1.
PROCESS OF STRATEGIC
CHOICE & SUBJECTIVE
FACTORS
PRESENTED BY:-
SHUBHAM SAXENA

2.
STRATEGIC MANAGEMENT
 Strategic management is the management of an organization’s resources to
achieve its goals and objectives.
 Strategic management involves setting objectives, analyzing the competitive
environment, analyzing the internal organization, evaluating strategies and
ensuring that management rolls out the strategies across the organization.

3.
WHAT IS STRATEGIC CHOICE
 Organizations continually face the challenge of exercising choice among
alternatives. Strategic choice is an inalienable part of the decision making process.
The process of strategic choice is essentially a decision making process.

4.
 “The decision to select from among the grand strategies considered, the strategy
which will best meet the enterprise’s objective. The decision involves focusing on
a few alternatives considering the selection factors, evaluating the alternatives
against these criteria and making the actual choice.” - Prof. Azhar Kazmi

5.
PROCESS OF STRATEGIC CHOICE
Focussing On Strategic Alternatives
Analysing The Strategic Alternatives
Evaluating The Strategic Alternatives
Choosing From Among The Strategic Alternatives

6.
Focussing On Strategic Alternatives
 The aim of this step is to narrow down the choice to a manageable number of
feasible strategies. It can be done by visualizing a future state and working
backwards from it.
 Managers generally use GAP analysis for this purpose. By everting to business
definition it helps the managers to think in a structured manner along any one or
more dimensions of the business.

7.
 At Corporate level strategic Alternatives are
 Expansion, Stability, Retrenchment, Combination
 At Business level Strategic Alternatives are
Cost leadership, Differentiation

8.
Analysing the Strategic Alternatives
 Narrowing down the strategic choices should lead to a few feasible alternatives.
These issues need to be subjected to a through analysis and such analysis rely on
some factors and these factors are termed as selection factors.
 The selection factors can be broadly divided into two groups:-
 The Objective
 The Subjective

9.
The Objective Factors
 They are based on analytical techniques &
are hard facts or data used to facilitate a
strategic choice.
The Subjective Factors
 They are based on one’s personal
judgement, collective or descriptive
factors.

10.
Evaluating the Strategic Alternatives
 Each factor is evaluated for its capability to help the organization achieve its
objectives.
 It basically involves bringing together the analysis done on the basis of the
objective and subjective factors.

11.
REMULT SUGGESTIONS
 REMULT suggests four test for evaluating strategies before they are ready to implemented:-
•The strategy must not present mutually inconsistent goal and policy.CONSISTENCY
•It must represent an adaptive response to the external environmentCONSONANCE
•It must provide for creation and maintenance of strategic advantage.ADVANTAGE
•It’s implementation may not be expected to use more resources nor create attendant problems arising out of
implementation.
FEASIBILITY

12.
Choosing from Among the Strategic
Alternatives
 A strategic choice must lead to a clear assessment of which alternatives is the
most suitable under the existing conditions.
 A blue print has to be made that will describe the strategies and the condition
under which they will operate.
 One or more strategies have to be chosen for implementation.

13.
SUBJECTIVE FACTORS IN STRATEGIC CHOICE
 Subjective factors facilitate managers in making a choice though sometimes they
may also place limitations on what they can do.
 They are based on one’s personal judgement, collective or descriptive factors.

14.
Subjective Factors
 There can be five subjective factors for strategic choice:-
Commitment to past strategic Action
Strategist’s decision styles and attitude to risk
Internal political consideration
Consideration for government policies
Consideration of corporate citizenship obligations

15.
Commitment to past strategic Action
 Past strategic action shows that they move in an incremental fashion.
 By this strategist are more likely to start from where the organization is, and work
up the way to reach where they want to go.

16.
Strategist’s decision styles and attitude to
risk
 The decision style adopted by strategist, particularly by CEO and their attitude to
risk is a determining subjective factors in strategic choice.

17.
Internal political consideration
 When strategy formulation is viewed as a political process, strategist are view as a
coalition of interest.
 A dominant CEO is able to affect strategic choice a decisively.

18.
Consideration for government policies
 Strategies within organizations are aware of the crucial role the Government
plays in setting down politics and priorities.
 In fact Government policies are the deciding factor which impact on the future
prospects of companies.

19.
Consideration of corporate citizenship
obligations
 Corporate citizenship obligations are internal and external corporate activities
that contribute to the well being of society.
 The concept included in it are:-
 Sustainability
 Corporate social responsibility
 Stake holders

20.
THANK YOU