Organizational Strategy

12 Key excerpts on "Organizational Strategy"

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  eBook - ePub

  Construction Management and Organisational Behaviour

  • Maureen Rhoden, Brian Cato(Authors)
  • 2017(Publication Date)
  • Wiley-Blackwell

    (Publisher)

  11 Organisational Strategy

  Introduction

  Strategic management can be defined as the pattern of activities followed by an organisation in pursuit of its long term purposes or a plan which is put in place to achieve the aims, goals or objectives of the organisation. It is therefore important to understand that strategy is concerned with the broad long term focus of an organisation such as commercial, political or social goals and how they might influence the performance of an enterprise (Fryer, 2004).

  Boddy (2012, p. 150) provided a definition which is based on the following elements:

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  The Strategically Networked Organization

  Leveraging Social Networks to Improve Organizational Performance

  • Hanna Lehtimaki(Author)
  • 2016(Publication Date)
  • Emerald Group Publishing Limited

    (Publisher)

  organizations, strategy is linked to the values of the company, but nowadays it has become more common to create a visualization of a strategy instead of writing long strategy documents. For instance, Microsoft and other global corporations present their strategies on their website with a few key sentences and video clips, where top management present the key points in strategy. In many companies, the strategy document is summarized in one PowerPoint-slide that allows the reader to see the long-term vision and the key strategic targets in one glance. At universities, it is becoming more and more common to communicate strategic goals on a poster in the hallway so that students, faculty, and visitors have an easy access to learning about the strategy. The third dimension in strategic management is the strategy context which indicates both the internal and external business environment where the strategy is formulated. Internally, the focus in strategic management is in depicting core competencies, key resources, and competitive advantages. Also, key performance indicators and action plans are produced to guide the organization to act towards the direction set in the strategy. Externally, the focus is on customer behavior, competitor analysis, market analy-sis, future forecasting, and financial analysis. The purpose of the different analysis is to define the key competitive advantage of the organization and to make risk assessment of the competitive environment. It is common in strategic management to treat issues related to organization as operational, and thus, as issues that do not belong in the realm of strategic management which is concerned with the competitive environment. This distinction between the operational and strategic is emphasized not only in the strategic management practice in companies and public organizations but also in the strategic management literature.

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  Understanding College and University Organization

  Theories for Effective Policy and Practice: Volume II — Dynamics of the System

  • James L. Bess, Jay R. Dee(Authors)
  • 2023(Publication Date)
  • Routledge

    (Publisher)

  “Maybe I shouldn’t say this,” whispered the institutional research director, “but I think that the strategic planning process was more important than the strategic plan itself. I mean, it brought together people who probably hadn’t said more than two words to each other in the past 10 years—not because they were angry with each other, but because this is such a big place. And it was amazing to find so much commonality, so much consistency among these people who hardly ever talk to each other. It was like they had been coordinated all along, and just didn’t realize it.”

  Introduction

  S trategy is a critical and controversial construct in organizational theory. Middlemist and Hitt (1988 ; cf. Hitt, Ireland, & Middlemist, 2005 ) define strategy in general as “the use and allocation of organizational resources to accomplish long-run objectives” and institutional strategy as “the major plan of action for achieving the long-term objectives of the entire organization (rather than a division)” (p. 433). Strategy promotes a focus on organization-wide objectives rather than departmental or individual priorities, and the emphasis is on long-term goals rather than short-term gain. Beyond these basic foci, however, organizational researchers differ in their assumptions and conceptualizations of strategy. As will become clear in this chapter, there are many questions about the meaning of strategy—who defines it, what it includes and excludes, the purposes it serves, and the latent unintended consequences that sometimes result (Presley & Leslie, 1999 ).

  One conceptualization of strategy stresses the need for internal alignment between organizational processes and long-term performance objectives. In this model, top-level leaders construct a strategic plan consisting of organizational goals, which are linked to specific objectives for each unit in the organization. The units implement plans designed to achieve those objectives, and performance is assessed in order to measure progress toward goal achievement. The intent is to improve performance by aligning activities with specific organizational goals. Chaffee (1985) referred to this process as the linear model of strategy; that is, strategy is developed through a sequential process that leads to a rational alignment of behaviors and goals (Chandler, 1962

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  Strategic Management

  • Garth Saloner, Andrea Shepard, Joel Podolny(Authors)
  • 2016(Publication Date)
  • Wiley

    (Publisher)

