An organization’s strategy is a generalized model of the actions necessary to achieve its goals. The goals in this case are represented by those key results that companies are striving for. They play an important role in the formation of guidelines, that is, on what all activity is built.
An organization’s strategy always includes many standard goals: making a profit, increasing the volume of a business, its profitability, and so on. It all depends on the direction of the enterprise itself.
The right choice of organization strategy allows you to confront numerous competitors, get maximum profit, and avoid many unnecessary legal problems and questions. 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 you can switch from one type of activity to another.
When choosing, entrepreneurs 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.
A development strategy that takes into account all these guidelines will allow you to quickly take a place in the market and hold it in the future. The chosen strategy should constantly change and be adjusted.
It is worth emphasizing that there is no single scheme. The types of organization strategies are different, each of them has its own structure and its own 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 types:
- offensive (breakthrough);
- defensive (survival);
- change of types of business (reduction).
All of them have their own varieties. These varieties are determined by the specific directions of the company. A multi-purpose organization strategy can combine elements of all groups at once.
The most striking is precisely the breakthrough strategy. It gives you the opportunity to quickly get what you want, bypass competitors, strengthen your market position. Its options are various. In some cases, the organization must act quickly and decisively, in others - actions, although offensive, but still cautious and quite hidden.
Most offensive strategies are based on some kind of advantage. An example would be the receipt of any new technical invention. Almost always an offensive requires a decent financial outlay. We also note that the risk is always very large.
The survival strategy is aimed at maintaining market positions. Most often, it is chosen when there is no financial or other means for a breakthrough strategy. The organization can conduct it in order to avoid conflicts with competitors. In fact, it is dangerous. In the absence of proper control, a survival strategy will ruin the firm.
A reduction strategy is needed when regrouping is needed. They use it, trying to join the changed market, to establish production after a long downtime, to get rid of what is no longer profitable.
There are also strategies for the development of the market, product, strategy of deep penetration, diversification. They are often used by diversified companies. In them, one strategy is quickly replaced by another. Incredible combinations of these strategies, changes, evolution are taking place.
An organization’s development strategy is something complex and thought out to the smallest detail. Experienced entrepreneurs do not grab hold of what at first glance seemed attractive, but always try to penetrate the essence of things.