Strategic decisions involve long term and complex decisions that are purposely and intentionally made and articulated by the senior management. Generally strategic decisions affect and impact the conclusive perspective and direction of an organization, causing major changes in the operation and functionality of that organization. The decision of the Alcoa Corporation, a “global leader in alumina and aluminum products, today announced that it will consolidate administrative locations around the globe as it continues to streamline the Company and lower costs, is by all means a strategic decision (Alcoa Newsroom, 2017).

Such decision is a strategic decision because it is meant to consolidate and close many of its affiliate and move its operation to its original location in Pittsburgh with the main goal of reducing complexity and streamline its business units to increase their operational agility, promote efficiency and internal coordination, and lower costs. The review aims at restructuring the company and its processes towards ensuring that Alcoa continues to be consistent and resilient all through the market cycles. Such a decision is none other than a change in the company’s operations, and by no doubt it can be referred to be a strategic decision (Alcoa Newsroom, 2017).

Though there have been other logical decision made by the company prior to the consolidation and de-complexing strategic decision made, the later remains the culmination of all the other decisions, and as it stands it is strategic decision, as much as it may have come as a logical consequence of other decisions made earlier. The decision counters other decisions which were once made to have various office locations in place, and thus stands out a big decision, definitely a strategic one to maximize company profits, drive the company more competitive, make the company operator-centric with smaller corporate overhead, and towards more success and vitality (Alcoa Newsroom, 2017).

The culminating decisions did not just come in place without prior key decisions. It came the way to help achieve other key decisions. Such prior key decisions include cutting operational costs and engaging a close working relationship with employees, improving financial performance and maintaining the balance sheet profitable growth, and reviewing the company structure. This was as priory designed meant to cut down the costs of operation towards realizing more net profits for the company. With a closer look at the strategic decision to streamline its administrative locations globally in order to reduce complexity and lower costs, in my opinion, Alcoa did not follow a very clear and logical transformation path in dealing with the reality of the competitively crowded and complicated global industry. For instance, closing offices and branches in other locations does not contribute to more centralization but gets the company business further away from the customers. This contributes to less awareness of the company and a loss in the market share. It is logical, in the contrary, to open many offices, to ensure that the company is closest to as many customers as possible and by so doing command and maintain a larger market stake (Alcoa Newsroom, 2017).

In conclusion, the new strategy maybe potentially workable but it lacks corporate strategy soundness.  Closure of branches and offices sounds a de-growth of business. Even if it is seen to cut the company’s expense and yield some profits, I beg to differ and point out that it will only add up to the company losing its market stake and/or share in the long run. The long run soundness of the new strategic decision is quite wanting and spells more doom than light (Alcoa Newsroom, 2017).