Intuition and Analysis in Strategic Decision Making
In the global marketplace, intuition and rational process both play a crucial role in effective
strategic decision making. In various firms, intuitive process is used under the strategic
management to develop effective decisions for attaining organizational goals and objectives.
Intuition indicates to solve the problem with the help of using sensing and without using rational
process. It can be discussed as a process to reach at the conclusion with the help of fewer
information those are required for taking appropriate decisions.
It is a built-in capacity that is used by the individuals to reach at the solution of the problem
effectively. At the same time, it is negatively related with the stable competitive environment.
Intuition is used as a business tool in many organizations to conduct and run the business
successfully.
Intuition is a psychological function supports to individuals for using her/his experiences and
knowledge to isolate and integrate the data for taking appropriate decision for the business.
There are various roles of intuitive those are played by it under the strategic decision making
process those make it necessary part of the strategic management. These can be discussed as
follow:
1. Maintain emotions in taking strategic decisions: Emotions are related with the
intuition those are base of strategic decision making. In this, from the management
theories, decision making process and models, it is stated that emotions are derived
through intuition. In this, conventional teaching is used by the management under
intuition to maintain emotion at the workplace and develop effective strategies of the
firm. Logical procedure, rules and regulations are developed by the strategist according to
the emotional level of employees as well as workers. At the same time, sometime it may
harm the emotions of employees in the form of using rights of strategist in negative
manner. In this, firm is also not aware about intuition and its use in the strategic decision
making process.
2. Minimize stress at the workplace: Intuition is used in adopting and developing
stress free strategies at the workplace. For this, feelings and emotions are preferred and
given place by the management. To develop and follow effective strategies at the
workplace, arguments are faced by the management. On the other side, in the presence of
infrequent intuition like, desire, feelings, attitude, etc actions are affected in negative
manner under the strategic decision making that affects organizational growth and
success in negative form.
3. Face risk effectively: Risk those are raised during running the business are
solved and faced by the management of the firm with the help of intuition. In this way,
intuition develops clear picture of problems or issues in the mind of strategist to solve
them effectively. On the other hand, on developing wrong and confused picture of risk, it
may harm organizational growth in negative manner. So, for developing effectiveness of
the strategies at the workplace, it is important for the strategist to have integrative
thinking and intuition for solving the problem effectively.
4. Time management and efficiency: To manage time and efficiency of the
strategies at the workplace, intuition also plays a crucial role in strategic decision making
process. In the condition of failure of any strategy, intuition supports to the adoption of
effective actions and strategy for solving the problem. At the same time, efficiency of
taking decision is also affected in harmful form.
5. Accuracy, security and transferring: Intuition and analysis are viable part of
strategic decision making process in the form of developing accuracy, security and
transferring the data from one level to other level of management. It develops thinking
and morality among the employees of the firm that helps the strategist to take appropriate
and effective strategic decisions. On the other hand, most of the firms are not able to
understand as well as to use intuition under the organizational strategy. Although, these
aspects support to the effectiveness and important role of intuition at the workplace, yet
there are some weaknesses also those indicate towards the inefficiency of intuition at the
workplace like, misuse of information, right power, etc.
Intuition also offers opportunity to the strategist to rethink about their strategies and answers
those are selected by them for the organization. So, it supports to the positive sign of intuition in
strategic decision making process in terms of developing analytical thoughts and approaches. If
the decisions are repeated and harmful for the firm’s growth, these are solved by using intuition
effectively.
Intuition and analysis is genuine management tool in the strategic decision making, as these
are interrelated with the managerial skills and knowledge to solve the high degree of
organizational issues. Although, intuition is important part of the firm’s strategies, yet there are
some barriers on this those indicate to the loophole of this concept in strategic decision making
process. The first barrier is related to understand the meaning of intuition and confusion about it
in context of surrounding.
Second barrier is related with the use of intuition at particular time. Management employees
are not aware about when it should be used and how it can be used effectively. So, these weak
areas of the intuition and analysis indicate toward the uncertainty of these concepts in the
strategic decision making process that impacts organizational strategies and growth in the
competitive market.
Analysis of environment also plays a pivotal role in strategic decision making in terms of
developing strategies according to the present environmental condition. In this, macro and micro
environmental analysis is organized by the firm to take effective and suitable strategic decision
for organizational growth and success. In macro environmental analysis, PESTLE analysis is
focused by the firm that includes political, economical, social, technological, legal and
environmental analysis. It supports to the firm to take appropriate strategic decision according to
the available environment. In the political environment, different factors such as political parties
and stability of political parties in the particular market are analyzed to take appropriate decision.
In the economical analysis, economic condition of particular country and market in the form
of GDP, per capita income, income level, etc are observed by the firm to develop effective
strategic decisions. Under the social analysis, beliefs, values and attitude of customers are
analyzed with the help of environmental analysis. Technological analysis is also organized by the
firms to identify the technological level of particular country or market. Under the macro
environmental analysis, legal analysis is also included and conducted by the firms to develop
effective and efficient strategic decisions.
In this, rules and regulations of particular country to run the business are analyzed.
Regulatory body of particular country to run the business is assessed by the organizations to
develop effective strategies. Under the environmental analysis, availability of resources, local
issues, market condition, etc are analyzed by the organizations to prepare effective strategies by
strong decision making process. Analysis of these factors helps the firms to take appropriate
action for developing effective strategies to run the business successfully.
In the micro environmental analysis, different factors are analyzed by the organizations to
develop and adopt effective strategic decision under the strategic decision making process. In
this, organizational capabilities, internal and external stakeholders and competitors are included
those are studied by the companies for taking effective and efficient strategic decisions. It helps
the firms to take appropriate decisions according to the perception and requirements of its
stakeholders, competitors and market.
In internal stakeholder analysis, employees and shareholders are analyzed by the firm to
support effective strategic decision making process at the workplace. It helps the firm to develop
strategies according to the needs and requirements of its stakeholders. Additionally, in the
external analysis of stakeholders, government, suppliers, customers, etc are focused by the firms
to assess the external analysis for developing effective strategies. These all affect organizational
growth and performance through affecting strategies of the firm in terms of positive and negative
manner.
In addition, competitor analysis is also conducted by the firm in the micro analysis to assess
the market attractiveness. In this, extent of competition in particular market or country is
analyzed by the companies to take appropriate and effective strategic decisions to achieve
organizational goals and objectives. It also helps the firm in enhancing the criteria of strategic
thought for developing strategic decision making process of the firm.
