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Types of Organizational Strategies

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Meghan Pineo

on 15 October 2014

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Transcript of Types of Organizational Strategies

Types of Organizational Strategies
An organization will have three types of organizational strategies:
1. Corporate Strategies
2. Business Strategies
3. Functional Strategies
Business Strategies
Each unit of the organization must translate the corporate strategy into a set of business strategies.
Functional Strategy
A strategy used by a functional department to support the business strategy of the org.
ex: Marketing is a specific functional department, they have strategies for how they do what they are responsible for.
Focus Strategy
Company pursues a cost or differentiation advantage in a narrow industry segment.
Stuck in the Middle
Organization is not able to develop a competitive advantage through cost or differentiation.
Cost Leadership
Organization sets out to be the lowest-cost producer in its industry.
The company seeks to offer unique products that are widely valued by customers.
Growth - used when the org wants to grow. May increase sales, revenue, emloyees, etc.
Types of Growth strategies include
a. Concentration
b. Vertical Integration
c. Horizontal Integration
d. Diversification - related or unrelated
A strategy that has no significant change in what it is doing.
May be used when resources are stretched.
May be used when there aren't many opportunities to capitalize on.
May be seen often in small businesses
Corporate Strategy
evaluates what business the company is in, should be in, or wants to be in, and what it wants to do with those businesses
Identifies the direction/large goals of the company as a whole and how they might do that
Strategies that are designed to addresses organizational weaknesses.
a. retrenchment - short term strategy that reduces activities
b. turnaround - used when performance problems are more serious. Drastic measures
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