Reference no: EM132169783

Question: Step 1: As leaders make strategic decisions, they must balance the interests of various stakeholders - employees, customers, shareholders, suppliers, unions/activists, and the community. Describe what you believe is the best approach to doing this. (250 word)

Step 2: Comment on the classmate's answer below

"Strategic decisions are the long term,complex decisions made by senior management. I think that the best way for senior management to make strategic decisions that will balance the interest of the stakeholders,employees,customers, would be to let them be involved in the decisions. When customers feel like they were part of the decision making process or at least had some inputs towards the conclusion,customers will not have any push backs on the decision. Letting all concerned parties pay a role in the decision is enormous and a win-win for leadership at the end of the day. Having the entire work force realize that they are involved into the decisions making process allows the company to work closer as a whole since everybody is on the same page.

Also while all the groups are very important it is also important to consider who and what your customer needs are when making strategic decisions. "Delivering value to the customers is the central premise of any strategy. Customers value is the perceived benefits received to the perceived price paid by the customer"(Lus13). All groups can and need to be considered through environmental and situational analysis.One way a company can accomplish this is by using SWOT (strength,weakness,opportunities,threats)tool. This analysis tool can help asses both internal and external factors when a company is making strategic plans. This analysis is often used in strategic planning in several company's.It can serve as a precursors to any sort of company action,such as exploring new initiatives or decision being made."