XYZ Company is looking for several measures to promote its growth and profitability in a manner that aligns with its respective organizational goals. This process requires development of strategies for the company that helps in determining the direction it undertakes in its respective industry and market. The ability of this company to achieve its desired goals is dependent and affected by its capability to develop effective operational strategies. Without suitable and effective strategies, it will be relatively difficult for the company to achieve its goals. In essence, XYZ Company cannot achieve desired success and profitability without creating and implementing suitable strategies. The development of effective strategies for this company requires examining its various operational components including marketing, operations, laws, ethics, leadership, globalization, economics, and information systems.
Organizational Strategy
Organizational strategy is defined as the sum of the activities or initiatives a company or business seeks to undertake in order to achieve its long-term goals (Johnson, n.d.). These actions or initiatives are put together to develop a strategic plan for the company. During the process of developing an organizational strategy, it's important to consider the organization's mission, functional and business objectives, and grand strategies. This is primarily because these components are crucial towards determining the strategic direction of the business and ensuring that adopted plans align with established long-term goals.
An organizational strategy must emerge from the vision and mission of the company because mission and vision is the basis of a company's existence and its associated operations. The various activities that the company seeks to undertake must be geared towards fulfilling its vision and mission. While the organization's vision describes what the firm seeks to achieve in the long-term, the mission provides direction to all strategic decisions. Therefore, the vision and mission is the basis with which strategic directions and long-term goals are developed.
The second important consideration is business and functional objectives, which implies that an organizational strategy should be based on short-term and long-term goals. When considering business and functional objectives, organizational strategy should be changed into smaller, short-term plans that guide daily operations and activities. The tactical and functional objectives act as the building blocks of a suitable and effective organizational strategy. In this case, the organization's middle management creates goals and plans for competing in the market whereas lower organizational levels implement these plans across daily operations and activities.
Grand strategies are important considerations when developing an organizational strategy because organizational strategies are usually part of the overall objective of a business. Some of the various elements of an organization's grand strategies include integration, growth, and diversification. In this case, growth refers to the productivity and numerical increase of a company whereas diversification refers to expansion into new markets or inclusion of new products and integration refers to plans for increased competitiveness in existing product lines.
Components of Overall Organizational Strategy
In addition to making these considerations, an overall organizational strategy comprises of several components that are combined to formulate the strategic direction and decisions of the business or company. Some of the most important components of the overall strategy for an organization like XYZ Company include
Strategic Leadership
Strategic leadership is basically defined as the ability or potential of an organizational leader/manager to express the organization's strategic vision in a manner that persuades others to embrace it and work towards accomplishing it. Based on this definition, strategic leaders utilize organizational strategy and plans in management of employees towards the achievement of established long-term goals. Through this process, these leaders develop organizational structure and culture, allocate resources, and create strategic vision. Therefore, strategic leaders work towards promoting strategic productivity through creating an environment where employees work towards achieving organizational goals while meeting their needs. However, the ability of organizational leaders to exercise strategic leadership requires them to have potential to predict and understand the working environment.
For XYZ Company, one of the important components that should be developed and established in the overall strategies of the company is strategic leadership. The organization needs to develop measures that will help enhance the capabilities of its managers to predict and understand the workplace and create a vision towards strategic productivity. The company can achieve this through training its leaders or managers essential skills for strategic leadership. These essential skills for strategic leadership include anticipation, challenge, interpretation, decision-making, ability to learn, alignment capabilities.
With regards to anticipation, the organization's leaders should conduct market research and business simulations that involve talking to its business partners like customers and suppliers to understand their challenges (Schoemaker, Krupp & Howland, 2013). These leaders should develop their...
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