1. The Strategic Decision Model
Peter Becker,
Copenhagen Business School

2. Explanation to model
Intention: the model support management deciding strategic choices based at thoroughly view on all relevant micro, meso and macro parameters influencing the firm
A) impact on company (-5+5)
B) influence on industry (0-10)
AxB = influence factor
C) TCE standpoint comment: Fx. increased asset specificity leads generally to less market governance
D) RBV standpoint comment: Fx. if fast technology changes resources may hammer performance. Customization may lead to lower transaction cost, but the positive effect is narrated by reduction of performance – customized assets in changing environment.

3. Strategy S W Micro factors/Corporate level Resource audit
Firm specific
Physical, intellectual
and human
assets
Organizational
structure, production
factors and
processes
Rare, valuable,
inimitable &
non-substitutable S W
Value-chain
Micro factors/Corporate level
Acceptability
Feasibility
Suitability
Resource audit
Customer demandtr
Customer need
A) Impact/
Influence
matrix for
organization
Firm performance
evaluation
Buying behavior
Development
Generic
strategy:
cost versus
differentiation
Meso factors/Customer level
Strategy
Value-system
Market performance
evaluation
Bargaining
power, switching
costs and
concentration
Bargaining
power, switching
costs and
concentration
Industry attractiveness
and
barriers to entry
B) Impact/
Influence
matrix
Industry/
macro
A) impact on company (-5+5)
B) influence on industry (0-10)
AxB = influence factor
Rivalry between
suppliers and links
to upstream chain
Internal competition
among players and
critical success
factors
Rivalry between
customers and links
to downstream chain
Analysis
Risk
PESTEL
macro
environmental
drivers O T
Technical drivers
and potential for
backward
integration
Substitution
Production factors,
processes and
competences
Price elasticity
and potential for
forward
integration
Macro factors/
Environmental scan
Meso factors/Industry level

4. Copenhagen Business School, CBS
Internal/external relations
Growth in external business
BUSINESS
Documentation
External business
Business contracts
Competition
Marketing
Products
Market
Infrastructure
Systems
Processes
Economy
Organisational structure
Production resources
New customers
Control
Brand/image
Process management
Re-purchase
Feasibility
Mission
control
EXTERNAL
INTERNAL
Goodwill
Employee
investment
External
Relations
Customers
Suppliers
Partners
Industry/Branch
Internal
Relations
Culture
Values
Behaviour
Knowledge sharing
Knowledge
development
Customer loyalty
Employee
development
Customer satisfaction
Value experience
Employee satisfaction
Quality experience
Employee loyalty
PEOPLE
Delivery of quality
Quality behaviour
Peter Becker
Copenhagen Business School, CBS

5. Copenhagen Business School
Interne/eksterne sammenhænge
Vækst ekstern business
FORRETNING
Dokumentation
Ekstern business
Forretningsaftaler
Konkurrenter
Markedsføring
Produkter
Marked
Infrastruktur
Systemer
Processer
Økonomi
Org. struktur
Prod. ressourcer
Nye kunder
Måling
Brand/image
Styring
Genkøb
Lønsomhed
Missions
kontrol
EKSTERNT
INTERNT
Goodwill
Investering
i medarb.
Eksterne
relationer
Kunder
Leverandører
Partnere
PR-kontakter
Interne
relationer
Kultur
Værdier
Adfærd
Læring og
udvikling
Kundeloyalitet
Medarbejder-
udvikling
Kundetilfredshed
Oplevet værdi
Tilfredshed
Oplevet kvalitet
Loyalitet
MENNESKER
Levering af kvalitet
Kvalitetsadfærd
Peter Becker
Copenhagen Business School
CBS