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Organization Strategies and Structures - Assignment Example

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Organization Strategies and Structures Question 1 Corporate strategy can be distinct as art and science of originating, executing and assessing cross-functional decision which facilitate an organization to attain its objectives. The term ‘corporate strategy’ at times is referred as strategic planning…
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Download file to see previous pages The organization also puts emphasis on meeting long-term objectives in the initial stage. In the following stage, the organization deals with the implementation process where it requires establishing its annual goals, develop policies, encourage employees, and assign resources so that formulated strategies can be executed in an effective and efficient manner. Strategy evaluation is the final stage of the process. At this stage, the managers observe the overall business environment of the organization to manage the strategic process effectively and competitively (David, 2007). Notably, there are five types of corporate strategies that can be used by organizations to achieve long-term objectives which are integration strategies, intensive strategies, diversification strategies, defensive strategies, and Michael Porter’s Five Generic Strategies. Horizontal integration, forward integration and backward integration are at times collectively known as integration strategies. Through this strategic alliance, an organization endeavors to gain control over distributors, suppliers, and its competitors. This stratagem is commonly used by the organization which looks forward to sell a type of product in numerous markets. Two of the major advantages of strategic alliance can be regarded as its assistance to organizations in responding to the economic imperatives and in improving the international competitiveness. On the contrary, a disadvantage of the strategy is often considered as its failure to accomplish the objective and the goal of the organization when it is deficient in capital and human talent to successfully manage and diversify the organization (Scribd, 2012). Intensive strategies deal with the factors such as market penetration, market development, product development and diversification which enable an organization for effective growth and potential augmentation. When the current markets are not saturated with a particular product or service then these strategies is often used by the businesses or corporations with a purpose to increase their rate of present customer extensively. The advantage with regard to this strategy is that it provides an effectual process for the organization to compete with their competitors. The disadvantage is the fact that these strategies bear out to be competent when organization has the strong management team or else it may turn out to be severely unsuccessful (Scribd, 2012). Diversification strategy refers to that strategy through which organizations introduce their products and/or services in a newly targeted market. Organizations use this strategic alliance to create and develop economies of scope and strive to operate its existing capital and potentiality in other market(s). The advantage with regard to this strategy is that it helps the organizations to expand their economic risk over different markets. On the contrary, a disadvantage possessed by this strategic alliance is that it generates complexity and intricacy of coordination between dissimilar but allied business wings (Scribd, 2012). The defensive strategies are such concept which includes three factors such as retrenchment, divestiture, and liquidation. The retrenchment mainly guides the organizations when they face obstructions to meet their objectives and goals over time. The strategy of divestiture can ...Download file to see next pagesRead More
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