Literature Review: Decision-Making Sophia C. Luster

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Literature Review: Decision-Making
Sophia C. Luster
Liberty University
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Abstract
This paper will offer an insight into the strategic development and execution of strategies. For
these strategies to be determined, they must be chosen by a group of designated leaders or an
individual. The advantages and disadvantages of strategic development and execution in a group
or individual will be discussed. To impact the direction of a business, a professional must be
knowledgeable about their organizational culture and values. Utilizing a SWOT analysis would
be a good start to the strategic development. The SWOT analysis stands for strengths,
weaknesses, opportunities, and threats of new entrants. After the use of a strategy development
method as this, a business professional would focus on how the organization plans to execute the
strategy. Lastly, business students will need to evaluate their academic discipline to determine
how they can impact business strategy development and the execution process. Future studies on
this subject will be to be conducted to further the investigation of strategic development and
execution.
Keywords: management, execution, organization, executive, decision making
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Table of Content
Abstract…………………………………………………………………………………………………………………………..2
Table Of Contents…………………………………………………………………………………………………………….3
Literature Review: Decision Making…………………………………………………………………………………..4
Advantages and disadvantages for group and individual decision making……………………………….5
Pros and cons of individual and group decision-making……………………………………………………6
Examination of group decision making………………………………………………………………………..6
Examination of individual decision making………………………………………………………………..10
The newest directions in strategy development and execution……………………………………………..14
Methods in strategic development and execution……………………………………………………………15
Employing business strategy development………………………………………………………………….15
Engineer the successful execution of strategy……………………………………………………………..18
Students impact the process of business strategy development and execution………………………..24
Student’s direction and impact on business strategy…………………………………………………….24
Student’s direction and impact on execution success……………………………………………………28
Conclusion…………………………………………………………………………………………………………………….32
References……………………………………………………………………………………………………………………..33
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Diversity in the workplace can help a group solve and execute strategies quickly and
efficiently. According to Pitts (2009), the study found that diversity management is
correlated with improved group work performance and improved job position satisfaction.
When businesses can manage their diversity correctly, they can gain better job
performance and also more satisfied team members. In the group decision-making process,
leaders need to pay close attention to the opinion of all their employees to gain a better
grasp of what decision would best benefit their business. It is advantageous for current
leaders to avoid being resistant to considering the past experiences of other team members.
The use of past experiences can aid in improving the successfulness of the decision-making
process. According to Ghattas, Soffer, and Peleg (2014), this manufacturing study based on
a partially automated method discovered that improved performance of processes was
generated from decision criteria from experience gained from past projects. This supports
the idea that the wisdom of a leader and the organization will help determine if a strategy
will execute successfully or be executed in a failure. Utilizing the methodology of decision
analysis can aid in choosing the correct method to solve an issue or take on a task.
Using the decision analysis method can help leaders come to a consensus in a
decision that will affect a company’s future. According to French (2014), the use of the
decision analysis method will help create an understanding in the group of decision-makers
rather than to dictate a rushed decision. In a group setting, there are different dynamics
than when a decision is exclusively made by one individual. When a decision is left up to
one individual, there are some advantages and disadvantages to this method and will be
discussed in the next section. One must remember the decision of one individual versus the
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decision of a group holds much more responsibility and burden on the individual decisionmaker.
Evaluation of individual decision-making. Individual decision-making means that
are made by one person whether that decision is to acquire a new computer system for the
organization or to promote employees. One major disadvantage of leaving a decision to a
single individual is the strong likelihood of bias. Biases in the decision-making process can
prove toxic and detrimental to the success of an accurate resolution. According to
Mahmoodi et al. (2015), a group setting typically allows each person to express their
thoughts, opinions, and concerns—which may enlighten others on another perspective. In
individual decision making, this opportunity is not openly given for any other professionals
to voice their concerns. That is not to say that during the process of making a decision that
the selected individual does not receive counseling, insight, or information from others on
the subject matter. It just means that one person makes the final decision. According to
Bammer (2010), it is not uncommon for a successful business to face risks. In addition to
risks, there are other unknown factors that have to be governed. Unlike the group decision
process, an individual decision maker must consider examine all angles of an issue to get a
clear grasp of the situation or problem. However, in group decision making, leaders have
unbridled support from other team members. While business intelligence is more
important in all decision-making, it is an absolute when making choices individually.
