STRATEGY DEVELOPMENT, STRATEGY DECISIONS, AND DECISION MODELS 1
Marcos Reis Campos, MBA
BUSI 770
Liberty University
March 20, 2024
STRATEGY DEVELOPMENT, STRATEGY DECISIONS, AND DECISION MODELS 2
Introduction
Despite the time investment, a top-notch business plan is essential for setting new firm
goals and objectives that will improve future development attempts and boost revenues. Ethical
business practices, according to Solovev (2020), help companies find the best ways to make
decisions quickly and easily, which in turn helps them surpass competitors. In addition, business
models show how important aspects that impact the company's strategy may be better
understood. Organizational strategy formulation, strategic thinking processes, and decision-
making models are all thoroughly examined by the researcher as part of this study. These factors
contribute to the overall quality of the organization's choices. Providing an explanation of the
procedural aspects at work, the presentation aims to shed light on the process of developing a
company strategy or plan and making important choices.
Process: Business Strategy Development
In alignment with the organization's business development processes and procedures,
strategic business objectives are essential for the formulation of a business plan. In order to
optimize the growth of a business's customer base, it is imperative to appeal to the type of
purchasers who will derive the greatest advantage from the organization's core offerings and
solutions through the strategic utilization of the brand's promises and results. Strategic business
expansion is vital to the long-term viability of the organization. By means of attracting new
clients, retaining existing ones, and retaining the ones they already have, organizations increase
revenue through the implementation of commercial development (BD) strategies. Profitability
and expansion are, as Solovev (2020) notes, the overarching objectives. In addition to the
company's long-term goals, an effective corporate development plan will specify the specific
actions that will be implemented to attain those objectives. However, the scope of the current
STRATEGY DEVELOPMENT, STRATEGY DECISIONS, AND DECISION MODELS 3
expansion could still be substantially altered if the company's objectives change. Strategic
operations that generate robust and efficient profits while surpassing present and future
competitors constitute the foundation of the development plan for the organization's strategy. It
is vital to consider potential setbacks and devise solutions when formulating a strategy for the
future of an organization (Gamble et al., 2021).
A company's prospects of sustaining its competitive advantage and ensuring long-term
viability are diminished, according to Verma et al. (2022), when it lacks a robust business
strategy. A business strategy must be developed in accordance with a sequential process.
Instances of what is entailed include the following: sifting through potential obstacles,
establishing metrics to monitor the progress of initiatives, designating a practical strategic
direction, developing feedback systems, formulating objectives, and evaluating alternatives are
all components of plan execution. Establishing and monitoring the organization's purpose,
vision, mission, and objectives is the initial step in the process (Solovev, 2020). Thereafter, a
multitude of decisions will be made. In order to facilitate the efficient development of the
business strategy, the organization's management has arranged for a number of strategic
objectives and options to be present. Following an exhaustive examination of every component,
this level of readiness was attained. A reliable testing methodology, which will lead to the
implementation of the final plan, should be established through a thorough examination and
evaluation of the aforementioned organizational components by business executives. The
innovative approach facilitates business decision-making by taking into account critical strategic
factors. Additionally, the implementation of this methodology ensures the effective execution of
resilient business strategies, which are fundamental to the advancement of products (Solovev,
2020).
STRATEGY DEVELOPMENT, STRATEGY DECISIONS, AND DECISION MODELS 4
Strategic Thinking: Key Decisions Necessary for Making Strategy Choices
Critical decisions necessitate the identification of factors that are duly evaluated prior to
the ultimate formulation of the strategic decision. Strategic thinking is an essential component of
any strategy that seeks to increase the long-term success of a company through meticulous
attention to detail. Outstanding organizational strategies require the execution of difficult
decisions that illuminate how and why businesses operate. For successful strategies to be
developed during the decision-making process, it is essential that the individual in a position of
authority possess both functional knowledge and decisiveness (Leavy, 2022). Furthermore, for
optimal and critical judgments during the strategic decision-making process of an organization,
upper management must possess a comprehensive understanding of three primary domains.
