SETTING DIRECTION, ADVANTAGES / DISAVANTAGES, AND DECISION MODELS 1
Marcos Reis Campos, MBA
BUSI 770
Liberty University
March 31, 2024
SETTING DIRECTION, ADVANTAGES / DISAVANTAGES, AND DECISION MODELS 2
Introduction
Organizational decisions and strategies have a profound impact on every industry,
including business, education, research, and law. Numerous operational levels are capable of
implementing strategy. By cleaning an office building efficiently, a custodian may be able to
reduce expenses. This entails utilizing minimal cleaning supplies and completing the task in a
timely manner. A potential alternative is to attain the position of CEO at a multinational
corporation, where one would be tasked with devising strategies to facilitate the firm's foray into
untapped markets. The purpose of this article is to provide an analysis of the methodologies
necessary for formulating sound plans and logical conclusions (Carter, 2020).
Process: Setting the Company’s Direction with Strategy
Establishing a comprehensive and precisely defined plan is of utmost importance prior to
an organization attempting to determine its technological strategy. Despite their apparent
simplicity, a sizable number of organizations have adopted them (Benková E et al., 2020).
Incorporated are both Enron and International Harvester. The unavoidable repercussions of their
behavior included their own downfall and the total or partial cessation of activities for their
organization. Determining which strategies adhere to logical principles and which do not
presents a challenging task. A multitude of divergent viewpoints concerning the most effective
methodology for developing strategic judgments further complicates the matter. The formulation
of strategies is an essential and indispensable process within the domain of organizations. A
broad spectrum of organizations engage in strategic planning, encompassing entities that differ in
scale, ideology, and operational contexts. Social movements and businesses function from the
ground up in order to implement the strategies that political parties formulate in order to attain
power. Carter (2020) conducted research that identified a multitude of domains that are
SETTING DIRECTION, ADVANTAGES / DISAVANTAGES, AND DECISION MODELS 3
profoundly impacted by strategy. Identifying potential obstacles, formulating a strategy to
surmount them, and subsequently executing that strategy constitutes the subsequent phase after
objectives have been established. The precedence of these events establishes the enduring aims
and objectives of an organization. Strategic planning facilitates organizational determination of
their subsequent course of action. This specific roadmap, as opposed to alternative ones,
excludes any extraneous or irrelevant elements, which demonstrates a strong strategic orientation
(Rumelt, 2011).
Strategic Decision
The implementation of "good strategy" is the fundamental principle of strategic reasoning
(Vormedal & Skjærseth, 2020). Understanding the characteristics that distinguish a "good
strategy" from a subpar plan is, however, critical. Successful strategies consist of three essential
elements: a diagnosis, a governing policy, and coordinated action. Exploiting ineffective
strategies within an organization is of critical importance. A defective plan is assessed in the
same way that a flawed strategy is identified through a meticulous examination of its component
parts. An inadequate strategy, akin to an adversary, frequently exhibits several indicators. These
issues can be categorized as follows: being too superficial, averting the challenge, conflating
goals and strategy, and having stupidly formulated strategic objectives. The elements are
incapable of constructing a viable strategy because they fail to furnish a functional framework
for achieving the intended objectives. On the contrary, Vormedal and Skjærseth (2020) posit in
their writings that when an ineffective technique is employed, viewers might experience "boring
irritation." The peril level, however, is considerably greater than that, in my opinion. Carter
(2020) provides a comprehensive account of multiple occurrences in which organizations
SETTING DIRECTION, ADVANTAGES / DISAVANTAGES, AND DECISION MODELS 4
encountered catastrophic and dire consequences as a result of implementing insufficient
strategies.
Decision Model
How do my decision models aid / hinder this process and why?
