Mergers and Acquisitions as Strategic Decisions for a Decision-Making Theory

2020 ◽  
pp. 49-64
Author(s):  
Cyndi Man Zhang
Keyword(s):  
Decision Making ◽  
Mergers And Acquisitions ◽  
Strategic Decisions

scholarly journals Behavioral analysis of mergers and acquisitions decisions

2019 ◽  
Vol 15 (3) ◽  
pp. 8-16 ◽  
Author(s):  
Daisuke Asaoka
Keyword(s):  
Decision Making ◽  
Mergers And Acquisitions ◽  
Conflicts Of Interest ◽  
Fair Value ◽  
Endowment Effect ◽  
Strategic Decisions ◽  
Corporate Decisions ◽  
Decision Making Processes ◽  
High Degree ◽  
Governance Architecture

Mergers and acquisitions (M&A) are among the key strategic decisions that firms make. But the problem is that they often result in failure and impairment loss, with the fair value of the acquisition price becoming an issue that poses the risk of overvaluation. The purpose of this paper is to explain the nature of this risk by shedding light on the errors and biases of decision-making managers and directors and their effect on decision-making processes which involve a high degree of discretion and judgment. The paper finds that biases causing overvaluation include overconfidence by managers; an escalation of bidding prices leading to winner’s curse; anchoring in pricing; the endowment effect; and hindsight and confirmation biases. Corporate governance architecture can be designed to mitigate these biases while preserving the positive aspects of overconfidence, such as its promoting of productive and creative activities and coherent internal management. But it is not a panacea since independent directors also have biases and conflicts of interest inherent in the mechanism. Advancements in the understanding of human emotion and psychology promise to protect shareholders by deepening our understanding of corporate decisions.

Did Groupthink or Polythink Derail the 2016 Raqqa Offensive?

2019 ◽  
Author(s):  
Kasey Barr ◽  
Alex Mintz
Keyword(s):  
Decision Making ◽  
Group Dynamics ◽  
Decision Making Process ◽  
Islamic State ◽  
Study Analysis ◽  
Strategic Decisions ◽  
Case Study Analysis ◽  
The Us ◽  
Tactical Decisions

This chapter examines the effect of group dynamics on the 2016 decision within the administration of President Barack Obama to lead the international coalition in a mission to liberate Raqqa, Syria, from the Islamic State. The authors show that whereas the groupthink syndrome characterized the decision-making process of the US-led coalition’s decision to attack Raqqa, it was polythink that characterized the decision-making dynamics both in the US-led coalition and within the inner circle of Obama’s own foreign policy advisors. Through case-study analysis, the authors illustrate that groupthink is more likely in strategic decisions, whereas polythink is more likely in tactical decisions.

Understanding how the contextual variables influence political behaviour in strategic decision-making

2014 ◽  
Vol 7 (3) ◽  
pp. 226-250 ◽  
Author(s):  
Said Elbanna ◽  
Ioannis C. Thanos ◽  
Vassilis M. Papadakis
Keyword(s):  
Decision Making ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Strategic Decisions ◽  
Empirical Examination ◽  
Content Type ◽  
Political Behaviour ◽  
Practitioner Education ◽  
The Impact ◽  
Practical Implications

Purpose – The purpose of this paper is to enhance the knowledge of the antecedents of political behaviour. Whereas political behaviour in strategic decision-making (SDM) has received sustained interest in the literature, empirical examination of its antecedents has been meagre. Design/methodology/approach – The authors conducted a constructive replication to examine the impact of three layers of context, namely, decision, firm and environment, on political behaviour. In Study 1, Greece, we gathered data on 143 strategic decisions, while in Study 2, Egypt, we collected data on 169 strategic decisions. Findings – The evidence suggests that both decision-specific and firm factors act as antecedents to political behaviour, while environmental factors do not. Practical implications – The findings support enhanced practitioner education regarding political behaviour and provide practitioners with a place from which to start by identifying the factors which might influence the occurrence of political behaviour in SDM. Originality/value – The paper fills important gaps in the existing research on the influence of context on political behaviour and delineates interesting areas for further research.

