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Strategic Business Leader · Concepts of strategy

Strategic Position, Choices and Action: The Johnson and Scholes Model

Updated 11 October 2026 · Fact-checked

The Johnson and Scholes model splits strategic management into three linked parts. Strategic position asks where the organisation stands. Strategic choices ask where it should go and how. Strategy into action asks how to make it happen. In SBL, you diagnose the case, recommend options, then plan implementation.

Understand Strategic Position, Choices and Action (Johnson, Scholes)

Strategy is the long-term direction of an organisation. Johnson and Scholes argue that managing it needs three connected questions. You do not ask them once. You return to them as things change.

Strategic position is about understanding the organisation's situation. It covers the external environment (for example PESTEL and Porter's Five Forces), the organisation's strategic capability (resources, competences, value chain), and its purpose and expectations (mission, vision, objectives, culture, stakeholders and governance).

Strategic choices are the options open to the organisation. They cover business-level strategy (how to compete, for example Porter's generic strategies), corporate-level strategy (which markets and products, for example Ansoff and portfolio models), international strategy, and the methods of pursuing a strategy: organic growth, acquisition or alliance. Options are then judged for suitability, acceptability and feasibility.

Strategy into action is about making the chosen strategy work. It covers organisation structure, processes and relationships, resourcing (people, finance, technology), managing strategic change, and the role of leaders and managers. Many strategies fail here, not at the planning stage.

In the exam, the model is a map of the syllabus, not a calculation. It helps you structure a answer and link analysis to recommendation. Position leads to choices, and choices must be turned into action. If you skip a stage, your advice will look unsupported or impractical.

Key rules to remember

Strategic position
Environment + Strategic capability + Purpose, culture and expectations
Diagnoses where the organisation stands. Use PESTEL, Five Forces, resource and value chain analysis, stakeholder and culture analysis.
Strategic choices
Business-level + Corporate-level + International + Development methods
Generates the options. Test each option for suitability, acceptability and feasibility.
Strategy into action
Structure + Processes + Relationships + Resources + Change management
Covers implementation. Link to leadership, people, finance, technology and managing change.
Option evaluation
Suitability, Acceptability, Feasibility
Suitability: fits the position. Acceptability: stakeholders and returns accept it. Feasibility: can it be done with available resources.

How to solve Strategic Position, Choices and Action (Johnson, Scholes) questions

Use this method for any SBL task that asks you to assess, advise on or plan strategy.

  1. 1Read the requirement and note which part of the model it targets: position, choices, action, or all three.
  2. 2Scan the scenario for evidence. Mark facts about the environment, resources, stakeholders and goals.
  3. 3Pick only the models that fit the facts, such as PESTEL or Five Forces for position, Ansoff for choices.
  4. 4Apply each model to the case. Use named facts from the scenario, not general theory.
  5. 5Link the stages. Show how the position points to certain options and how those options need certain actions.
  6. 6Evaluate options for suitability, acceptability and feasibility, and make a clear recommendation.
  7. 7Cover implementation: structure, people, resources, change and who leads it.
  8. 8Close with a short conclusion and write in the requested format, showing professional skills.

Quickest way: Position, Choices, Action in three lines

When to use it: Use when time is short or you need a plan for a long answer.

  1. Write P, C, A on your planning page.
  2. Under P note two or three key facts: outside forces, strengths and weaknesses, stakeholder goals.
  3. Under C list two or three options and give one reason each for or against.
  4. Under A note the main actions, the main barrier and who owns it.
  5. Write your answer in that order and use the headings in the requirement.

Common mistakes in Strategic Position, Choices and Action (Johnson, Scholes)

  • Describing the model instead of applying it.

    Students learn the framework as a list and repeat it.

    Fix: Spend almost all your words on the scenario. Mention the model in one line, then use case facts.

  • Stopping at position analysis.

    Analysis feels safe and easy to write.

    Fix: Always move to options and action. Ask what the analysis means for the decision.