The Prescriptive Decision-making model is being employed in lieu of the Normative or
Descriptive models when making decisions. As stated by Cummins and Peltier (2020), the
method assists in addressing the limitations of the Descriptive method through the integration of
the strengths of the Normative Model. While my disposition aligns favorably with the
prescriptive approach, I discover that it hinders the cultivation of an audacious and ambitious
mindset. I have a preference for straightforward, practical alternatives over those that are
excessively extravagant (Carter, 2020).
What other decision models are being considered and why?
As a result of the accomplishments of particular individuals or groups, my prior
experiences have prompted me to investigate a variety of alternative preference models.
Notwithstanding the evident advantages of the alternative decision-making frameworks,
incorporating them into my conservative mindset would inflict considerable emotional and
mental distress upon me. In an effort to mitigate risk, I am prepared to forego substantial
potential benefits (Carter, 2020).
Conclusion
Both determining the course of action for a corporation and developing the frameworks
for decision-making that will be used to execute that course of action are intricate endeavors.
This essay undertakes a comparative analysis of the decision-making frameworks "Good
SETTING DIRECTION, ADVANTAGES / DISAVANTAGES, AND DECISION MODELS 5
Strategy" and "Bad Strategy" in relation to the descriptive, normative, and prescriptive
frameworks. Further investigation is necessary in light of the considerable number of unresolved
matters in this domain (Carter, 2020).
SETTING DIRECTION, ADVANTAGES / DISAVANTAGES, AND DECISION MODELS 6
References
Benková E., Gallo P., Balogová B., Nemec J.(2020). Factors Affecting the Use of Balanced
Scorecard in Measuring Company Performance. Sustainability; 12(3):1178.
https://doi.org/10.3390/su12031178
Carter, C. (2020). Making strategy critical? part II: Strategy redux – macro perspectives. Critical
Perspectives on Accounting, 73, 102262. https://doi.org/10.1016/j.cpa.2020.102262
Cummins, S., & Peltier, J. W. (2020). Understanding students' decision-making process when
considering a sales career: A comparison of models pre- and post-exposure to sales
professionals in the classroom. The Journal of Personal Selling & Sales Management,
41(1), 1-16. https://doi.org/10.1080/08853134.2020.1811112
Rumelt, R. P. (2011). Good strategy, bad strategy: The difference and why it matters. Crown
Business, New York, NY.
Sánchez Ruelas, J. G., Şahin, T., & Vietor, T. (2021). Development of decision-model and
strategies for allaying biased choices in design and development processes. Journal of
Open Innovation, 7(2), 1-22. https://doi.org/10.3390/joitmc7020118
Vormedal, I., & Skjærseth, J. B. (2020). The good, the bad, or the ugly? corporate strategies,
size, and environmental regulation in the fish-farming industry. Business and Politics,
22(3), 510-538. https://doi.org/10.1017/bap.2019.30
SETTING DIRECTION, ADVANTAGES / DISAVANTAGES, AND DECISION MODELS 7
Annotated Bibliography
Carter, C. (2020). Making strategy critical? part II: Strategy redux – macro perspectives.
Critical Perspectives on Accounting, 73, 102262.
https://doi.org/10.1016/j.cpa.2020.102262
This concludes the approach's two-part article. It comprises the second and final section.
Background information on the article's subjects is presented in the introduction of an
essay, prior to the discourse in the body of the essay. Moreover, it advances the notion
that power ought to be incorporated into strategy, and that strategy in and of itself
constitutes a political endeavor. A significant portion of the essay is devoted to analyzing
the overall strategy. An abbreviated segment of the article delves into the author's
perspective on the "death of planning," which examines concepts that resemble those
investigated by Rumelt. In the same way that these methods contain redundant
components, Rumelt argues that ineffective strategies frequently employ an approach that
is inconsistent, perplexing, and unnecessarily complicated and challenging to
comprehend. This study seeks to clarify why a number of the measures delineated in the
pertinent studies were deemed ineffective. Nevertheless, a unanimous decision regarding
this subject has yet to be reached. It must be acknowledged that the fundamental purpose
of this effort is to advocate for additional research on the subject of strategy. It maintains
a neutral stance regarding the validity of the two methodologies that are being presented.
