The organization's strategy is a generalized modelnecessary to achieve the set goals of action. Goals in this case are represented by those key results that firms strive for. They play an important role in the formation of landmarks, that is, on what all activities are built.
The organization's strategy always includes a set of standard goals: making profits, increasing the volume of business, its profitability, and so on. Everything depends on the direction of the enterprise itself.
The correct choice of the organization's strategy allowsto resist to numerous competitors, to get the maximum profit, to avoid a lot of unnecessary legal problems and issues. The market is constantly changing, but practice has shown that it is best to choose long-term strategies, as they are more thoughtful and effective. Everything in the enterprise should be arranged so that it is possible to switch from one activity to another.
Entrepreneurs in choosing often focus on:
- environmental factors;
- the possibility of development in this environment;
- the possibility of survival;
- the potential of the equipment used and the level of professionalism of employees.
The development strategy, which takes into account all these benchmarks, will quickly take a place in the market and keep it in the future. The chosen strategy should be constantly changed and adjusted.
It is worth emphasizing that there is nono single scheme. Types of organizational strategies are different, each of them has its own structure and its components. All the diversity in fact can be explained by the specific conditions in which the business is carried out.
An organization's strategy can be one of the following:
- Offensive (breakthrough);
- defensive (survival);
- change of types of business (reduction).
All of them have their own versions. These varieties are defined by specific lines of activity of the firm. Multipurpose strategy of the organization can combine elements of all groups at once.
The most vivid is the strategy of the breakthrough. It enables you to quickly get what you want, bypass competitors, and strengthen your position in the market. Its variants are different. In some cases, the organization must act quickly and decisively, in others - actions, although offensive, but still cautious and sufficiently hidden.
Most offensive strategies are basedon some advantage. An example may be the preparation of any new technical invention. Almost always the offensive requires a decent financial outlay. Let's also note that the risk is always very high.
The survival strategy is aimed at keepingpositions in the market. Most often it is chosen when there is no financial or other means for a breakthrough strategy. The organization can conduct it and in order to avoid conflicts with competitors. In fact, it is dangerous. If there is no proper control, the survival strategy will disrupt the firm.
A reduction strategy is needed whenthere is a need for regrouping. They use it, trying to join the changed market, establish production after a long idle time, get rid of that which no longer brings profit.
There are also market development strategies,product, strategy of deep penetration, diversification. They are often used by diversified companies. In them, one strategy quickly changes to another. There are incredible associations of these strategies, changes, evolution.
The development strategy of an organization is somethingcomplex and thoughtful to trifles. Experienced entrepreneurs do not grasp at what at first sight seemed attractive, but always try to get into the heart of things.