Article Abstract:
Capital investment decisions have to be based on strategic initiatives that would offset or minimize risks in the largely unpredictable business cycle. Strategic investment management involves considering the lead times for investments in new facilities, distribution systems, research and development expenditures, human resources and corporate restructuring. Consistent investment in these areas even during recessions is a way of sustaining competitive advantage. However, incrementalists believe that large-step decisions should be based on current environmental situations and that lower risks should be assumed in times of recession. Moreover, these analysts view such strategic plans as irrelevant and not based on organizational reality.
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Article Abstract:
Extensive research on strategy planning and its widespread use by managers suggests dominance of the concept in current thinking. Criticism of strategy models, however, often indicates their failure to allow for uncertainty or provide the scope for changed circumstances. The mechanistic, super-rational nature of strategy planning has also been criticized. A more creative approach appears in the methods and benefits of a small entrepreneur organization where intuition and visionary leadership are encouraged by the organic structure. Line management experience could be valuable for the understanding of product markets.
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Article Abstract:
The relationship between strategy and organizational structure is examined. Two factors have changed the decision making process: the replacement of mass markets with more fragmented ones, and the introduction of microprocessor technologies. The key to determining whether strategy influences structure or structure influences strategy is the type of decision-making needed in a given situation.
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