According to the researchers, a large number of factors have an effect on the quality of strategic decisions. Nevertheless, the procedure with which decision making is approached by the management team is very crucial. Strategic decisions refer to important actions being taken as a result of a certain decision. Since these decisions are important, the nature of decision-making can easily be determined.
In making strategic decision making for Digby product known as Dune, several decision-making tools should put into consideration. For instance, the perfect decision for the future strategy of Dune can be made based on the cause and effect analysis. When using a team approach towards solving a problem, more often than not many opinions arise with regard to the root cause of the problem. Fishbone technique of analysis is a very important technique especially when it comes to bringing out a thorough exploration of the issues surrounding the problem. This in turn will bring out a more strong solution to the problem facing the company.
Goal generation
The company should set the goals for the product. The goals will determine how the product will behave in the market. It will be the responsibility of the management to ensure that the set goals are adhered to and met. Generating goals for the product will also identify the path within which the product will follow. Some of the goals that the management should set forth should include operating into the foreseeable future. Based on the information given, we can deduce that the product might go into extinction of its poor performance.
Building block strategy
Under this strategy, the market forces will always conspire against the product on the market to deplete its profits. For the case of our product, even though the market forces have conspired to deplete its profits, we can note that the profits are stable. However, how the cash is being managed has been the main problem. The management should, therefore, construct powerful business strategies so as to counteract the market forces. From the data given, we can notice that the size segment for the product is the smallest. This tends to affect the profit margins of the product. Therefore, the management should find ways of making sure that the profits being generated from the product are stable. This will include having research and development department in place.
The Human resource department for Digby product lacks some levels of professionalism. This is evident by the number of positive reviews received. Based on the HR/TQM Report, the other companies received many positive feedbacks. Its inefficiency lies with the fact that it spends less on its advertising when compared to other companies.
Building Block Tree
In this case, the company should have in place a research and development department that will do research as to why Dune is fetching low in the market. It will look at the pricing strategy and the market demand. This will determine the future profitability of the company.
Other alternatives can be developed from the strategy tree. These options include the real options analysis, competing projects analysis, and corporate analysis. Real options analysis represents the actual decision that from which the company has the options of either expanding or contracting the operations. In our case, the management should evaluate the situation and make the correct judgment. That is, considering the fact that the product is not doing well, the management should either risk it and increase the operations hoping that the situation will become better in the future or it should reduce the operations to avoid further losses.
Competing projects
This strategy brings out the continuous process of decision making regarding the marketing operations, product expansion, hiring employees and expansion of the company. When these alternatives are considered, there will be a systematic means of evaluating the business ideas.
Corporate analysis
In this analysis, the decision trees will enable the management to explore various elements that have a material impact on the decisions. In this case, the company would want to determine the probable outcomes for the marketing campaign.
Therefore, of the alternatives, the best strategy would be the competing project analysis since it will work all round across the product, that is, from the HR department to the expansion of the firm.
Decision Matrix: How will we ensure our product records bigger sales in future?
