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STRATEGIC ANALYSIS AND
CHOICE
BY:
MS. NEHA SINGH
STRATEGIC CHOICE
 Continuous challenge of exercising choice among the alternatives
 Selection among the alternatives is a DECISION-MAKING PROCESS.
 STRATEGIC CHOICE can be defined as the decision to select from the grand
strategies while taking into consideration the firm’s objectives.
PROCESS OF STRATEGIC CHOICE
1. FOCUSING ON STRATEGIC ALTERNATIVES
2. ANALYSING THE STRATEGIC ALTERNATIVES
3. EVALUATING THE STRATEGIC ALTERNATIVES
4. CHOOSING AMONG THE STRATEGIC ALTERNATIVES
STEP 1: Focussing on strategic alternatives
 To reduce the no. of alternatives to a manageable no.
of feasible strategies.
 It can be done with help of GAP ANALYSIS.
 It is done by visualising the future state and working
backwards.
 Narrow the gap – stability strategy is feasible.
 If gap is large due to expected opportunities then
expansion strategy otherwise retrenchment.
 When the scenario is complex go for combination.
 In case of business level strategy firm need to define
CUSTOMER GROUPS, CUSTOMER FUNCTIONS and
TECHNOLOGIES, which will enable the decision maker
to find out their feasible alternatives
STEP 2 : Analysing the strategic alternatives
 The selected feasible alternatives have to undergo thorough analysis and such an analysis rely
on certain factors
OBJECTIVE FACTORS
Based on analytical techniques
They are hard facts or data to facilitate a strategic
choice
e.g Market share , market demand, cost etc.
SUBJECTIVE FACTORS
Based on personal judgement, collective information.
e.g Top level management perception.
STEP 3 : Evaluating the strategic alternatives
 It basically involves bringing together the analysis done on the basis of selection factors.
 There is no set procedure and strategist may use any approach according to circumstances.
 We usually follow strategic decision making process
1. Setting up of
objectives to be
achieved
2. Identify the
alternative ways
3. Each alternative
is evaluated in
terms of objectives
4. Best is choosen
STEP 4 : Choosing among the strategic alternatives
 Evaluation leads to clear idea which alternative is most suitable under the existing conditions.
 One or more strategies are chosen and a blue print is prepared under which those strategies are
operated.
 CONTINGENCY STRATEGIES are also formulated in order to deal with unforeseen situations.

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Strategic analysis and choice

  • 2. STRATEGIC CHOICE  Continuous challenge of exercising choice among the alternatives  Selection among the alternatives is a DECISION-MAKING PROCESS.  STRATEGIC CHOICE can be defined as the decision to select from the grand strategies while taking into consideration the firm’s objectives.
  • 3. PROCESS OF STRATEGIC CHOICE 1. FOCUSING ON STRATEGIC ALTERNATIVES 2. ANALYSING THE STRATEGIC ALTERNATIVES 3. EVALUATING THE STRATEGIC ALTERNATIVES 4. CHOOSING AMONG THE STRATEGIC ALTERNATIVES
  • 4. STEP 1: Focussing on strategic alternatives  To reduce the no. of alternatives to a manageable no. of feasible strategies.  It can be done with help of GAP ANALYSIS.  It is done by visualising the future state and working backwards.  Narrow the gap – stability strategy is feasible.  If gap is large due to expected opportunities then expansion strategy otherwise retrenchment.  When the scenario is complex go for combination.  In case of business level strategy firm need to define CUSTOMER GROUPS, CUSTOMER FUNCTIONS and TECHNOLOGIES, which will enable the decision maker to find out their feasible alternatives
  • 5. STEP 2 : Analysing the strategic alternatives  The selected feasible alternatives have to undergo thorough analysis and such an analysis rely on certain factors OBJECTIVE FACTORS Based on analytical techniques They are hard facts or data to facilitate a strategic choice e.g Market share , market demand, cost etc. SUBJECTIVE FACTORS Based on personal judgement, collective information. e.g Top level management perception.
  • 6. STEP 3 : Evaluating the strategic alternatives  It basically involves bringing together the analysis done on the basis of selection factors.  There is no set procedure and strategist may use any approach according to circumstances.  We usually follow strategic decision making process 1. Setting up of objectives to be achieved 2. Identify the alternative ways 3. Each alternative is evaluated in terms of objectives 4. Best is choosen
  • 7. STEP 4 : Choosing among the strategic alternatives  Evaluation leads to clear idea which alternative is most suitable under the existing conditions.  One or more strategies are chosen and a blue print is prepared under which those strategies are operated.  CONTINGENCY STRATEGIES are also formulated in order to deal with unforeseen situations.