A strategy is a comprehensive plan or action orientation that sets critical direction and guides the allocation of resources for an organisation. The way an organisation grows and operates in its environment is largely determined by its strategy. Organisation strategy is made up of two parts - strategy development, and strategy implementation.
You have to evaluate the following core elements in strategy development and strategy implementation :
Strategy Development
- Products and services you will offer ("What" you are going to do)
- Customers and markets you will serve ("whom" you will do it for)
- Competitive advantages ("'why" the customers will buy from you)
- Product and market opportunities ("'where" you will place your emphasis).
Strategy Implementation
- Systems and structures ("how" you are going to bring about the what, who, why, and where).
Now you realise that an organisation's strategy is a major determinant of its ultimate structure.
Examples
- A firm that competes overseas may require a set of structural relationships different from those needed by a firm that limits itself to a single plant in India.
- A corporation in a few businesses with single product lines is likely to use a centralized structure. A.corporation in several businesses with several unrelated product lines is likely to use a highly decentralised structure.
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