Effective Business Strategy Development: Key Decisions Explained

STRATEGY DEVELOPMENT AND DECISIONS 1 Week 1 Discussion Thread: Strategy Development, Strategy Decisions, and Decision Models Dexter Tyrone Cassell School of Business, Liberty University BUSI 770 – Strategy Formulation and Strategic Thinking Dr. Mize May 15, 2022 Author Note Dexter Tyrone Cassell I have no known conflict of interest to disclose. Correspondence concerning this article should be addressed to Dexter Tyrone Cassell. Email: dcassell9@liberty.edu

STRATEGY DEVELOPMENT AND DECISIONS 2 Business Strategy Development A business strategy is defined as the direction an organization intends to take in order to achieve future success and growth. It clearly details how the organization intends to utilize its resources to achieve its mission objectives and goals (Chartered Management Institute, 2014). Therefore, the business strategy development is the process of identifying and researching strategic options, selecting the best one and deciding on how the resources will be allocated and used to achieve its objectives (Cassell, 2022). Process The strategy development process comprises of five steps which include mission development, environmental analysis, objectives setting, strategy development, and strategy implementation and control (Cassell, 2022). Mission Development Developing the business mission is the first step of the strategic planning process as it is the foundation of the other four steps. The mission contains the expectations the business strives to achieve in the future for strategic management and provides a context for assessing the future success of the business. (Nwankwo et al., 2016). Environment Analysis This step entails assessing the natural and social conditions that may affect the organization. It entails conducting analysis of the internal and external environmental factors to assess the current situation of the business (Nwankwo et al., 2016). It can entail conducting a SWOT and PESTLE analysis of the business. The analysis enables the business managers to

STRATEGY DEVELOPMENT AND DECISIONS 3 define the opportunities for improvement and the threats that the organization may face in the future which are critical when developing a strategy (Cassell, 2022). Setting Objectives The objectives set in this stage flow from the mission to address the problems and strategic issues identified through the environmental analysis (Nwankwo et al., 2016). However, it does not state how the objectives will be accomplished (Cassell, 2022). Strategies Development In this stage the management develops strategic options that capitalize on the strengths of the organization and provide a framework for addressing the identified weaknesses (Chartered Management Institute, 2014). Strategy Implementation and Monitoring This step entails implementing the proposed strategy or strategies and monitoring which ensures that the strategy implementation leads to the achievement of the business objectives (Nwankwo et al., 2016). The monitoring includes measuring the progress of objective achievement and taking corrective action/s when required (Cassell, 2022). Strategic Thinking Mission and Vision The management must make the decision of the direction the business is to take by defining its mission and vision. This guides the strategy development process by ensuring that the strategies proposed align with the long-term mission and vision of the company (Cassell, 2022).

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STRATEGY DEVELOPMENT AND DECISIONS 4 Objective Setting The management also must decide on the specific measurable objectives that must be achieved for the business to achieve its mission and vision. These objectives are crucial in the strategy development as they function as a guide to producing the strategic options (Cassell, 2022). Resource Allocation The business management also decide on how to utilize the limited resources such as human and capital resources at their disposal to the achievement of the set objectives. The allocation of the resources is crucial in determining the effectiveness of the implemented strategy (Cassell, 2022). Strategic Trade-Offs As it is not always possible to take advantage of all the opportunities available to the business, the management must decide on the best strategy mis. This trade-off ensures that the company focuses on implementing the most suitable strategies for the business (Cassell, 2022). Decision Model My decision-making style conforms mainly to the analytical style which makes me uncomfortable with ambiguity and motivated to produce the best and most suitable solution. However, producing the best option or solutions means that I take a lot of time exploring various alternatives before producing the best one. In some cases, I am open to creative solutions as I am willing to give most prospects a chance. However, supporting risky solutions does not sit well with me as I choose the solution or option that I am close to certain it is the best one based on my

STRATEGY DEVELOPMENT AND DECISIONS 5 analysis. As a manager making strategic decision being analytical is a good trait as it leads to making responsible decisions. Nevertheless, the analytical decision-making style hinders one from making timely decisions due to their tendency to choose the most certain one. This makes it challenging when making strategy choices when the business is going through a crisis (Cassell, 2022). Conclusion Developing a good business strategy can be the difference between success and failure. Therefore, the business management must follow the five-step process of strategy making which entails mission development, environmental analysis, objectives setting, strategy development, and strategy implementation and control. However, to achieve this they must make key decisions such as setting mission, vision, and objectives, allocating resources, and making strategy trade- offs. In my case, my analytical decision-making style makes is an advantage as it enables me to make responsible decisions but then proves challenging when it requires timely decisions (Cassell, 2022).