Business intelligence is essential advantage to a leader who is solely responsible for coming
to a conclusion for a business decision.
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RQ2. What Are The Newest Directions In The Process Of Strategy Development And
Execution?
In the new directions of strategic development and execution, management has the
responsibility to watch over the goals and objectives of a business. Franca et al. (2017) asserted
that a prosperous business is one that continues to understand challenges and new opportunities
that help an organization improve innovation, design methods, and decision business models.
Risk management involved in implementing these new strategies is the key to the integrity and
perception of customers and the public. This newly suggested approach will involve business
scalability and risk management to correlate business model development and sustainable
strategic thinking. The first step for a corporation to start their strategic thinking process would
be to focus on the strategic development of a business.
Methods in Strategic Development and Execution
The execution of the strategy is dependent on sound research information resulting from
the independent decision strategy (Bilisik & Elibol, 2017). The need to improve business process
efficiency in a bid to react quickly to changes and to meet compliance is among the main drivers
for business process intelligence and it is aimed at spearheading the distinct in the formulation of
strategies (Yang, 2019). The process of developing and executing strategies is aimed at boosting
the efficiency of an organization and leaders must adopt the business intelligence process to
achieve the postulated competitive advantage (Shahraki et al, 2017).
Experienced leaders who have the support and confidence of their staff will most likely
not receive push back when he or she chooses a strategy to be executed (Dobni & Klassen,
2020). On the other hand, leaders whose peers lack confidence in his or her abilities will
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experience some conflict when attempting to execute a strategy (Borrero & Henao, 2017).Once a
decision has been made, the leader will rely on his subordinates to support and execute the
strategy. Leaders in an organization who distribute knowledge of decisions made in a firm
generate a higher level of trust that will increase the team’s effectiveness (Brustbauer, 2016).
Without any trust in the decision-making process, it can be difficult for a leader to be successful.
The execution of a good strategy will require the entire team’s effort. The managers responsible
for the execution have to ensure all participants are actively involved in the strategic plan to
ensure the execution of the strategy is successful (Cristofaro, 2019).
Another successful approach in influencing the successful execution of a strategy lies in
the motivation of employees via rewards and reward incentives (Brustbauer, 2016). When a
leader thinks of rewards that motivate employees, they may thing of bonuses, extra paid time off,
and etcetera. There are intrinsic and extrinsic rewards that can be displayed to a decision-maker
or the supporting team of a decision-maker. Intrinsic rewards are incentives such as recognition
from mangers, a sense of accomplishment, and taking pride in one’s job. Extrinsic rewards are
incentives that involve improved salary, a commission or bonus, a promotion, or profit-sharing
(Lombardi, 2019). The use of nonmonetary programs give firms lower costs but can also raise
the team member’s internal motivation towards their job duties. These intrinsic values can be
perceived negatively dependent on how the incentive is received. When a leader is internally and
externally motivated to succeed, it gives an organization a better chance to successfully execute
their plans. The advantage of utilizing a reward for an individual decision-maker is the
possibility of not only completing the task but also gaining extra insight into other areas of
opportunity (Bilisik & Elibol, 2017). In order to understand and execute a strategy in a leader’s
organization, the leader must fully understand the organizational culture. Organizational culture
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is a big determinant of how effective the execution of a strategy can go. Individually, a leader can
be key to driving innovation and improving an organization’s culture (Koseoglu, 2016).
An organizations culture is one of the key elements to increase the opportunity of
innovative ideas. Just like in group decision-making, innovation can be found in individual
decision making (Cristofaro, 2019). A leader who is well-versed in their profession can become
an innovative spark in their firm based on their past professional and personal experiences. The
key to successful decision-making is to keep an open mind. This will help ensure a leader does
not overlook potential alternatives to benefit a company. The vales that leaders hold in their
profession will show in their strategic choices and how they approach those strategic initiatives
(Bose, 2016). To aid in the execution of a strategy a leader or group must first develop a
strategy to follow. When an organization focuses on developing new strategies to solve existing
and potential problems, it can assist management in being more proactive (Bilisik & Elibol,
2017).
