have long term impact:

Strategic decisions are made considering the factors of business environment and their probable bearing on the operation. Generally the result of strategic implementation are seen as on long term basis and not immediately after the decision is executed..

Strategic decisions are future oriented:

Strategic decisions are taken based on what our position would be in the near future and how we would achieve our expected results. Strategic thinking involves predicting the future environmental conditions and how to be prepared for changed conditions in the future.

Strategic issues necessitate considerations of factors in the firm’s external environment While making strategic decisions, one should know the external environment well. It is the external environment which offers the opportunities for growth and decisions have to made considering the opportunities and threats. It enforce orienting its internal environment to the changes of external environment.

At last, Strategic decisions determine the grand direction upon which an entity will utilize its resources.  Always, strategy demands action. The object of strategy is to achieve its goals within which action will take place.

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