STRATEGY DEVELOPMENT AND DECISIONS 6 References Cassell, D. (2022) Strategy Development, Strategy Decisions, and Decision Models [Unpublished Discussion]. Liberty University. Nwankwo, F., UNIZIK, A., & Igbokwe-Ibeto, C. J. CHARTERED INSTITUTE OF PUBLIC MANAGEMENT OF NIGERIA [CHARTERED BY ACT OF PARLIAMENT, 2015, BILL No. Hb422]. Chartered Management Institute. (2014). Developing Strategy . https://www.managers.org.uk/wp- content/uploads/2020/04/CHK-258-Developing-Strategy.pdf

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STRATEGY DEVELOPMENT AND DECISIONS 7 Annotated Bibliography Nwankwo, F., UNIZIK, A., & Igbokwe-Ibeto, C. J. CHARTERED INSTITUTE OF PUBLIC MANAGEMENT OF NIGERIA [CHARTERED BY ACT OF PARLIAMENT, 2015, BILL No. Hb422]. This article addresses business development strategy and management authored by Frank Nwankwo and Associate Professor of Cooperative Economics UNIZIK and Igbokwe-Ibeto a Public Management Expert. The article examines strategic management and discussed the five- step process of developing a business strategy which include mission setting, analysis of the environment, objective setting, strategy development, and strategy implementation and monitoring. According to the authors, business managers should be aware of the of the five steps involved in the strategic planning process as well as all the factors that must be managed to ensure the success of the organization by dealing the external environment. The article also addresses the advantages of utilizing strategic management planning in the business helping the managers become future oriented, enhance decision coordination, emphasize on the organization’s objectives, basis of measuring organization performance, helps master change, and a basis of for other management functions such as effective allocation of resources. However, the article also offers some disadvantages of strategic management planning such as requiring managers to be actively involved in an uncertain future, requiring support and cooperation from many individuals in the organization, and setting out a predetermined course in an uncertain future.

STRATEGY DEVELOPMENT AND DECISIONS 8 In terms of quality, the publication is of quality as its authors are professionals in this field. For instance, Frank Nwankwo is an Associate Professor of Cooperative Economics while Igbokwe-Ibeto is a Public Management Experts which makes them qualified to discuss this topic. Also, the contents of the article fit well into our discussion as it outlines the five-step process of strategic planning. Chartered Management Institute. (2014). Developing Strategy . https://www.managers.org.uk/wp- content/uploads/2020/04/CHK-258-Developing-Strategy.pdf The article Developing Strategy by the Chartered Management Institute acts a s a guide for organizations when developing an organizational strategy. According to the article, developing an organization strategy is especially important as it ensures that they do not become reactive and vulnerable to the threats they face. It also enables the organization to identify the opportunities available to them and act on them. The article proposes that an organization strategy should be flexible, responsive, creative, challenging, realistic, focused and engaging. According to the Chartered Management Institute, a business strategy describes how the organization intends to utilize its resources to achieve its mission and set objectives. Thus, strategy development is the process of researching and identifying strategic options, selecting the best one, allocating resources and implementing it. The article also offers a ten action-checklist an organization can use when developing a strategy. The checklist includes understanding the organization’s current position, reflecting on how you got there, being clear on the organization’s mission, vision, and values, analyzing the organization’s strengths and weaknesses, analyzing the business environment, identifying, and

STRATEGY DEVELOPMENT AND DECISIONS 9 evaluating strategic options, setting objectives, communicating the strategy to others involved parties in the organization, implementing the strategy and monitoring its progress. In terms of the quality, the article by the Chartered Management Institute utilizes only journal articles to make the developing strategy guideline which makes it a quality source to use for this discussion. Also, the ten action-checklist offered in the article is a process which the managers developing the strategy are supposed to follow which fits well into our discussion of strategy development.

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Week 1 DT Strategy Development Decisions and Decision Models

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