Question

The five steps of strategic decision-making include all of the following except:

1) Based on strategy and analysis, choose and implement the desired alternative.
2) Identify the alternative actions.
3) Determine the strategic issues surrounding the problem.
4) Select the proper cost management technique.
5) Provide an ongoing evaluation of the effectiveness of the decision.

Answer 1

The five steps of strategic decision-making do not conventionally include 'Select the proper cost management technique.' This component is integrated into the analysis phase rather than being a distinct step. Strategic decision-making encompasses problem identification, alternatives exploration, analysis, decision implementation, and ongoing evaluation.

Step-by-step explanation:

The five steps of strategic decision-making typically include the following: (1) identifying the strategic issues surrounding the problem, (2) identifying the alternative actions, (3) analyzing these alternatives, (4) choosing and implementing the desired alternative based on strategy and analysis, and (5) providing an ongoing evaluation of the effectiveness of the decision. In this context, 'Select the proper cost management technique' does not typically constitute a stand-alone step in strategic decision-making. Cost management could be considered a part of analyzing alternatives, but it is not a distinct step of the overall strategic decision-making process.

Strategic decision-making is a complex process where various considerations such as risks, rewards, and availability of information must be weighed to make informed choices. A structured decision process often aids in evaluating and selecting among different options to achieve desired objectives. Furthermore, decision-making can be guided by cost/benefit analyses, which involve comparing marginal costs against marginal benefits to assist in making choices that are hopefully beneficial in the long term.

Cost Benefit Analysis is a critical tool in decision-making, often allowing stakeholders to weigh the pros and cons of various options. However, it should not be considered a separate step in strategic decision-making. Instead, it's a component of the analysis phase, where different alternatives are evaluated based on their potential costs and benefits.

SUMUP of the final answer:

1. 'Select the proper cost management technique' is not one of the five steps of strategic decision-making.
2. Strategic decision-making steps focus on identifying problems, alternatives, analysis, implementation, and evaluation.
3. Cost management and cost/benefit analysis are parts of the analysis phase rather than standalone steps in the decision-making process.