Leading Strategic Decision Making


Leading strategies decision making implies that all the decision making process flows from a strategy which helps it to execute properly. It should be clear and targeted. It helps an organisation to achieve objectives and assist them to survive in any kind of environment. Leading strategies means strategy which helps an organisation in long run success. If the scheme implementation is not accurate then it leads in failure of an organisation. Given case study is based on twitter. This report evaluate all such strategies which are formulated by twitter at the time of their starting and also about how they offers their shares to general public at the first time. This report aid in understand about company current position in market as well as their strategies for future. All the risk related factors to twitter are also discussed in this study so, they can establish such strategies which help them to overcome such type of things in competitive market (Riel, A.C., and, 2011).

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Part A

1.1 Strategies, vision, mission and risk associated with cited firm.

All organisation have some mission on which they have to work. They prepare some missions and corrective vision for executing all task in an organisation. On the basis of these missions they create some plan of action which a firm employees have to follow to attain objectives. Usually these strategies have some purpose and goals (Wong, Ormiston, and Tetlock, 2011). On those targets an entity should have to work. According to the case study, twitter is one of the most using social networking site. It was launched in the year 2006. It has faced many ups and downs from the starting of its establishment. They have faced a rapid growth in their initial period. So, from starting this company have mission which are as follow:

  • Company wants to give power to everyone to share their ideas with out any kind of barriers (Vaiman,Scullion and Collings,2012)
  • Their main mission is just to gather all the world happening which can be accessible to everyone. So, that their users can became aware of all the activities which are taking place globally.
  • Another mission of a firm is just to maximise their long term stakeholders value by using ethical activities and follow the laws properly.
  • They also wants to expand the growth the internet and make people aware about net facility so, they can use this facility and became educated with this (Vaiman, Scullion and Collings, 2012).

A vision is a thing which provides proper guidance to an organisation. By using proper instruction and advice, a firm can achieve their targets. A clear vision leads an organisation to survive for long term in market. So, twitter adopts a clear vision method which helps them to do all the task properly. This vision helps them to prepare strategies for future and be keep them alert about all the circumstances they might be faced (Croskerry,2013.)

Strategy: Strategy is basically formulated for achieving the goals and targets prepared by firm. A proper vision helps them to create effective strategy for an organisation. All the mission, task , projects are based on it. It is very helpful because it helps an organisation for remain constant at any situation and can survive in any market condition (Subramoniam, Huisingh and Chinnam, 2010).

Twitter have to analyse all the market opportunities for their organisation and then they have to implement such type of strategies according to the environment. Like they have to analyse that how much are mobile users, what is the ratio of internet user (Snyder and Diesing, 2015).

Also they have to keep in mind about their competitors who are giving ultimate services. So, it is a type of barrier in their success. Hence, they have to provide different services which is quite much distinct from their opponents (WongOrmistonTetlock2011)

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According to the firm, a Ashridge sense of model is used. In this aspect, employees want more than pay, safety and an opportunity to develop their skills. They want a sense of mission. In fact there are some number of mission which are performed in a firm. Some of those are:

  • It inspires and motivates the employees and managers to perform higher level performance.
  • Give guidance for resource allocation.
  • Helps in providing the sense of direction.
  • Improve corporate performance (Smith, Binns and Tushman, 2010).

A huge decline in twitter share rates signifies that they have weak sense of model through which their survival in competitive market become impossible. Although they have to use Ahridge sense of mission model through which they can formulate effective mission statement.

  • Firstly they have to inspire their employees and motivate them in attain high level performance through which they can make their services effective. With improvement in their services it leads to attract more and more users.
  • Also they have to think about their employees by providing them perks and incentives. This perks and incentives aid them in motivating their employees so that they can work with more and more will.
  • Along with such thing their less attracted strategies of marketing signifies that they have poor corporate planning. These bad plan of action completely shows that their management do not take some strict actions against to improvise their quality of services.

With the help of changes in their services it leads in attain their customer back towards their service utility. This factor help them most in make their firm again back in competition in market (Crossan,Mazutis and Seijt,2013). This back in game strategies assist them to survive for long term as well as become one of the best competitors in market. This lead in increase their share prices also and company become able to generate more and more profit.

For this assignment seminal theory is used which is represented with the help of Mashlow theory of hierarchy needs through which an individual needs and requirements get identifies.

Twitter can apply this theory by measure that what type of services their stakeholders really need. This aid them in making the success criteria of a business more rapidly (Subramoniam,Huisingh and Chinnam,2010). In which they firstly identify the self actualisation needs through which an individual demands and requirements have to fulfil by cited company by providing them services according to their needs. With the help of such things all of their working become effective and they can attract wide range of users for that.

