A Research Study on Strategic Decisions in a Business Simulation

Abstract

This study’s purposes were to explore strategic decision making in a computerized simulation and to generate a model reflecting that process. Multiple regression was utilized to ascertain the influence of eleven independent variables on organizational effectiveness, and factor analysis was performed to determine the relationship among the independent variables. The subjects were college seniors, and the setting was The Executive Game [9]. Organizational effectiveness varied significantly with forecasting accuracy, formal planning, strategic stability and degree to which strategies were price oriented. Factor analysis yielded four significant factors, and one of them included strategic clarity, group cohesion, formal planning and strategic stability.