Perhaps the saying "where you stand depends on where you sit" accurately describes the way a business goes about crafting a commercial strategy, implementing it and ensuring that personnel are on board with the plan. To make sure the commercial outline is a success, the firm pays attention to such items as profitability management and organizational structure.
A business formulates an operating strategy to understand what goes on in its external environment and avoid potentially costly problems. For example, if the firm doesn't put into place effective compliance procedures, it may experience the wrath of regulators and could pay stiff penalties if industry watchdogs find instances of wrongdoing.
A business strategy is a plan of action aimed at reaching specific goals and staying in good stead with clients and vendors. The blueprint also enables a firm to leverage technology to improve its overall operations, financial performance and manufacturing productivity.
Organizational structure is a loose term referring to the way a company thinks about hierarchy, assigns tasks to personnel and ensures its workforce works collaboratively to achieve a common goal. The goal is to avoid task overlap and workforce confusion, especially when it comes to laying a strong foundation for long-term productivity.
Task overlap, a situation in which two or more employees perform the same task in different departments, costs a company money. This creates confusion, inefficiencies and lack of accountability -- because no employee ultimately has a clear responsibility over who does what, where and when.
Corporate managers formulate a strategy to meet various operating goals. They may do so to improve the firm's chances of prosperity, avoid brand dilution, outflank rivals and spur invested capital. This is all the cash that stakeholders -- such as shareholders, bondholders and other financiers -- have poured into the business. A commercial outline is also central in the way the business specifies and reaches its economic targets.
Brand dilution comes from the overuse of corporate brands and logos; it usually touches on the way customers perceive the firm and how loyal they're willing to be. Organizational structure enables a company to set itself up for success, with an emphasis on the occupational tools needed to make personnel satisfied and productive.
Companies design an adequate organizational structure and draw up an effective strategy to figure out the best way to enter new markets, remain competitive in existing ones and allocate resources to promising initiatives along the way. For example, a business may present a detailed cross-sector strategy to simultaneously tap into multiple markets and set sound policies to make sure rank-and-file personnel are on the same page.
Company Reporting Structure
A company reporting structure is a hierarchy of administration within an organization or company used for the dissemination of bureaucratic, company and...
Concepts of Organizational Structure
If organizational structure is not aligned with business strategy, your organization will face probable failure. Business strategy is the pursuit of new...
Difference Between Organizational Structure and Design
Two important factors in organizational development are organizational structure and design. These two components help define the corporate culture, expectations and management...
What Is the Meaning of Customer Centric?
The customer-centric principle bases itself on the idea that the firm&#039;s success depends on its customers. The firm, therefore, has to make...
The Impact of Organizational Structure
"Organizational structure" refers to the way people are organized ---the company's reporting structure. This structure varies from company to company. "Tall" organizations...
The Difference Between Domestic Business Strategy & Global Business Strategy
Differences between domestic and global business strategies result from the way management allocates the company's resources to expand into global markets.
Structure & Process of Organizational Strategy
Perhaps the most important aspect of business strategy is the way a company formulates and implements its commercial outline to outflank rivals...
The Disadvantages of an Organic Organizational Structure
The type of organizational structure a company chooses to use will affect employee relationships, customer service and business relationships. An organic organizational...
What Is the Best Organizational Structure for Strategy Implementation?
In "Strategic Management," authors Michael A. Hitt, R. Duane Ireland and Robert E. Hoskisson explain that the best organizational structure depends on...