Strategic Decision Making
|International Business Administration
|Business and Management
|Type of degree
Winter Semester 2023
|Course unit title
|Strategic Decision Making
|Course unit code
|Language of instruction
|Type of course unit (compulsory, optional)
|Teaching hours per week
|Year of study
|Level of the course / module according to the curriculum
|Number of ECTS credits allocated
|Name of lecturer(s)
Elementary probability concepts
Integration of Management Science methodology with organizational strategy
Treatment of uncertainty in strategic environments through a knowledge of
- The laws of probability
- Revision of prior probabilities
- Expected long-term gain or loss
- Construction and analysis of decision trees.
Optimal allocation of strategic resources:
Linear and integer optimization models.
- Finding solutions using Microsoft Excel with the ‘Solver’ add-in module.
- Interpretation of software output.
- Sensitivity (what/if) analysis of solution.
- Practical and managerial implications.
- Students will know the role and importance of Management Science in strategic decision making.
- Understand the behavioural aspects of probability and risk assessment.
- Apply model-based analytical approaches for addressing fundamental strategic issues.
- Understand and develop skills for facilitating sequential thinking under uncertainty, as well as simultaneous thinking involving complex trade-offs.
- Develop analytical skills in handling strategic decision processes and arrive at objective and rational conclusions.
- Recognize the key components of strategic decisions and outline the sequence of events and decisions.
- Identify critical resources and understand the relevant trade-offs.
- Synthesize available information and apply management science methods for achieving competitive advantage.
Lecture, case studies and problem solving exercises within the course
Assessment Method & Criteria:
Demonstrate an understanding of basic organizational strategy concepts and modeling skills for decision making with a strategic perspective
- Short pre-assignment and in-class individual exercise problems (30% of grade)
- In-class case analysis problems (40%)
- Post-assignment group case study (30%).
Bell, Peter C. (1999): Management Science/Operations Research: A Strategic Perspective, South-Western College Publishing.