The effects of strategic planning and decision comprehensiveness on decision quality have long interested strategic decision making researchers. However, there is large dispute on that topic among former researchers.
This thesis gives an overview of the existing literature of strategic planning and decision comprehensiveness, relevant to both practice and theory. Therefore, different databases have been scanned and high quality papers have been selected. Through the examination of the existing literature and the precise recombination of the different findings, this thesis provides a broad appraisal of the factors that have been identified as essential when deploying strategic planning and decision comprehensiveness. The thesis provides a wide arrange of recommendations for the implementation based on these results.
Table of Contents
1. Introduction
1.1 Aim of the Thesis
1.2 Methodology
1.3 Structure of the Thesis
2. Basics
2.1 Definition of Strategic Planning
2.2 Definition of Decision Comprehensiveness
2.3 Determining Factors
2.3.1 Environmental Factors
Environmental Uncertainty
Environmental Change
Environmental Complexity
Technology Uncertainty
Demand Uncertainty
Munificence
Competitor Activities
Home Country
2.3.2 Organizational Factors
Top Management Team Characteristics
Internal Power Structure
Organization Age
Firm Size
2.3.3 Decision Specific Factors
Decision Complexity
Time Horizon
2.4 Introduction of the Papers
3. Analysis of the Factors
3.1 Environmental Factors
Environmental Uncertainty
Environmental Change
Environmental Complexity
Technology Uncertainty
Demand Uncertainty
Munificence
Competitor Activities
Home country
3.2 Organizational Factors
Top Management Team Characteristics
Internal Power Structure
Organization Age
Firm Size
3.3 Decision Specific Factors
Decision Complexity
Time Horizon
4. Discussion and Conclusions
5. Limitations
Objectives and Themes
This thesis aims to synthesize existing research to clarify the relationship between strategic planning, decision comprehensiveness, and decision quality, while providing recommendations for effective management implementation.
- Theoretical overview of strategic planning and decision comprehensiveness
- Analysis of environmental factors impacting strategic decision-making
- Examination of organizational factors, including TMT and internal power structures
- Investigation of decision-specific variables like complexity and time horizon
Excerpt from the Book
Environmental Uncertainty
Handling environmental uncertainty belongs to the core tasks of a manger (Anderson & Tushman, 2001: 682). It is defined as the inaptness of the decision maker of making predictions of the future, given that the information he can access is limited (Anderson & Tushman, 2001: 682). Uncertainty in the environment is detrimental for firms, because it bears the risk of misinterpretations (Bourgeois & Eisenhardt, 1988: 817). Fredrickson and Mitchell (1984: 404) further identified environmental uncertainty as a threat to rational decision making. It hinders managers’ attempts to align their strategies with the environment.
In uncertain environments it is even more important that decisions are of high quality, because once left behind it is maybe not possible for a firm to catch up with the competition again (Bourgeois & Eisenhardt, 1988: 833).
Chapter Summary
1. Introduction: Outlines the scope of the thesis and the need to investigate the link between strategic planning, decision comprehensiveness, and decision quality.
2. Basics: Defines core concepts of strategic planning and decision comprehensiveness while categorizing key determining factors.
3. Analysis of the Factors: Evaluates how specific environmental, organizational, and decision-specific factors influence the effectiveness of strategic planning.
4. Discussion and Conclusions: Summarizes the findings and provides practical recommendations for managers to optimize strategic decision-making processes.
5. Limitations: Addresses the constraints of the study, such as the focus on English-language literature and the reliance on existing research.
Keywords
Strategic Planning, Decision Comprehensiveness, Decision Quality, Environmental Uncertainty, Environmental Complexity, Top Management Team, Organizational Factors, Decision Specific Factors, Information Processing, Firm Performance, Management Strategy, Literature Review, Strategic Decision Making, Competitive Environment, Decision Effectiveness
Frequently Asked Questions
What is the core subject of this thesis?
The thesis provides a comprehensive literature review on the impact of strategic planning and decision comprehensiveness on decision quality within organizations.
What are the primary themes discussed?
The paper covers the definition of key strategic constructs and examines environmental, organizational, and decision-specific factors that influence planning efficacy.
What is the main objective of this work?
The aim is to advance the understanding of the relationship between strategic planning and decision quality by reconciling conflicting findings in existing research.
Which methodology was applied in this study?
The author conducted a systematic literature review by scanning academic databases and selecting high-quality, frequently cited research papers to synthesize findings.
What topics are covered in the main section of the paper?
The main part analyzes environmental factors (such as uncertainty and complexity), organizational factors (such as TMT characteristics), and decision-specific factors (such as complexity and time horizon).
Which keywords best describe this research?
Key terms include Strategic Planning, Decision Comprehensiveness, Decision Quality, and various environmental and organizational determinants.
How does the author define 'decision comprehensiveness'?
Following Fredrickson and Mitchell, it is defined as the extent to which an organization attempts to be exhaustive in making and integrating strategic decisions.
What role does environmental uncertainty play in strategic planning?
The research indicates that while high uncertainty necessitates more information processing and comprehensive planning, findings remain mixed regarding the specific impact on performance.
How do organizational factors impact the strategy process?
Organizational factors, particularly the Top Management Team (TMT), are identified as crucial for successful strategy implementation through cognitive diversity and participatory decision-making.
What is the significance of the "Time Horizon" in this study?
The thesis highlights that the planning horizon affects the amount of information required and suggests that more comprehensive planning should accompany longer time horizons.
- Citar trabajo
- Tizia Rabea Zizmann (Autor), 2013, Strategic Planning and Decision Comprehensiveness, Múnich, GRIN Verlag, https://www.grin.com/document/264998
