Organizational Strategy

Organizational Strategy

Introduction

An organization needs many resources to operate successfully in a competitive environment, which is open to frequent challenges. Managing a business properly is essential to secure good profit and growth figures. The concept of strategy has been subjected to multiple interpretations and there is no single definition. However, it is possible to identify the core concept of organizational strategy, which can be defined as the course of action consciously desired and determined in advance to ensure the achievement of the objectives of the organization.

Discussion

Successful organizational strategy formulation has always been the challenge of the leadership level. The management challenge of leading and organizing of a tough and important task from the view of organizational success and growth (Andrews, 1971). Perhaps the leader has to give more importance to create and lead the organization, form a good and efficient organizational structures, and eliminate or modify the traditional structures (Birkinshaw & Morrison, 1995). Although inevitably formalize new power relations that exist in organization, to recognize the relationships of influence and new ways of interacting conditions is significantly challenging (Chandler, 1962).

Organizational Strategies

Organizational strategy planning is inseparably interwoven with the processes of organization in a way that every manager must understand its importance and implementation. In addition, except for some organizations, any organization that does not have some kind of organizational strategic planning system is exposed to an inevitable disaster (Hendry, 1992).

The concept of strategy can be as the overall program and the achievement of the objectives of the organization and successful implementation of its mission. It is the active, well-defined and administrated formulation of strategic planning for an organization (Daft & Lewin, 1993). Organizational strategies are intended to relate the pattern of organizational responses to their environment over time. Before the organizational strategy is be developed and formulated a confrontation with the strategic thrust is essential. Prerequisites for good strategic considerations include a clear business idea, a consistent business model and a rough analysis of the entrepreneurial idea (James & Jones, 2000).

If the entrepreneurial idea has withstood a thorough review, we need to make key strategic decisions of principle which are later integrated into the business plan (Birkinshaw & Morrison, 1995). The following elements are essential for a successful corporate strategy:

The vision formulated in one sentence, where the company should be in 10 years.

The strategic success positions should (SEPs, even core competencies, strategic competitive advantages) show how to position the company in the future in the market and compete with the direct or indirect competition.

As part of the most important strategic business activities of the company as a product/market combination are recorded.

As part of the growth targets it is necessary to define the future growth steps for a successful future development.

Successful businesses rely on targeted innovation activities, which in strategic terms must be clearly stated (Chandler, 1962).

Overview of Approaches to Organizational Strategy

There are basically two major approaches to the way organizational strategies and structures are formulated. The first was the traditional approach to the organizational strategy, and now ...