Organizational strategy combine various plans for changes in different areas of the company e.g. technical, production, employment, finance, marketing, etc. It can also be understood in terms of structural changes, restructuring, development programs, and company growth. Organizational strategies are primarily presented in the context of the broadly understood company strategy. The organizational strategy can also be defined as the concept of the company's operation in the long-term, supported and stabilized by the organizational culture, aimed at ensuring the effective implementation of goals. The organizational strategy integrates particular types of management strategies, fulfilling the role of the superior strategy.
Types of strategy
Strategy of business which brings profits has a basic goal. It is named by the person who own the company and who is a chief of the company. An example of a single strategy thinking may be to provide the market with the cheapest product. But the question is (even if the sales will rise) if this business will still earn money? Or just make cheap products of which huge sales will not cover expenses? That's why perfect strategy is an important thing as company's owner wants to make money and cover all expenses by the profits.
- Low – cost
The key of this strategy is to provide the costumer with as low prices as possible and also for expenses of the company to be at the lowest level. It can be accomplished by finding the cheapest source of needed materials for poduction. Let's say we have the same profit but our expenses are decreasing. That is when the business is more profitable .
The business that provides the market with different (those which can not be found) products. It is a differentiation of the available products. The key of this strategy is to discover new object that has not been discovered before or just simply update, improve the ones available on the market. One of the most important thing in this strategy is to sell new or different product. That is why the business need to focus on a good marketing. When presenting something innovative on a market company can play with the price – it is up to them .
The key of this strategy is to concentrate on one single bay of the market hence smaller number of costumer is a sure thing in this case. The company can focus on one single product and can make sure that it will be perfect. Costumer are willing to pay every price for the perfect product. This strategy is built with a low – cost production or differentiation. When it comes to low – cost production - most of the people wants to purchase a good quality product no matter what is the price of it. And about differentiation – company can deliver to the market fresh, totally new product. The other thing is competition. If the business provides the market with perfect product or the new one the market will be unapproachable for different companies producing the same product but at lower quality or looking like the original one .
In this strategy there is a possibility of adoption one of following option:
- eliminate the competition by buying it out
- increase number of product being sold
- increase the
- expand the area of selling
- expand the types of product being sold
Before choosing growth strategy the company's situation must be verified as this strategy is extremely expsensive
This strategy Is based on two opposite situation. The company has ability to construct it organizations and operations which allow it to has a control over itself. But the same system is compound with the company so strong that there the possibility for it to develop or have any update in the future is endangered. Company's system is understood as dilatory but still leading to development.
- Diaconu L. (2007). Low - cost strategies in the context of global market dynamics "Ştiinţe Economice", p. 121-125
- Dirisu J. I. (2013). Product Differentation: a tool of competitive advantage and optimal organizational performance "European Scientific Journal " vol.9, no.34, p. 259-272
- Miles R. E. (2009). Organizational Strategy, Structure, and Process "The Academy of Management Review", vol. 3, no. 3, p. 550-560
- Moore M. H. (2000). Managing for value: Organizational strategy in for-profit, nonprofit, and governmental organizations. "Nonprofit and Voluntary Sector Quarterly", vol. 29, no. 1, p. 183-204.
- Porter M. E. (1985). Competitive Advantage The Free Press, New York, p. 12-20
- Tanwar R. (2013). Generic Competitive Strategy. "IOSR Journal of Business and Management", vol. 15, no. 1, p. 16-17
- Diaconu L. (2007). Low - cost strategies in the context of global market dynamics p. 121-125
- Dirisu, J. I. (2013). Product Differentation: a tool of competitive advantage and optimal organizational performance p. 259-272
- Tanwar, R. (2013). Generic Competitive Strategy. p.16-17
Author: Ewelina Kruszewska