Factors influencing strategic decisionmaking processes hrmars. The six steps in the planning process are situational analysis, alternative goals and plans, goal and plan evaluation, goal and plan selection, implementation, and monitor and control. The factors affecting the strategic decisionmaking in particular the different stages and process can be classified into four major categories. Factors affecting effective strategy implementation in a.
Factors that influence strategic choices adopted by community based organizations competing for donor funding in nairobi kenya by githige roseirene wangui a research project submitted in partial fulfillment of the requirements for the award of the master of business administration mba degree, school of business, university of nairobi. A swot analysis is conducted to examine the strengths and weaknesses of the firm and opportunities that can be exploited are also determined. Studies indicate that 75% of small enterprises in the world fail during their first 5 years of operation. Factors influencing choice of strategic management modes of. Planning different factors affecting planning wattpad. Strategic planning and thinking involves making choices and decisions about the longterm future of an organization pearce, 2009. Basically these are factors that are within the organization and in most cases the organization has control over them. Factors influencing strategic choices leadership organizations need strategic leaders to help it overcome inhibitions on risk taking and resource allocation.
Despite the importance of a good strategic plan and the kenyan government having put in policies and guidelines on strategic. Researchers have argued that if organizational theory is to be relevant to practitioners, emphasis should be placed on organizational effectiveness and its influencing factors 3640. Critical internal and external factors that affect firms strategic planning. Although many things can affect the choice of an appropriate structure for an organization, the following five factors are the most common. Bcg is only a four cell matrix, while ge mckinsey is a nine cell matrix. Statement of problem regardless of great effort put forth by families, government agencies and nongovernmental organizations, many young people encounter difficulties in the transition from the world of. External factors influencing choice of foreign entry modes according to hollensen 2001 6, there are following external factors influencing companys choice of foreign entry mode. Many factors enter into the forming of a companys strategy. The study established that the key factors that affect strategy implementation were supportive goal achievement, integrity, taking initiative, developing and practicing leadership, delays in decision making, heavy hierarchical structure, business coaching and individual. However, property size was the most important factor and was associated with the importance of income derived from the forest. Need for a strategystrategies no single strategy is the best in all situations and at all times avoid casual bench marking by aligning your strategic choices to your situation we need a consistent set of choices decisions and actionstactics in order to outwit our rivals. Ge mckinsey matrix is a very similar portfolio evaluation framework to bcg matrix. Introductionorganizations continually face the challengeof exercising choice among alternatives. Within the last years, authors emphasised on the existence of di.
The study established that the key factors that affect strategy implementation were supportive goal achievement, integrity, taking initiative, developing and practicing leadership, delays in decision making, heavy hierarchical structure, business coaching and individual initiative. This article throws light upon the top ten factors influencing the choice of business organization. Strategic evaluation and control is the process of determining the effectiveness of a given strategy in achieving the organizational objectives and taking corrective actions whenever required. A study on the selected dimensions in the bangladeshi context.
What factors influence the choice of the particular strategic. Factors influencing strategic decisionmaking processes. The international marketing environmental factors that affect global companies in their international marketing decisions published on. A case study of university of eldoret julius koech1, jacob bitok1, daniel rutto3, samson koech2, joseph onyango okoth, betty korir1, hassan ngala1 1university of eldoret, department of mathematics and computer science, eldoret, kenya. May 21, 2018 influence of the external environment on strategic decision. Consumers buyer behaviour is influenced by four major factors. A strategic director such as bill gates at microsoft, titus naikuni of kenya airways influence strategic decisions in their organization by affecting the components of strategy. These selection factors determine the criteria on the basis of which the evaluation will take place. Pdf critical internal and external factors that affect. This paper builds on previous theoretical and empirical studies to determine the extent to which contextual factors impact the strategic decisionmaking processes.
Factors affecting the architecture of the brand strategy 3. Key factors affecting strategy minded decision makers in. This section willat first present the underlying description of why the area of the factors that affect the strategic choice of sales channels in the swedish clothing retail industry is a developing and important areafor companies today. The choice of method for strategic management implementation depends upon situational factors such as size of the school, complexity of programs, institutional culture, and the style of the management. The dynamics, or pattern of movement over time, are those of movement to states of stable equilibrium. In 52% of companies, these decisions are made by a small senior group. The purpose was to examine issues that affect the hotels operation, create a simple strategic analysis through basic tools used in strategic management, determine strengths and weaknesses of the hotel and study what external factors influence the hotel immediately. Jun 27, 2012 content introduction strategic choice a definition process of strategic choice subjective factors in strategic choice contingency strategies strategic plan 3. Strategic choice strategic management project management. When competitive conditions intensify significantly, a company must respond with strategic. The section aims to then introduce the purpose of the research the research questionsand. Factors that influence strategic choices adopted by. A companys strategy has to be tailored to the nature and mix of competitive factors in play. The factors that shape strategy organizations do not exist in a vacuum.
