Organizational Strategies
In any business environment, it remains important for businesses to implement sound business strategies that shield them from unforeseeable future events and help them churn a profit from their ventures. In this regard, therefore, a strategic plan remains at the heart of any successful venture (Perrott, 2011). There are four types of organizational strategies implemented in agreement with the business objectives. The first strategic type pertains directional approach which is geared towards ensuring that the company achieves the growth it so desires and that it churns a profit. It is noteworthy that this strategy provides a company with the needed drive and guidance towards achieving progressive growth (Certo and Peter, 1988). The second type is the adaptive strategy geared toward making the company adapt better to the current business environment and make changes where it deems necessary. It may involve processes such as diversification, retrenchment, and new product development.
The third type includes a market entry strategy which necessitates the company to make plans on how it would introduce new products to the market and sell out its products to a wider audience (Leigh and Teece, 2014). It may involve processes such as acquisitions, licensing, and venture capital investments. Lastly, the last type requires a competitive market strategy which ensures that the company achieves a competitive edge above all its competitors and make it the most preferred amongst the clients. Choosing an organizational strategy requires the organization first to understand its market. In this regard, it would necessitate it to gauge its competition and identify the needs that have not been addressed in full (Elbanna, 2009). After that phase has been completed, the organization may implement these strategies simultaneously or in successive stages. However, these decisions would need the guidance of its overall mission, vision, and its overall strategic goals.
References
Certo, S. and Peter, P. J., (1988).Strategic Management: Concepts and Applications. New York: Random House Business Division.
Elbanna, S. (2009). Determinants of strategic planning effectiveness. Journal of Strategy and Management, Vol.2, No.2, Pg175–187.
Leih, S. Teece, D. (2014). Market entry strategies, Palgrave Encyclopedia of Strategic Management. London. UK: Palgrave Macmillan.
Perrott, B. (2011). Strategic issue management as change catalyst. Strategy and Leadership, Vol.39, No.5, Pg.20-29.
