Strategic Decision-making

Strategic management is characterized by its emphasis on strategic decision-making. As an organization grows bigger and becomes complex with higher degree of uncertainty, decision- making also becomes increasingly complicated and difficult. Strategic decisions have to deal essentially with the long-term future of the organization and have three important characteristics.

• Strategic decisions are not common and have no precedents.
• Strategic decisions involve committing substantial resources of the company and hence a high degree of commitment from persons at all levels.
• Strategic decisions can serve as precedents from less important decisions and future actions of the organizations