Choice of Corporate

Strategy
Presented by:
Samil Jugli
Tribhuwan
Singh
Concept of Strategic
Choice
“Strategic choice is the decision


which selects from among the

alternative grand strategies which
will best meet the enterprise
objectives. The choice involves
consideration of selection factors,
evaluation of the alternatives
against these criteria, and the
actual choice.”


 -Glueck & Jauch

 Choice Process

cusing on Strategic Alternatives Evaluating Strategic Alternatives

Objective Factors

Strategy Choice Considering Decision Factors

Subjective Factors
Focusing on Strategic
Alternatives
 Identification of various alternatives.

In Focusing on alternatives GAP


Analysis is helpful.
GAP Analysis:

Desired
Performance
Performance

Performance gap
Present
Performance

T1 T2
Time
Evaluation of Strategic
Alternatives:
For evaluating various alternatives,


three approaches may be adopted:

1.Portfolio Analysis
2.Corporate Parenting Analysis
3.Profit impact of market strategy.
Portfolio Analysis:

Portfolio Analysis is a set of techniques that



helps an organization in making strategic

decisions with the regard to what to do with
different businesses.


Portfolio analysis approaches are:



ü BCG Growth-Share Matrix

ü GE Nine Cell Planning Grid
ü Product/Market Evolution Matrix
ü Directional Policy Matrix &
ü Strategic Position & Action Evaluation.
Consideration of Decision
Factors:
Consideration of Decision
Factors:
1. OBJECTIVE
FACTORS
o Strategic intent
o SWOT analysis
2. SUBJECTIVE

FACTORS
o past strategies
o defenders
o prospectors
o analyzers
o reactors
 INTERNAL POLITICAL
CONSIDERATIONS
P o litica l a ctiv itie s in stra te g ic
Phasesd of
e cisio n m aFocus
strategic k in gof political Examples of political
decision making action activity
Identification and Control of issues to be Control of agenda and
diagnosis of strategic discussed and cause- interpretation of past
issues effect relationship to be events and future trends
Narrowing the Control
examined of alternative Coalition formation,
alternative strategies resource commitment
for serious for information search
Examining and
considerations Control of choice Selective advocacy of
choosing the strategy criteria, search and
representation of
Initiating the Interaction between the Winners
informationattempt ‘sell’
to justify
implementation of winners and losers or co-opt losers; losers
choice
strategy attempt to thwart
decisions and trigger
 CHOICE OF
STRATEGY
1.Does the strategy fits management’s values,
philosophy, know-how, personality and
sense of social responsibility
2.Is the strategy consistent with internal
strengths, objectives, and policies
3.Does the strategy conflicts with the other
strategies of the organization
4.Does the organization have sufficient resources
to implement the strategy
5.Size of organization's resource required
6.Is the payback of the strategy acceptable in
the light of the changing environment
7.Have the strategy’s alternatives been properly
evaluated
8.Is the strategy acceptable to the major
constituents of the
 thanks