Organizational Strategy

Vote 0 Votes
When assessing the influences on organizational strategy I would argue that power, capacity to change, and actors interest all play a certain role, but that capacity to change and more so power have the greatest influence on strategy.  The strategy of an organization is only as good as the power structure in place to implement it and without the right structure certain strategies; both corporate and business levels are bound to fail. The capacity for change will also have a huge influence on almost all forms of organizational strategy.  If an organization is quite flexible in the business operations it will be more likely to take on aggressive growth strategies. This cannot necessarily be said for organizations that are very structured and might be encouraged to take on a more stable strategy. While actors interest's my influence certain strategies I do not believe they have a big influence on most organizations strategies. I would contend that actors interest's have a much bigger influence on business level strategies as a opposed to corporate level ones. This is because at the corporate level, especially with larger organization it would be difficult to measure and take into account the interest of a large number of actors.  This may be different for specific business level strategies as the actors are more likely directly influenced by a specific strategy. To show how these factors influence organizational strategy it would be beneficial to look at a company such as Under Armor.  To begin with, their power structure has drastically changed as its organizational strategy has evolved.  The power of Under Armor used to be with only its owner and founder.  As the company grew and strategy changed, the power and leadership was dispersed throughout the various divisions of the company making the implementation of both corporate and business level strategies easier to carry out.. In this instance power has a huge influence on strategy and vice versa.  Obviously the capacity for change at Under Armor is a huge factor in how the company chooses its specific strategies. Because they are a very decentralized organization, thus very flexible, it makes it possible to implement very aggressive strategies. While actors interests aren't ignored, I don't see them having a huge influence on Under Armors' corporate strategies.  I don't think Under Armor's decision to create new division took into account the interest of actors in other division but may have with higher-level employees. Clearly, Under Armor's corporate strategies have been highly successful and were influenced in one way or another by the power structure, capacity for change, and actors interest.