Introduction
There exists a burden placed on the company’s management teams and leadership of a
company. The leadership and management teams of a business are responsible to creating the
strategy of the business that is most beneficial and efficient for the business. The strategy is how
the company can enhance customer experience, achieve its vision, compete with competition,
and optimize its financial performance.
Process: Setting the Company's Direction with Strategy
Gamble et al. (2019) stated, “The managerial process of crafting and executing the
strategy of the business organization is a five-step process that business leaders must undergo.”
The 1st step in the five-step process is strategy formulation setting a destination for the
organization to strive towards. In the 2nd stage, the leaders and management team will set
objectives. These objectives will allow the business to move closer towards the vision's
destination. The 3rd stage involves crafting the business strategy. While crafting the business
strategy the leaders of the organization must focus on external and internal conditions of the
company. The 4th stage is the execution planning from the leadership team of the organization.
This step is the most complex of the five-step process. The final stage is the evaluation of
performance and during this stage corrective actions are determined. Based on the performance
evaluation the business will either adjust the four previous steps or stay on the path that’s been
set out in the previous four steps.
Strategic Thinking: Discussion of a Key Advantage or Disadvantage
The organizations need to focus on the overall strategy of the organization so the entire
business is in line and doesn’t require lapses in time when making big decisions. Geier (2024)
stated, “The exploratory factor analysis (EFA) supported the existence of the three dimensions of
strategic thinking (visionary, synthetic and creative thinking) as conceptually proposed.” A key
advantage of a strategic thinking business is the organization's ability to identify a good strategy.
A key disadvantage of a business that doesn’t use strategic thinking is unable to forecast plans
that would result in negative results. Businesses unable to strategically find the organization's
problems will result in problems not being addressed in time. An additional key disadvantage of
a business that does not think strategically will ultimately lead to ineffective strategy. An
additional advantage of strategic thinking is the ability to put out a straightforward plan that the
organization's employees can enact.
Decisions Model
Strategies result in improved success in the execution of strategy for the organization.
Pratt (2019) stated, “The method here applies to all of the above situations. It is important to re-
emphasize decision modeling does not require data. Indeed, starting this process with a large data
set can lead to a “searching for the keys under the lamppost” problem. The decision model, when
complete, will guide you to which data, and which fields, are the most valuable.” The two
decision models that can be used to assist organizational leadership include the Rumsfeld Mix
and the Hard Choice Model.
The Hard-Choice Models
The Hard-Choice model has two parameters for each decision. The model involves the
significance of the consequence of the choices made in the two options. The key of the Hard-
Choice Model is they are looking for subjective arguments for the decision made. The decision
made has not alternative and can be the only choice.
The Rumsfeld Matrix
The Rumsfeld Matrix is made by Donald Rumsfeld and states when choosing choices
when dealing with risks the choice must consider 4 different variables. The variables assigned in
the Rumsfeld Matrix includes known knowns, know unknowns, unknown knowns and unknown
unknowns.
Conclusion
The leadership of any organization must focus on strategic thinking to ensure decisions
made by leadership are made correctly. The changes within an organization must be done while
weighing all the different variables that could result in poor results for a strategy.
References
Gamble, J., Peteraf, M., & Thompson, A. (2019), Essentials of strategic management. New York,
NY.: McGraw-Hill Higher Education
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
Pratt, L. (2019), "How to Build Decision Models", Link, Emerald Publishing Limited, Leeds, pp.
109-154. https://doi.org/10.1108/978-1-78769-653-220191006
Annotated Bibliographies
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
Summary of Key Points
The article examines strategic thinking and how the development and theory is applied in
businesses.
Evaluation of the Quality of the Publication
The Journal of Strategy and Management publishes papers on strategic thinking and
offers analysis on a variety of subjects related to strategy and management.
Evaluation of the Quality of Author(s)
Michael Geier is the author of many articles and papers focused on strategic thinking.
Why this fits into the discussion
The article displays the importance of strategic thinking and how these are viewed in
theory and assessed.
Pratt, L. (2019), "How to Build Decision Models", Link, Emerald Publishing Limited, Leeds, pp.
109-154. https://doi.org/10.1108/978-1-78769-653-220191006
Summary of Key Points
The article examines how to build decision models. The article breaks down the benefits
of the decision models and gives examples of decision modeling examples.
Evaluation of the Quality of the Publication
The Emerald Publishing Limited publishes papers that offer analysis of a variety of
different subjects.
Evaluation of the Quality of Author(s)
Lorien Pratt is the author of many books and articles most dealing with decision
modeling.
Where this fits into the discussion
The article deals with the importance of decision models and how they are built.
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