Industry Type and Its Effects on Organisational Strategy

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Companies are free to choose whatever organizational strategy they want to and could choose not to have any formal or structured strategy at all. The senior management of companies to guide their organization towards high productivity levels, high profits, as well as efficiency generally uses organizational strategy. As will be discussed organizational strategy can be highly adaptable and senior management is generally well-advised to review it on a regular basis (The Business, 26th March 2006).Such analysis will discuss if changes are due to businesses believing that the particular operational strategy they conduct their operations is the most effective means of achieving high profits and good levels of productivity as well as high volumes of sales. Sometimes organizational strategy has to be amended to damage limitation exercises rather than profit maximization schemes. Businesses that are unable to alter their organizational strategy as quickly or as effectively as their rivals then their profits and overall sales performance could suffer directly as a result. Organizational strategy can be determined by theoretical considerations whilst some businesses base their strategies solely on their previous experiences operating within their type of industry (The Business, 27th November 2005).Different types of industries can also rise, develop, and then decline over prolonged time periods which means that businesses may adopt similar or different organizational strategies to survive the worst effects of the decline and perhaps even lead to periods of renewed growth. The organizations that are better organized and have coherent strategies are the most likely to thrive instead of merely surviving within the increasingly competitive global economy (The Business, 27th November 2005).