What Are the 4 Organizational Strategies?
May 18, 2023
C-suites across industries are struggling to adapt, innovate, and evolve their operations to keep a leg up on the competition and drive steady growth.
Essential tasks like defining operational priorities, allocating resources, managing the company portfolio, and aligning efforts with the company’s long-term vision have become more challenging than ever, thanks to rapidly shifting market conditions and consumer preferences.
In other words, organizational strategy has never been more critical than right now.
Gaining a solid understanding of the different organizational strategy levels will give you the knowledge and confidence you need to identify and implement strategies that align with your organization’s unique strengths, values, and goals.
We’ll break down each type from corporate-level to operating-level strategy and provide actionable insights to set you up for success. Let’s dive in and take your business to the next level!
What Are the 4 Organizational Strategies?
The four main types of organizational strategies each encompass a different level of an organization’s operations.
Learning how each type of strategy empowers businesses to succeed will make it easier for you to make an informed and measured decision regarding which organizational strategy is best suited for your company’s unique strengths, weaknesses, vision, mission, and values.
The four main types of organizational strategies are:
- Corporate Level Strategy
- Business Level Strategy
- Functional Level Strategy
- Operating Level Strategy
Let’s break down each of these organizational strategies so you can identify which style best aligns with your company’s unique needs and goals.
Corporate Level Strategy
Corporate level strategy is the highest level of organizational strategy.
Corporate-level strategy exists to provide guidelines and processes for approaching matters like resource allocation, mergers and acquisitions, portfolio management, defining priorities, and creating synergies between various business units and departments.
Business Level Strategy
The business-level strategy aims to create a framework for maximizing competitive advantages in your industry, market, niche, and customer demographics.
Business-level strategy accomplishes this by determining how your organization will differentiate its offerings from the competition, determine pricing, outline marketing and sales strategies, and refine and evolve your company’s UVP without straying from the vision, values, and mission handed down by corporate-level strategy.
Functional Level Strategy
Functional level strategy exists to provide guidance, allocate resources, and outline the project and reporting structures to the various departments involved in transforming corporate and business level strategies into reality.
The goal of functional-level strategies can include everything from establishing new angles for Marketing and pivoting sales goals for Sales to introducing new financial tracking tools to Accounting or updating H.R.’s top recruiting goals.
Operating Level Strategy
Operating level strategies are the most practical and actionable of all types of organizational strategies. The operating level strategy aims to create smooth, replicable implementation systems for new strategies, initiatives, and processes.
Operating level strategies also set the stage for maximum efficiency, minimal expenses, and top-notch performance everywhere, from their manufacturing and distribution operations to project management and customer service.
What Is the Purpose of Strategy in an Organization?
The purpose of strategy in an organization is to provide a roadmap, guidelines, or a plan of action that outlines how an organization will progress toward its long-term goals, effectively allocate its resources, fulfill its mission and vision, and live up to its values.
Impactful organizational strategies also provide a shared sense of direction that is invaluable for cultivating an engaged and positive workplace. These strategies provide a systemic approach to tackling difficult questions about internal hierarchies, reporting structures, project scopes, departmental responsibilities, and establishing key performance indicators (KPIs) and success metrics.
The structure provided by organizational strategy and services also makes it easier for organizations to adapt to shifting market trends, capitalize on emerging opportunities, sidestep potential pitfalls, and position themselves for steady, sustainable success.
For the best outcomes, organizational strategies should always weigh an organization’s unique strengths, weaknesses, opportunities, and threats during the creation and implementation stages.
Transform Your Business with the Right Organizational Strategy
Are you struggling to figure out which organizational strategy is right for your company? Medallion Partners can help!
With over 15 years of experience, we have gained a deep understanding of the complex and varied challenges that businesses encounter. We have leveraged this experience to help countless organizations across every major industry thrive.
Whether you’re looking to improve your efficiency, increase productivity, or cultivate a culture of innovation, we are here to guide you every step of the way. Our top-notch team of strategy consultants has the knowledge, passion, and expertise to identify and implement the perfect organizational strategy for your business.
Contact us today to learn more about how we can help you turn your long-term vision and goals into a reality.