The Application of the Thought of Strategic Options in Enterprise Strategic Change

In dynamic and competitive times, retaining strategic flexibility through strategic changing is an effective method for enterprise to cope with changes. Strategy change, like ldquooptionrdquo in the financial economics, is to gain the highest possible risk investment return. So the thought of option is introduced to give a hand to managers to gain strategic flexibility. As a quantitative analysis tool, real option is of tremendous potential value in the field of strategic management. The analysis of the relationship between option thought and strategic management is made, and the function of strategic option is discussed in this paper. Furthermore, this paper tries to apply the thought of option to strategic change and structure a strategic change model combined with option thought. The model displays how strategy change is dependent on options to spread in different ways, and displays how to build a bridge between the present and the future.