Question

The text states that strategic decisions are (1) rare, (2) consequential, and (3) directive. These deal with the long-term future of the entire organization. To aid in the decision making, the authors suggest an eight step decision-making process. Found on page 25 in the text, these include: (1) evaluating current performance results; (2) reviewing corporate governance; (3) scanning and assessing the external environment; (4) scanning and assessing the internal corporate environment; (5) analyzing the strategic factors; (6) generating and selecting the best alternative strategy; (7) implementing selected strategies; and (8) evaluating implemented strategies. These guidelines for making and evaluating decisions at a strategic level can be important for leaders.

Open today’s issue of The Wall Street Journal and look for an article about new moves being made by a corporation, specifically the decisions that are strategic. At what level is each of the decisions that you identified? Functional/Business/Corporate? Why do you believe this to be the case? What is your assessment of these decisions? Will they be effective? Why? How have you decided this?

Answer 1

IN THE TODAYS JOURNAL WE SEE THE DECISION TAKEN BY THE STARWOOD CORPORATION TO RENOVATE AND OPERATE THE THREE HOTELS IN CUBA. THIS MOVE IS A VERY STRONG STRATEGY TO ENTER THE MARKET AT THE EARLIEST AND ESTABLISH LONG TERM BUSINESS INTERESTS IN THE BOOMING CUBAN TOURISM MARKET WHICH WILL BE A MAJOR BOOST FOR TOURISTS JUST IN THE IMMEDIATE US NEIGHBORHOOD. WE CAN CALL IT A FIRST MOVE STRATEGIC ADVANTAGE TO BOOST BUSINESS. THE CORPORATION WILL GET ACCESS TO GOVERNMENT SUPPORT AS WELL IN THIS OPERATIONAL AND RENOVATION DEAL. THE NUMBER OF TOURISTS HAVE STATED TO INCREASE IN THIS SEASON, WITH A 17% HIKE IN TOURISTS AND 77% INCREASE IN US VISITORS