ACCA Strategic Professional · Strategic Business Leader · Concepts of strategy
Orlin Energy's strategic management comprises three elements: strategic analysis, strategic choice and strategy implementation. The board has reviewed its external environment, resources and stakeholder expectations, and generated three options: biofuel expansion, offshore wind, or a sale of the generation arm. It is now using suitability, acceptability and feasibility tests to compare them. Which statement is correct about the stage reached and the next requirement?
Orlin is in the strategic choice stage, because analysis is finished and options are being generated and evaluated using suitability, acceptability and feasibility. After an option is selected, the next stage is implementation, which involves planning resources, structure, systems and managing any change required.
- AIt is in strategic analysis and must still generate options
- BIt is in strategic choice; once an option is selected the next stage is implementation, including resource planning and structureCorrect
- CIt is in implementation, since options already exist
- DIt is in strategic control, which must precede selection of options
Explanation
Analysis is complete (environment, resources, expectations). Generating and evaluating options against suitability, acceptability and feasibility is strategic choice. After selection, implementation follows, covering resources, structure, systems and change. The elements interact in practice but this is the logical order in the Johnson, Scholes and Whittington model.
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