BUSI770DB1

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Southern New Hampshire University *

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770

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Feb 20, 2024

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School of Business, Liberty University Name of student Week # Discussion Assignment Author Note: Faizan Malik I have no known conflict of interest to disclose. Correspondence concerning this article should be addressed to Faizan Malik: Fmalik@Liberty.edu Introduction In his book "Every Good Endeavor," Keller emphasizes the importance of thoughtful decision- making, urging leaders to consider the potential impact of their choices on all stakeholders, from employees to customers to the wider community (Keller, 2012). These decisions, which equate to business strategy, provide organizations foundation to make key business decisions and achieve their goals. Business Strategy Development Gamble et al. (2021) describe business strategy as a series of managerial actions that are utilized to outperform their competitors with an ultimate goal of sustained success and growth (Gamble et al, 2021). The process to develop business strategies is often complex and typically begins with an organization defining their mission, vision, and values, which ultimately govern the business’ operations and provide a foundation for subsequent business strategy development. Once the mission, vision, and values have been has been established, an organization should look to evaluate internal capabilities and external environment, and their subsequent impact on business. SWOT analysis, which evaluates an organizations “strengths, weaknesses, opportunities, and threats (Krogerus & Tschäppele, 2017), provides businesses broad sense awareness when developing business strategies by taking advantage of their strength and opportunities whole minimizing potential impacts from their weaknesses and threats. Depending on the business and/or sector, organizations may elect to conduct some degree of market research prior to SWOT analysis to get a better understanding of their demands of their customer base. “Nowadays it is important that companies have to be able to determine the market in which they will operate, produce products that satisfy target customers and also define the price of their offer” (Masarova et al., 2015). Strategic Thinking: Key Decisions (150 words) Once an organization has established their business strategies, they then must make several key decisions that will dictate how their firm will operate and any subsequent success or failures. Although such decisions vary across industries and amongst organizations, many businesses may

opt to begin with the decision regarding their target market which allows them to tailor their offerings, customer communication, and other various strategies to maximize profits. This aligns with the focused strategy described by Gamble et al. (2021), in which businesses are able to gain “competitive advantage either by achieving lower costs than rivals’ in serving buyers comprising the target market niche or by offering niche buyers an appealingly differentiated product or service that meets their needs better than rival brands (Gamble et al., 2021). Organization may also make key decisions for internal stakeholders, such as setting business objectives that essentially create a benchmark for measuring success. “One of a leader’s most powerful tools is the creation of a good proximate objective—one that is close enough at hand to be feasible” (Rumelt, 2021). This can be done at an individual, departmental, and/or organization level and should align with the mission and visions of the business. By establishing both internal and external key organizations, business are able to identify their overall business strategy and direction more clearly. Decision Models (150 words) A decision model is a formalized representation of a business decision-making process, which is formed with data and aligns with the objectives of the organization. Similar to SWOT analysis discussed earlier, businesses can utilize PESTLE analysis as a form of decision-modeling, in which they analyze external political, economic, social, technological, legal, and environmental factors that can impact the business. PESTLE analysis provides organizations the benefit of adaptability, as they are able to identify changes in external factors and adjust their business strategies accordingly. Organizations may also opt to utilize cost-benefit analysis as a decision model, in which they base their decisions on the cost of an action vs the subsequent benefit it could potentially provide. To use cost-benefit analysis when direct pricing is not available, organizations must establish objective criteria that can be measured such as return on investment. A study performed by Hitt and Tyler (1991) suggest that various objective criteria can impact an organization’s decision models such as demographic characteristics, risk propensity, and cognitive complexity (Hitt & Tyler, 1991). Conclusion The development of business strategies and subsequent key-decisions are crucial to any organization’s success and often begin with the formation of the business’s mission, vision and values. Once strategies are developed and the top key decisions are established, organizations must then look to understand any internal or external factors that may impact their business, through means of decision-modeling approaches such as SWOT and PESTLE analysis. By carefully considering and analyzing key factors and utilizing decision models, organizations can develop effective business strategies and position themselves for long-term success. References Gamble, J., Peteraf, M., & Thompson, A. (2021), Essentials of strategic management , McGraw- Hill Course Content Delivery (7th ed.), New York, NY. ISBN: 9781260785791.

