Model for manufacturing strategic decision making

Abstract

Purpose

Proposes a model of strategic planning as a basis to overcome the identified shortcomings in the past empirical research. The basic assumption of the proposed model is that an appropriate strategic analysis is necessary in order to ensure appropriate strategic decisions.

Design/methodology/approach

Shortcomings related to empirical research in the past were identified with the aim of discussing some possible reasons why the concept of manufacturing strategy had not been more widely adopted in practice and of developing the model of strategic planning. Based on the proposed model and relating to previous research, an empirical study of two relationships has been performed: first, between business strategic competence of an enterprise and business performance, and second, between business strategic competence and manufacturing strategic decision areas.

Findings

The goals of analysis in the process of strategic planning have been explained. Empirical findings about a positive relationship between business performance and business strategic competence confirmed the results of previous research. Some empirically significant relationships between strategic decision areas and manufacturing competitive priorities results were identified.

Practical implications

In order to guarantee effective decision making, the role of the analysis in the process of planning has to be understood. This phase of the planning process is not getting enough attention from practitioners. This results in decision making for which quick jumping to solution‐seeking is characteristic, without appropriate determination of problems beforehand.

Originality/value

The paper emphasises the importance of strategic analysis and problem identification to appropriate strategic decision making. This holds true not only of practical strategic decision making inside specific companies, but also of design and implementation of empirical research.

Citation

Rusjan, B. (2005), "Model for manufacturing strategic decision making", International Journal of Operations & Production Management, Vol. 25 No. 8, pp. 740-761. https://doi.org/10.1108/01443570510608583