Any company that intends to project itself successfully must implement certain strategies related to its activity and its internal areas.
On many occasions, the functional strategies of a company or organization, such as marketing strategies, are not consistent with corporate strategies. When this mismatch occurs, it is essential that we undertake actions to align the company's strategies.
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Formulating strategies to improve performance and results in each area is considered a way of organizational strategy, since each area of the organization is being strategically managed to follow the same course and achievement of specific objectives and goals. When a company does not establish strategies, it follows the course of the market, which is sometimes not convenient.
In this article you will find:
What is an organizational strategy?
It is a model that unifies and integrates coherent decisions to determine the plans, actions and purposes of the organization. It is the creation, execution and evaluation of decisions, based on which the proposed objectives will be achieved, it also specifies the objectives (general Y specific), the mission and vision of the company. Policies and action plans are also frequently developed regarding projects and programs to achieve these objectives, and resources are also allocated to carry them out.
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It should be understood that an organizational strategy is not an isolated act, rather it is a chain that transits the actions of the entire company, and involves all the operation of the same, hugging:
- Decision making.
- The direction of the organization's operations.
- The conciliation to change.
- The fulfillment of objectives and goals.
Stages for the strategic course
The strategy formation course comprises the following stages:
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Strategic analysis
It is the stage where a situational analysis is carried out in order to understand the current situation of the company.
Strategic planning
It refers to the selection of the course or courses of action that the company must follow to effectively achieve the purposes, objectives and goals set.
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The strategic implementation
It is the moment in which the sequence of the various actions foreseen in the established plans is made.
Strategic control
It is the follow-up phase that allows adjustments and corrections to be made during the implementation process, in order to stay on track to achieve the goals.
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In conclusion, for a Organizational level strategy, the environment is examined, the mission is formulated, the objectives and vision of the company are established, projected with a long-term perspective.
Types of Organizational strategy
Corporative strategy:
It involves decisions whose scope is general and is carried throughout the company, these strategies are concentrated usually in senior management and their main purpose is to establish and maintain a balance in the portfolio of business.
The mission, vision and politics frequent for the progress of the company.
It conceives the company as a whole, determines the businesses where the organization wants to participate, in relation to elements such as competitive advantage, scope and resource allocation.
Competitive strategy
It understands the own decisions for each business unit, its purpose is to create and help to position itself in the market above the competition.
Its main functions are to establish a competitive approach, take measures and actions of expansion, defense and attack against the competition.
Functional strategy
It is the classified strategy for each business unit, its purpose is to provide operational support for each of the company's areas.
Strategies can be maintained over time, this is called linear strategy, which partly depends on the market where it operates, its stability and its attractiveness to attract investment and the strength of competition existing.
On the other hand, there are inconsistencies that cause a company to modify its strategy, this is known as an incremental strategy, and It mostly occurs when a company notices a risk in its strategy or in circumstances where the market becomes unstable for its operation. In this case, the company chooses to alter the strategy, thus adapting to the change that has occurred.
They are developed for a particular functional area, such as marketing or finance, without However, they should not be viewed separately, as they are part of the same selection process strategic.
Importance of organizational strategy
It is vital because it defines the path and is clear about where the company is going, defines its work and how they develop it.
Additionally, to establish a culture of the organization that is wanted, it is very important to have the ethical guidelines that will be the reference point of the individual and group behavior, in addition to the criteria on which decision-making in business management will be based, all this make up the Organizational values that will be transmitted with the example to be followed by each member of the organization, promoted in each action, in order that they become part of the commitment acquired by all so that the company fulfills its mission and view.
