The document discusses strategic decision making and the role of politics within organizations. It outlines 5 Ps of strategic decisions including plans, ploys, patterns, position, and perspective. It also describes different types of strategic decision makers and contexts for decision making. Finally, it analyzes the political activities that occur within each phase of the strategic decision making process, such as controlling agendas, forming coalitions, and selectively advocating for criteria.

1. ADVANCE
DISCUSSION IN
STRATEGIC DECISION
MAKING

2. 5 Ps of strategic decisions
1.Plans -the decision is an intended course
of action carried out in advance with a
clear purpose
2.Ploys- set of actions designed to outwit the
competition, which may not be the
‘obvious’ content of the decision
3.Pattern -decisions taken over time form a
pattern. It is this pattern of resulting
(emergent) behaviour that we call the
strategy of the firm.

3. 4.Position- a match between the organization and its
environment.
5.Perspective- How strategists percieve their environment
and themselves
For example –
• strategic perspective of Nokia is one of continuous and
sometimes radical change (Nokia began as a paper and
pulp company)
• Hewlett-Packard favours an engineering excellence
perspective

4. • Nokia started by making paper – the original
communications technology
• The history of Nokia goes back to 1865. That was when
Fredrik Idestam built a wood pulp mill on the banks of the
Tammerkoski rapids, in southern Finland. A few years
later, he built a second mill by the Nokianvirta river – the
place that gave Nokia its name.
• Idestam named his company Nokia Ab in 1871
• Nokia Ab added electricity generation to its business
activities in 1902

5. Different type of strategic
Decision makers
• Rational Decision makers
• Behavioral decision makers
• Adaptive decision makers use frugal
heuristics that best suits the demand and
information structure of environment. This
is ecological rationality
• Politically aware decision makers-
influence of multiple contending
stakeholders and coliations

6. • Natural decision makers- use of laboratory
methods to understand and context and
issue
• Intuitive decision makers

7. Context of decision making
• Boom and bust behavior
Boom – firms expand their capacities
Bust – limited operations
• Information overload situation – decision
depends on ability to interpret and
interpretation
• Decision making with unreliable data-
Seek more data, use ideology.
• Hazardous situations- analysing small
failures, mobilizing support, using local
expertise to mitigate risk

8. POLITICS IN STRATEGIC DECISION
MAKING
What is politics?
• occurrence of certain forms of behaviour( conflict
on scarce resources) associated with the use of
power or influence,
• consciously self-serving behaviours against others
in the organization.

9. Organizations Are Political Arena
Sharing Of Scarce
Resources/positions/privileges.
1.Between Individuals
2.Organizational units -
SBUs, Departments, Business zones
3. External Parties- government
agencies, unions, and customers

10. • Strategic Decisions change the
Structure- distribution of authority
Process- Technology, rules and policies
Culture
So politics is inevitable .

11. Political activities in phases of Strategic
Decision Making
Phases of S.D.M Focus of political Examples of political
action activity
1. Identification of Control of: issues to be Control agenda.
strategic issues discussed ,Cause and Interpretation of past
effect relationships to events
be discussed
2Narrowing the Control of alternatives Mobilization:
alternative strategies for Coalition formation
serious consideration Resource commitment
for information search
3.Examining and Control of choice Selective advocacy of
choosing the strategy criteria, search and
representation of
information to justify
choice

12. Phases of S.D.M Focus of political Examples of
action political activity
4.Initiating the Interaction winners attempt to
implementation of between winners betray losers
strategy and losers Losers attempt to
thwart decisions
and trigger fresh
strategic issues.
5.Designing Representing Selective
procedures for the oneself as advocacy of
evaluation of successful criteria
results