Assumptions and Contribution of the Strategic Choice Theory Essay

Assumptions and Contribution of the Strategic Choice Theory - Essay Example The researcher states that the use of the strategic choice analysis also contributes to helping the organization and its management in optimally utilizing the existing resource base to gain needed a competitive advantage. The organization would thus become ready to potentially adapt to the external changes in the technological, social and politico-economic environment. Further, the aspect of strategic choice also highlighted the need for generating an effective interrelationship between the organization and the managerial framework. It aims to effectively integrate the organizations and its individuals in that the same contributes to a generation of the right strategic choice to exploit the existing resource base in a generation of needed competitive potential. It thus endeavors to reduce the aspect of tension both relating to the internal and external organizational framework which in turn enhances its efficiency to counter changes in the external environment. Strategic Choice Theor y relates to the actions or roles played by organizational leaders in making concerned choices to enhance the competitive advantage of the business organization against external political, demographic, social, economic and technological changes. Further, the strategic choice theory is also observed to generate tension relating to agency and structural elements. The relation of an agency to structure and further to the external environment makes the theory of strategic choice more dynamic and applicable to different settings. This reflects that the strategic choice theory not only serves the competing needs of the organization but also tend to depict an evolutionary approach based on external needs and changes. Strategic Choice Theory also reflects on the manner in which the business organizations gradually adapt to the changing needs to help gain needed a competitive advantage. The concept of ‘Strategic Choice’ relates to the process through which the authoritative bodi es in an organization tend to incorporate to help in taking of strategic actions.