Employing Business Strategy Development
In the implementation of any strategy, it is essential for a company to collaborate and find
the best strategy to stay competitive. In the creation and evaluation of these strategies, managers
must undertake some risk management to evaluate the possible barriers. According to Gamble et
al. (2019), political risk comes from a weakness in governments or a barrier to foreign
businesses. Economic risks come from the stability of a countries money values and rules and
regulations of the economy. Leaders in an organization must be aware of the possible risks of
each strategy that may be considered. The rationale of enterprise risk management has been at
the forefront of increased attention of the media (Brustbauer, 2016). The approaches in the study
postulated that United States business insurers looked to manipulate the factors in the market and
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regulatory rules. So the development of strategy can be understood as a somewhat complicated
process. However, this process is necessary for the success of a company and for leaders in the
firm.
In implementing a strategic development process, there will be times where mistakes or
errors will be made and this is normal. This process is meant to help develop and organization.
Frese and Keith (2015), every organization are faced with errors and most of these mistakes can
be corrected with ease but they result in negative repercussions. Error management should be
implemented and supplemented to businesses existing processes to try to reduce or prevent
errors. A strategic development strategy that would benefit this model even further would be the
Swiss cheese model and the SWOT analysis model. According to (Cristofaro, 2019) anyone in a
leadership role can make mistakes. Some leaders will learn from those mistakes and adjust
themselves accordingly, while others will continue to make the same mistakes. This Swiss cheese
model is a form of risk analysis which aims at reducing risk and making the possibilities of risks
more transparent. Before the Swiss cheese model, a corporation may employ a SWOT analysis to
evaluate the environment climate of their corporation (Borrero & Henao, 2017).
The SWOT analysis can strategically develop any process in an organization when used
correctly. Leaders should use the SWOT analysis in as many of their decision model proposals
because of its effectiveness in defining advantages and disadvantages from all angles. The
utilization of this strategic development strategy will influence the success or failure of the
selected strategy by upper management. Borrero & Henao (2017) asserted that the SWOT
analysis was received in the study as a positively impactful climate change analysis and a helpful
way to develop new strategies. This type of innovative thinking and initiative is how big
corporations like Google, Apple, Microsoft, and etcetera stay competitive in a crowded business
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climate. There can be many benefits of utilizing the Swiss cheese model and the SWOT analysis
model. After this process of evaluating the possible constraints of strategic thinking, an
organization needs to set goals and objectives.
One way for management to set some goals and objective are to set critical success
factors to the successful implementation of the project. Critical success factors stem from a
strategic process model called business process management. A critical success factor is a key
element that will help determine the success of a corporation. Bose (2016) asserted that the
critical success factors can fit in the business environment and in a business’s process. These two
factors can influence a continuous process improvement that will affect the business process task
and assignments. In business process management, there are six factors that directly affect the
effectiveness of business process management. Pradabwong et al, (2017) depicted that the six
core elements of business process management can be interlinked with the rationale of strategic
alignment, governance, methods, information technology, people, and culture. In a leader’s daily
processes he or she needs to constantly evaluate these six elements. If one of these elements goes
out of line, then the leadership should get with their team and strategically think of ways to
improve or fix the issues in their business.
The use of business process management is a key element in the correct processing of
strategic development. Many corporations around the world use business process management as
a tool to manage existing processes and provide innovative initiatives internally. Lombardi
(2019), asserted that business process management is a strategic development process to manage
and transform the operations of an organization, based on its performance. This strategic
approaches and the employed methods are vital in maintaining and improving any business that
may be in turmoil or losing its competitive edge in its respective industry. In a highly
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competitive business industry, it will take managers to build up their business process
management system to maintain their competitive advantages (Koseoglu, 2016).