  BUSINESS STRATEGY 2.1 INTRODUCTION The core of strategic management as a practical endeavor is formulating a successful strategy for the firm. In Chapter 1, we asserted that strategic thinking is about under- standing the relationships among the firm’s internal and external contexts, its actions and its performance (as illustrated in Figure 1-2 and reproduced here as Figure 2-1). In this chapter, we describe how a manager who has a mental map of these relation- ships can define a strategy that acts as a guide to decision making for all members of the organization. To make the concept of strategy more concrete, we begin by describing the components a strategy should have. We also want to distinguish strat- egy from other terms that are related to it, such as vision, mission, values, and pur- pose. These are useful complements to strategy, but they are generally different from and imperfect substitutes for it. Having described what we mean by strategy, we will discuss how to identify a strategy in practice and then how to evaluate it. We round out the chapter by outlin- ing the steps beyond strategy identification and evaluation that a business unit typi- cally goes through when it tries to change its strategy. Since the goal of subsequent chapters is to provide the building blocks for developing and implementing a strategy, we need to know the steps involved in doing that before we proceed. 2.2 DESCRIBING BUSINESS STRATEGY To be a useful guide for decision making, a strategy must have elements that clearly define the firm’s goals and the direction it will take to achieve them. Although there are many ways a manager might choose to accomplish this, any coherent strategy should have four components. First, it should include a clear set of long-term goals. Second, it should define the scope of the firm, the kinds of products the firm will offer, the markets it will pursue, and the broad areas of activity it will undertake.

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  Quality Management Techniques

  • (Author)
  • 2014(Publication Date)
  • Orange Apple

    (Publisher)

  According to Arieu (2007), there is strategic consistency when the actions of an organization are consistent with the expectations of management, and these in turn are with the market and the context. Strategic management includes not only the management team but can also include the Board of Directors and other stakeholders of the organization. It depends on the organizational structure. “Strategic management is an ongoing process that evaluates and controls the business and the industries in which the company is involved; assesses its competitors and sets goals and strategies to meet all existing and potential competitors; and then reassesses each strategy annually or quarterly [i.e. regularly] to determine how it has been implemented and whether it has succeeded or needs replacement by a new strategy to meet changed circumstances, new technology, new competitors, a new economic environment., or a new social, financial, or political environment.” (Lamb, 1984:ix) Strategy formation Strategic formation is a combination of three main processes which are as follows: ____________________ WORLD TECHNOLOGIES ____________________ • Performing a situation analysis, self-evaluation and competitor analysis: both internal and external; both micro-environmental and macro-environmental. • Concurrent with this assessment, objectives are set. These objectives should be parallel to a time-line; some are in the short-term and others on the long-term. This involves crafting vision statements (long term view of a possible future), mission statements (the role that the organization gives itself in society), overall corporate objectives (both financial and strategic), strategic business unit objectives (both financial and strategic), and tactical objectives. • These objectives should, in the light of the situation analysis, suggest a strategic plan. The plan provides the details of how to achieve these objectives.

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  Knowledge Management

  • (Author)
  • 2014(Publication Date)
  • Orange Apple

    (Publisher)

  According to Arieu (2007), there is strategic consistency when the actions of an organization are consistent with the expectations of management, and these in turn are with the market and the context. Strategic management includes not only the management team but can also include the Board of Directors and other stakeholders of the organization. It depends on the organizational structure. “Strategic management is an ongoing process that evaluates and controls the business and the industries in which the company is involved; assesses its competitors and sets goals and strategies to meet all existing and potential competitors; and then reassesses each strategy annually or quarterly [i.e. regularly] to determine how it has been implemented and whether it has succeeded or needs replacement by a new strategy to meet changed circumstances, new technology, new competitors, a new economic environment., or a new social, financial, or political environment.” (Lamb, 1984:ix) Strategy formation Strategic formation is a combination of three main processes which are as follows: ____________________ WORLD TECHNOLOGIES ____________________ • Performing a situation analysis, self-evaluation and competitor analysis: both internal and external; both micro-environmental and macro-environmental. • Concurrent with this assessment, objectives are set. These objectives should be parallel to a time-line; some are in the short-term and others on the long-term. This involves crafting vision statements (long term view of a possible future), mission statements (the role that the organization gives itself in society), overall corporate objectives (both financial and strategic), strategic business unit object-tives (both financial and strategic), and tactical objectives. • These objectives should, in the light of the situation analysis, suggest a strategic plan. The plan provides the details of how to achieve these objectives.

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  Business Economics

  • Rob Dransfield(Author)
  • 2013(Publication Date)
  • Taylor & Francis

    (Publisher)

  The selection and development of strategy is the most important long-term activity of the board of a company. Strategy involves complex high-level decision making and has major resource implications for a business.

