Evaluating strategy in organizational dimensions

Author: Dr Prasad Begde, Assistant Professor, Sur University Collage

Abstract
The purpose is to study about understand strategy and levels of strategy to evaluate and analyse
organizational dimension into strategy. The article is descriptive type and help to management
students to comprehend strategically aspects and its utilization in companies. The article is using
secondary data Internet, Books, News paper. The objective is to explain strategy, level of
strategy and organizational dimensions in business strategy.

Full Paper
Strategy: Strategy means Prepare goals, vision, mission, and objective to consider SWOT
analysis and using Competitive advantages.
There are three level of strategy:
1.Corporate Level Strategy:
What businesses are we in? What businesses should we be in?
Four areas of focus
Diversification management (acquisitions and divestitures)
Synergy between units
Investment priorities
Business level strategy approval (but not crafting)

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 Corporate-Level Strategies
Valuable
strengths Concentric Diversification
Corporate (Economies
growth of Scope)
strategies
Conglomerate Corporate
Firm Diversification stability
Status (Risk Mgt.) strategies

Corporate
retrenchment
strategies
Can still go for business-level
Critical growth (economies of scale)
weaknesses
Abundant Critical
environmental Environmental Status environmental
opportunities threats

2. Business Level Strategy;

How do we support the corporate strategy?
How do we compete in a specific business arena?
Three types of business level strategies:
Low cost producer
Differentiator
Focus
Four areas of focus
Generate sustainable competitive advantages
Develop and nurture (potentially) valuable capabilities
Respond to environmental changes
Approval of functional level strategies

3. Functional/Operational Level strategy

Functional: How do we support the business level strategy?
Operational: How do we support the functional level strategy?
An example.
Business L.S.: Become the low cost producer of widgets
Functional L.S. (Mfg.): Reduce manufacturing costs by 10%
Operational (Plant #1): Increase worker productivity by 15%

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organizational dimensions that managers use to evaluate strategy
An organizational strategy is concerned with building the structure of an organization into a form that
supports and accomplishes the mission and vision of a company. At the heart of any organizational
strategy is the company's overarching strategic plan, which is developed with a company's mission
and vision in mind. The strategic plan is the key dimension that shapes all characteristics of
organizational strategy. Indeed, once a company's strategic plan is in place, all company
goals and tactics should revolve around its accomplishment.

Key strategic Dimensions in organization are as follows:

1. Strategic issues require top-management decisions:
Strategic issues involve thinking in totality of the organizations objectives in which a
considerable amount of risk is involved. Hence, problems calling for strategic decisions
require to be considered by the top management.

2. Strategic issues involve the allocation of large amounts of company resources:

t may require either a huge financial investment to venture into a new area of business
or the organization may require a huge amount of manpower with new skill sets.

3. Strategic issues are likely to have a significant impact on the long term prosperity of
the firm:
Generally the results of strategic implementation are seen on a long term basis and not
on immediate terms.

4. Strategic issues are future oriented:

Strategic thinking involves predicting the future environmental conditions and how to
orient for the changed conditions.

5. Strategic issues usually have major multifunctional or multi- business consequences:

As they involve organization in totality they affect different sections of the organization
with varying degree.

6. Strategic issues necessitate consideration of factors in the firms external

environment:
Strategic focus in an organization involves orienting its internal environment to the
changes of external environment.

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Example: Cokes Way Forward: New Business Strategy to Focus on Choice,
Quincey, who has been tapped to become Cokes CEO in May, said the companys multifaceted
approach to meet changing tastes and needs includes reducing sugar and calories across many
brands; offering new drinks that provide health benefits like hydration and nutrition; expanding
the availability of smaller, more convenient packages to help people control sugar more easily;
and providing clear, easy-to-find calorie information to help people make informed decisions
without the guesswork.
Putting the consumer first, Quincey said, starts with rethinking some of the companys beverage
recipes to reduce sugar, and investing to make the next generation of zero-calorie sweeteners.
The goal is to give people the low and no-sugar drinks they want without having to give up the
great tastes they know and love.
At the same time, The Coca-Cola Company supports the current recommendations of several
leading health authorities, including the World Health Organization (W.H.O.), that people should
limit their intake of added sugar to no more than 10 percent of their total daily calorie/energy
intake.
Weve begun our journey toward that goal, Quincey said, citing efforts to make low- and no-
sugar drinks more visible and easier to find, and bringing more offerings like organic tea,
coconut water, dairy, grab-and-go coffee, juices and purified waters to more people in more
places.
In 2017, the company will reduce sugar in more than 500 of its drinks around the globe adding
to the 30 percent of more than 3,900 beverages that already fall into the low or no-sugar
category.
The company is also investing more of its marketing dollars to build awareness of its low- and
no-sugar drinks. For example, the One Brand global marketing strategy launched in early-2016
unites all four Trademark Coca-Cola brands Coca-Cola, Coke Zero, Diet Coke/Coca-Cola
Light, and Coca-Cola Life in the Taste the Feeling creative campaign, underscoring the
companys commitment to offering a Coca-Cola for all tastes and lifestyles.

Reference:

Strategic Management in action, Mary Coulter,Sixth edition, Pearson publication

http://www.coca-colacompany.com/stories/cokes-way-forward-new-business-strategy-to-
focus-on-choice-convenience-and-the-consumer
facweb.cs.depaul.edu/yele/Course/IS577/ClassNote/levels%20of%20strategy.ppt
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