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A Strategic Analysis Of The Multilevel Environment

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Introduction
Managers face decisions every day, especially decisions at strategic level. According to Papulova & Gozava (2016), strategic decisions are large-scale with high riskiness and difficult to change; they lead to future strategies and refer to both functions and academic disciplines; they are significant for the development of managers themselves and the major source of organizational learning. Thus, strategic decisions are attached with great importance in business management since they shape the company's direction and orientation in the future.
H. Simon (1960) reckoned that the decision-making should be understood as a process. Combined with the process of human thought forwarded by philosopher Kant (Kant & Smith, 2003), it can …show more content…

For one thing, strategic analysis is closely related to the changes of environment. In the dynamic environment, managers find increasingly hard to monitor and predict the development. For another, managers apply different types of thinking to analyze the multilevel environment. Some managers use rational and logical thinking based on verified and practiced theories and frameworks, while others prefer intuitive thinking (Papulova & Gazova, 2016).
In order to better clarify the structure of this essay, we will firstly explain the multilevel environment including dynamic external and internal environment. Then we will discuss the type of thinking that managers apply to strategic decision-making. Finally, we end up with the critical thinking of theories and frameworks.
Environment Analysis for Strategic Decision-making
Nowadays managers need to make strategic decisions in a dynamic and volatile environment. Companies are experiencing unpredicted and faster changes worldwide. From the helicopter view, the globalization is changing regional markets and intensifying global competitions, while the development of modern technologies brings more opportunities for companies and more options for demanding customers. It is worthwhile for managers to understand the environment where the company is operating.

Multilevel …show more content…

And managers evaluate possible outcomes and adopt accordingly frameworks to do strategic analysis.
Courtney, Kirkland and Viguerie (1997) forwarded four levels of uncertainty with relative strategic tools and three strategic postures forwarded to avoid the binary view of either certain or uncertain environment.
The first level of uncertainty is a clear-enough future that managers can have a forecast of future precise enough to point out the direction. For example, managers at FMCG industry plan to product and price new products. To better differentiate new products from existing similar ones, managers may investigate the price of similar products, the volume of production of their competitors and the concentration ratio of targeted market. Considering the intensified competition and price-sensitive customers in the FMCG industry, the information is knowable and complete for decision-making in spite of irrelative uncertain aspects. At this level, generally managers will use traditional strategy tools such as market research and Porter's Five Forces,

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