Organizational Strategy

Organizational Strategy

Organizational Strategy Concepts and how a Company them to Compete

Organizational strategy is critical for all businesses despite the size. If a business goal is to grow and thrive through the competitor market, strategic planning is vital. This article explains what organizational strategy is, its key concepts as well as why every business needs it to compete.

Organizational Strategy Definition

In simple terms, the term means a clear plan that stipulates how the business allocates resources in the form of money and labour, among others, to support its production and development in infrastructure, among others. According to Peng et al. (2018), there are three different categories needed to make an organizational strategy match the completion in the market, including Corporate, Business and Functional levels plans. Every level acts as a block supporting the main organizational strategy guiding the business, as explained below.

Corporate Level Strategy

This level represents the main goal of the business. It forms the main purpose the business is set and gives its direction. Some of the strategies at this level include Attentiveness, Modification, No Change, Revenue, Examination, Improvement, and Liquidation(Brønn&Brønn, 2018). The policies are usually broad in scope and complexity, and their main aim is too overarching business goals..

Business-Level Strategy

This category acts as a connection between a corporate-level strategy and the functions that take place in the functional level strategy. Consequently, this level has a higher focus than the corporate level strategy. A good example would be that if the corporate level strategy is diversification, then it follows that at the business level, there would be different strategies such as Rise marketing budget, Rebrand, Explore different markets and Extend exposure. Having more specific goals at this level, then further guides in establishing the company’s functional-level strategies(Drnevich&Croson, 2013).

Functional Level Strategy

This level includes detailed and specific actions assigned to the individuals and departments that work to drive the business towards the set goals by the corporate strategy level. They serve as a direct offshoot towards the business-level strategy. For example, if a policy in the business level strategy is a rebrand, then at the functional level, there will be strategies such as a direction to the marketing department to examine the type of colour the product should be made so that it is appealing to the customers in the market.

The above three organizational strategies help make the business successful. They give the business a direction that allows it to win against its competitors. A company needs to set a clear organization strategy while considering all the levels like corporate, business and functional to ensure they perform in the market.

References

Brønn, C., &Brønn, P. S. (2018). Corporate Strategy. The International Encyclopedia of Strategic Communication, 1-18.

Drnevich, P. L., &Croson, D. C. (2013). Information technology and business-level strategy: toward an integrated theoretical perspective. Mis Quarterly, 483-509.

Peng, M. Y. P., Peng, Y. C., & Chang, C. C. (2018, May). The Effect of Organizational Strategy Orientation on Network Relationships. In Proceedings of the 2018 International Conference on E-business and Mobile Commerce (pp.