Hitt, M. A., & Tyler, B. B. (1991). Strategic decision models: Integrating different perspectives. Strategic management journal , 12 (5), 327-351. Keller, T. (2014), Every good endeavor: Connecting your work to God's work , Riverhead Books, New York, NY. ISBN: 9781594632822. Krogerus, M., & Tschäppeler, R. (2017), The decision book: 50 models for strategic thinking., W.W. Norton & Co. (Revised ed.), New York, NY. ISBN: 9780393652376. Masárová, G., Štefániková, Ľ., & Rypáková, M. (2015, July 12). The necessity of obtaining information through marketing research in the field of pharmaceutical companies on the slovak market . Procedia Economics and Finance. Rumelt, R. (2011), Good strategy/bad strategy: The difference and why it matters ., Crown Business, New York, NY. ISBN: 9780307886231. School of Business, Liberty University Faizan Malik Week 1 Annotated Bibliography Assignment Author Note: Faizan Malik I have no known conflict of interest to disclose. Correspondence concerning this article should be addressed to Faizan Malik: Fmalik@Liberty.edu Hitt, M. A., & Tyler, B. B. (1991). Strategic decision models: Integrating different perspectives. Strategic management journal , 12 (5), 327-351. Hitt and Tyler's (1991) study examines varying perspectives for strategic decision- making models and the various factors that can impact the associated process. The study reviews various decision-making models, including rational, bounded rationality, political, garbage can, and cultural models. The researchers suggests that, given traditional economic models of decision-making have limitations, organizations should consider demographic characteristics, risk propensity, and cognitive complexity when developing decision models. The authors also highlight the importance of incorporating the organization's culture, history, and environment in the decision-making process and provide a propose a framework that integrates the various decision models, including a roadmap for decision-makers to choose the appropriate model

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based on the situation. Overall, the article emphasizes the need for a systematic approach to strategic decision-making that considers a range of factors and perspectives. This study fits into the discussion by highlighting various perspectives for decision- modeling, including more traditional approaches as well offering suggestions for new approaches. By analyzing the factors that can impact decision models, this study provides a deep understanding of the decision making process and the subsequent implications they may have. The framework provide in the study also contributes to the discussion by offering an alternative solution to existing decision models. The study was published in the Strategic Management Journal, a peer-reviewed source, meaning the author’s work underwent extensive review before being published. The authors also provide practical recommendations for decision-makers, which makes the article relevant to both academics and practitioners. Overall, the quality of the publication and authors is excellent, and the study is a valuable contribution to the field of strategic management. Masárová, G., Štefániková, Ľ., & Rypáková, M. (2015, July 12). The necessity of obtaining information through marketing research in the field of pharmaceutical companies on the slovak market . Procedia Economics and Finance. The study performed by Masárová et al. (2015) examines the importance of marketing research in the pharmaceutical industry in Slovakia. The researchers suggest that marketing research is essential for pharmaceutical companies to understand customer needs and preferences, as well as to develop effective marketing strategies and improve sales performance. The study evaluates and speaks to the current state of the pharmaceutical market in Slovakia and identifies the key challenges facing pharmaceutical companies such as the increasing competition, changing customer needs, and regulatory requirements. The authors also suggest that marketing research can help companies address these challenges and stay competitive. Throughout the study, the authors provide examples of various marketing research techniques that pharmaceutical companies can utilize. These include market segmentation, customer satisfaction surveys, and product testing. They also explain the significance of ethical considerations in conducting marketing research in the pharmaceutical industry. This study fits into the discussion as it highlights the various approaches and benefits of market research, which can be utilized by organizations when developing business strategies. By highlighting the need for businesses to understand the needs of their customers, it also plays into the discussed key decision of formulating target audience, as it can be used by an organization for improving financial performance. Also, by discussing ethical considerations, the authors illustrate the complexity involved in business strategy development and decision making. The study was published in a Procedia Economics and Finance, which based on my research, appears to be a reputable academic journal. The authors appear to have a good understanding of the topic and have provided relevant examples of marketing research techniques used in the pharmaceutical industry. Overall, the study is a valuable contribution to the field of marketing research in the pharmaceutical industry and provides useful insights into potential business strategy development approaches.

BUSI770DB1

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