Factors affecting strategy choice by abdullah almourai factors affecting strategy choice learners of l2 have been found to vary noticeably in both the. Airlines in the world continue to make strategic choices in order to improve on their product offer, enhance better service delivery, reduce on overall costs and cope with industry competition and challenges. Ppt factors affecting strategy choice abdullah almourai. The firm level factors include resources, structure, organization culture, chief executive officer attributes and board characteristics. Several factors have been found to affect the choice of strategic options undertaken by non governmental organizations especially as regards attracting.
There are many factors that affect the planning process in business, and there are six steps to the planning process. Scanning and assessing the external environment is a vital part of strategic decisionmaking in. Factors affecting successful strategy implementation in the. The external environment of a business includes a variety of factors such as competitors, suppliers and regulations that influence major strategic decisions. Influence of the external environment on strategic decision. The external and internal factors that influence the choice. The general public when the interests of the youth are looked after and researched on so as to ensure they have a better chance at social and economic progress, then the society as a whole benefits. This thesis investigates factors affecting strategy implementation process. It looks closely at the key factors that influence strategic planning and why organizations have to plan for the future for them to remain relevant in the market.
Strategic choice is an inalienable part of thedecision making process. Pdf every firm that involves in business activity has its own strategy. Factors affecting the pricing decisions economics discussion. Factors affecting successful strategy implementation in the water sector in kenya 1rose murugi mbaka, 2dr. The interest is in environmental trends and events that have the potential to affect strategy. Objective factors these are based on analytical techniques and are hard facts used to facilitate strategic choice. The international marketing environmental factors that. Analysis of factors affecting the choice of route of pedestrians article pdf available in transportation planning and technology 102 august. Many stakes would be considered considering both internal and external situations. One of the key elements of a product, which enters in to a new market, is its price. What are the key success factors, assets and competencies needed to compete successfully. Ge mckinsey matrix smi strategic management insight. Unlike strategy formulation, strategy implementation is more of a craft, rather than a science. After having the list of few, now the final narrowing down to a single company would be a strategic choice on the factors mentioned above.
Content introduction strategic choice a definition process of strategic choice subjective factors in strategic choice contingency strategies strategic plan 3. The purpose of this study was to examine the factors affecting strategy implementation in kenya commercial bank. This study explores strategic decisionmaking process and factors affect the processes. Hence, this concludes the definition of strategic choice along with its overview. Factors affecting strategic choices in airlines in kenya. These factors cause consumers to develop product and brand preferences. This includes among others, the availability of resources i. In our experience, there are 5 critical factors that will ensure your strategic plans are successfully implemented.
Factors that influence effective strategic planning. Pdf critical internal and external factors that affect firms strategic. The choice to focus on strategic decisions is due to its nature and. Factors influencing choice of strategic management modes. Again, the studies concentrated on the influence of external factors on firm strategic planning but did not tie the external factors to the informal modes of strategic management. The studies therefore were important in revealing whether the external environment had an effect on performance when they engaged in formal strategic planning. Factors influencing choice of strategic management modes of small. Analysis of the factors affecting the stakeholder management. Factors that affect the strategic choice of sales channels.
Nature, techniques, approaches, ways and factors strategic analysis and choice nature of strategy analysis and choice strategy analysis and choice focuses on generating and evaluating alternative strategies, as well as on selecting strategies to pursue. Strategic choice, process of strategic choice, factors affecting strategic choice, contigency strategy, pyramid strategy, project management. In the terminology of financial management, the investment decision means capital budgeting. The effect of strategic choices and management control. In this investigation the choice of strategy in searching among a row of independent items is considered in relation to the subjects expectations regarding the locus of the target, and the risk of forgetting during the search of which items have been examined. Top 10 factors influencing choice of business organization. Strategic choice refers to the decision which determines the future strategy of a firm. Formulation of an effective strategy, making the strategy work and implementing it throughout the company is a difficult task hrebiniak, 2006.