The next step in the process of strategic development is the decision and the execution
strategy. Once the decision for a strategic development initiative is made, it is up to the managers
to designate assignments and tasks to their team members. Poor planning can become a
detrimental factor in the future success of an organization. In past experiences in the business
industry, there have been cases of poor planning which result in a business either losing profit or
being forced to shut down. Leaders have the responsibility to set up strategic plans that will have
a high possibility of success. Once a firm has a plan of action then the organization can begin to
execute the strategy
Engineer the Successful Implementation of a Strategy
Engineering the successful implementation of a strategy entails taking vital steps to
ensure that the proposed strategy is backed via all the development stages through the postulated
buy in by all the involved stakeholders (Bose, 2016). The rationale entails employing distinct
measures and approaches to ensure that those who are responsible for the entire execution
process believe in it. The other rationale entails the management’s ability of ensuring that the
available resources are aligned with the proposed strategic approaches (Shahraki et al, 2017).
The underlying approach lies in ensuring that the available incentives are aligned with the
contemporary strategies. The entire process should be controlled and driven via the use of vital
key performance indicators to ensure that the engineering domains are considered in the scope of
the entire implementation process.
The process is marked with distinct changes which entail the reevaluation of the
contemporary strategies in line with the emerging domains and changes in the business and
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organizational landscape. The current organizations are evolving very fast and this poses the
need for entire implementation of the proposed strategy to be engineered ardently to beat
adversity and attain the overarching goals in the long run (Dobni & Klassen, 2020). The rationale
entails having a clear plan on how to adapt and change the engineering process in line with the
changing business landscape. The success of the entire engineering process is heavily dependent
on the ability to adapt along the way. A new strategy is marked with distinct elements and this
poses the need to remain relevant via employing the most vital mechanisms in line with evolving
trends and the available tools.
The entire engineering process should not be coupled with any sort of conflict to ensure
that organizations are ardent in the entire strategic implementation process. The accountability
void should be analyzed ardently to ensure that all the parties are well versed with their chief
responsibilities during the entire engineering process (Yang, 2019). The approach should also be
coupled with the accruing consequences of failing to meet the laid obligations. Research has
affirmed that the successful engineering of a strategy is bound in the rationale of having clear
milestones and a sense of direction because strategies remain viable for predetermined timelines
(Dobni & Klassen, 2020).
RQ3 How Can My Leadership Discipline, as a Function Within the Organization, Impact
the Process of Business Strategy Development and Execution?
The employed leadership approaches have diverse implications on the organizations
overall strategy development and the execution domains. The leadership discipline is highly
dependent on the chosen leadership style and the accruing implications have a high impact on the
organizations success in relation to the proposed execution of the laid strategies. Leadership
discipline is a vital element of business success because the employees and the other parties in
the organizational front are bound to emulate the postulated behavior of the leader.
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Student’s Impact on the Process of Business Strategy Development and Execution
The success of strategic execution is dependent on the strategic planning and knowledge
of a business scholar. The correct preparation of business strategies will help a business improve
its business functions and the effectiveness of management. The operating strategies are aimed at
dealing with limited scope but tend to add more detail to an overall business strategy. Typically,
in most firms the front-line managers are in charge of distributing duties to team members and
those changes could then be evaluated by executive leadership. The sustainability of a strategy in
businesses is vital to the post-execution of a strategy. One model that may prove beneficial to an
organization is the total engagement model. The total engagement model attempts to make an
organization more effective and efficient in its processes. A key advantage to a scholar utilizing
this strategy is it helps to unify a brand in an organization. When students can help improve the
customer’s engagement, it can help successfully execute new initiatives and strategies.
To know if a business is meeting its goals and objectives, a student must evaluate the
vision and mission statement. A strategic vision tells where a firm is headed and what will be the
future product or service the company will focus on. The mission statement of an organization
details where the company is right now presently. These two statements are essential for a
student to understand the goals of a corporation to assist the organization as a whole to move in
the same direction. These two statements can also be linked in to a company’s value. A balanced
scorecard is a tool that can help a business scholar track the achievements of an organization.
