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Behavioral Conditions in strategic examination and choice are mentioned below: * Role of current strategy * Degree of firm's external dependence * Attitudes toward risk * Managerial priorities different from stockholder interests * Internal political considerations * Competitive reaction Details: Role of current strategy What is the amount of time and resources invested in previous strategies? How close are new strategies to the old? How successful were previous strategies? Degree of firm's external dependence How powerful are firm's owners, customers, competitors, unions, and its government? How flexible is firm with its environment? Attitudes toward risk Industry volatility and industry evolution affect managerial attitudes Risk-oriented managers prefer offensive, opportunistic strategies Risk-averse managers prefer defensive, conservative strategies Managerial priorities different from stockholder interests Agency theory suggests managers frequently place their own interests above those of their shareholders Internal political considerations Major sources of company power are CEO, key subunits, and key departments Power can affect corporate decisions over analytical considerations The content of strategic decisions and the process of arriving at such decisions are politically charged Competitive reaction Probable impact of competitor response must be considered during strategy design process Competitor response can alter the success of strategy.
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