Strategic Business Decisions
Introduction
Strategic decision-making is involved with taking actions that are aligned with the company’s objectives and mission. Courses of action decide upon by determining the business’ short term and long term goals and then establishing the most appropriate ways of fulfilling them. Every decision made comes along with a consequence and hence it becomes imperative to consider the decisions with the least negative impact to the business. However, most actions with little consequences have equally little impact. All considered,strategic decision-making is a matter of balancing positive impacts with consequences so that the strategic objectives are met but with less trailing negative impacts. The strategies elected for this business focus on developing upon the company’s strengths. Some of the identified strengths include the high value of the industry, which provides numerous opportunities for growth. The business also has a good production capacity, which is an advantage over most of its competitors. Over and above, there is a growing demand for organic foods in Australia. This provides extra opportunities for extending the company’s product line through research and development. These are the areas that the strategies will mostly focus on.
Strategies
One of the decisions made to promote achievement of the business’ objectives was increasing production. Increasing production before preparing for its market is a risky move. However, for the business, this was an important decision. Profits are dependent onthe growth of sales and cost management. Some of the costs that need to be managed to realize growth of sales are fixed costs. Unit fixed costs have an inverse-proportion relationship with sales volumes. This is true because when the output volume is high, fixed costs are distributed far wider(Becker, Chen & Greenberg, 2013). Furthermore, the product whose production was raised is a product that is in good demand. Therefore the business risk involved with this decision was low.
(I.C. JPS 1787)