They are important processes in any kind of organization that frequently influence the success or failure of the organization. It includes making strategic choices that can affect the organization’s direction and overall performance greatly. So, what then are executive decisions?
Executives decisions are strategic processes in which top managers make an evaluation of information, they consider various options, and make choices that assist the organization’s overarching objectives.
This process typically includes recognizing potential risks, assessing their impact financially and making sure that decisions are made based on the comprehensive research and market analysis that has been carried out properly.
Advantages and Disadvantages of Executive Decisions
As the tech and gaming industry advances daily, it is essential to know the executive order pros and cons. What are the advantages of executive decisions?
1. Focus on Strategy
Executive decisions help in promoting and supporting long-term strategic goals.
2. Utilization of expertise
Organizations utilize expertise, they take advantage of the executives knowledge and experience.
3. Rapid Decision-Making
There is the ability to make quick choices without any need for agreement from various stakeholders.
4. Promoting Accountability
Executive decision helps to foster accountability and ownership because the executives are responsible for the choices made in any organization.
5. Agility of the market
It helps in permitting quick adaptation to changes that might happen in the market.
The disadvantages of executive decisions
1. Centralized decision-making
Executive decisions can be authoritative in nature, which might distance stakeholder or make them lose interest.
2. Disengagement of Stakeholders
Most stakeholders oppose the decisions, if they are not properly included in the process.
3. Risk of error
increased likelihood of mistakes or errors that might occur due to the limited input.
4. Inflexibility
Most executive decisions are too rigid and difficult to change once it has been made, and this might hinder the achievement of goals.
5. Disengagement of employees
In most cases, executives’ decisions can lead to the demotivation of employees if they are not properly communicated to.
Impact of Executive Decisions
The impact of executive decisions on tech and gaming industries are significant and are in multiple ways.
1. The Importance of Regulatory Landscape
Regulatory changes in various countries can influence the direction of the tech and gaming industry. Decisions are meant to open more economic opportunities and privileges to the industry, promote innovation and create employment opportunities in the tech and gaming industry.
2. Business strategies
Executive decisions that are made regarding business models, partnerships, and investments play a crucial role in reshaping the tech and gaming industry.
3. Competition and innovation
In gaming and tech executive decisions can promote innovation that might lead to the creation of new gaming platforms or new technologies. Enhancement of products and services that can happen as a result of competition among companies can ultimately benefit consumers.
4. Impact on Economic of the Country
The United States Video game industry was able to contribute $4.9 billion to GDP in 2010 with an average annual growth rate of 10.6% over the following five years. Tech and gaming industry participates and plays a crucial role in the economics of the nation. Executive decisions can shape the economy and influence growth.
5. Reduction in the rate of challenges
Top-managers must be able to address challenges such as latency, piracy etc. which can hinder the advancement in the Tech sector and gaming industry. Most times those challenges make room for innovation opportunities and expansion as they work to create solutions to problems and overcome the challenges.
