Strategic Options: Formation, Evaluation, and Selection

George Tovstiga
Additional contact information
George Tovstiga: EDHEC Business School

Chapter Chapter 6 in Strategy Praxis, 2023, pp 163-206 from Springer

Abstract: Abstract The purpose of strategy is to make better-informed decisions in response to a strategic challenge. In strategic problem-solving, analysis lays the groundwork for decision-making. Consequently, firms tend to invest substantial effort into the analysis part of problem-solving, but then struggle when it comes to transforming insights into appropriate decisions and actions. The lack of guidance in management thinking on the transition from analysis to decision-making points to a critical theory-practice gap in the current management literature. In this chapter, we address this dilemma and develop a conceptually rigorous approach for transitioning from analysis to option formation. We examine how first principles-based, insight-driven thinking and analysis not only establishes root causality of a challenge but also lays the conceptual groundwork for transforming insights into suitable courses of action, and the mechanisms by which strategic options are scoped, dimensioned, and crafted. Building on the same principles, we examine how strategic options, once formulated, are evaluated and selected on the basis of criteria derived from the five strategy building blocks (5-SBBs) construct. The chapter closes with a case application that illustrates the applicability of the approach presented to a real-world business transaction.

Keywords: Strategic option formation; Decision-making; Transition from analysis to formation; Option evaluation and selection (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:mgmchp:978-3-031-40692-8_6

Ordering information: This item can be ordered from
http://www.springer.com/9783031406928

DOI: 10.1007/978-3-031-40692-8_6

Access Statistics for this chapter

More chapters in Management for Professionals from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().