Also they have to apply such theory on their employees so that all of their needs and requirements. Hence their working become effective and their workers interest get completed. By motivating their employees more and more an organisation will lead to grab more market opportunities. Also this encouragement help them to make their firm firm shares prices high and more. As per considering both theories a firm will able to generate more and more profit in an appropriate manner. As well their staff will start to work with more will to grab out those chances.

A mission statement is a articulation of mission of an organisation. According to a research a sense of mission harms an entity except providing smoothness. Because they imply the sense of direction, clear thinking and unity which is not so much present everywhere. This model has four elements which are tightly joined together to create a strong mission:

  • Purpose: The main purpose of any organisation is just to satisfy its stakeholders and also helps them to think beyond their stakeholders (Smith, 2014).
  • Strategy: this is a basic for any company. Any firm have to prepare strategies which are beneficial for them.
  • Values: These are the common principles on which a business is laid down. A sense of mission is occur when employees personal values are joint with organisational values.
  • Behavioral standard: It helps an organisation to think what to do on daily basis. It helps in formulating daily and basic plans (Polasky and et. al., 2011).

Twitter grows more rapidly from 2006 to 2014 but at the starting of 2015, the growth of cited firm became slow (Wu, Z and Pagell, 2011). They do not use proper sense of mission in their organisation establishment. They failed to maintain future goals and strategies and think about only present condition. They are not be more able to perform responsibility towards their shareholders because they get merge with many other organisation. It increase the number of stakeholders in their organisation which dilute control of an organisation ( Eden and Ackermann,2013)

They idea was same as other and do not introduce something new in market. They are less attractive than others like Facebook, whats app. They are providing more features than twitter. Their services are not new for any user. User already gains the better service from other networking sites. They have shared variety of ideas so, it is also one of the drawback for twitter. It restricts them to perform more properly task.

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On 12 September 2013, twitter officially announced that they have filled all the paper work with securities and exchange commission. And they are now one step ahead to the stock market. Twitter planned with $1 billion as the basis for their debut in stock market. Their shares are getting very rate at initial stage. This mismanage all the shares of Facebook, and became one of the leading social networking site than others. They completely botched the initial public offering of Facebook. By growing this their 70 million shares were priced at $26. This initial public offering made so much profit for a firm. On the first day of new york stock exchange the shares of twitter were start 426 and closed at $44, it gave a valuation to the company of $31 billion. In 2016 twitter shares rose 20% after a report it had received takeover approaches.

First twitter suffers from high abandonment rate users as high as just 40%. Secondly, there is organisational turbulence which leads to fluctuate position of an organisation. Like many CEO and COO were change frequently (Pettigrew, 2014). Third thing competitors had started to emerge, and gave functionality that was unavailable to twitter. In 2014, twitter announced that they will require Namo media, a technology firm specializing in native advertisement for mobile devices. It helped them to attract large number of consumers for them. Another shock given by twitter to competitors that they disclosed the deal with snappy tv, which gives the facility to share and edit video from television broadcast. It helps to broadcasters and right holders to share and edit their videos across social and through with twitter amplify programme.

In 2014, again twitter announced that they are going to buy cardspring, a young company which enables retailers to shop online. They provide coupons to them and automatically sync with them and gave discount when they shop in stores. On October 29,2014 they established a partnership with IBM. The motive behind this partnership is to use the twitter data to understand and examine their customer, businesses and other trend. Twitter also started a small password security start-up called Mitro. Twitter have to use some of the things which help to maintain their strategic position. They have to use promoted trends and tweets which are using in present situation. It helps them to attract more and more users towards twitter. They have to provide retweet facility which helps them to know the thoughts of general people (Goetsch and Davis,2014).

Since it ca be used by many users and its range is vast but not remain with one friend. So, it helps to acquire more information about about. It is highly used by many organisations and celebrities so, that it might be useful to those users which wants to follow new trends. But its drawback is that it only provides 160 word limit which is much less than others sites. Some of the risks which are influenced by twitter are that many users made fake account of celebrity and and made harm to their brand image. It provides a character limit of 160 so, by this it has less craze than other site (Parnell, Driscoll and Henderson, 2011).

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1.2 Strong strategic position with risk in accordance to given organisation.

Company is not able to calculate their total number of shareholders. Some share were held by brokers and other institution on behalf of stakeholders. On 17 February 2016 only 962 shareholders were recorded. It shows that they did not have proper record of shareholders so, how could they manage their wealth distribution among different shareholders (Hastie and Dawes, 2010)

According to the annual report of 2015 company is suffering from heavy loss. So, they are not able to maintain the strategic position. They have unsound organisational culture. They are not deliberate and emergent strategy. Hence, the statement given by CEO of a company is not true. Their position is not stable and proper. So, they are not in the strong position to survive. They are constantly facing losses from last 5 years so, how could they give dividend to their owners. Their future growth is not stable and it also shows that their decision making is not clear.

