When giants collide: strategic analysis and application

On June 4, 1942, a small US naval force defeated a much bigger Japanese fleet off Midway Island. This was the first defeat suffered by the heretofore invincible Japanese military, and changed the course of the Pacific war. The Battle of Midway provides an informative case study of strategic decision‐making processes, because of its unexpected outcome and volatile environmental factors. Building from Daft and Weick’s (1984) “interpretation system” model, this paper develops an analytical framework to study the formulation of strategic decisions at the Battle of Midway. The three interacting components of the framework – decision parameters, decision processes, and decisions and implementation – are examined, with emphasis on how bounded rationality, cognitive biases, leadership styles, management structures, and organizational cultures combine to impact strategy formulation. Research and strategic implications are highlighted.