Verma et al. (2022) delineate three distinct categories of evaluations: first, the impact of the
strategy on the performance of the organization; second, the strategy's capacity to establish a
sustainable competitive advantage; and third, the strategy's alignment with the current
circumstances confronting the business. A more precise evaluation of the organization's
competitive advantage might be attained subsequent to the determination of responses for each
category by the leadership and decision makers. In order to establish a unique market position
and formulate a reliable framework for long-term strategic decision-making, an organization
must initially render several pivotal assessments (Rumelt, 2011). However, organizations that
neglect to allocate resources towards enhancing their strategic decision-making capabilities are
less inclined to formulate dependable long-term strategies that ensure their continued existence
and prosperity. This is due to the fact that such resources are more scarce in these types of
businesses. In order to accomplish objectives, it is critical to adopt a strategic perspective when
STRATEGY DEVELOPMENT, STRATEGY DECISIONS, AND DECISION MODELS 5
formulating and implementing plans that foster innovative problem-solving among all
stakeholders, including those internal and external to the organization (Geier, 2024).
Decision Model: Decision Models and How They Aid / Hinder Process
Decision models facilitate methods for foreseeing, monitoring, and controlling the
variables that affect an organization's operations. The contribution of individuals is critical for
organizational decision-making. A widely recognized method for assessing prospective
approaches for the future of a business is SWOT analysis. (Shaik & Dhir, 2021) The model takes
into account the prospective advantages and disadvantages of a company, in addition to the
expected results of specific endeavors. Organizational leadership can enhance their
understanding of the potential risks, benefits, and outcomes associated with each business
consequence by integrating a SWOT analysis into the strategic decision-making process. It is
simpler to make informed, actionable decisions using readily available data when the decision
model's visual representation of potential outcomes is utilized. Furthermore, the utilization of the
SWOT analysis by organizational administrators may enhance their understanding and reduce
the number of errors they commit (Shaik & Dhir, 2021).
By employing the renowned business model, organizations can enhance their long-term
profitability forecasts. Frequently, management examines the decision model so as to offer
adaptable alternatives for executing development initiatives. SWOT analysis provides the data
required to make a decision that is advantageous for all parties involved when all pertinent
information is unavailable (Geier, 2024).
Conclusion
As previously mentioned, business growth plans have a significant impact on the
decision-making procedures and overall performance of businesses. All of this lines up with the
STRATEGY DEVELOPMENT, STRATEGY DECISIONS, AND DECISION MODELS 6
claims that were made before. In order to make data-driven decisions, many companies use
SWOT analysis, a framework that evaluates the positives and negatives as well as opportunities
and threats. A number of fundamental factors directly affect an organization's long-term success,
and strategic thinking is an integral component of this process. This is accomplished by making
use of crucial decision-making tools that allow one to understand how business processes work
and the reasoning behind them, which in turn helps one to design outstanding organizational
plans. Whatever the case may be, it is vital that every company's upper echelons choose which
course of action will bring in the most money. These people are totally responsible for this duty.
For a company to achieve its goals—which include maintaining operations, ensuring success,
and gaining a competitive edge over competing businesses—productive leadership is a must.
According to God's plan, people will be able to take charge of their surroundings and live up to
their original duty to protect them (Keller, 2014). Workstations will be put into place to
accomplish the desired outcome. The first is that people will get a feeling of worth and respect
from working, and the second is that people will be able to fulfill their original duty as protectors
of the environment, thanks to human effort. Both of these benefits will materialize as soon as
human efforts bear fruit.
STRATEGY DEVELOPMENT, STRATEGY DECISIONS, AND DECISION MODELS 7
References
Gamble, J., Peteraf, M., & Thompson, A. (2021), Essentials of strategic management, McGraw
Hill Course Content Delivery (7th ed.), New York, NY.
Geier, M. T. (2024). Strategic thinking: Theoretical development and assessment. Journal of
Strategy and Management, 17(1), 1-21. https://doi.org/10.1108/JSMA-10-2021-0212
Keller, T. (2014). Every good endeavor: Connecting your work to God's work, Riverhead
Books, New York, NY. ISBN: 9781594632822.
Leavy, B. (2022). Richard rumelt: A “challenge-led” approach to creating effective strategy.
Strategy & Leadership, 50(5), 3-8. https://doi.org/10.1108/SL-05-2022-0049
Rumelt, R. (2011). Good strategy/bad strategy: The difference and why it matters.,
Crown
Business, New York, NY.
