Organizational strategy: A key to achieving company goals

Every organization needs to establish clear and defined paths in order to accomplish its strategic objectives. This entails adopting an organizational strategy model, as without proper planning, both managers and employees may find themselves uncertain about the company’s operations in the market.

In this context, there are different types of organizational strategies designed to turn planning into actionable results. These strategies play a vital role in a comprehensive program that drives organizational performance and ensures the attainment of objectives.

According to your management style, various strategies can be employed to steer your company’s direction and activities within the market. It is crucial to understand and leverage these strategies to achieve desired outcomes. 

Join us in this post as we explore diverse business and corporate strategies, and choose the one that aligns best with your company.

What are organizational strategies and why are they important?

A strategy can be defined as the use of available resources to achieve specific objectives within a defined timeframe.

In the business world, strategies dictate the path an organization must tread to reach its goals, optimizing the allocation of physical, intellectual, technological, and financial resources.They also encompass the organization’s approach to market challenges and risks. 

Therefore, strategic thinking is paramount for companies to thrive amidst the ever-changing and highly competitive landscape.

Without a well-defined organizational strategy, companies risk long-term viability, lacking the preparedness to navigate the dynamic political, economic, social, and technological aspects of the market.

Types of organizational strategy

Choosing the most suitable organizational strategy requires careful consideration of different factors, such as the industry landscape, company size, operational model, and current scenario.

Startups, in particular, benefit from defining strategies that align with their unique potential and limitations, enabling them to avoid pitfalls and achieve mission-aligned goals and results.

Conversely, established companies must constantly reassess their operations to adapt to the ever-evolving market. This may involve modifying organizational strategies, financial structures, and even products and services to ensure survival and competitiveness.

Discover the keys to developing a flawless strategy:

According to this, the main organizational strategies are:

1. Growth strategy

Any type of organizational strategy that aimed at enhancing profitability, increasing sales, and capturing a larger market, thus, increasing the value of the company.

These strategies capitalize on favorable market conditions, transforming them into lucrative opportunities. The company endeavors to introduce new products and escalate sales volume to maximize growth potential.

Inherent in growth strategies are the following key actions:

• Innovation: in rapidly evolving technological markets, staying ahead of competitors needs frequent product and service development, coupled with streamlined access to vital information.
• Joint venture: collaborative efforts between two companies enable the creation of groundbreaking products and the joint exploration of new markets. Typically, one company contributes capital while the other brings essential technology to the partnership.
• Expansion: collaboration with larger companies or strategic partnerships. Thorough planning is paramount to minimize risks and ensure optimal timing, safeguarding investments and preserving market presence.
• Internationalization: extending operations beyond domestic borders opens up new horizons for growth and market penetration.

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Organizational strategies for conquering new customers, markets, or both?

To fuel company growth, winning new customers is an obvious path. However, determining the right organizational growth strategy model can be a challenge. The first step is to address the following key questions:

• Can you increase your customer base within your current market?
• How can you successfully sell your existing products and services in new markets? 
• How can you develop new offerings that resonate with your current market?
• Is there an opportunity to develop new products and services that can capture customers in new markets?

To help you answer those questions, take a look at this toolkit for strategic business planning.

2. Maintenance strategy

In certain situations, a company may identify potential threats to its survival. However, it possesses a range of strengths accumulated over the years, including financial resources, talented human capital, and advanced technology.

With these assets in mind, managers can strategically determine actions to sustain the company’s position in the market.

The focus is on leveraging strengths while mitigating weaknesses. This approach involves adopting a defensive posture to proactively prepare for potential challenges that may arise in the near future.

3. Investment strategy

This is a key type of organizational strategy that must be included in the strategic planning process.

In this case, the focus is on the effective use of financial resources, ensuring careful planning to minimize project failures and potential losses.

Successful strategic investments require a deep understanding of the market, competitors, and customer dynamics. This knowledge empowers managers to identify specific sectors within the company that warrant investment, driving differentiation and establishing a competitive edge.

BONUS! Discover another strategic planning tool

Introduced in 2005 by Alexander Osterwalder and Yves Pigneur, the Business Model Canvas offers a dynamic framework for strategic planning. Consisting of 9 essential fields, this template prompts the answering of critical questions to develop a comprehensive business plan.

This approach streamlines this complex task, facilitating agile and focused decision-making. As a result, the Canvas Model has gained popularity among startups, where speed, cost efficiency, and operational effectiveness are paramount.

Explore the 9 key questions of this organizational strategy model:

• Value propositions: What is the compelling promise your product makes to customers?
• Customer segments: Who are the specific target audiences for your product?
• Key activities: What are the core activities that enable the delivery of your value proposition?
• Main resources: What essential resources (human, financial, physical, intellectual, etc.) are required?
• Channels: Through which channels does your organization deliver its value proposition?
• Customer relationships: How does your company build and maintain relationships with its customer base?
• Key partners: How do strategic alliances and collaborations contribute to your business plan?
• Cost structure: What are the different expenses involved in operating the business?
• Source of revenue: How does your product generate profit and sustainable revenue?

One of the key benefits of the Canvas Model for various organizational strategies is its collaborative nature, allowing the creation of business plans through group participation. This involves a team of skilled individuals engaging in brainstorming sessions to answer the model’s questions.

To encourage collaboration, a large Canvas Model is used, with each section filled out using post-it notes. This allows for easy modification and adaptation as ideas evolve.

The process ensures alignment across different areas of the company, as various perspectives are considered. The diverse and expansive ideas generated can then be condensed into a concise and comprehensive business plan, easily captured on a single sheet of paper.

Setting the Stage for Successful Organizational Strategy Implementation

As we have learned, there are various types of organizational strategies applicable in both anticipated and unforeseen situations for businesses.

Organizational strategy works hand in hand with strategic planning, enabling entrepreneurs and managers to assess the current landscape, define their beliefs and values, and take action in the market.

Based on this foundation, the company’s mission is established, outlining its purpose, deliverables, and desired recognition within a specific timeframe.The mission serves as a guidance for selecting and developing appropriate business strategies.

An effective strategic planning system is crucial for increasing performance, engagement, and overall results, incorporating visual resources that enhance strategic implementation.

This business management system allows the integrated monitoring of corporate performance, and the centralization of all indicators, focusing on decision making.

One such comprehensive software is STRATWs One, designed to streamline work routines, improve management, and foster team engagement.

It empowers businesses to drive growth, reinforce a culture of strategic management, and transform plans into tangible outcomes.

It’s no wonder that our tool has been adopted by over a thousand companies, boasting more than 160 thousand satisfied users.

Why is this? Here are some of its key advantages:

• Create and monitor KPIs for processes, projects and team members;
• Foster quick and transparent information sharing;
• Utilize meritocracy and visual management to motivate and manage teams;
• Facilitate seamless information exchange and communication across departments;
• Focus on achieving the desired results for your company;
• Identify opportunities for improvement;
• Efficiently manage meetings and project portfolios;
• Boost productivity levels;
• Incorporate renown strategic planning methodologies such as BSC, OKR and SWOT;
• Strengthen corporate governance practices;
• Manage risks and conduct scenario analysis.