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Organization Structure and Strategies - Essay Example

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A mission statement defines what the company intends to do in the future, the vision statement on the other hand states what a company will become in future. A vision statement should show the company's image and how it positions itself in the market, it should be short in order for the organization members to easily remember, studies have shown that company's whose employees tend to understand the vision of the company will have higher returns…
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Organization Structure and Strategies
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Download file to see previous pages The mission statement therefore should contain information about what the company intends to do; this communication ensures that the organization achieves the set goals and objectives.
There are various types of organization structures and they include the hierarchy structure, the matrix structure and the hybrid structure. The choice of the organization structure needs to take into consideration some factors which will help the choice of the best organization structure that will help to achieve common objectives and goals in the organization.
The size of the organization will be a factor to consider when choosing the structure to adopt, the size of the organization will be determined by the number of employees, the number of departments and the output levels and number of processes. Appropriate structures adopted in large organizations will help in gaining competitive advantages over rivals because the structure helps to coordinate activities in a more efficient way.
A firm has to consider its function when choosing an appropriate structure, if the organization has various process then it would be advisable for the organization to structure according to the functions of each department.
The structure will also depend on the nature ...
Consumer needs:
There is also a need to consider the needs of the consumer when choosing the best structure; in this case the market will influence the optimal choice of structure.
Organization processes:
The organization processes will also be considered when making decisions about the structure, the structure in an organization where products have to pass through various processes need a structure that clearly identifies these activities in a distinctive manner.
The structures:
An organization needs also to consider the various advantages and disadvantages associated with each structure before deciding on which structure to adopt, through this consideration a business is able to make optimal decisions. Example the hierarchy structure has been criticized for making waste and also organization failure, all the advantages and disadvantage of this structure must be taken into consideration.
Organization strategy:
Cost leadership strategy:
This strategy is appropriate where an organization has established a good relationship with suppliers and it is possible to acquire raw materials at a lower cost than its rivals and therefore the firm can sell its products in the market at a low price. This is also possible when the firm adopts an efficine tproduction process that minimizes the cost of production, finally this strategy could be used when other firms are unable to minimize their cost.
The product differentiation strategy:
This strategy can be used if the firm has reputation in the market, it can also be used when the products in the market are not highly differentiated. For this reason therefore this strategy will work if there is high competition and that consumers prefer unique goods from the organization, however this strategy will only be ...Download file to see next pagesRead More
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