Organizational Strategy
From plans to action!
Strategy is a set of actions designed to be executed co-ordinately in order to lead to certain goals. A well designed strategy should be:
- Consistent: Strategy should not contemplate opposite goals
- Consequent: Strategy should be an adaptational response to the organizational environment.
- Suitable: Strategy should not neither use up available resources nor generate unsolvable problems.
- Profitable: Strategy should facilitate creation and/or preservation of competitive advantages
According to its orientation, strategies can be classified as follows:
- Growing Strategy: to make changes in products, markets and geographic coverage, maintaining business core.
- Relational Diversification Strategy: to go beyond current products and markets, but maintaining inside the business sector.
- Non relational Diversification strategy: to go inside new markets, apparently with no direct relation with current business.
- Retreat strategy: to go out, partially (selling brands) or totally (closing the business)
Strategy implementation should involve the entire organization; in this way, success becomes more possible.
