Track: Business Management
Abstract
The purpose of this paper is to help businesses to select the strategic plans most suitable for them. This requires using practical and beneficial techniques. To do this, the alternative strategies that are developed for the correspondent opportunities need to be evaluated. Only by making an evaluation as objectively and impartially as possible, the best decision can be achieved. Techniques that may be applied simultaneously or interchangeably to select the best of alternative strategies are as follows:
· Factors analysis
· Strategic option grid
· Risk drivers
Even if the best strategy is selected by any of these techniques listed above, contingency plans are still necessary for the selected strategy in a risky environment. A sensitivity analysis needs to be conducted, taking into consideration the possibility that basic assumptions and parameters do not come out as expected and the measures considered to be taken in this respect need to be identified.