6 Major Dimensions of Strategic Decisions

Decision making is a managerial process. It is the function of choosing a particular course of action out of several alternative courses for the purpose of accomplishment of the organisational goals.

Decisions may relate to general day to day operations. They may be major or minor. They may be strategic, tactical or operational in nature.

Major dimensions of strategic decisions

Business Systems | Zenovia Andrews

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The major dimensions of strategic decisions are as follows:

1. Strategic issues require top-management decisions:

Strategic issues involve thinking in totality of the organization’s objectives in which a considerable amount of risk is involved. Hence, problems calling for strategic decisions require to be considered by the top management.

2. Strategic issues involve the allocation of large amounts of company resources:


It may require either a huge financial investment to venture into a new area of business or the organization may require a huge amount of manpower with new skill sets.

3. Strategic issues are likely to have a significant impact on the long term prosperity of the firm:

Generally the results of strategic implementation are seen on a long term basis and not on immediate terms.

4. Strategic issues are future oriented:


Strategic thinking involves predicting the future environmental conditions and how to orient for the changed conditions.

5. Strategic issues usually have major multifunctional or multi- business consequences:

As they involve organization in totality they affect different sections of the organization with varying degree.

6. Strategic issues necessitate consideration of factors in the firm’s external environment:

Strategic focus in an organization involves orienting its internal environment to the changes of external environment.

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