  • Listing options with no evaluation.

    Students run out of time or forget the criteria.

    Fix: Test each option against suitability, acceptability and feasibility, then pick one.

  • Ignoring implementation.

    Students treat strategy as a choice only.

    Fix: Add a short section on structure, resources, people and change, and name the risks.

  • Treating the three parts as separate steps with no link.

    The model is drawn as three boxes.

    Fix: Show cause and effect. For example, a weak capability reduces feasibility of an option.

  • Using every model you know.

    Students want to show knowledge.

    Fix: Choose models that fit the facts. Depth with evidence earns more than a long list.

Worked examples

Example 1

A family-owned food manufacturer is losing share to supermarket own-brand products. The board is split on whether to expand abroad. The directors ask you to explain how the strategic position, choices and action framework can guide the decision.

Show the solution
  1. Position: assess the environment, for example supermarket buying power and price pressure using Five Forces. Assess capability: brand strength, plant capacity and cost base. Assess purpose: what the family owners want, such as independence or growth.
  2. Choices: list options. These include cost leadership, a premium focus on the brand, a new market through export, or an alliance with a foreign distributor.
  3. Evaluate each option. Suitability: does it answer the loss of share? Acceptability: do the owners accept the risk and possible loss of control? Feasibility: does the firm have the funds and skills?
  4. Action: for the favoured option, set out the changes needed in structure, staffing, funding and processes, and who will lead them.
  5. Link the stages. The board is split because it has not agreed the position or the owners' objectives, so agree these first.

Answer: Use the framework in order. First agree the position, including owners' objectives. Then evaluate options for suitability, acceptability and feasibility. Then plan the actions and leadership needed. The split board should settle the position first, because it drives which option fits.

Example 2

A regional bank has chosen a strategy of digital-only retail banking. It has strong customer trust but an old IT system and a branch-based culture. Advise on the strategy-into-action stage.

Show the solution
  1. Identify the gap between strategy and current capability. The old IT system and branch-based culture are barriers.
  2. Structure and processes: set up a digital unit or redesign processes around online service. Decide how branches will be reduced or repurposed.
  3. Resources: fund and plan IT replacement. Hire or train staff with digital skills. Phase the work to limit risk.
  4. People and culture: staff may resist branch closures. Communicate early, involve staff and offer retraining or redeployment.
  5. Leadership and control: name a senior sponsor, set milestones and measures, and review progress against them.
  6. Use the bank's customer trust as a strength. Protect it by keeping service stable during change.

Answer: The bank should close the capability gap through new IT, a digital-focused structure, staff training and careful change management. It should phase the work, communicate with staff and customers, and track milestones under clear senior leadership.

Exam tips

  • Check which part of the model the requirement targets. Do not write a full position analysis if the task asks for implementation.
  • Use facts from the pre-seen and exam scenario in every paragraph. Generic theory scores poorly.
  • Make a clear recommendation. SBL rewards judgement, not a balanced list with no decision.
  • Show professional skills: structure, commercial sense and a tone suited to the audience.
  • Link your answer across stages. Say how the position shapes the option and how the option needs action.

Practice questions from Concepts of strategy

Strategic Position, Choices and Action (Johnson, Scholes) in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Strategic Position, Choices and Action (Johnson, Scholes): frequently asked questions

What is the Johnson and Scholes strategic management model?

It splits strategic management into strategic position, strategic choices and strategy into action. Together they cover analysis, option selection and implementation. You use it to structure SBL answers.

Do I need to draw the model in the exam?

No. Use it as a structure for your thinking and headings. Marks come from applying ideas to the case, not from drawing diagrams.

Which tools belong to strategic position?

Environment tools such as PESTEL and Five Forces, capability tools such as resources, competences and the value chain, and purpose tools such as mission, culture and stakeholder analysis.

How is strategy into action examined in SBL?

Questions often ask how to implement a chosen strategy. Cover structure, resources, people, change and leadership, and link them to the scenario's specific barriers.