1.4 Characteristics of strategic decisions

Question 1

What are the three main types of decision?

Answer 1

Reversible
Irreversible
Experiments/staged/subjective

Question 2

What is an irreversible decision?

Answer 2

A decision which cannot be changed e.g. getting on a train.

Question 3

What is a reversible decision?

Answer 3

A decision which allows you to return to the starting point. e.g. switching on a light.

Question 4

What is an experimental, staged or subjective decision?

Answer 4

A decision that tests the water, and allows us to take time before making a reversible or even irreversible decision. e.g. testing different light switches to determine which is which.

Question 5

How can the “5Ws” (and one “H”) help to make a decision?

Answer 5

Why must I make a decision?
Who will the decision affect?
Where do I look for help in deciding?
What is my personal objective?
When is my deadline?
How can I judge the outcome of the decision?

Question 6

What factors might make strategic development more complex?

Answer 6

• environmental uncertainty (how will the industry change?)
• technological advancement
• multinational trade intricacies
• incomprehensible nature of others’ decisions
• differing leadership styles
• difficulties in cooperating with others