Factors affecting strategic management attitudes and. Sociocultural distance country risk and demand uncertainty market size and growth. Factors affecting the implementation of strategic plans in. Lorange 1998 stated that human resources are becoming the key focus of strategy implementation and reiterated that people, not financial resources, are the key strategic resources in strategy implementation. However, few studies have been done to examine whether the. The research objectives focuses on three major hindrances as organization design and structure, allocation of resources and environmental factors related to barriers affecting strategy implementation in barclays bank of kenya. The choice and use of any strategic tool are influenced by many factors. Pdf analysis of factors affecting the choice of route of. Public sector organizations have best strategies but results of all organizations are not rewarding in.
Factor analysis is used to detect those factors affecting the internal and external en vironment of. These include organisational mission, strategic intent, goals, organisations business definition, resources, policies, etc. Influence of the external environment on strategic. Factors affecting successful strategy implementation in. Control can be exercised through formulation of contingency strategies and a crisis management team. Minded decision makers in their innovations choices. Factors affecting pricing as noted, the main reason for entering different markets is to increase the income and profitability. Pdf factors affecting strategic choices in airlines in kenya. Willy muturi senior lecturer, department of economics, accounting and finance. Analysis of factors influencing the strategic choice of. Factors shaping the choice of strategy marketing strategy. The effect of strategic choices and management control systems on organizational performance 336 r. Factors that influence effective strategic planning process.
Pricing is considered as part of 4ps of marketing mix. Investment decision and capital budgeting are not considered different acts in business world. Main factors influencing project success neric factors that contribute to projects success. Many factors potentially affect the process by which strategic plans are turned into organizational action. Engagement only 23% of companies use a formal strategic planning process to make important strategic decisions. Factors influencing choice of strategic management modes of small enterprises. These factors include firm level factors and industry factors. Factors affecting the implementation of strategic plans in government tertiary institutions. Strategic choice is central to strategy making an effective strategic choice process positions an organization for making sustainable strategic decisions. This study was guided by a number of research questions, all with regard to kenya commercial bank. What are the factors that shape a companys strategy answers. Pdf factors affecting strategic choices in airlines in.
At the heart of effective strategic planning lies the ability to surface the truly important issues and to make good choices, in the process of deciding how to address these issues. While the empirical studies have delineated factors that affect small enterprise. Strategic choice free download as powerpoint presentation. Eppler2 1 business school, central university of finance and economics, beijing, china. Social culture there are many research shows that the people of europe and the americas are with more personality, they ad. The choice of a method for strategic management implementation will depend upon situational factors such as size of the institution, complexity of programs, institutional culture, and the. Factors affecting the choice and adoption of business strategies in. Factors affecting organizational design although many things can affect the choice of an appropriate structure for an organization, the following five factors are the most common. Although many of these factors cannot be directly controlled by marketers, understanding of their impact is essential as marketing mix. An environmental analysis is the fourth dimension of the external analysis. Need for a strategystrategies no single strategy is the best in all situations and at all times avoid casual bench marking by aligning your strategic choices to your situation we need a consistent set of choicesdecisions and actionstactics in order to outwit our rivals without this.
In this investigation the choice of strategy in searching among a row of independent items is considered in relation to the subjects expectations. Scholars have prescribed formal strategic management modes, but the small enterprises ses continue to not only fail but also depict informal strategic management modes. This theory is built on a notion of interaction in which organizations adapt to their environment in a selfregulating, negativefeedback cybernetic manner so as to achieve their goals. Critical internal and external factors that affect firms strategic planning article pdf available in international research journal of finance and economics 51. Strategic management notes on strategic choice, meaning and factors affecting strategic choice and process of strategic choice for all. The theoretical part of the thesis consists of information about tourism and tourism accommodation, strategic management in the tourism industry and strategic analysis. Also in canada, imax got grants on the ontario technological fund. Airlines in the world continue to make strategic choices in order to improve on their product offer, enhance better service delivery, reduce on overall costs. Factors influencing choice of strategic management modes of small enterprises nyangara asaka charles1, patrick b ojera2 and oima david3 correspondence. The fastchanging technological environment influences the strategic decision making of the firm. Both matrices are used to analyze companys product or business unit portfolio and facilitate the investment decisions. Two techniques are used in the process of selection of a strategy, namely. The study targeted smes along kirinyaga road nairobi due to their high preference in dealing with motor vehicle spare parts.