Strategic decisions as long term decisions require a highly detailed analysis

Strategic decisions as long term decisions require a

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Strategic decisions, as long term decisions, require a highly detailed analysis because of their high cost, significance to for a company's long-term development as well as an absence of information and uncertainty. Decisions like market expansion and purchase of Littlewoods stores were strategic decisions. The task of the top management is to concentrate on the strategic decisions. In cases where too much attention from top management is put on the daily operations and routine decisions, problems may occur. Too much emphasis is put on the short-term decisions, so less time and efforts are assigned to the long-term decision making. At the same time, top management's interference in low-level decision making will cause a lack of motivation among employees. Management Style vs. Decision makingDecision makers' personality, experience, perception and attitudes towards risks can influence the decision-making process. Their behavior determines their management styles. Management styles can define what a company will do during a decision-making process and decisions they eventually choose. The top-down management style was being changed to a more participatory styleat M&S so managers and employees could get a word in the decision making process. Organizational Structure vs. Decision making
Organizational structure determines how fast and effective a decision is made and feedback is received. Tall hierarchical structure slows down the decision-making process while a flatter structure allows quick and effective communication, which helps make better decisions. A centralized structurecan help make fast decisions from the top, however, that do not means they are good decisions. The strong power discourages low level managers' and employees' participation. In a decentralized structure the improved communication keeps the top management informed of the environmental changes, which enables the company to make quick decisions in response to the changes made. Organizational culture is the atmosphere where decisions are made. It can either promote or hinder the decision-making process. A healthy culture is vital to a company's development. Autocratic Leadership Style for the DownfallRichard Greenbury (CEO& Chairman, 1991-1998) inherited the management style of the previous chief executives, which is a 'top-down' management style. They paid great attention to details. They controlled almost every aspect of the business including the supplier control, merchandise and store layout. The centralized authority was highly emphasized. Greenbury was a person with overconfidence in himself and his decisions. He enforced an autocratic approach which enhanced the 'inward-looking' culture. He excluded opinions from employers and managers which prevented him from getting informed of the real feedback of his decisions and changes in the operation and market. For instance, the customer satisfaction survey showing the declining satisfaction was kept away from him.

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