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Organization Strategies - Essay Example

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Organization strategy is a broad based procedure for how business is going to be competes, what goals it should have, and what policies will be needed to carry out these goals. The real meaning of formulating competitive strategy is relating a company to its environment…
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Organization Strategies
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Download file to see previous pages Key environmental factors are predicted and their influence on the organization looked at and then optimum measures are taken so the organization can benefit from these environmental factors (Mintzberg 1976).
Strategy looks at long-term direction and guides short term plans. It is understood at the top and middle levels of the organization. A strategy is as such clear that there is no way delicate. The results are defined; this is involved with the translation of strategies in to realities of the organizational structure, operations, policies and products. This in essence closes the gap between the companies' current position and where it would like to be. At last significant matters are identified and prioritized. Outcomes are positive statements of the changes the company needs to make to it and the results that it must carry out in its environment to fulfill strategic requirements. Outcomes are the steps for an organization towards strategic closure.
Organization strategic plans are in general prepared of many interconnected elements; Vision, mission, Values, assessment, goals/objectives, strategy and outcomes. They have also major role in integration of strategic management principles and models. A feasible example of a strategic plan follows: The Vision gives a proposal about the objectives of the organization and broadly capture future services, markets and structures but do not go in to great detail. The Mission statement delineates customers, competitors and markets. It demonstrate a preferred location in a predicted future world" and a "bulls eye or target of the strategy."A mission should not consign a firm to what it must do in order to survive but what it chooses to do in order to thrive.
Values are what the company believes to be true; values offer guides for staff on how to act within the company and ethical standards for all the stakeholders. Values set the company independently from its competitors and show the reliability of the organization. Measurements of the organization are the external and the internal forces, which will affect the company in making its mission and vision successful.
These can be carried out in an environmental scan, which includes the following components;
1. Internal analysis of the firm
2. Analysis of the firm's industry (task environment)
External macro environment (PEST analysis) A SWOT (Strengths/Weaknesses/ Opportunities/Threats) task can also capture the overviews of a business. Outside factors can vary from economic condition to changing technology and competition and are shown as threats and weaknesses.
Inside factors can be anything which may belong from assets to liabilities and are usually shown as threats and weaknesses. Then the transition to the future is assessed with regard to industry and competitive environment, general and organization specific environment. PEST stands for political, economic, environmental and technological. The PEST analysis and explain the components of a macro environment within the organization and these can also be converted to fir in with a SWOT analysis. To create competitive advantage for an organization, it is identified that there are three strategies, Cost Leadership, Differentiation and Focus. The suitable standard strategy will make location of the firm to leverage its strengths and defend against the adverse effects of the five forces (Porter 1980).
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