STRATEGIC CHOICE-

ITS MEANING , PROCESS AND QUALITATIVE FACTORS.

WHAT IS STRATEGIC CHOICE?
 Strategic choice is the final step in the strategy
formulation phase of strategic management.
 It involves the strategy or set of strategies that
helps in achieving organisational objectives.
 According to pearce and robinson – “ strategic
choice is a decision which determines the future
strategy of the firm”.
 Strategists collect and evaluate information to
assess strengths and weakness of the internal
environment and threats and opportunities of the
external environment.
STRATEGIC ANALYSIS AND CHOICE(SAC) :
SAC tries to find out answers of three basic
questions:
1. How effective has the existing strategy been?
2. How effective will that strategy be in the future?

3. What will be the effectiveness of selected

alternative strategies in the future?
PROCESS OF STRATEGIC CHOICE:
 Focusing on strategic alternatives:- aim to narrow
down the choice through GAP ANALYSIS.
 Evaluating strategic alternatives:-aims at bringing
together the results of the analysis carries on basis of the
objective and subjective factors.
 Considering the decision factors:- (i) objective
factors. (ii) subjective factors.
 Making the strategic choice:- it’s the final step and
blue print has to be made.
QUALITATIVE FACTORS IN STRATEGIC CHOICE:-
 Considerations for government policies:- shift in govt.
policies has impact on future prospects of the company.
 Perception of CSFs and distinctive competencies:-
these are important issues in environmental and
organisational appraisal.
 Commitment to past strategic actions:- strategists are
more likely to start from where the organisation is , and the
way that it had adopted to reach where it was.
 Strategists decision style and attitude to risk:- one
may be aggressive and proactive and other may be defensive
and react to changes.
 Internal political considerations:- it means strategists
interlationship and power structure and balance.
 Timing and competitor considerations:- it answers
the following questions:
1. When to exercise a strategic choice?
2. When a particular strategic choice is to be made?
3. For what time period is a strategic choice to be made?
Thanks…..