DECISION SUPPORT FOR A SUSTAINABLE PRODUCTION IN JOB SHOP MANUFACTURING SYSTEMS

10.6036/9917 ◽  
2021 ◽  
Vol 96 (5) ◽  
pp. 455-459
Author(s):  
MAHDI NADERI ◽  
ANTONIO FERNÁNDEZ ULLOA ◽  
JOSÉ ENRIQUE ARES GÓMEZ ◽  
GUSTAVO PELÁEZ LOURIDO
Keyword(s):  
Decision Making ◽  
Decision Support ◽  
Manufacturing Systems ◽  
Manufacturing System ◽  
Job Shop ◽  
Sustainable Production ◽  
Ease Of Use ◽  
Manufacturing Companies ◽  
Strategic Decisions ◽  
Production Environments

Despite the growing importance that is being given to the concepts of sustainability in many areas, not only in industry but also in the economy and public opinion in general, until now, most research has focused, practically, on the analysis of the concepts, but has not addressed, in a comprehensive way, its impact in decision making probably due to the complex relations of interdependence between its different aspects. In this context, MAPSAM (Methodology for the Assessment of Sustainability in Manufacturing Processes and Systems) was created to help the decision-making process, allowing a conscious and transparent assessment by administrators and managers at the different levels of the structure of companies and organisations. This article explains its development and application in a "job shop" type manufacturing system with an approach that allows the integration of economic, environmental and social criteria. MAPSAM is based on the use of various techniques and tools to quantify the importance of each aspect of sustainability and it has been applied in other production environments, being implemented in different systems, analysing their ease of use and evaluating their behaviour. The objective is to show how it helps to make operational, tactical and strategic decisions in the management on these type of manufacturing companies and, specifically, in this contribution we want to highlight its versatility and applicability, by validating it in a certain type of layout. With this new application, MAPSAM increases its possibilities as an innovative instrument that allows companies to make conscious and sustainable decisions in order to be more efficient, fair, supportive and respectful of the environment. Keywords: Manufacturing System, Simulation, Decision Support, Sustainable Production, Decision-Making

scholarly journals Improvement of the Statement of Financial Results as an Information Base for Strategic Decision Making

2021 ◽  
Vol 8 (4) ◽  
pp. 69-79
Author(s):  
T. Yu. Druzhilovskaya ◽  
E. S. Druzhilovskaya
Keyword(s):  
Decision Making ◽  
Financial Statements ◽  
Educational Process ◽  
Strategic Decision ◽  
Educational Institutions ◽  
Strategic Decisions ◽  
Accounting Standard ◽  
State Sector ◽  
Information Base ◽  
Wide Range

The article presents the results of a study of the possibilities to improve approaches to generating a report on financial results as an information base for making strategic decisions. It critically analyses the significance of the changes in this report, stipulated by the draft federal accounting standard for the non-state sector “Financial statements of the organization” (FAS FS), which should come into force from 2021. The authors identify and systematize the main changes planned by the FAS FS draft in report on financial results formation, including not only adjusting certain articles, but also improving the approaches to the presentation of a number of indicators. The importance of each of these changes, their positive and negative significance for the persons making strategic decisions is determined; the main problematic and debatable issues to improve the formation of the report on financial results from the perspective of users of the reporting are identified. An example of the form of the report on financial results is provided, aimed at presenting the reliable and understandable information necessary for decision-making users. The results of the study can be useful to a wide range of readers interested in the problems of forming a report on financial results, and can also be applied in the practical work of the accounting departments of organizations, in the educational process of higher educational institutions and in the creation and improvement of relevant regulatory documents on accounting.

scholarly journals Housing associations diversifying into market renting: local contexts and (re)interpretation shaping strategic decision making

2020 ◽  
Vol 11 (1) ◽  
pp. 3-20
Author(s):  
Julie Clarke ◽  
Rachel Kirk
Keyword(s):  
Decision Making ◽  
Housing Association ◽  
Local Level ◽  
Third Sector ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Strategic Decisions ◽  
Housing Associations ◽  
Commercial Activity ◽  
Hybrid Organisations

Within the context of housing associations as fluid third sector hybrid organisations, this article examines the dynamics of strategic decision making in relation to diversification into the market rented sector. A convergence of factors shaped an agenda for associations to engage with such commercial activity, crystallising debates about opportunities versus tensions and the remit of organisations. Qualitative research with senior housing association professionals operating in northern England illustrates the significance of external local and internal organisational contexts in making and justifying decisions; this is highlighted within an emergent typology of organisational responses. Depending on interpretation, the interplay between social and financial justifications varied, including legitimising activity within a broader social purpose. The potential for (re)interpreting parameters illustrates the importance of understanding the variety and complexity of interacting dynamics that influence the strategic decisions of third sector hybrid organisations and what they deliver at the local level.

scholarly journals Introducing Sustainability in Value Models to Support Design Decision Making: A Systematic Review

