Strategic choices relate to decisions made by an organisation on what strategy to pursue.

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Candidates should recognise that strategy has several levels (such as business and corporate) and can be approached in a number of ways including:

• a contrast between external and internal approaches (the external approach involves finding and defending a particular market position while the internal approach centres on developing and maintaining internal capabilities which evolve with the organisation).

• different types of generic strategy such as rational, rational, flexible, incremental, creative,behavioural, evolutionary.

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Detailed knowledge of the above is not necessary for this Unit but it may help candidates to appreciate the complexity of the issues.

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Possible strategies can include Porter's cost leadership, cost focus, differentiation and focused differentiation, Mintzberg's deliberate and emergent strategy Other classifications include related and unrelated diversification, new product development, improved market penetration, seeking new markets, removing some operations. Models such as the Boston Matrix could also be used to identify suitable strategies.

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The relationship between potential changes in business strategy and the organisational environment will consider both micro and macro factors. For example, changes in organisation structure, management styles may well be contributory micro factors. PEST factors may provide a rationale for macro influences.