BUS 5117 Strategic Decision Making and Management 1

Written Assignment Unit 1

Department of Business Administration, University of the People

BUS 5117 Strategic Decision Making and Management

Term 5, 2024

Dr. Mohd Siddiquei

June 26, 2024

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Abstract

We have an ongoing development project for our municipal airport, aiming to enhance its

infrastructure to accommodate larger aircraft in the future. This development is anticipated to yield a

wide range of potential benefits as well as drawbacks. On the positive side, it is anticipated that the

expansion will result in a significant boost to tourism, an increase in the capacity to handle more

flights, and the ability to cater to a wider range of aircraft types. However, it is important to consider

the potential downsides, such as the projected increase in noise levels and environmental pollution

resulting from aircraft exhaust, as well as the possible rise in waste generated by the expanded

operations. In my upcoming paper, I will delve into a detailed examination of the following key

components:

- In-depth exploration of potential internal and external stakeholders, considering their specific

roles and interests.

- The proposal of two specialized committees that will play integral roles in overseeing the

strategic management process, ensuring effective decision-making and implementation.

- Detailed strategies for the seamless integration of external stakeholders into all phases of the

strategic management process, fostering collaborative engagement and buy-in.

- Comprehensive methods to keep stakeholders thoroughly informed, including regular

updates, open communication channels, and structured feedback mechanisms.

- A thorough and comprehensive roadmap for the implementation of the strategic plan,

recognizing potential challenges and outlining contingencies for effective execution.

Introduction

Stakeholders are individuals or groups with a vested interest and the ability to influence a

specific situation. They are typically categorized as internal or external and play a crucial role in

decision-making processes. Involving stakeholders in the initial stages of planning is essential for
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successful implementation (Boundless Management, n.d.). In this specific scenario, stakeholders can

be further categorized as follows:

1. Internal stakeholders:

- Board of Directors: Responsible for overseeing the organization’s operations and strategic

direction.

- Current and subsequent staff: Employees directly involved in day-to-day activities and

ongoing operations.

- Suppliers: Entities providing goods or services critical to the organization's functioning.

- Volunteers: Individuals contributing their time and skills to support the organization's

activities.

- Donors: Individuals or entities providing financial support and resources to the

organization.

2. External stakeholders:

- Customers: Individuals or entities utilizing the organization's services or products.

- Governmental authorities: Regulatory bodies and government agencies responsible for

overseeing and enforcing compliance with relevant laws and regulations.

- Air carriers: Entities involved in transporting passengers and/or cargo, potentially

impacted by the organization's operations.

- Community partners: Other organizations or entities collaborating with the nonprofit for

mutual benefit.

- The media: News outlets and communication channels that can influence public

perception and awareness.

- Members of the groups served by the organization: Individuals who receive the

organization's services or benefit from its mission.

- Leaders from the nonprofit, public, or private sectors: Influential figures from other
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organizations or sectors with a stake in the nonprofit's activities.

The successful execution of any strategic administration mandates the establishment of two

core committees. These committees are pivotal in steering the strategic management process and

ensuring its efficacy:

1. Planning and Follow-up Committee: This committee takes on the critical task of

meticulously identifying potential risks and opportunities. Moreover, it maintains a robust

system for monitoring and following up on operational activities to ensure their alignment

with strategic objectives.

2. Budget Committee: This committee is intricately involved in the process of formulating the

project budget. It leverages the insights and recommendations put forth by the Planning

Committee to ascertain that the budget aligns with the strategic direction and operational

imperatives.

Integrated External Stakeholders Into the Strategic Management Process

According to Posey (n.d.), integrating external stakeholders into the strategic management

process is a multifaceted endeavor. Transparent communication is essential as it involves

comprehensive and consistent information sharing. For instance, it involves providing detailed

information to external stakeholders about the fundamental purpose of the airport expansion project

and the potential implications of its construction, elucidating both positive and negative outcomes.

