Strategy of an organisation is the unique position that an organisation aims in the market to gain competitive advantage (Naoum 2001). Strategy is derived from the vision and mission of the organisation. In this, organization has to analyze how a company can adapt themselves with the changing market scenario. Organization needs to do internal as well as external appraisal and based on that strategies should be build upon.
Strategic decisions concern with the whole organisation and requires significant resources. Organizational strategy requires intellectual ability, knowledge, and skills to make the strategies in such a way so that they can deal more effectively with the competitive market conditions, it should be of long term in nature (Cushman, & King 2001).
Objectives of organizational strategy
Top managers have to analyze, strategies that have been made should fit with the organization goals and objectives and providing them a unique feature that helps in building a competitive advantage, strategies should be such that it will provide some benefit to the organization (Rothwell 2010). Optimum utilization of resources that means maximum output with minimum input, it helps in building a competitive advantage that will able to find out company’s current position in the market.
Organization has to identify the future threats and opportunities and then do appraisal of current strengths and weaknesses based on that strategies should be made. Strategies must align with the purpose and motives of the organization and should focus towards the ultimate vision (Dressler 2004).
Importance of organizational strategy
Before starting any company it must have the clear picture of its vision or mission because they have resources, manpower but to utilize in an efficient manner organization needs to form strategies.
Clear perspective: To make the strategies sound and successful, organization must have clear defined goals and put the strategies on the right path. All the strategies, when transferred to the members in the organization they mutually focused towards the goals
Forecasting: Organization must have the capability to forecast the accuracy of its goals so that they can formulate the strategy in a better way (Ronald 2002). On the basis of strategy company can work for a long time by anticipating the future needs of the customer and the market.
Flexibility: To build the competitive advantage organization must have those types of strategies that can be able to face the future challenges and can be modified according to the environment. Some of the organizations disappear due to their poor strategy formulation (Edwards 2007).
Cooperation: Effective strategy translation in all the departments generates better communication. Goals and strategy of the organization should be such that it needs a mutual cooperation of all the members towards its achievement (Pettigrew, Thomas, & Whittington 2006).
Decision making: Organizational Strategy is based on the future assumptions and the upcoming threats and opportunities, according to that organization makes a sound decision and further it helps in achieving the goals efficiently.
Planning: Strategies help in formulation of plans, after making the strategies the organization can make the plans about what to do, how to do, when is to do, and also putting the right members on the right place while working in the organization.
Cushman, D.P., & King, S.S. (2001) Excellence in communicating organizational strategy. Albany: SUNY.
Dressler, S. (2004) Strategy, Organizational Effectiveness and Performance Management. Florida: Universal.
Edwards. (2007) International human resource management. South Asia: Pearson.
Hoye, R., Smith, A., Nicholoson, M., Stewart, B., & Westerbeek, H. (2009) Sport Management: Principles and Applications. 2nd ed. USA: Butterworth-Heinemann.
Naoum, S. (2001) People and organizational management in construction. London: Thomas Telford.
Pettigrew, A.M., Thomas, H., & Whittington, R. (2006) Handbook of strategy and managemant. London: SAGE.
Ronald, R.S. (2002) Organizational success through effective human resources management. USA: Greenwood.
Rothwell, W.J. (2010) Effective succession planning: ensuring leadership continuity and building talent from within. 4th ed. USA: AMACOM.