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Strategic Choice Theory

Discuss About The Ementation Different Kinds Strategies Effectively.

The report helps in analysing the different theories on organization, agency theory along with the determinism theories as well. The report furthermore discusses on the structural contingency theory that helps in analysis of the entire company with proper implementation of different kinds of strategies effectively. The contingency theory helps in discussing about the structure of the company. It has been seen that there is no such specific structure of the organizations that can fit with the entire structure of the company and this is equally effective in nature for the different other companies as well.

 There are different factors on which the optimal structure is dependent and these are known as the contingency factors that includes the environment wherein it operates along with the accurate and proper usage of the technology along with the size as well. As to become and be more effective in nature, the organization has to fit with the different contingency factors along with the entire environment as well (Ashkanasy, Härtel & Zerbe, 2016).

Furthermore, on the other hand, agency theory helps in explaining that the structure unevenness along with the organizational performance that gets influenced by the different decisions taken by the various managers who are the agents and this assists the companies in maximising the amount of profit through internal process. The different managers of the organization utilise the information of the companies and this helps in developing different strategies for the different companies. The different choices along with the decisions that are made by the individuals are manipulated that can be based on different kind of environmental factors as well (Heding, Knudtzen & Bjerre, 2015).

On the other hand, the agency theory is the one wherein determinist theory helps in believing that the different individuals are not in a position to make different decisions as they do not have the power to think in an innovative manner. Furthermore, it has been argued that the organizations are being considered on the basis of the performance and this can be measured in an accurate manner as well. It helps in discussing the different causes of the variability in the organizational performance such as managerial environment choices. In the determinist theory, the respective theory helps in explaining the performance of along with the different choices that depends on the environmental kind of mechanism. As per the different kind of generation of ideas from the each of the theories, these are reconciled in the universal type of theory. Furthermore, based on the different kind of aspects, the report is providing different type of arguments as to resolve the different theories.

Discussion on various aspects of theories

Strategic Choice Theory: The contingency theory, institutional theory, population ecology theory along with resource dependency theory. According to (), there are various four theories has to be argued as this helps in reconciling that is based on few perspectives that is due to the level of analysis along with pressures from environment and analysis level.

() has commented and stated that the level of choices along with determinism that is being divided into different quadrants (Q) that has been resulted from four different type of combinations. Q1 emphasis on the entire normal selection with the choice that is minimal in nature along with proper analysis of the retention and adaption that provides the idea of population ecology. Furthermore, Q2 helps in dealing with high kind of choice idea along with huge determinism and the adoption with the different eco-friendly restrictions that emphasises on huge power of institutionalised along with the different resources that helps in focusing more on the Institutional theory.

Additionally, Q3 focuses much more on the strategic choice that is huge in nature that maximises the maximum kind of choice along with adoption of structural design focusing on the structural contingency theory. Lastly, Q4 focuses on the level of choice that is incremental in nature and the adoption is done by the chance. According to the discussion, resource dependence theory helps in analysing the moderate kind of behaviour along with determinism that makes and lies between institutional theory and SCT that is quadrant 2 and quadrant 3. The respective report helps in analysing the different kind of aspects that has been discussed as to prove the fact that the different organizations helps in building the different theories along with models due to the different constraints that has to be successful in correspondence to the old kind of theories.

The paper focuses on different kind of theories and reconciliation of the theories in the universal theory in the next sections. The discussion will proceed the summary of different ideas that will provide different facts in the next sections.

The respective theory helps in analysing the design of the organization that has the accurate fit in the organizational environment wherein this will operate. As per Cornelissen et al., (2015), the kind of environment in which the organization will exist, this is decided with the help of stable environment that will not respond to the daily or the external changes in the market and the response is predictable in nature with the prior kind of beliefs that will enable the managers to analyse the entire situation effectively by deciding on the accurate goals and development of the strategies will be required to achieve it (Marti & Scherer, 2016).

Resource Dependency Theory

Furthermore, horizontally along with vertically differentiated kind of structural companies adopt stable kind of environment in an easy manner, on the other hand there are organizations with unstable kind of environment that is flexible in nature in comparison to the external environment to the changes in the market and the company have organic structure and this is low level of horizontal along with vertical differentiation (Kipping & Üsdiken, 2014). There are two strategies such as internal and external strategy that includes the different decisions of the managers with influence of the technology, resources and operations etc. This eventually helps in developing efficiency of the organization considering entire environment that will respond best to the different kind of products and services as well. Secondly, the environmental strategy provides different choices to the managers as this decides the kind of environment that is suitable and this will be adoptable in nature for the sale of the different goods and services that creates market efficiency (Bratton & Gold, 2017). The efficiency in the market is expected as there are different environmental conditions that will lead to complexity along with variability that has allowed the different managers in the organizations to make various choices with the different structures along with the strategies to improve the performance that leads to unstable kind of external organization.

Therefore, it has been concluded that SCT helps in becoming more kind of strategic decisions along with allowing the different managers in utilising the agency for deciding the design of the organization and Northouse, (2018) has discussed that there are different decisions that are made in an internal manner and this becomes result of the environmental operations along with the different conditions in the market. Therefore, the sustaining the idea with maximum choices as this determines the structure to adopt the micro environmental kind of factors.

The different resources are the basic requirements of the organizations and this is measured as one of the elements in which the managers desire to make the different decisions. The respective theory is based on the involvement of the acquiring essential resources from the entire external environment that might be found with different actors or the organizations. The relationship of the dependency theory generates from differences in the authority and this access to resources (Neubert & Dyck, 2016). Furthermore, there can be scarcity of the different resources that has to be dependable on the organizations. The relationship of the different kind of dependency helps in generating from the different kind of differences in the authority along with the access to the different resources.

