Preview

Strategic Management

Good Essays
Open Document
Open Document
12124 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Strategic Management
Strategic Management Journal, Vol. 13, 17-37 (1992)

STRATEGIC DECISION MAKING
KATHLEEN M. EISENHARDT and MARK J. ZBARACKI Department of Industrial Engineering and Engineering Management, Stanford University, Stanford, California, U.S.A.

This article reviews the strategic decision making literature by focusing on the dominant paradigms—i.e., rationality and bounded rationality, politics and power, and garbage can. We review the theory and key empirical support, and identify emergent debates within each paradigm. We conclude that strategic decision makers are boundedly rational, that power wins battles of choice, and that chance matters. Further, we argue that these paradigms rest on unrealistic assumptions and tired controversies which are no longer very controversial. We conclude with a research agenda that emphasizes a more realistic view of strategic decision makers and decision making, and greater attention to normative implications, especially among profit-seeking firms in global contexts.

Change swept strategic management research during the past decade. Triggered by the work of Miles and Snow (1978) and later Porter (1980, 1985), strategic content research flourished. The next decade may bring a similar revolution to strategic process. As Rumelt, Schendei, and Teece (1991: 22) write: 'Both theoretical and empirical research into the sources of advantage has begun to point to organizational capabilities, rather than product market positions or tactics, as the enduring source of advantage.' And, of course, strategic process research never really lost favor among the Japanese and Europeans, Central among strategic process issues is strategic decision making. It is crucial because it involves those fundamental decisions which shape the course of a firm. During the past 30 years, many researchers have recognized the centrality of the topic by tackling issues in strategic and more generally, organizational decision making. Overall, research has progressed

You May Also Find These Documents Helpful

  • Better Essays

    Cited: Bansal, P., Crossan, M.M., Fry, J.N., Killing, J.P., Nicholls-Nixon, C.L., & White, R.E. (2005) Strategic Management A Casebook (7th ed.). Toronto: Prentice Hall.…

    • 3194 Words
    • 13 Pages
    Better Essays
  • Satisfactory Essays

    Strategic Management

    • 251 Words
    • 2 Pages

    For its Zara brand, Inditex manufactures the majority of the garments sells and undertakes all of its own distribution from manufacturing plants to its directly managed retail outlets. Benetton outsources most of its production and most of its retail outlets are owned and operated by franchisees. Which is a superior system?…

    • 251 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Humana Insurance Anaylsis

    • 4333 Words
    • 18 Pages

    Michael A Hitt, R. Duane Ireland, Robert E. Hoskinsson. Strategic Management: Concepts and Cases. South-Western College Pub, 2006.…

    • 4333 Words
    • 18 Pages
    Good Essays
  • Powerful Essays

    Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2013). Strategic management: concepts and cases, competitiveness and globalization (Tenth ed.). Mason, Ohio: Cengage Learning.…

    • 1390 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Strategic Management

    • 5703 Words
    • 23 Pages

    Management and leadership, these two terms are often used interchangeably; management is more usually viewed as getting things done through other people in order to achieve organizational goals. The managers may react to specific situations and more concerned with short term problem solving. Management is regarded as related to people working in a structured organization and with prescribed roles. The emphasis of leadership is on interpersonal behaviour in a broader sense. Belbin (1997, p 98) suggests that, “there is a clear implication that leadership is not part of the job but quality that can be brought to a job … The…

    • 5703 Words
    • 23 Pages
    Powerful Essays
  • Good Essays

    References: Hitt, Michael, Ireland, R., Hoskisson, Robert. (2010). Strategic management: Concepts and Cases (9th ed.). South Western Publishing Company.…

    • 468 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    Strategic Management

    • 5604 Words
    • 23 Pages

    The report argues on whether the company should internationalise and open a new BrewDog Bar in a foreign market, taking into consideration the main purpose of the internationalisation plan and the main theories. Included is also a research of the market opportunities on the French craft beer market with local competitors, market which is showing good signs of improvement over the last years, as many young people consume beer more often than the…

    • 5604 Words
    • 23 Pages
    Satisfactory Essays
  • Satisfactory Essays

    strategic management

    • 1057 Words
    • 5 Pages

    ALICAFE brand element is where the brand name of ALICAFE where the brand is well know with POWER ROOT herbal and energy drink which the brand name well know into nearly 150 country. ALICAFE also have introduced their new product drink of herbal tea which is good for the health. Another brand element is their logo which indentify the brand image with highly rate where people recognize the logo of the drink and also its company. There for all the criteria of the element is where the brand should be Memorability which is the design and the logo, Meaningfulness the slogan of the drink, likability of the design, adaptability where the contain of the drink make consumer to drink and it is also protectability hence it is a herbal drink.…