The reader may delve deeper into the subject or formulate their own strategic conclusions
regarding the matter if they so choose within the framework of this article. The article's
emphasis on political strategy underscores the criticality of adopting comprehensive
approaches to achieve social and economic triumphs within the realm of politics.
SETTING DIRECTION, ADVANTAGES / DISAVANTAGES, AND DECISION MODELS 8
Cummins, S., & Peltier, J. W. (2020). Understanding students' decision-making process when
considering a sales career: A comparison of models pre- and post-exposure to sales
professionals in the classroom. The Journal of Personal Selling & Sales Management,
41(1), 1-16. https://doi.org/10.1080/08853134.2020.1811112
Among the subjects addressed in this article were a number of career counseling-related
decision-making models. In the context of this article, three fundamental frameworks for
decision-making are delineated. The study primarily focused on decision models that
furnish normative, descriptive, or prescriptive information as its primary concerns. An
assessment of the distinct advantages and disadvantages of each paradigm was achievable
through an examination of the systematic judgment processes associated with each
paradigm. The objective of this article is to provide a concise overview of a variety of
prospective career trajectories that individuals may wish to contemplate. Following that,
we shall delve into the intricacies of several distinct hypotheses pertaining to the process
of decision-making. The material not only provides a comprehensive examination of the
concepts, but it also conducts a critical evaluation of them to underscore the similarities
and differences with the preceding information. The issue at hand, models of individual
decision-making, was exhaustively discussed in the article that came before it. As the
fourth component of this undertaking, we shall examine the PIC "model of decision
making," a behaviorally prescriptive paradigm. In reference to these three procedures, the
acronym PIC (pre-screening, examination in detail, and selection) is utilized. The
contemporary methodologies employed in the field of vocational psychology are
commonly referred to as "occupational psychology." In response to the objections raised
against the models, the paper posits that the decision models are appropriate for the
SETTING DIRECTION, ADVANTAGES / DISAVANTAGES, AND DECISION MODELS 9
cohort of individuals whose decision-making is the subject of investigation. In order to
present a succinct synopsis, the objective of this study is to assess the potential
ramifications that the proposed choice theories could have on career and support
counseling services.
Vormedal, I., & Skjærseth, J. B. (2020). The good, the bad, or the ugly? corporate strategies,
size, and environmental regulation in the fish-farming industry. Business and Politics,
22(3), 510-538. https://doi.org/10.1017/bap.2019.30
The author explores in the initial chapter the prospect that even the most efficacious
procedures may occasionally yield unforeseen results, albeit for various reasons. A
common misconception is that for a strategy to be successful, it must be unconventional
and novel. This is the viewpoint of many individuals. However, this does not consistently
hold true throughout the entirety of the treatment. Indeed, numerous highly effective
strategies have been formulated through the implementation of business processes that
have undergone rigorous testing and validation. In Chapter 3 and Chapter 4, respectively,
the causes of the widespread application of methods that fail to produce the intended
outcomes are analyzed. In addition to delineating aseptic methodologies, this compilation
of chapters also provides concrete illustrations of their implementation. An examination
of strategies that have been empirically demonstrated to be effective is the focus of
chapters five through seven of the course. The subsequent chapters contain a collection of
case studies pertaining to businesses that have effectively executed various
methodologies. A logical progression is undertaken to present the examples. Leverage
and proximal goal formulation, which are regarded as critical elements of an effective
strategy, are extensively explored in the book. The report that had been referenced earlier
SETTING DIRECTION, ADVANTAGES / DISAVANTAGES, AND DECISION MODELS
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provided the basis for the lengthy discussion that ensued regarding the organization's next
course of action. Given its critical role in determining the trajectory of an organization, it
is imperative that adequate consideration be given to strategic decision-making prior to
delving into its discussion. Strategic decision-making is therefore crucial in determining
the future course of an organization.
