Process of strategic decisions making

The process of strategic decision making consists of :
Awareness of strategic issues :Issues are problems.

1. Strategic decisions maker must have awareness of strategic issues.Such awareness is the result of:

• Previous experience and "got feeling"of decisions makers.
• Deviations in sales,profit performance,productivity.
• Budget variance.
• Customer relation on quality,prices,and services.

2.Formulation of strategic decisions :Strategic decisions maker should formulate and defined strategic decisions issues.It can be based on :

• Information gathering and analysis
  
• Debate and discussion of issue with stakeholder
  
• Making sense of information,debated and discussion about strategic issue
  
• Formulation of key strategic issue 3.Solution development :Alternative solution for strategic problem are developed.They ca be based on:
• Known and tried solution servicing as precedents
• drawing on experience
  
• collective wisdom of management
• strategic work shop to developed alternative solution

4.Solution selection :Strategic choice for solution selection is made from among the alternative solution.It can be based on :

• Judgement :experience,hunch and rule of thump of managers.
• Negotiation :with stakeholder.

• Bargaining :With various SBUs and functions.

Strategic decisions are very much outcome of managerial experience within a social,political an cultural context.

Process of strategic decisions making