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Week 1 Discussion: Strategy Development, Strategy Decisions, and Decision Models
Kelli Ware
School of Business, Liberty University
Introduction
To sustain success within any industry, organizations must develop a robust business
strategy. A strategy is a set of systemized actions taken to bring to fruition a vision, dream, goal,
or objective (Gamble, 2023). The effectiveness of a strategy extends beyond achieving the
intended goal and is measured by how it compares to the organization’s competitors (Gamble,
2023). Fundamentally, a strategy is an advantage used to exploit a weakness (Rumelt, 2011).
Further, a well-developed strategy leverages existing strengths to draw out new insights and
create greater advantages (Rumelt, 2011) and it prepares an organization to pivot to stay
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synchronized with market shifts (Kim, 2020). Strategy formulation requires a clearly defined
desired end state, established targets, decision models, and guidelines that govern execution
(Kim, 2020). This discussion outlines the process for strategy formulation, key decisions for
strategy execution, and the types of models to be used to make those decisions.
Process: Business Strategy Development
When developing a strategy, companies must establish their vision outlining the mission
statement, long-term goals and objectives, and guiding principles to steer the actions taken to
implement the plan (Gamble, 2023). From inception to implementation, strategy formulation
consists of five primary steps which are elucidating the vision, establishing objectives, explaining
the actions necessary to achieve the objectives, execution, and evaluation. Casting the vision for
an organization requires a distinct and definitive depiction of what the company stands for,
what it supplies to its consumers and how it will satisfy its market ensuring that the language is
direct and decisive (Gamble, 2023). Once the vision is set, the next step is to establish the short
and long-term goals necessary to achieve the vision. When outlining objectives, it is imperative
that both financial and productivity targets are clearly identified using specific, measurable,
time-based parameters (Gamble, 2023). One such approach to goal setting is the balanced
scorecard method that incorporates and tracks financial and strategic performance providing
company leaders with a comprehensive picture of their execution rate throughout the
performance period (Gamble, 2023). The next step in the process of strategy development is
creating a tactical plan the lays out the steps to be taken to meet the objectives. Rumelt (2011)
recommends drafting a list of items that need to be executed so that nothing is omitted.
Because certain steps in the process hinges on another, Kim (2020) purports that incorporating
prioritization at this phase will ensure that the plan is performed in the proper order. What can
be the most burdensome part of the process is execution because this is where success or
failure is determined. During this phase of the process, it is imperative that personnel be
assigned to roles where they are most valuable, resources must be distributed based on
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company needs, the company culture must be cultivated in alignment with the guiding
principles, and leader must champion the movement to maintain motivation (Gamble, 2013).
The last step in the strategy development process is evaluation. This stage in the strategy
development process is vital to identifying where adjustments need to be made in
implementation and execution allowing the company to learn lessons in areas of failure and
make key decisions regarding the way ahead (Gamble, 2023). Shifts in the internal and external
environment may necessitate pivoting in a different direction, and iterative evaluations ensure
agility and easy adaptation.
Strategic Thinking: Key Decisions
Efficient decision making is one of the most critical skills in strategy formulation because
it drives either success or failure (Rumelt, 2012). Companies must ensure that proper
governance is in place to provide strategic oversight of decision-making processes allowing the
CEO to perform their duties within an ecosystem that incorporates multiple inputs from
qualified persons on the board of directors (Langan et al., 2022). Upon establishing governance,
there are internal and external threats that must be identified to inform decisions that must be
made when formulating effective strategy (Rumelt, 2012). External conditions such as
opportunities to scale, the competitive landscape, and drivers of market and economic shifts
must be factored into strategic decision making (Gamble, 2023). Internal circumstances such as
consumer’s perspective of the value proposition, level of competitiveness in the market,
company costs, and company strengths in relation to its rivals must be carefully considered
when making strategy choices (Gamble, 2023). Internal issues can be caught and corrected
through proper evaluation, relevant corrective action plans, and effective governance (Gamble,
2023 & Langan et al., 2022).
Decision Model
After being laid off from the Federal Government due to the mandated reduction in
force I have had to adopt some new decision models in this new season of my life. In exploring
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entrepreneurship, the model being used now is Krogerus and Tschäppeler’s (2017) “gap-in-
themarket” model to see how I can position my business in the coaching industry. Reviewing
the three axes in this approach the X-axis which is location helps me to decide where I will
perform services, the Y-axis which is price will be assist in setting competitive prices, and the Z-
axis which is cool factor causes me to consider what can make my practice distinct from all
others (Krogerus & Tschäppeler, 2017). The decision model that is in use in perpetuity is “the
theory of unconscious thinking which involves the use of intuition when deciding (Krogerus &
Tschäppeler, 2017). It is a deep conviction that Holy Spirit speaks to me through my intuition
and because I am intimately acquainted with him, I trust that in switching off my rational side
(Krogerus & Tschäppeler, 2017) I allow space for the Lord to order my steps (English Standard
Version Bible, 2001, Psalm 37:23).
