Definition of Organizational Strategy

Definition of Organizational Strategy thumbnail
Organizational strategy is necessary to move forward.

Organizational strategy is the creation, implementation and evaluation of decisions within an organization that enables it to achieve its long-term objectives. Organizational strategy specifies the organization's mission, vision and objectives and develops policies and plans, often in terms of projects and programs, created to achieve the organization's objectives. It also allocates resources to implement them.

  1. Processes of Strategy

    • Organizational strategy is related to organizational studies, an academic field that analyzes organizations and what makes them succeed or fail. It provides overall direction for the organization. Formulating a strategy combines the following three main processes. The first process is performing an analysis of the organization's situation--internal and external, micro- and macro-environmental. This means asking both what's going on with its competitors and with each part of the organization. The second process involves setting objectives--both short-term and long-term. This means creating vision and mission statements. The final process is developing a strategic plan that provides details about how to achieve the organization's objectives.

    Suitability

    • The Johnson, Scholes and Whittington model of corporate strategy contrasts an organization's strategic options with three criteria, or questions the organization's leaders must ask themselves. The first of these criteria include suitability: "Would it work?" and "What is the overall rationale of the strategy?" The organization needs to determine whether its strategy is economically possible and if the environment fits. It would not be suitable, for example, to establish a new restaurant in an area that already has too many.

    Feasibilty

    • The second criteria is feasibility, as in "Can it be made to work?" Feasibility asks if the resources -- funding, staff, time and information -- needed to implement the strategy are available or if they can be developed. An organization also must determine if has adequate cash flow or if the outcomes they desire can be forecast, a business term having to do with the process of making statements about events whose actual outcomes have not yet been observed.

    Acceptability

    • The third criteria is acceptability, usually meaning "Will the stakeholders work it?" An organization's leaders must know if its stakeholders will accept its strategy. Stakeholders consist of shareholders, employees, and customers. This is done by analyzing the stakeholders' expectations of the organization's expected outcomes, which include return, risk, and reactions. Return refers to the benefits they expect, and risk has to do with the strategy's probability and consequences of failure. The stakeholders' reactions to the strategy often are the most difficult to anticipate.

    Future Shock

    • It is certain that we live in an age of accelerating change. In his 1970 book, titled "Future Shock," Alvin Toffler opined that each succeeding generation experiences sweeping social and technological norms more and more quickly. These changes cause a great deal of psychological stress, making the need for organizational strategy more important than ever. These changing norms also cause great conflict and opportunity in the business world, something that organizations can utilize to their benefit if they have an organizational strategy in place.

Related Searches

References

  • Photo Credit businessman and chart image by Kit Wai Chan from Fotolia.com

You May Also Like

  • What Is the Meaning of Organizational Strategy?

    The meaning of Organizational Strategy often presents problems and misunderstanding for managers. There are the concerns of developing an overall organizational ...

  • Organization Strategies

    Give yourself the gift of organization. Through organization, you will make home and family life simpler. Get a handle on what needs...

  • Definition of Financial Strategy

    Definition of "Organization Strategy" Organizational strategy is the creation, implementation and evaluation of decisions within an organization that enables it to ...

  • How to Define a Strategy Statement

    Definition of "Organization Strategy" Organizational strategy is the creation, implementation and evaluation of decisions within an organization that enables it to ...

  • Management Organization & Strategy

    The structure of an organization and its strategy are intertwined inexorably, because the way with which decisions are handled and data is...

  • Definition of Human Resource Strategy

    Human resource strategy is designed to develop the skills, attitudes and behaviors among staff that will help the organization meet its goals....

  • Strategy for the Structure of an Organization

    The first process in designing an organizational structure is to define the human element, wants and needs in relation to establishing a...

  • The Definition of Organizational Alignment

    The Definition of Organizational Alignment. ... including values, strategy and systems, will work together to produce maximum results. Values Message.

  • Definition of Strategic Planning & Management

    Definition of "Organization Strategy" Organizational strategy is the creation, implementation and evaluation of decisions within an organization that enables it to ...

  • Strategic Plan Definitions

    Definition of "Organization Strategy" Organizational strategy is the creation, implementation and evaluation of decisions within an organization that enables it to ...

  • The Importance of an Organizational Strategy

    An organization without a strategy resembles a ship without a rudder. A business may have personnel, resources and energy, but if it...

  • What Is the Meaning of Strategic Direction?

    Strategic direction can be defined as a course of action that ultimately leads to the achievement of the stated goals of a...

  • Strategic Implementation Definition

    Strategic plans are concerned with the definition of objectives for the organization. ... What Is the Best Organizational Structure for Strategy Implementation?

  • Organization Strategy: Intended Vs. Realized

    An organizational strategy is an excellent means of ensuring that a company has a clear ... The definition of marketing is the...

  • The Definition of Corporate Strategy

    Definition of "Organization Strategy" Organizational strategy is the creation, implementation and evaluation of decisions within an organization that enables it to ...

  • Define an Optimal Financial Strategy

    An optimal financial strategy provides the greatest amount of returns from investment possible at the time that a person or organization plans...

  • Strategic Business Planning Definition

    Upper-level planning takes into account the mission, overall strategy and organizational structure. ... The Definition of Corporate Strategy.

  • Organizational Structure & Strategy

    An organizational structure (OS) defines a company's hierarchical composition and how positions relate to each other. Work flow also is characterized by...

  • Business Strategies Definition

    A business strategy, according to Rapid Business Intelligence Success, is a business plan that takes place long-term in order to help achieve...

Related Ads

Featured