Strategic option
| Strategic option |
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Strategic option is one of several solutions of specific task or objectives of the organization.
Preferred or accepted by the enterprise community strategic option should be the basis for planning professionals to develop a strategy. Such a strategy consist of long-term goals and objectives and plans leading to the achievement of this objectives. It also contains a package of measures to ensure their achievement, allowing risk reduction and increase the chances of success.
Strategic management and the design of strategy requires to make informed and rational decisions. These decisions require management to study carefully the situation and the creation of several possible strategic options for implementation. Each of the strategic options should be carefully analyzed in order to evaluate and select one of them.
Assessment of strategic options
Each strategic option should be evaluated in terms of:
- The feasibility of the strategy - a necessary condition, which should be meet by the strategic option,
- Compliance with the company's mission and strategic goals
- Convergence with other strategies,
- Flexibility in the changing environment,
- Acceptability by stakeholders,
- Ensure of a competitive advantage,
- Temporality.
Evaluation of strategic options against the above criteria allows managers to choose the optimal variant in the specific circumstances and to develop a strategy setting out the way that the company wants to follow and constantly improve it.
This assessment allows managers to answer questions about specific capabilities of the company, the expected changes, the resources needed to perform the tasks and their allocation, and the company's position in the future.
Well-chosen strategic option should be the answer to the future prospects of the organization.
References
- Combe, I. A., Rudd, J. M., Leeflang, P. S., & Greenley, G. E. (2012). Antecedents to strategic flexibility: Management cognition, firm resources and strategic options. European Journal of Marketing, 46(10), 1320-1339.
- Dess, G. G., Lumpkin, G. T., & Eisner, A. B. (2010). Strategic management: Text and cases.
- Galbreath, J. (2006). Corporate social responsibility strategy: strategic options, global considerations. Corporate Governance: The international journal of business in society, 6(2), 175-187.
