Hello Friends, Today, we are going to discuss the Strategic Options. We already write some articles about Strategic Management: Meaning, Features, Importance, and Levels. It is a series of comprehensive guides for the establishment of entrepreneurship ventures. If You don’t know about the business Environment Please read once. Let’s start with some basics of the Strategic Options.
Concepts of Strategic Options
Strategic options are creative alternative action-oriented responses to the external situation that an organization (or group of organizations) faces. Strategic options take advantage of facts and actors, trends, opportunities and threats of the outside world.
Strategic options can be identified after an institutional assessment, keeping in mind the aspirations (basic question) of an organization. The tool ‘Strategic options’ helps to identify and make a preliminary screening of alternative strategic options or perspectives.
Corporate level strategy
Strategic Alternative at Corporate Level (Grand Strategies): Corporate or Grand strategies are the decisions or choices of long term plans from available alternatives. Grand strategies also called a master or corporate strategy. It is based on the analysis of the internal and external environment. This directs the organization towards the achievement of overall long term objectives (strategic intent).
The corporate-level strategy is concerned with the overall purpose and scope of an organization and how value will be added to the different parts (business units) of the organization. ( Johnson and Scholes).
The corporate level strategy addresses the question as “what business are we in? It is related to the acquisition of new business‚ addition or divestments of business units‚ plants or product lines and joint ventures with other companies in new areas etc.
The business-level strategy attempts to gain a competitive advantage by exploiting core competencies in the specific product-market. The main objectives of business strategies are:
- To fulfill customer needs and attract them.
- To reduce competitive pressure
- To enhance market position by increasing market share.