Q.1.

Discuss the following Factors affecting Strategic Choices in brief:

Nature of environment stable?
Firms internal realities
Ambition of CEO / owners
Company culture
Firms capacity to execute the strategy.
Resource allocation
Ans.:
Nature of Environment-Stable: For any business to grow and prosper,
managers of the business must be able to anticipate, recognize and deal
with change in the internal and external environment. All businesses have
an internal and external environment. The internal environment is very
much associated with the human resource of the business or organization,
and the manner in which people undertake work in accordance with the
mission of the organization. To some extent, the internal environment is
controllable and changeable through planning and management
processes. The external environment, on the other hand is not
controllable. The managers of a business have no control over business
competitors, or changes to law, or general economic conditions. However
the managers of a business or organization do have some measure of
control as to how the business reacts to changes in its external
environment. So Organizations have to engage and conduct
environmental analysis to identify the stability impact Strategy Choice
might bring to the environment. This will help organizations to determine
strength, weakness, opportunities and threats present in the environment
being planned for.

Firms internal realities: Top management of every organization has its

inbound realities that generally affect the manner in which they run their
businesses. Its in this that they come up with strategies to strengthen
said realities and boost to the success of the organization as a whole.

Ambition of CEO / Owners: CEOs ambition towards their business is for it

to be a profitable and very successful venture. They are the ones who are
very active in formulating the mission and vision of the organization and
how it should be ran. They visualize their products to have an impact on
the desired market and for some to diversify to other markets so as to
increase profits and make the organization grow.

Company Culture: Strategic choices are normally grounded on the culture

of the company. This is brought about by the types of people presently
employed or involved in the organization. Any strategy to be undertaken
has to take into consideration if it is acceptable to the whole organization
or it will spell doom as this will not progress.

Firms capacity to execute the strategy: Planning strategies is very

different from acting on them. This will require commitment from
workforces of all levels in the organization. The capacity to enact planned
strategies is a demonstration to the organizations internal relations
making it simple and effortless.

Resource Allocation: Resources are very important in planning for

strategic choices as this will be considered as the organizations lifeline.
Without resources the organization cannot come up or make products
they intend to release to a specific market. Most strategies are centered
on what is the current resource allocation and is it enough to meet the
needs of the organization for production of goods.