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Essay / Corporate Policy - 1003
Strategic decisions are those decisions that are made across all operational roles within a company. They deal with all resources as well as human capital within a company and serve as an interface between resources and human capital (Kuhn, 2006). They involve the main resource propositions for a company (Baden-Fuller, 2004). This may involve taking ownership of new resources as well as organizing and reassigning other resources. In addition to the above role, strategic decisions ensure that there is harmony regarding the capabilities of organizational resources in relation to their threats and opportunities. They also play an important role in making decisions on behalf of the company to lead it towards what the company aspires to become as well as what it should become. Due to the dynamic nature of businesses, the best way to accommodate change is to make strategic decisions. These decisions are in most cases complex in nature and are usually made at the highest level of the company. They are characterized by a lot of uncertainty because they are in most cases futuristic in nature. Safe for this, another characteristic is that they are subject to many risks. These are, however, different from administrative and operational decisions as explained by Alexander (1985). Indeed, the first are themselves part of the routine of organizations and aim to facilitate the implementation of strategic and operational decisions. On the other hand, the former themselves take care of the technical decisions necessary for the execution and implementation of strategic decisions. The steward's theory is that managers, if the...... middle of paper ..... .e Planning, 18(3), 91-97. Retrieved from http://linkinghub.elsevier.com/retrieve/pii/002463018590161XBaden-Fuller, C. (2004). Execute strategic decisions successfully. Long Range Planning, 37(3), 197. Retrieved from http://linkinghub.elsevier.com/retrieve/pii/S0024630104000627Dess, G., Lumpkin, T., and Eisner, A. (2010). Strategic management: creating competitive advantages. McGraw-Hill Irwin. Donaldson, L. and Davis, J. H. (1991). Stewardship theory or agency theory: CEO governance and shareholder returns. Australian Journal of Management, 16(1), 49-64. University of New South Wales. Retrieved from http://aum.sagepub.com/cgi/doi/10.1177/031289629101600103 Kuhn, T. (2006). The human factor in strategic decisions. McKinsey Quarterly, (1), 4-5. Stanciu, CO (2009). Architectures of decision support systems, 8. Retrieved from http://arxiv.org/abs/0906.0863