Hence, it makes an objection towards the higher authority who are taking decision and establish strategies for a firm. Hence, they are getting failed to meet the needs of their shareholders. Their vision and missions are not clear and their money spent on projects are unnecessary (Hwang and Lin, 2012). Their monthly active users are became stable at the end of 2015. It is a clear sign that companies position is not stable and convenient as the purpose of investment. They are suffering a loss of $521,031 in their operational activities. Their revenue percentage is also in negative. So, all these things implies that their position is not stable and the growth of their firm is declining day by day.

It is not helpful for their shareholders and stakeholders because they are bearing loss consecutively again and again. Their quarterly results are also not good and hence shows the company actual position. In all the data only one thing is similar which is loss. Hence, twitter is suffering loss only and be not compatible for their shareholders and it shows that the CEO statement is wrong (Cabantous and Gond, 2011).

Also twitter have to use intended and emergent strategies through which they can attain all of their goals in a effective manner. With the help of utilising of deliberate approach they can maintain a purposeful target which enforce them to attain it in a significant manner.

On the other hand emergent strategy aid an organisation to make objectives at the initial level (Orlitzky, Siegel and Waldman, 2011). But for twitter deliberate strategy is beneficial because with the assist of this they can promote their employees towards to work forward on mission and visions which set by them.

As per the reports the main objective of a firm to improve their share prices in competitive market. This is one of the main target which an organisation want to achieve because they are already suffering from heavy loss which is not acceptable to them at all. As per this management want to convey some of the famous approaches through which their company will again make their come back possible in market. For this concern they adopt two of the theories which are emergent and intend. In this purpose they have to set theitr goals at initial stage through which all employees remain motivated for attaining such targets in a signified time frame.

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Books and Journals

  • Cabantous, L and Gond, J.P., 2011. Rational decision making as performative praxis: explaining rationality's eternel retour. Organization science. 22(3). pp.573-586.
  • Croskerry, P., 2013. From mindless to mindful practice—cognitive bias and clinical decision making. N Engl J Med. 368(26). pp.2445-2448.
  • Crossan, M., Mazutis, D and Seijts, G., 2013. In search of virtue: The role of virtues, values and character strengths in ethical decision making. Journal of Business Ethics. 113(4). pp.567-581.
  • Eden, C and Ackermann, F., 2013. Making strategy: The journey of strategic management. Sage.
  • Goetsch, D.L and Davis, S.B., 2014. Quality management for organizational excellence. Upper Saddle River, NJ: pearson.
  • Hastie, R and Dawes, R.M., 2010. Rational choice in an uncertain world: The psychology of judgment and decision making. Sage.
  • Hwang, C.L and Lin, M.J., 2012. Group decision making under multiple criteria: methods and applications (Vol. 281). Springer Science & Business Media.
  • IE, V., 2010. Implementing shared decision making in the NHS. Bmj. 341.p.971.
  • LeRoux, K and Wright, N.S., 2010. Does performance measurement improve strategic decision making? Findings from a national survey of nonprofit social service agencies. Nonprofit and Voluntary Sector Quarterly.
  • Lovallo, D and Sibony, O., 2010. The case for behavioral strategy. McKinsey Quarterly. 2(1). pp.30-43.
  • Lunenburg, F.C., 2010. September. The decision making process. In National Forum of Educational Administration and Supervision Journal (Vol. 27, No. 4, pp. 1-12). Wadsworth/Cengage.
  • Mintz, A and DeRouen Jr, K., 2010. Understanding foreign policy decision making. Cambridge University Press.
  • Nielsen, S and Huse, M., 2010. Women directors' contribution to board decisionmaking and strategic involvement: The role of equality perception. European Management Review. 7(1). pp.16-29.
  • Orlitzky, M., Siegel, D.S and Waldman, D.A., 2011. Strategic corporate social responsibility and environmental sustainability. Business & society. 50(1). pp.6-27.
  • Parnell, G.S., Driscoll, P.J and Henderson, D.L. Eds., 2011. Decision making in systems engineering and management (Vol. 81). John Wiley & Sons.
  • Pettigrew, A.M., 2014. The politics of organizational decision-making. Routledge.
  • Polasky, S., and et. al., 2011. Decision-making under great uncertainty: environmental management in an era of global change. Trends in ecology & evolution. 26(8). pp.398-404.
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