Strategic choice refers to the decision which determines the future strategy of a firm. A SWOT analysis is conducted to examine the strengths and weaknesses of the firm and opportunities that can be exploited are also determined.
Strategic choice is therefore, the decision to select from among the grand strategies considered, the strategy which will best meet the enterprise objectives. The decision involves the following four steps — focusing on few alternatives, considering the selection factors, evaluating the alternatives against these criteria and making the actual choice.
Focusing on 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.
By reverting to business definition it helps the managers to think in a structured manner along any one or more dimensions of the business. Analyzing the strategic alternatives- The alternatives have to be subjected to a thorough analysis which rely on certain factors known as selection factors.
These selection factors determine the criteria on the basis of which the evaluation will take place. They are:.
Evaluation of strategies — Each factor is evaluated for its capability to help the organization to achieve its objectives. Successive iterative steps of analyzing different alternatives lie at the heart of such evaluation.
Making a strategic choice — A strategic choice must lead to a clear assessment of alternative which is the most suitable alternative under the existing conditions. A blueprint has to be made that will describe the strategies and conditions under which it operates.
Contingency strategies must be also devised.