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Strategic Decision Making - Case Study Example

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Strategic Decision Making

There is no better appropriate timing and place other than this kind of TV appearance. Customers eagerly await such announcements when policy changes take place on the aftermath of old guard changing at the helm. The strategic significance of this decision lies in the fact that the new CEO has recognized the relevance and the importance of the TV as a medium of communication to target potential customers who otherwise would be clueless as to the future strategy of CH.
Secondly CH has been going through a turbulent period. Thus the TV interview was well timed and is seen as a strategic shift in policy thrust away from what was hitherto practiced under Mr. Khan. Such a strategic initiative with a great zing in it would essentially mean a shift in the corporate strategy and a reorientation in policy in keeping with the vision of the new leadership. Thus on a closer approximation Mr. Kahn had adopted Rational Decision Making Model (RDMM) as his first choice in the process of changing the strategic environment at CH. This is obvious when one looks at the fact that Mr. Kahn had been influenced by a desire to achieve some critical corporate goals though his entrepreneurial leadership style might have acted as a dampener on the subsequent outcomes. There is no gainsaying the fact that RDMM has a number of variants and Mr. Kahn chose to focus on the bounded rationality principle as enunciated by Simon (2000).
During Mr. Khan's time the company received venture capital support and even got listed on the London Stock Exchange (LSE). These positive developments are essentially associated with the RDMM and therefore it must be noted that his philosophy of managing the hundreds of workforce at CH was essentially based on the staff motivating and innovative management strategies (Hatch, & Schultz, 2008). Thus RDMM was an integral part of the company's overall organizational and management culture. However it must be noted that bounded rationality principle as opposed to the concept of rationality optimization would have predominated at CH despite Mr. Kahn's apparent reluctance to delegate responsibility to the lower layers in the hierarchy.
A random analysis would show that Mr. Kahn also applied some intuitive decision making principles though their significance in the context of management at CH cannot be determined now except to identify some traces of organizational culture based on a family-centric system of values and morals. The strategic management related outcomes of this approach of Mr. Kahn can be seen against the now evolving backdrop of a much vigorous normative work environment under Mr. Bamford. While much of it is purely determined by a great desire to overcome limits associated with irrational human behavior the corresponding level of work efficiency at CH can be attributed to the current leadership style of Mr. Bamford.
This has been made public through his interview and its morale-boosting impact on the workforce is quite obvious though only the time will tell as to when and how the workforce would become fully motivated to achieve corporate goals as defined by the strategy. In the first place Simon's bounded rationality model is probably the most preferred by decision makers though Mr. Bamford has adopted much of it to leverage ...Show more
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Strategic decision making process is defined as either a content approach that necessarily identifies content in the strategy or a process which identifies strategic processes associated with the decision making process (Simon, 1993). Such strategic decision making involves not only implications but also independent and dependent factors that impact on the outcomes…
Strategic Decision Making
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