Question

Provide two or three examples of strategic management decisions.

Answer 1

Strategic management decisions covers both internal and external environment and it has direct implications over organizations objectives for short term or long terms. Some of the examples of strategic management decisions are

• Diversification of business:- A leading online cab service company Uber expanded their business to other segments such as food delivery. This is an example of strategic management where the organization realize the potential of growing business to different segments rather than focussing on single sector. They have effectively materialize their capability on technology and operations for new business unit.
• Digital transformation in banking :- Traditional banking system was more of human resource centric with more number of branches. This model was not cost effective because of high running cost in terms of facilities, human resources etc. The digital transformation has helped many private banks to enhance their service by cost reduction opportunities . Net banking, online transaction etc reduce the human resources requirements and utilising the reosurces for other core banking activities like financial planning, forecasting , product and service designs etc.This is another example of strategic decision which made revolutionary change in the industry by use of technology in the banking platforms and adding value to the cusotmers.