Actively involving stakeholders in the planning process requires employing a range of

effective communication channels, including in-person meetings, comprehensive surveys, suggestion

logs for gathering feedback, and timely newsletter releases to keep them informed about the project's

progress. This approach ensures that their valuable insights and contributions are thoroughly

incorporated into the strategic planning process.

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Furthermore, it is crucial to ensure that external stakeholders have a clear, step-by-step

understanding of the strategic plan. Regular updates on how they contribute to its objectives and

ample opportunities for discussion and comprehension are critical for fostering their active

participation and buy-in.

Keep Stakeholders Informed

According to Bowen (2009), it’s important to ensure stakeholders are adequately informed,

which necessitates developing and implementing a comprehensive communication plan. This plan

should encompass a thorough background on the project, a detailed analysis of ownership shares,

explicitly stated objectives, well-crafted communication strategies tailored to different stakeholders,

an assessment of potential risks arising from ineffective communication, and a meticulously planned

communications budget. In addition, leveraging advanced reporting software, such as Primavera and

Microsoft Project, can significantly enhance stakeholders' awareness. These platforms facilitate the

seamless assignment of tasks and enable real-time communication, ensuring stakeholders are

consistently informed about the project's progress and any changes.

Finally, conducting multiple stakeholder meetings throughout the project management

process is vital for maintaining an open line of communication and providing stakeholders with in-

depth updates on project milestones, risks, and decisions. This approach fosters transparency,

encourages engagement, and ensures that stakeholders are well-informed about the project's

trajectory.

Implementation of The Strategic Plan

The implementation of the strategic plan will proceed through a series of detailed steps, as per

Clayton (2019):

1. Collection and Analysis of Information: This comprehensive step involves conducting a

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thorough study of the air traffic in the vicinity, including peak times and volume, and

analyzing the anticipated number of targeted tourists. Additionally, an in-depth evaluation of

the airport's capacity to accommodate these visitors while considering potential

environmental and infrastructural impacts will be undertaken.

2. Strategy Formulation: In this phase, a detailed inventory of the business's current resources

will be conducted, identifying specific assets, expertise, and capabilities that can be leveraged

to achieve the established objectives. Moreover, a thorough strategic plan will be developed,

outlining actionable steps to secure any necessary external resources and partnerships.

3. Strategy Implementation: Here, careful delineation of individual responsibilities within the

organization will be established. This will involve creating detailed plans of action for each

functional area, aligning them with the overarching organizational objectives. Additionally,

securing any essential resources and funding required for the successful execution of the

strategic plan will be a key focus.

4. Evaluation and Control: This critical stage encompasses the ongoing evaluation and

assessment of the implemented strategy. Performance metrics will be meticulously tracked,

allowing for a proactive approach to identify and address any internal or external issues that

may impede progress. Regular reviews of the strategy will be conducted, ensuring adaptability

and responsiveness to changing circumstances.

Conclusion

Strategic management with stakeholders is not simply about adhering to a set of rules. It

encompasses a comprehensive approach that necessitates senior management to strategically consider

how to serve both internal and external stakeholders. Hence, successful implementation of the

strategic management process relies on a shared understanding of this strategy among all company

employees.
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References

Boundless Management. (n.d.). Ethics in Business - Business Stakeholders.

https://www.coursesidekick.com/management/study-guides/boundless-management/business-

stakeholders

Bowen, R. (2009, October). Ways to Keep Project Stakeholders Informed.

https://www.brighthubpm.com/monitoring-projects/52884-keeping-project-stakeholders-in-

the-loop/#know-what-your-stakeholders-expect

Clayton, J. (2019, January 29). The Five Stages of the Strategic Management Process. Small

Business - Chron.com. https://smallbusiness.chron.com/five-stages-strategic-management-

process-18785.html

Posey, P. A. (n.d.). Stakeholder Engagement for Strategic Planning. Everett Community College.

https://www.everettcc.edu/ccec/enewsletters/stakeholder-engagement-strategic-planning