Conclusion
In conclusion, efficient strategy formulation serves as the bedrock for successful
organizational outcomes enabling them to traverse market dynamism and acquire enduring
advantages over the competition. By cultivating a system with a viable vision, obtainable
objectives, prudent plans, effective execution, and efficient evaluation, companies can leverage
internal strength as advantages against external threats while fostering innovation (Gamble,
2023). Key decisions that are informed by comprehensive governance will ensure all factors are
considered so that opportunities can be explored and exploited to the maximum extent possible
which improves strategic thinking and reduces risk (Langan et al., 2022). Understanding and
incorporating decision models such as those with that identify market gaps will support the
simplification and visualization needed for effective organizational decision making (Krogerus &
Tschäppeler, 2017).
References
English Standard Version Bible. (2001). Bible Gateway. https://www.biblegateway.com/ Gamble,
J. E. (2023). Essentials of strategic Management: The quest for competitive advantage
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(8th ed.). McGraw-Hill Higher Education.
https://mbsdirect.vitalsource.com/books/9781266496622
Kim, S. (2020). Advanced Mathematical Business Strategy Formulation Design. Mathematics,
8(10), 1642. https://doi.org/10.3390/math8101642
Krogerus, M., & Tschäppeler, R. (2017). The decision book: Fifty models for strategic thinking.
Profile Books.
Langan, R., Krause, R., & Menz, M. (2022). Executive Board Chairs: Examining the
Performance Consequences of a Corporate governance hybrid. Journal of Management,
49(7), 2218–2253. https://doi.org/10.1177/01492063221102394
Rumelt, R. (2011). Good Strategy/Bad Strategy: The difference and why it matters. Profile
Books.
Annotated Bibliography
Kim, S. (2020). The Price of Privacy: Advanced Mathematical Business Strategy Formulation
Design. Mathematics, 8(10), 1642.
Summary of Key Points
The purpose of this peer reviewed article by Kim (2020) is to present a
mathematical model for crafting effective business strategy. The study places emphasis
on identifying optimal moments for pivoting strategically within the growth share matrix
model that pinpoints decision parameters that allude to swift market shifts increasing
decision making agility and enabling firms to stay ahead of the competition (Kim, 2020).
While the emphasis is on a specific approach, the author puts forth valuable information
regarding strategy development.
Evaluation of the Quality of the Publication
The article is well written, and the arguments are substantiated by the results of
the investigatory study. The study includes literature reviews of the ten most popular
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strategy development resources and incorporates the tools in the study. Further, the
author provides diagrams that clearly depict the effectiveness of the Boston Consulting
Group decision making model used in the research. The article lacks a thorough
conclusion that synopsizes the results of the research and insights on how the models
can be adopted for multiple business types.
Evaluation of the Quality of the Author
The author, Song-Kyoo Kim, demonstrated thorough research and expertise in
business strategy formulation as reflected the results of the study performed. Moreover,
the author’s previous publications of relative studies exhibit consistency and authority in
their work offering scholarly contributions to literature of this nature.
Where This Fits into the Discussion
This article fits into the discussion by supporting Gamble’s (2023) assertion of
what strategy development is and how it the foundation of organizational success. It
contains literature that integrates the broader conversation surrounding traditional
strategy formulation with mathematical modeling that supports the use of
decisionmaking models that clearly outline gaps in the market making (Krogerus &
Tschäppeler,
2017) and when pivoting is necessary (Kim, 2020).
Langan, R., Krause, R., & Menz, M. (2022). Executive Board Chairs: Examining the
Performance Consequences of a Corporate governance hybrid. Journal of Management,
49(7), 2218–2253.
Summary of Key Points
This peer reviewed articles investigates the implications of the use of an
executive board and the roles of a company Chief Executive Officer (CEO) and board
chair that integrates a governance model that supports strategic decision making. The
researchers reviewed empirical data from two hundred eighty-nine firms and a
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combined two thousand one hundred sixty-two firm-years that were board led early in
the twenty first century (Langan et al., 2022). Using three hypotheses, the study showed
the increasing prevalence of governance in strategic decision-making when the board
chair role was separate from the CEO role.
Evaluation of the Quality of the Publication
Published in Volume 49 of the Journal of Management, this article was a well laid
out scholarly study of the use of a board for governance in business decision making,
and the separation of duties within the CEO and chairperson of the board positions
(Langan et al., 2022). The research methodology sufficiently investigates each
hypotheses and establishes a thorough foundation for its findings. Further, the article
provides relevant insights and managerial implications for leaders who might consider
implementing a board within their organization to support effective strategic decision-
making.
Evaluation of the Quality of the Authors
Each of the contributors to this publication are highly trusted as scholars and
researchers, having previously published several peer-reviewed and accepted works.
Their studies have been cited several thousand times collectively. The methodologies
used are comprehensive and the results produced clearly support their assertions
regarding the implications of governance within a strategic decision-making framework.
Where This Fits into the Discussion
This scholarly article bolsters the discussion on key decisions regarding strategy
formulation, highlighting the benefits of governance in decision making. The research
also underscores the how the use of a board can aid in supporting Gamble’s (2023)
assertion of internal and external decision factors to be considered when developing
strategies. Strategy formulation and implementation within business requires a robust
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set of perspectives (Rumelt, 2011) and the article’s analysis of the benefits of integrating
a board enriched the discussion.
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