STRATEGID ANALYSIS AND CHOICE
STRATEGIC ANALYSIS AND CHOICE
INTRODUCTION
Strategic analysis and choice are done at two levels, namely, corporate and business levels.
Strategists at the two levels unlike those at the operational level can choose what strategies to adopt i.e. “doing the right things”.
Hence, effectiveness in realizing organizational goals is critical at these levels of strategic management.
Operational strategy, on the other hand, focuses on “doing things right” i.e. properly operationalizing or implementing the strategic choices from upper levels of strategic management.
Hence, efficiency is the critical factor at the operational level.
Strategic analysis aims at identifying and generating strategic options for corporate and business strategic objectives.
Strategic choice, on the other hand, is concerned with the evaluation of the strategic options and selection of the most appropriate options for achieving the objectives.
CORPORATE STRATEGIC ANALYSIS
Focuses on effectiveness or performance of the organization as a whole.
Effectiveness or performance of an organization as a whole may depend on various factors e.g. role in social responsibility, corporate image, and business portfolio.
Business portfolio i.e. the combination of businesses owned by an organization, most determines the organization’s performance.
The performance most depends on whether the businesses are good and whether the organization is strong in them.
How good a business is and how strong an organization is in the business determines the attractiveness of the business.
An organization should allocate resources to businesses according to attractiveness i.e. the more the attractiveness the more the resources allocated.
The amount of resources allocated to a business determines the size of the business.
Business portfolio reflects how an organization has allocated its resources among various businesses.
How well such resources have been allocated or
INTRODUCTION
Strategic analysis and choice are done at two levels, namely, corporate and business levels.
Strategists at the two levels unlike those at the operational level can choose what strategies to adopt i.e. “doing the right things”.
Hence, effectiveness in realizing organizational goals is critical at these levels of strategic management.
Operational strategy, on the other hand, focuses on “doing things right” i.e. properly operationalizing or implementing the strategic choices from upper levels of strategic management.
Hence, efficiency is the critical factor at the operational level.
Strategic analysis aims at identifying and generating strategic options for corporate and business strategic objectives.
Strategic choice, on the other hand, is concerned with the evaluation of the strategic options and selection of the most appropriate options for achieving the objectives.
CORPORATE STRATEGIC ANALYSIS
Focuses on effectiveness or performance of the organization as a whole.
Effectiveness or performance of an organization as a whole may depend on various factors e.g. role in social responsibility, corporate image, and business portfolio.
Business portfolio i.e. the combination of businesses owned by an organization, most determines the organization’s performance.
The performance most depends on whether the businesses are good and whether the organization is strong in them.
How good a business is and how strong an organization is in the business determines the attractiveness of the business.
An organization should allocate resources to businesses according to attractiveness i.e. the more the attractiveness the more the resources allocated.
The amount of resources allocated to a business determines the size of the business.
Business portfolio reflects how an organization has allocated its resources among various businesses.
How well such resources have been allocated or