The balanced scorecard is a business method that utilizes a combination of monetary and
strategic goals and objectives. This scorecard also helps to track a business’s successfulness and
it helps give leaders a better idea of how their firm is doing. The scorecard has been proven a
superior method for the planning, communication, and execution of strategy. The successfulness
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of strategy execution is totally dependent on the strategic plan set in place. If a student chooses
the wrong strategy, it can be detrimental for the impact and direction of a corporation.
Business students will have to monitor business projects carefully to select and evaluate
the appropriate business models. In today’s business environment, management and business
research have been at the forefront in business research. Business students would be wise to take
heed to business models to create value and increase company performance. Students must also
research strategies like this in order to impact and influence the direction of an organization. In
order for business students to influence the direction of business processes, students must have
firsthand experience and training in their profession. Without training, it can be difficult for
business professionals to achieve their organizational goals and objectives. Having business
training programs in place in an organization will assist students in not only learning new skills
themselves, but they will be able to train other new employees. Training for staff will be essential
for an organization to execute their strategies. Without proper training, it will be difficult for a
corporation to execute their strategy if employees don’t know how to do their jobs.
The concept of business programs will improve the performance of companies around the
globe. The number of studies involving training programs is consistently growing. This means
there is some empirical value to the idea of training in businesses. The Japanese culture has put
an emphasis on training by creating an ideology called kaizen. Success comes from making little
steps forward each day from a process that the Japanese call kaizen. Applying the kaizen
principle can reap an organization some positive results in regards to efficiency and
effectiveness. The kaizen approach can be seen as a common-sense approach to productivity
leadership and management. This kaizen approach can also help leadership learn more about
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their management style and could possibly increase the effectiveness of management skills
(Higuchi et al, 2015).
Another supplemental strategy that can be utilized in the influence of training would be to
apply the Six Sigma quality control principles. Business students will have to utilize these
principles to not only drive continuous process improvement in their organizations. The six
sigma principles which enhance the success of a business include the continuous process
improvement system that relies on statistics that are not allowed to not produce 3.4 defects per
million in their business processes (Nazir et al, 2019). Six Sigma processes can be broken down
into five steps, they are definition, analysis, improvement, and control. Students can learn about
the execution of Six Sigma strategies but it is dependent on that all work is a certain process, all
of the processes have a variable, and all of the process methods make data to elaborate a
variable. After an organization has a methodology like a kaizen or Six Sigma principles business
professionals will need to monitor the progress of the implementation of these strategies.
Monitoring these strategies is equally as important as the way they are executed. Without
monitoring strategies, there will be no way to track the validity of the method chosen by leaders.
Businesses around the world have some sort of method to monitor the progress of their
organization. Business students will have to adapt to whatever organization they choose to be a
part of. A firm’s values, morals, and culture will often dictate how they run their business and
how they define success. The use of business process modeling drives the direction of a company
to reduce expenses, increase their productivity, and to offer a competitive advantage to its
customers. In an organization’s business model, it will be imperative to find the correct method
to monitor the progress of an organization.
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In the area of business process monitoring, there have been advances in the way business
processes will be monitored. The business process typically focuses on key success factors being
completed to determine the success of a strategy. A business student will have to use business
models and strategies gained from their studies to properly determine what method their
company should utilize. This will take some research and development skills on the part of
business leaders to fit a method that fits their culture and ideology. The sources of information in
modern times have advanced to the real-time status of organizational processes. This gives a
company a better handle on how a product or service is moving through their systems in realtime. The advancement of monitoring systems such as this has given businesses a way to track
products more accurately and efficiently.
Business process monitoring will make leaders more conscientious of their decisions and
how they will affect their organization. More importantly, businesses will have to bear the burden
of implementing a continuous process improvement initiative. Business professionals who take
part in innovation and process improvement will help those professionals impact and influence
the future direction of their company. Business process monitoring enables a fast and specific
overview of the process executions in an enterprise. Traditionally, this kind of monitoring
requires a coherent event log. It can be determined that business processes like this can be
efficient and effective with keeping business students aware and cognitive of their business
performance.
