STRATEGIC DECISION-MAKING IN SMALL AND MEDIUM-SIZED ENTERPRISES: EVIDENCE FROM AUSTRALIA
   

  This article discusses the strategic decision-making (SDM) processes in small and medium sized enterprises. It was also used in a two-staged SDM process rather than a problem-analysis-solution progression. Many SME owner's/managers had a narrow focus in developing potential decision alternatives. Also, the article research is a substantial body built on describing and detailing decision-making as a key process of strategic management (e.g. David, 2008;Eisenhardt 1999; Nutt and Wilson, 2010; Hart, 1992). Although key objective to meet effective suggestions for practice (I.e. how decisions should be made). Listed are an early example of decision-making process model outlined by Mintzberg, Raisinghani and Theoret (1976) consists of three major phases and seven steps: (1) Decision recognition (2) Decision diagnosis (3) Search route (4) Design routes (5) Screen (6) Evaluation-choices (7) Authorization. In the SDM literature are two dominant decision models known as synoptic and incremental. The SMEs tend to be narrowly concentrated (Gibcus,Vermeulen and de Jong, 2004). More information was gathered showing owners/managers had strong understandings concerning resources and skills in their organisations. With the SME, managers and owners focusing on the financial analysis, evaluation and approval of costs and revenue only.
  This article concludes by addressing the two-stage SDM process. The preliminary stage involves three major steps: (1) decision initiation/identification; (2) initial screening through the use of existing information about the environment and internal capabilities, and (3) initial solution development. Also, SMEs has a second stage of decisional processing. There's four steps involved; (1) information gathering; (2) initial solution refinement; (3) financial analysis; and (4) commitment. The process of how SMEs flow shows understanding in SDM, which tends to be a passive, reactive, productive intervention.
Work Cited
Chetty, S. (1996). The case study method for research in small and medium-sized firms. International Small Business Journal, 15(1), 73-85.