Shaik, A. S., & Dhir, S. (2021). Dynamic modeling of strategic thinking for top management
teams and its impact on firm performance: A system dynamics approach. The Journal of
Management Development, 40(6), 453-485. https://doi.org/10.1108/JMD-09-2020-0298
Solovev, D. B. (2020). Influence strategic competitive advantage international business
cooperation in the frame of financial crisis. Smart innovation, systems and technologies
(pp. 399-408). Springer International Publishing AG. https://doi.org/10.1007/978-3-030-
15577-3_39
STRATEGY DEVELOPMENT, STRATEGY DECISIONS, AND DECISION MODELS 8
Verma, P., Kumar, V., Mittal, A., Gupta, P., & Hsu, S. C. (2022). Addressing strategic human
resource management practices for TQM: The case of an indian tire manufacturing
company. TQM Journal, 34(1), 29-69. https://doi.org/10.1108/TQM-02-2021-0037
Annoted Bibliography
Geier, M. T. (2024). Strategic thinking: Theoretical development and assessment. Journal of
Strategy and Management, 17(1), 1-21. https://doi.org/10.1108/JSMA-10-2021-0212
In order to investigate strategic thinking, the authors undertake expert interviews and a
horizontal evaluation of prior research. Their objective is to construct and improve a
strategic thinking measurement scale with the assistance of this investigation. In order to
effectively implement plans designed to foster and advance practical discussions, the
application of strategic thinking is indispensable. To enhance the adaptability of the scale
and the critical elements pertaining to corporate decision-making, concepts, and analysis,
the composition of their research centers on demographic factors such as occupations,
religions, gender, and age. A fundamental objective of making well-informed judgments
is to enhance one's comprehension of diverse novel circumstances while also recognizing
and devising resolutions for such issues. Methods for problem structuring revolve around
a solitary element that contributes to a number of beliefs, which subsequently aid in the
decision analysis procedure, which is defined as an assessment of the available options.
Due to their extensive knowledge of human resource management and organizational
behavior, the authors are cognizant of the critical importance of strategic thinking in the
realm of business. They have a greater comprehension of sustainability in a competitive
STRATEGY DEVELOPMENT, STRATEGY DECISIONS, AND DECISION MODELS 9
context and the components that are associated with it as a result of this information. The
results furnish empirical support for the psychometric characteristics and expected utility
of these tools for use by academic institutions, professional associations, and
practitioners. Furthermore, they furnish an exhaustive and accurate evaluation of the
myriad methodologies employed in the development of business models, thereby
facilitating well-informed decision-making. Influenced self-bias could have emerged as a
possible consequence of the data collected via strategic thinking questionnaires.
Given the author's clarification of the rationales underlying the various business models
utilized by organizations in their decision-making processes, the article significantly
contributes to the weekly discourse. The objective of this research endeavor is to provide
insights into potential therapeutic interventions that may facilitate the execution of
critical components in the process of formulating strategic decisions. This is intended to
enhance one's comprehension of the significant alterations associated with the potential
consequences. The article's content offers explicit reinforcement for the weekly discourse
concerning the evaluation, selection, and reasoning underlying a range of strategic
decisions that influence overall strategy.
Solovev, D. B. (2020). Influence strategic competitive advantage international business
cooperation in the frame of financial crisis. Smart innovation, systems and technologies
(pp. 399-408). Springer International Publishing AG. https://doi.org/10.1007/978-3-030-
15577-3_39
The competitive advantage of the private sector is examined in this article in relation to
strategic competitiveness. Four constituent elements comprise strategic competitiveness,
according to experts in the field of business expansion. The fusion of these factors fosters
STRATEGY DEVELOPMENT, STRATEGY DECISIONS, AND DECISION MODELS
10
a culture of creativity, which leads to the development of novel concepts and an
innovative approach. These factors determine the degree to which they are relevant to the
present investigation. In addition, this study examines the administration of the
organization's immediate and long-term mission, vision, and objectives. Each of the
process models presented here visually represents a specific level of strategic direction.
There must be decision-making resources and straightforward regulations to aid in
conception, planning, and execution for a business to achieve strategic success. Mission
inputs, evaluation, and formulation are all factors that are incorporated into strategic
planning. A successful plan can be formulated as a result of the integration of each
component into its environment. Numerous process model data are aggregated to produce
a graphical depiction of the alternatives available to the researcher for diversification-
level development plans. The motivation behind this study was to identify a quantitative
method for assessing the four dimensions of competitiveness. Performance management,
strategy formulation, strategic analysis, decision-making processes and procedures, and
numerous other subjects are among the many that the authors of this article discuss.
According to the research, people with an entrepreneurial mindset were more likely to
achieve strategic competitiveness. Additionally, innovation and strategic competitiveness
influence the pursuit of a competitive advantage. In order to establish the relationship
between an organization's total competitive advantage and the effects of strategic
competitiveness on these outcomes, accuracy is required.
