Organizational Structure Affected by Strategic Change - Report Writing IT Assignment Help

Assignment Task:

ABSTRACT 

Organizations are vulnerable to change. They need to develop strategies to compete both in domestic and global market. If organizations have to sustain in long run they have to continuously make changes in their strategies. Competitive market pressurizes organizations to make rapid changes in their strategies. But continuous updations in strategies affect organization’s culture, structure, productivity and outcomes. A change in strategy brings about tremendous changes in organization’s structure. This paper explores various issues like: 

• The role of strategy in organizations. 

• Organizations need to make continuous amendments in their strategies. 

• Organizational structure and its advantage in organizations. 

• Change in strategy brings about change in organizational structure. 

INTRODUCTION 

Internal and external resources of organization are the critical factors for success and stability. Organization?s fundamental objective is to gain strategic competitiveness. Organizational sustainability depends on its strategies implemented to face the market volatility and uncertainty. Organizational structure is a means which support management to achieve its objectives through strategic implementation. This closely links strategy and structure. For example, if an organization focuses on offering some special services, its structure should promote this initiative. If the top management initiates considerable change in its organizational strategy, then it will need to modify structure to support the change. Highly growth oriented companies have smaller organizational structures so they can react to changes in the business environment quicker than other companies. 

STRATEGY 

Strategy is a word of military origin which means plans of action designed to achieve a particular goal (Carnall, 1986). To maintain growth and sustainability of organizations, managers need to develop and implement effective strategy. Organizational strategy refers to a plan for interacting with the competitive environments to achieve organizational goals (Zheng, Yang, and McLean, 2010). An organizational strategy is closely related to its performance provided if it is aligned with organizational structure. 

A strategy is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage (Ireland, Hoskisson, and Hitt, 2010). A firm has a competitive advantage when it implements such strategy which competitors are unable to duplicate or find it too costly to try to imitate. For example APPLE?s strategy to bring creativity and innovation in its product including ipod, portable digital music device, itunes online music store, service for downloading songs and other digital music and video clips. APPLE excels in making excellent marketing strategy to please its customers. 

Strategy is important for continuous growth and success of companies. It is concerned with making choices among available alternatives. To choose a strategy, organizations pursue one alternative over other. These choices are influenced by opportunities or threats of organizational environment. Choice of selecting strategy is also affected by the nature and quality of firm?s internal resources, capabilities and core competencies. Effectively formulated strategies integrate, assemble and allocate firm?s resources and competencies in order to align them in its external environment. There is a variety of strategies having their own features and benefits. Some of the major classified strategies are business level strategy, corporate level strategy, acquisition and restructuring strategies, international strategies and cooperative strategy.

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