Student’s Direction and Impact on Execution Success
A student’s direction and impact on business will be highly influenced by their
professional and educational experiences. Most students today after their undergraduate degree
decide to peruse their graduate degrees online. For example, Liberty University offers fully
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online graduate degrees or a hybrid form of education. This hybrid form would include students
coming to class on a specified day and completing the rest of the course online. The utilization of
the internet has been an essential skill and tool to have in today’s technologically advanced
world. When universities utilize the full functional abilities of technology, the student can gain a
better understanding of business strategy and learn of different ways to execute those strategies.
Sustainability is a business topic that a student will have to deal with in order to gain a
sense of competitive advantage. Sustainability has become a topic that has been at the forefront
of strategic management. The execution of sustainability initiatives can look very good on a
business’s appearance to consumers. The definition of sustainable business practices is that they
are the methods that will satisfy the requirements of the present need but will not forfeit the
effectiveness to meet the requirements of consumers in the future. Sustainability into a business
strategy can make a contribution to the business environment and to society. Students should
make sure in their profession, that whatever strategy and execution is determined the best option
can be carried out repeatedly. Once business scholars can achieve this, it will give their company
an advantage over its rivals.
Business students have many experiences to learn in business, some will be educational
and others will be from workplace experience. In the past business has not involved as much
technology as is incorporated into today’s business processes. The increase in technology has led
to major changes in how business students carry out their lives. For students to have an impact
on a firm’s business strategy, they must understand the culture and what goals the company is
trying to accomplish. A business student cannot formulate an effective strategy without accurate
organizational business intelligence to evaluate their options. Methods such as the SWOT
analysis previously mentioned in an earlier section of this literature review could be applied to a
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business student as well. The SWOT analysis has evolved into a best practice tool that
organizations can utilize to evaluate important factors that will play a part in the strategic
development process.
The SWOT analysis is a business positioning strategy. This analysis has become so
popular and well known that it can be found in many business case publications and can be
utilized as a teaching tool to helped students develop (Nazir et al, 2019).The SWOT analysis
gives students a great starting point in evaluating a company’s strategy. The direction of a
company is dependent on how the leaders in the organization build their culture and decide what
goals they will seek. Unfortunately, some older and well-established organizations have been
stuck in their old business management style, that they cannot promote innovation. Companies
such as this cannot continue to be profitable if they do not adapt to the business climate as it
develops.
When scholars come into a business and can bring new ideas which lead to innovative
approaches and this means that the business will gain a competitive advantage that can provide
more business and customers. Students can use the knowledge gained from their educational
careers to help influence innovation in their respective fields of profession. With the utilization
of innovation, it can add value to any company who is willing to look for a change in their
business processes. In a company’s hierarchy, it utilizes operating strategies, functional-area
strategies, business strategies, and corporate strategies. Business scholars will have to determine
how they will address each level of the hierarchy in order to improve an existing business
(Krogerus & Tschäppeler, 2017).
The purpose of a business model is to help an organization determine how a firm wants to
give value to its customers. In turn, when the customers pay for value like brand recognition, a
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business can then turn that into a profit (Alharthy et al, 2016). Adding value to a service or
product is a key way for students to improve the company they are working for. Businesses can
utilize a value chain analysis to help identify business activities that add value to the customers
and the organization. There is a necessity to reduce the improved level of threats to the supply
chain and the management of the supply chain process. To conduct this value analysis a company
must have another company or model to compare themselves to.
Benchmarking is a business tool that uses the best-performing companies that outperform
in particular activities to improve the effectiveness and efficiency of the researching firm.
(Miemczyk et al, 2016). Another supplemental business concept is the use of best practices in a
scholars firm. Simply put, best practices use the processes in companies that consistently deliver
positive results above other companies and methods. The development of a strategy not only
takes an educated business professional, but it will also involve professional grooming to
strengthen a leader’s knowledge. After the direction and impact have been established in regards
to business strategy, scholars must then focus on the execution of those strategies. Strategic
actions that are not coherent are either in conflict with one another or taken in pursuit of
unrelated challenges. For a business to have successful execution there must be excellent
preparation of strategic development for students (Nijkamp, 2016). If a business does not
prepare for the execution of a strategy can be detrimental to the success of an organization.
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