Challenges in Strategic Decision Making and the Corresponding Solution Approaches

Understanding and mastering the skill of making good strategic decisions for firms has become increasingly important in the modern global economy. In a rapidly globalizing modern economy, expectations of firms from their employees are no longer limited to a functionally fluent specialization – accounting or marketing.3 In fact, there is an increased importance to understand and master the skill of making good strategic decisions. According to Hambrick and Fedrickson17, strategic decisions are actions carried out by firms to realize its goals and objectives. Nevertheless, strategic decisions are not made effortlessly and are often accompanied by derailing challenges – good techniques are required to manage these challenges. Accordingly, the aim of this paper is to address the challenges facing firms when making strategic decisions and how these challenges are managed with relevant supporting empirical evidences. The articula-tion of arguments in the paper will focus on strategic decision challenges that firms face externally and internally using empirical evidences from real life cases and news reports.