    • 1057 Words
    • 5 Pages
    Satisfactory Essays
  • Powerful Essays

    Strategic Management

    • 6750 Words
    • 27 Pages

    Global pharmaceuticals grew by 3.6% in 2010 to reach over $733 billion with projections reaching $981 billion by the year 2015 (Pharmaceuticals Industry Profile: Global, 2011). Pfizer, the world leader in the global pharmaceuticals market, controls an impressive 9.4% of the global market share (Pharmaceuticals Industry Profile: Global, 2011). Sometimes described as Frankenstein’s Monster, Pfizer has been aggressively swallowing up smaller companies since the early 1990’s to become the present day drug giant. Pfizer along with other companies will be facing a fork in the road in the near future as they exit their blockbuster growth with the expiration of many of the company’s most successful drug patents. In this paper we will conduct several analyses to identify strategies that would be viable options for the company. Pfizer, which has been a company that has dominated with its inorganic growth in the past (Appendix N), will now have to decide…

    • 6750 Words
    • 27 Pages
    Powerful Essays
  • Good Essays

    This paper draws upon three broad perspectives on the strategic decision-making process in order to develop a more completely specified model of strategic decision effectiveness in a different context, namely Egypt. The key variables in this model consist of three strategic decisionmaking process dimensions (rationality, intuition, and political behavior); seven moderating variables concerning decision-specific, environmental, and organizational factors; and strategic decision effectiveness as an outcome variable. A two-stage study was conducted in which the first stage provided exploratory insights and the second stage investigated hypotheses on the impact of strategic decision-making process dimensions on strategic decision effectiveness and the moderating role of broader contextual variables. The second-stage study produced three major findings: (1) both rational and political processes appear to have more influence on strategic decision effectiveness than does intuition; (2) strategic decision effectiveness is both process- and context-specific; and (3) certain results support the ‘culture-free’ argument, while others support the ‘culture-specific’ argument. Copyright  2007 John Wiley & Sons, Ltd.…

    • 13697 Words
    • 55 Pages
    Good Essays
  • Satisfactory Essays

    David Ppt

    • 312 Words
    • 2 Pages

    |CPE Course Title |Current Topics in Management | |Course Code | | |Semester |SPRING-2013 |Credit |T |P | | | | |2 |0 | |Lecturer(s) |Assoc. Prof. Dr. Ender Asyalı | | |Office Hours | | | |Office Phone | | |Contents | | |Objectives | | |Course Outline |Contents |Homework |Exam | |Week 1 |6/02/2013 |introduction | | | |Week 2 |..//2013 |Chapter 1 The Nature of Strategic Management | | | | | |Chapter 2…

    • 312 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Kotchetova Paper For Midyear

    • 10508 Words
    • 52 Pages

    Fredrickson, J. W. 1984. The comprehensiveness of strategic decision processes: Extension, observations, future directions. Academy of Management Journal 27(3): 445-466.…

    • 10508 Words
    • 52 Pages
    Good Essays
  • Better Essays

    Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2013). Strategic Management: Concepts and Cases, Competitiveness and Globalization. Mason: Cengage Learning.…

    • 1750 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    Strategic Management

    • 1574 Words
    • 6 Pages

    The essay provides a brief introduction to rapid, volatile and discontinuous change. It will elaborate that how these changes influence the organizational strategic management process and also incorporates some dissension related to it, which includes strategic analysis, strategic implementation and strategic evaluation.…

    • 1574 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Required Reading (s) David, Fred R. (2011-13e) Strategic Management: Concepts and Cases Prentice Hall; 13th edition Recommending Reading Hitt, Michael A., Ireland, Duane and Hoskisson, Robert E. (2011-9e) Strategic Management: Competitiveness and Globalization, Concepts and Cases. South-Western College Pub; 9th edition SPECIAL NOTES Plagiarism As a student of this programme, all papers that you submit should be your original work with appropriate referencing using the American Psychological Association (APA) format. Please ensure that you purchase a copy of the APA Referencing manual so that your referencing is appropriate and accurate: American Psychological Association (2009), Publication Manual of the American Psychological Association (6th ed.). Washington DC: Author. In the event that plagiarism, self-plagiarism, unauthorized assistance, copyright infringement, misrepresentation or collusion is detected, disciplinary action will be taken such as failure of the course, suspension or expulsion from the University. (See the Graduate Student Handbook for additional information).…

    • 830 Words
    • 4 Pages
    Powerful Essays