Which Business Decisions are Strategic?

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Which business decisions should be part of a Strategic Plan and which should not?  In the article “How to Tell which Decisions are Strategic” in the U. C. Berkeley Haas School of Business California Management Review, “whether a decision is strategic or non-strategic depends on how a decision ranks along two dimensions: its influence on the degree of commitment and its influence on the scope of the firm.” The categorization of decisions can help the firm prioritize decisions, allocate resources and develop capabilities…Mistaking strategic decisions for non-strategic decisions and vice-versa can be calamitous.”

The five areas that most affect company commitment and scope are as follows:

Core Values

Your company mission statement is a description of the core values of your business. It is a summary of the beliefs your organization communicates with regard to customer interaction, employee satisfaction and community responsibility.

Competitive Analysis

Understanding where your products rank in the marketplace helps you to better determine how to improve your standing among consumers and increase your profitability.  A comprehensive analysis of the activities of your competition should be an ongoing objective of your company.


Marketing involves understanding consumer buying trends, creating advertising, being able to anticipate product distribution needs, getting customer input on product changes and developing strategic partnerships.


If your business is not growing, it is dying.  Growth must be planned based on historical data and future projections.  It requires the careful use of company resources such as accounting and Human Resources (HR) to fuel, maintain and measure your growth initiatives.

Change Management

The objective of change management is to create a dynamic organization that is prepared to meet new challenges and seize opportunities as they present themselves.  It requires creating processes and systems that deal effectively with a constantly changing global marketplace.     

The posting “Developing Strategic Objectives” by Pacific Crest Group (PCG) outlines the type of strategic goals that form the backbone of a successful strategic plan because it describes how to address the major challenges facing a business.  All initiatives must be prioritized in a hierarchy that makes sense regarding their fulfillment. Goals must be measurable, achievable, flexible and consistent with the organization’s core values.

Pacific Crest Group provides professional services that keep your business focused on your critical objectives.  We create custom made financial and Human Resource (HR) systems based on creative strategies that are always delivered with exemplary customer service. A PCG professional is happy to meet with you to discuss solutions for your unique requirements designed specifically to maximize all of your business opportunities.


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