  The strategy that a board selects needs to meet the criteria of suitability, acceptability and feasibility. The strategy is the means to achieve ends that are set out in the vision and objectives of the organization.

  In preparing, monitoring and evaluating strategies it is essential to continually scan the external business environment. The economic environment is perhaps the single most important external factor impacting on business decision making. The economic environment comprises changes in GDP and consumer spending, as well as a range of other important changes such as interest rates, exchange rates and wage rates. Changes in the economic environment present a key risk and uncertainty facing businesses.

  Key Ideas

  Some of the main points covered in this chapter are listed below. If you are unsure about any of them then revisit the appropriate section. If you would like some additional reading on the topic try the books listed below in recommended reading.

  What are business strategies?

  • Businesses strategies are the means through which organizations achieve their objectives.
  • Strategies involve long-term decisions that have major resource implications for an organization.
  • The board of a company plays a key part in helping to formulate, question and monitor the effectiveness of strategy.
  • Typically strategies relate to the longer period, although strategies should be flexible so that they can be adjusted in the light of changing circumstances facing an organization.

  Criteria for effective strategies

  • Strategies should meet three main criteria: (1) they should be acceptable to stakeholders including shareholders; (2) they should be suitable to the environment in which a business is operating (e.g. a growth strategy might be suitable when the economy is growing, but not necessarily in a period of contraction); and (3) they should be feasible given the resources and capability of an organization at a particular time.

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  Performance Improvement

  Making it Happen, Second Edition

  • Darryl D. Enos, Dana Vincent J.M., Suzanna E. M.D.(Authors)
  • 2007(Publication Date)
  • Auerbach Publications

    (Publisher)

  RECOMMENDED PROCESS FOR CREATING ORGANIZATIONAL OR TEAM STRATEGY The strategy of an organization, or an independent team, is a thorough and detailed statement of what the leadership desires and intends for the future of the organization. It is the organization at its best, as defined by the leadership. The following is a description of what the strategic plan includes. The next four sub-sections of this chapter discuss a process for developing the strategic plan. (2) Strategic Plan for the Organization 79 Component 1: The Strategic Timeframe and Identification of the Driving Force First, the strategic plan begins with two essential decisions: the strategic timeframe and identification of the organization’s driving force. The strategic concept statement, discussed below, is a thorough written statement of the desired and intended future of the organization. It is a statement about a future set of conditions for the organization. At least to some degree, the organization or team is not currently everything the leadership desires or intends. Therefore, the leadership group creating the strategic plan needs to pick a point in the future, usually three to six years ahead, to build its future strategic vision. As organizational leaders often say, “It takes time to get there.” That time is the strategic timeframe. There is no objectively right or wrong date for the strategic timeframe. Usually, organizations pick the date that marks the beginning of their fiscal year. Other than that, there are only general guidelines. A strategic timeframe of less than three years is too short because it becomes more like long-range planning or budgeting, two years-as-usual put back to back. More than six years is usually a problem for U.S. leaders because of their tendency to focus on short-term operational problems.

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  Food and Beverage Management

  For the hospitality, tourism and event industries

  • John Cousins, David Foskett, David Graham, Amy Hollier(Authors)
  • 2022(Publication Date)
  • Goodfellow Publishers

    (Publisher)

  Chapter 10 Making strategic decisions Aim To identify and review approaches to strategic decision-making. Objectives This chapter is intended to support you in: Identifying the components of strategic planning as a systematic process Identifying and applying approaches to business analysis and evaluation Developing a balanced approached to performance measurement and strategic planning Selecting and applying strategic planning techniques and approaches appropriate to food service operations. 10.1 The origins of strategy Assessing the achievement of an organisation against its aims and within the business environment leads to the requirement to consider making strategic decisions about the current operation and the future of the organisation. Strategy is the means by which organisations attempt to achieve their objectives. In most organisations there is likely to be a complex set of stakeholders concerned to influence the objectives and hence the strategy of the organisation. Rather than be too concerned about the right definition of strategy it is useful to develop an understanding of what different writers or speakers mean by strategy, i.e. what are the underlying concepts that they are trying to get across? Food and Beverage Management 304 As a working definition, let us propose that strategic decisions are: Major decisions that affect the direction to which an organisation, or part of an organisation, is committed for the next few years Decisions which involve a significant commitment of resources Decisions which involve complex situations at corporate, business unit and opera- tional level which may affect and be affected by many parts of the organisation. Within this context there are a number of terms often used in relation to strategic decision- making. These include: Vision: conceptual or imagined view of the organisation as it might be in the future. Mission: fundamental purpose of an organisation, which is intended to lead it towards its vision.

