Strategic Priorities and Strategic Options
▪ Growth and change
▪ Centralization / decentralisation
▪ Haberberg, A. & Rieple, A., The Strategic Management of Organisations, Prentice Hall/Financial Times, 2001, pg 427-476
A strategic issue is something that the organisation needs to be concerned about and therefore, needs to address. Strategic issues may be positive or negative in nature.
Priority is a measure of two things:
1. The importance of an issue to the firm’s survival or success
2. The urgency with which the issue must be addressed
Strategic ...view middle of the document...
Look at the firm’s market segments, differentiation, positioning, scope & scale of operations.
▪ Resources and value chain: Assess whether the firm has resources that give competitive advantage. Assess how the firm’s value chain activities are structured, and how they compare to competitors.
▪ Organisational architecture and culture: Assess the suitability of architectural configuration of the firm’s systems and relationships as well as the prevailing culture.
3. Review the corporate level strategy
You do this for a multi-business corporation only. If you were analysing one specific business or SBU only, then you may skip this step.
4. Based on steps 1-3 above, identify the major strategic issues.
STEP 2: PRIORITISE STRATEGIC ISSUES
In general, negative issues of threat and weakness take priority over the positive issues of opportunity and strength because negative issues are problems that can cause trouble to the company while positive issues are generally not.
The strategic issues are listed here in order of descending priority: