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Org Theory - Chapter 2

Top executives decide on an organization's vision and mission which provides its strategic direction. The organization's purpose and strategic intent guide where resources are directed. Managers must select a strategy and design that interacts with the competitive environment, such as through differentiation, low costs, or focusing on certain markets. Models like Porter's Five Forces and Miles and Snow's typology can aid in formulating an effective strategy.

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Aubrey Camille Cabrera
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66 views9 pages

Org Theory - Chapter 2

Top executives decide on an organization's vision and mission which provides its strategic direction. The organization's purpose and strategic intent guide where resources are directed. Managers must select a strategy and design that interacts with the competitive environment, such as through differentiation, low costs, or focusing on certain markets. Models like Porter's Five Forces and Miles and Snow's typology can aid in formulating an effective strategy.

Uploaded by

Aubrey Camille Cabrera
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Strategy, Organization Design, and

Effectiveness

CHAPTER 2
The Role Of Strategic Direction In
Organization Design

• An Organization is created to achieve some purpose


• Top executives decide on the end purpose of the organization VISION and
the direction it will take to accomplish it MISSION.
Top Management Role in Organization Direction, Design, and Effectiveness
Organizational Purpose
Strategic intent – organization’s energies and resources are directed toward a
focused, unifying, and compelling goal.
Organizational Operating Goals
Goals Types and Purposes
Selecting Strategy and Design
• A strategy is a plan for interacting with the competitive environment
• Managers must select specific strategy design

Models exist to aid in formulating strategy:


• Porter’s Five Forces
• Miles and Snow’s Strategy Typology
Porter’s Competitive Strategies
• Differentiation strategy – to distinguish products or services from others in
the industry

• Low-Cost Leadership – increase market share by keeping costs low


compared to competitorsOrganizations may choose to focus broad or
narrow in reaching multiple markets.
Porter’s Competitive Advantage

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