Organizational Strategy

An organization's strategy is vital to the design of the organizational structure. According to the research done on organizational strategy by Alfred Chandler, "strategy can be defined as the determination of the basic long-term goals and objectives of an enterprise and the adoption of courses of action and the allocation of resources necessary for carrying out these goals." Many things can influence organizational strategy. I am going to look into power, capacity for change, and outside interest and how they influence organizational strategy. Power influences the way an organization goes about finding the means to achieve its goals. The more power and money an organization has the more diversified they can become. Diversification allows a powerful organization to acquire another organization in a different market to help the powerful organization stay powerful. A powerful organization may in fact have a growth strategy on the corporate level. If you have little power your organizational structure will be a little different. Odds are you may be the organization that gets taken over or purchased by a powerful organization. On the other an organization with little power may also just delve into one particular market instead of many different ones, but still be successful. An organization that is not very powerful may use a stability strategy on the corporate level. In an environment that is constantly changing, the capacity for change is crucial to the effectiveness of an organization. The influence that the environment plays on organizations makes the capacity for change the difference between living and dying. In my opinion the business-level strategy must make an attempt to recognize a particular market to minimize risk and maximize profit. Using the focus strategy on the business-level will allow the organization to focus on the needs of a particular market, then allowing them to choose either the cost leadership or differentiation strategy. The outside interest of the consumer also plays a key role in how to determine what organizational strategy to use. Many products created by organizations are suited towards a particular market because they believe they can maximize their profits. Nike makes a certain amount of each product because they know that the demand for each product is different. The season of the year may determine that or the location of where they are selling their product may also determine how much the outside interest has an influence on their organizational strategy. When choosing a strategy start with the organization's mission statement. It will show the goals and objectives for the company. Analyze the external and internal operations of the organization. The organizational strategy will go hand in hand with the way organization is structured.