Strategic Decisions at Chevron

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Strategic (Johnson & Scholes, 1997) “Strategy is the direction and scope of an organisation over the long term, which achieves advantage for the organisation through its configuration of resources within a changing environment, to meet the needs of markets and fulfil stakeholder expectations”(Johnson & Scholes, 1997). To Johnson and Scholes (1997), there are four main characteristics of strategic decision. 1) They are more inclined or accompanied with long term organisation decision. 2) Decisions are more concomitant with the scope of organisation activities. The strategic scope covers most of the biggest problems the organisation face. The word scope is defies the way how managers understand the boundaries of the organisation. 3) The decisions are ordinarily adapted to attain advantages for the organisation (e.g. competitiveness). 4) They usually have main resource implications for an organisation(Hambrick & Fredrickson, 2001). They can be seen as “stretching” an organisation’s possessions and proficiencies to create chances and get the most out of the resources (i.e. Financial resources (e.g. Investments), corporate culture, HR, etc.) 5) They are most likely to affect operational decisions, to “set waves of lesser decisions”. Other authors described the strategic decision in other phases. Dean and Sharfman (1993), Lyles and Mitroff(1980) detailed about the comprehensiveness character of the strategic decisions. Comprehensiveness is defined as the mass of rationality which denotes to the amount of organisation’s attempt to be in-depth or wide-ranging integrated strategic decisions(Fredrickson & Mitchell, 1984). Miller and Toulouse (1986) professed that the strategic decision is mainly focused on performance and on future plann... ... middle of paper ... ...he wilds of strategic management. New York: Free Press. Nag, R., Hambrick, D. C., & Chen, M.-J. (2007). What is strategic management, really? Inductive derivation of a consensus definition of the field. Strategic Management Journal, 28(9), 935–955. doi:10.1002/smj.615 Porter, M. (1998). Competetive strategy. New York. Porter, M. E. (1991). Towards a dynamic theory of strategy. Strategic management journal, 12(S2), 95–117. Robbins, S. P. (2012). Management (11th ed.). Boston: Prentice Hall. Walsh, P. R. (2005). Dealing with the uncertainties of environmental change by adding scenario planning to the strategy reformulation equation. Management Decision, 43(1), 113–122. Wirtz, J., & Johnston, R. (2003). Singapore Airlines: what it takes to sustain service excellence – a senior management perspective. Managing Service Quality, 13(1), 10–19. doi:10.1108/09604520310456672
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