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Role of Strategic Directionin Organizational Design
NAME :M.MANIKANDA PRABHU
REG:NO :RA1952001020071
OrganizationalPurpose
 Strategic Intent:
Meanss that all the organizations energies and resources and directed
towards a focused, unifying, and compelling overall goals. [Microsoft’s early goal:
“Put a computer on every desk in every home..
 Mission:
The overall goal for an organization, the reason for its existence.
Also called official goals, the purpose is to communicate to both internal and
external stakeholders, what the organization is trying to achieve. Also
provides legitimacy to any potential stakeholders
 Competitive Advantage:
Refers to what sets the organization apart from other and provides it
with a distinctive edge for meetin customerr or client needs in the marketplace.
Apple’s Competitive advantage is its brand recognition and simplicity.
 Competitive Openings:
Any pportunityy to gain to upper hand in the industry. If the market is an
ocean, where is the best place tofish?
→ Red Ocean:Companiess compete against each other is crowded spaces.
→ Blue Ocean : Companies find empty spaces that their company can fill. [Nintendo
Wii targeted the general audience].
 Goal Conflict and the Hybrid Organization:
Organizationn often have multiple simultaneous goals. Sometimes
these goals conflict with each other. [Bloomberg accurately reported Chinese news, and their
data terminal sales dropped.]
 Hybrid Organization:
. an organization that mixes value systems an ors that represent two different
sectors of society, which leads to tensions or conflicts. These goals can be mutually exclusive,
so managers have to negotiate on direction
 Miles and Snow’s Strategy Typology:
Organizations strive for a fit among internal organization
characteristics, strategy, and the external environment. Having a clearly defined competitive
strategy is considered one of the defining factors in an organizations’succes.
 Porter’s Competitive Strategies:
By adopting differentiation or low cost leadership companies are more
profitable and less vulnerable. Companies that do neither underperform in the market.
 Effect of Strategies on Organizational Design:
→ Low Cost Leadership: Mechanistic efficiency to organizationall
design. Strong, centralized authority.
. → Differentiation: Structure is fluid and flexible with strong horizontal
coordination. Employees are empowered to take risks.
→ Prospector: Similar to differentiation.
. → Defender: Efficiency approach like low-cost leadership.
. → Analyzer: Mixed of characteristics, fluid like its strategy.
→ Reactor: No direction or clear approach to design.
 Other Contingency Factors Affecting Design
◆ Strategy: Mechanistic vs. Organic
◆ Environment: Stable vs. Rapidly Changing
◆ Size/Life cycle: Small vs. Large.
. ◆ Technology: Production vs Creative Production
◆ Organizational culture: Strict vs. Free
Thank you

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Organisation design

  • 1. Role of Strategic Directionin Organizational Design NAME :M.MANIKANDA PRABHU REG:NO :RA1952001020071
  • 2. OrganizationalPurpose  Strategic Intent: Meanss that all the organizations energies and resources and directed towards a focused, unifying, and compelling overall goals. [Microsoft’s early goal: “Put a computer on every desk in every home..  Mission: The overall goal for an organization, the reason for its existence. Also called official goals, the purpose is to communicate to both internal and external stakeholders, what the organization is trying to achieve. Also provides legitimacy to any potential stakeholders
  • 3.  Competitive Advantage: Refers to what sets the organization apart from other and provides it with a distinctive edge for meetin customerr or client needs in the marketplace. Apple’s Competitive advantage is its brand recognition and simplicity.  Competitive Openings: Any pportunityy to gain to upper hand in the industry. If the market is an ocean, where is the best place tofish? → Red Ocean:Companiess compete against each other is crowded spaces. → Blue Ocean : Companies find empty spaces that their company can fill. [Nintendo Wii targeted the general audience].
  • 4.  Goal Conflict and the Hybrid Organization: Organizationn often have multiple simultaneous goals. Sometimes these goals conflict with each other. [Bloomberg accurately reported Chinese news, and their data terminal sales dropped.]  Hybrid Organization: . an organization that mixes value systems an ors that represent two different sectors of society, which leads to tensions or conflicts. These goals can be mutually exclusive, so managers have to negotiate on direction
  • 5.  Miles and Snow’s Strategy Typology: Organizations strive for a fit among internal organization characteristics, strategy, and the external environment. Having a clearly defined competitive strategy is considered one of the defining factors in an organizations’succes.  Porter’s Competitive Strategies: By adopting differentiation or low cost leadership companies are more profitable and less vulnerable. Companies that do neither underperform in the market.
  • 6.  Effect of Strategies on Organizational Design: → Low Cost Leadership: Mechanistic efficiency to organizationall design. Strong, centralized authority. . → Differentiation: Structure is fluid and flexible with strong horizontal coordination. Employees are empowered to take risks. → Prospector: Similar to differentiation. . → Defender: Efficiency approach like low-cost leadership. . → Analyzer: Mixed of characteristics, fluid like its strategy. → Reactor: No direction or clear approach to design.
  • 7.  Other Contingency Factors Affecting Design ◆ Strategy: Mechanistic vs. Organic ◆ Environment: Stable vs. Rapidly Changing ◆ Size/Life cycle: Small vs. Large. . ◆ Technology: Production vs Creative Production ◆ Organizational culture: Strict vs. Free