As to avoid the different kind of dependencies, the different companies helped in developing different strategies internally and with the decisions which best suits the structure along with external resource-based trades among the environment of the organization (Geisler & Wickramasinghe, 2015). The different kind of strategies help in enhancing the relationships that includes inter-organizational relationship along with increase the scale of the different operations whereas the entire broadening of the strategy of the product lines helps in reducing the dependence of the organization on others. Otley, (2016) has commented that the dependency of the different resources helps in leading shift to the power of the external kind of agents along with adjusting the different strategies.

It seeks that the adoptions of the organizations to dependencies on the external resources that includes aligning the different internal elements along with the constraints of the external environment such as decision on the different suppliers and this helps in enhancing the performance of the organization (Ross, 2017). The resource dependency theory helps in discussing that there can be alteration of the environmental kind of conditions that will show adequate amount of determinism while making different choices in respect to the suppliers as the managers have few restrictions and therefore, it lies between quadrant 2 and 3 (Baker & Saren, 2017).

Mahadevan, (2015) has stated that institutional theory helps in studying the behaviour of the different companies in the environment that is competitive in nature in respect to the entire growth along with survival by becoming lawful to the different stakeholders. The respective theory aims in establishing along with standardising the behaviours along with rules as to legitimate along with avoid the different kind of deviations in respect to the same kind of organizations and there is lack of the strategic choice as well.

The individual kind of companies adopt the diversification strategy as this sustains the peers along with divisionalize the entire structure in comparison to the competitors. There are different circumstances wherein it is forced to be closed system in place of open system and this argues on the less usage of the different resources and this helps in increasing the motivation and the capabilities of the organization to choose the best kind of strategies that helps in determination of the choices as well (Piazza & Castellucci,2014).

The population of the companies is a group of the companies that has been competing for the actual resources depend on the resources along with the competition for the same. The population ecology helps in studying the different changes that dynamically occur within the certain amount of population (Waring, 2016). It helps in analysing that the different organizations have structural inertia such as limited kind of information about the company along with the different internal and legitimacy constraints that becomes obstruction in the adoption of the entire process when the entire external environment change takes place (Gond et al., 2016).

Furthermore, population ecology includes the variation along with selection of the environment wherein the company can survive along with retention of the survivors is included. Therefore, this respective theory concentrates on existence of the company due to such kind of inertia that is structural in nature as to reduce the different complexities and overcome such barriers in the organization (Rothaermel, 2015).

Therefore, from the entire discussion it has been analysed that the different companies are dependent on the different external factors such as human resources with capabilities along with skills. These are the different factors that helps in corresponding to the determinism theory along with analysis of the impact on the organizations (Hill, Jones & Schilling, 2014). To overcome such situation, the companies has to form different strategies to adopt such changes. According to SCT, it can be seen when the size of the entire company increases, the adoption of the organic structure is essential and the managers make the favourable to the changes and they should deal with the resources that will be acquired that makes them more innovative in nature. In the SARAFIT model, the companies need to adopt misfit by realigning entire structure to gain the fit between the environment and organization (Murphy, Klotz & Kreiner, 2017).

Furthermore, the managers have the entire power to make different kind of choices among the different kind of resources and there can be different constraints in dealing with suppliers. () has argued that some organizations utilise the agency to choose the structures that is formed as to fit with the contingency terms and factors. There are different companies with internal capabilities and strengths that are designed for managing the dependency of the resources and this is dynamic in nature as well. () has argued that the different companies has different internal strengths and weaknesses that has to be ascertained effectively.

 Lastly, it has been seen that there are some companies that are competitive in nature with different product lines that can help in different niches and they are subjected to selection, retention and variation processes. Therefore, these are the different theories that can be reconciled in nature with universal theory or the unique kind of model as this assist them in overcoming the impact of the external environment with new kind of innovations to help and assist the companies to sustain the strong kind of competition (Stead & Stead, 2015).


Therefore, it can be concluded that there are different influences of the external environment that organizations do not have such kind of control such as government, new challenges or technologies and this helps them in signifying the deterministic kind of behaviour. This respective determinism forces the entire company in adopting to the environmental type of factors with support of the different strategies and the benefits that can be gained by the organizations. These are the different strategies that helps in contributing towards the leading different kind of innovations and these help in improving the performance along with the entire environment wherein the companies have to survive in the competitive environment effectively. Lastly, the different kind of organizations have different universal theory and with combination of such theories to continue being more successful with correspondence to the old theories and this is explained effectively as well.


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Bratton, J., & Gold, J. (2017). Human resource management: theory and practice. Palgrave.

Cornelissen, J. P., Durand, R., Fiss, P. C., Lammers, J. C., & Vaara, E. (2015). Putting communication front and center in institutional theory and analysis.

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Gond, J. P., Cabantous, L., Harding, N., & Learmonth, M. (2016). What do we mean by performativity in organizational and management theory? The uses and abuses of performativity. International Journal of Management Reviews, 18(4), 440-463.

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Kipping, M., & Üsdiken, B. (2014). History in organization and management theory: More than meets the eye. The Academy of Management Annals, 8(1), 535-588.

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Marti, E., & Scherer, A. G. (2016). Financial regulation and social welfare: The critical contribution of management theory. Academy of Management Review, 41(2), 298-323.

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Neubert, M. J., & Dyck, B. (2016). Developing sustainable management theory: goal-setting theory based in virtue. Management Decision, 54(2), 304-320.

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