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Strategic Choice Models

Explain and discuss the limitations of traditional strategic choice models, particularly in terms of rational choice assumptions and assumptions about control and predictability. You may wish to compare and contrast traditional strategic choice models with extended strategic thinking models based on organizational learning and systems dynamics. Another approach could be to explain and discuss the implications of strategy as process, where assumptions about rationality, emergence, time, and causality are relaxed or changed significantly from the traditional strategy choice models.

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Strategic choice as a process refers to a possibility of having a continuing adaptive learning cycle within a framework of 'organizational learning' within organizational context as socio-political systems. Hence, strategic choice is related to a model of organizations wherein organizational learning and adaptation goes towards the shifting forces of the politics of organizations. It has a deterministic view which was inadequate because whoever has the power to direct the organization fails to give attention to the agency of choice. Hence, the powerful people in the organization are the ones who decide upon the courses of strategic action to be done. There is a need for formal approval by the board which is actually a formal confirmation of the decision that has been agreed upon before the actual meeting. The next move is to explain to the other committee members and gain support of a far wider range of people so that a strategy can help make things happen. Strategy is driven solely by competitive advantage but there will be cases where a vision or strategic intent that can determine long-term direction will make strategic choices work for the means rather than direction. Strategic choice is about deciding between different options. In implementation, the options can be on what capabilities and resources are needed and how to build them. These options are usually interrelated since there is a need to identify only a few strategic options which can be made up of related options. Strategic choice is about comparing strategic options both ...

Solution Summary

The solution explains and discusses the limitations of traditional strategic choice models and it is also compared with extended strategic thinking models based on organizational learning and systems dynamics. It also explained the implications of strategy as a process. References are included.