2017 ◽  
Author(s):  
Marco Bertoni
Keyword(s):  
Decision Making ◽  
Customer Value ◽  
Design Decision ◽  
Strategic Decisions ◽  
Managerial Decision ◽  
Support Design ◽  
A Value ◽  
Operational Level ◽  
Sustainability Research ◽  
Operational Activities

Manufacturing organizations shall recognize sustainability as a business occasion to capitalize on, rather than an undesirable pressing situation. Still, empirical evidence shows that this opportunity is hard to capture and communicate in global strategic decisions, through planning by tactical management, to daily operational activities. This paper systematically reviews the modelling challenges at the cross-road of value and sustainability decisions making, spotlighting methods and tools proposed in literature to link sustainability to customer value creation at strategic, tactical and operational level. While statistical results show that the topic of sustainability and value modeling is trending in literature, findings from content analysis reveal that recent attempts to promote a value-based view in the sustainability discussion remain at a strategic level, with most of the proposed indicators being suited for managerial decision-making. The lack of support at operational level points to the opportunity of cross-pollinating sustainability research with value-centered methodologies originating from the aerospace sector. The Value Driven Design framework is proposed as main hub from which to derive models supporting engineers and technology developers in the identification of win-win-win situations, where sustainable improvements are aligned with business advantages.

D Minus Months: Strategic Planning for Weather-Sensitive Decisions

2021 ◽  
Author(s):  
Eva D. Regnier ◽  
Joel W. Feldmeier
Keyword(s):  
Decision Making ◽  
Decision Analysis ◽  
Weather Forecasting ◽  
Decision Makers ◽  
Strategic Decisions ◽  
Sequential Decisions ◽  
Weather Forecasts ◽  
Current State ◽  
Set Up ◽  
Made In

General Eisenhower’s decisions to postpone and, one day later, to launch the “D-Day” invasion of Normandy are a gripping illustration of sequential decisions under uncertainty, suitable for any introductory decision analysis class. They’re also the archetypal example of weather-sensitive decision making using a forecast. This paper develops a framework for analyzing weather-sensitive decisions with a focus on the less-familiar strategic decisions that determine how forecasts are produced and what operational alternatives are available so that decision makers can extract value from forecasts. We tell the story of the decisions made in the months before D-Day regarding how to set up the forecasting process and the myriad decisions implicating nation-level resources that prepared Allied forces not just to invade, but to hold open that decision until the last possible hour so that Eisenhower and his staff could use the critical forecasts. Finally, we overview the current state of the weather-forecasting enterprise, the current challenges of interest to decision analysts, and what this means for decision analysts seeking opportunities to help the weather enterprise improve forecasts and to help operational decision makers extract more value from modern weather forecasts.

People, Not Polar Bears

2016 ◽  
Author(s):  
Amanda J. Baugh
Keyword(s):  
Decision Making ◽  
Racial Diversity ◽  
Environmental Movement ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Polar Bears ◽  
Environmental Groups ◽  
Strategic Decisions

Chapter 1 describes Faith in Place’s origins and development within the context of the American environmental movement and with attention to strategic decisions its leaders made to help their organization survive and ultimately flourish. Although Faith in Place originated with priorities, activities, and participants that were quite similar to numerous other environmental groups, Faith in Place’s first ten years involved a series of strategic decisions in which leaders developed measures to differentiate their work from mainstream environmentalism. Strategic decision-making led to a coalition distinct for its racial diversity.

Critical Systems Perspective of Strategic Decision Making

2020 ◽  
pp. 55-80
Author(s):  
Jelena Nikolić ◽  
Dejana Zlatanović
Keyword(s):  
Decision Making ◽  
Systems Thinking ◽  
Critical Systems Thinking ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Critical Systems ◽  
Strategic Decisions ◽  
Systems Methodology ◽  
Soft Systems ◽  
Factors Affecting

Growing complexity and diversity of strategic decisions indicate the need for applying the appropriate holistic tools in strategic decision making. Thus, the chapter deals with the process of strategic decision making from the viewpoint of critical systems thinking, with emphasis on the role of values and context in strategic decision making. The main purpose is to show how systems thinking generally and critical systems thinking particularly can help decision makers involve different perceptions and values in the process of strategic decision making, as well as take into account context in which the strategic decisions are made. Considering the key internal and external factors affecting strategic decision making, the authors have selected three systems methodologies stemming from different paradigms: soft systems methodology as interpretive, team syntegrity as emancipatory, and organizational cybernetics as functionalist systems methodology. The way in which they can be combined, aimed at improving effectiveness of strategic decision making, has been presented.

Sign in / Sign up

Export Citation Format

Share Document