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  The Accidental CIO

  A Lean and Agile Playbook for IT Leaders

  • Scott Millett(Author)
  • 2024(Publication Date)
  • Wiley

    (Publisher)

  In other words, strategy is about making explicit choices about where and how an organization will choose to compete and, more importantly, where, and how it will not. The business strategy shown in Figure 10.20 follows the Strategy Choice Cascade. This is a framework from the book Playing to Win: How Strategy Really Works (Har- vard Business Review Press, 2013), written by A. G. Lafley and Roger Martin. Lafley and Martin define strategy as “an integrated set of choices that uniquely position a firm in its industry so as to create sustainable advantage and superior value relative to competition.” The Strategy Choice Cascade presents strategy as the answer to five interrelated questions. 1. What is your winning aspiration? The purpose of your enterprise, its motivating aspiration. 2. Where will you play? A playing field where you can achieve that aspiration. 3. How will you win? The way you will win on the chosen playing field. 4. What capabilities must be in place? The set and configuration of capabilities required to win in the chosen way. 5. What management systems are required? The systems and measures that enable the capabilities and support the choices. There is feedback, iteration, and consenus to arrive at an answer to each of the five questions, thereby ensuring a consistent and reinforcing set of answers at all levels of the organization and importantly ensuring that the necessary investments in capabil- ities, people, and process are in place to act on the strategy. As mentioned earlier, a good strategy can advance a business and allow the business model to adapt and evolve to changes in the business context, thus ensuring it is not disrupted by others and that it keeps a competitive edge. In other words, a business model is where you end up based on the choices you make in your strategy. As shown in Figure 10.21, the where-to-play and how-to-win choices replace the customer segments

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  MGMT

  • Chuck Williams(Author)
  • 2021(Publication Date)
  • Cengage Learning EMEA

    (Publisher)

  All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. 123 CHAPTER 6: Organizational Strategy focus managers’ attention on the new challenges and opportunities that occur in their ever-changing busi- ness environments. 6-3 CORPORATE-LEVEL STRATEGIES To formulate effective strategies, companies must be able to answer these basic questions: » What business are we in? How should we compete in this industry? » Who are our competitors, and how should we respond to them? These simple but powerful questions are at the heart of corporate-, industry-, and firm-level strategies. Corporate-level strategy is the overall orga- nizational strategy that addresses the question, “What business or businesses are we in or should we be in?” Southwest Airlines wants to be “the world’s most loved, most efficient, and most profitable airline.” 55 Ted.com, famous for its TED Talks, is in business to “spread information.” 56 Dr. Pepper is in the “refreshment bev- erage business.” 57 There are two major approaches to corporate-level strat- egy that companies use to decide which businesses they should be in: 6-3a portfolio strategy and 6-3b grand strategies. 6-3a Portfolio Strategy One of the standard strategies for stock mar- ket investors is diver- sification, or owning stocks in a variety of companies in different industries. The pur- pose of this strategy is to reduce risk in the overall stock portfolio (the entire collection of stocks).

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  MBA Management Models

  • Sue Harding(Author)
  • 2017(Publication Date)
  • Routledge

    (Publisher)

  Group development (see pp. 109 -12 )
• Organic versus mechanistic management styles (see pp. 169 -72 )
• The seven 'S's framework (see pp. 181 -5 )
• Situational leadership (see pp. 131 -4 )

Main reference

C.B. Handy (1985), Understanding Organisations , Harmondsworth: Penguin Books.
Passage contains an image

33 Integrated model of strategic management

Source: Strategic Management - Concepts, Decisions, Cases, (2nd edn), Richard D. Irwin Inc.

Principle

There are different components to strategic planning and management which should be integrated.

Assumption

Strategic management is most effective when it is an integrated process.

Elements

This model integrates the process of effective strategic management through considering the following:

Why?

Why does the organization carry out certain activities (mission)?

What?

What should the organization do to achieve the mission (through its goals, objectives, vision, values, opportunities, threats, resources, competencies)?

How?

How may this be accomplished (alternatives, evaluation, strategy implementation and planning)?

Guidelines on implementation

These comprise the organization's policies and procedures.

Strategy

The strategy is the organization's preselected means of, or approach to, achieving its goals or objectives, while coping with current and future external conditions.

Mission

This is a broad statement providing a general direction for business activities and a basis for coherently selecting desired goals and objectives and the means to achieve them (strategies).

Goals

Goals are the broad objectives which the organization wishes to pursue or the results it wishes to accomplish within its mission.

Objectives

These are more specific ends to be met within the framework of the broader goals which involve specific time frames for accomplishment.