Question

Describe the relationship between strategy and structure in business.

Answer 1

An organisation or business strategy is how the organisation our business will use its resources throughout the year. An organisation structure is the way the pieces of the organisations fit together internally it also covers the Rings with external organisations such as partners the relationship between all the principal objective of both the strategy and the structure is different strategy primary refers to the road map laid out by an organisation the principle objective of the strategy is to ensure that the organisation achieve the large set in order to sustain and grow and increasing competitive world. Co alignment is the term to describe the best fit relationship between strategy and organisational structure without co alignment between both of them business cannot Run strategy is a pattern or plan that integration organisations major goals policies and action sequences into a cohesive whole this in 10 days strategy any makes quietly explicitly from the definition given strategy is the determination of the basic long term goals of an enterprise and the adoption of courses of actions and allocation of resources necessary to carry out the schools the same message is contained in another strategy definition saying that strategy is the basic goals and objective of the organisation the major program of the action choosing to reach goals and objectives and the major pattern of resource allocation used to develop the business to environment it strategy is about realising a plan then it is a implemented in a suitable structure and activities to be found and maintain without core alignment between structure strategy business may experience difficulty in achieving long term goals there are various ways in which strategy in a structure maintains the alignment 1. Flexibility employees to generate ideas in participate in decision making adaptability developing in organisational structure that is able to respond as Marketplace condition stages and power limited giving employees this hope to be credited to generate new ideas in participating decision making innovation encouraging employees to try new ideas and reinvent processes teamsupport providing mutual support encouragement and sharing. Healthy relationship between a business strategy and its structure the understanding of this relationship important so that in implementing the strategy the organisation structure is designed according to the needs of the strategy the relationship between strategy and structure can be thought in terms of utilising structure for strategy implementation because the structure is means to end and not an end in itself the master appropriate and is the objective for which an organisation or a business exist in in the first place as revealed by strategy without coordination or relationship between strategy and structure the most likely outcomes are confusion misdirection splendid efforts and losses there are research is that has evidence also suggest that structure allows and follow strategy. Does organisation actions proceed in a particular sequence new strategies equation and emergence of new administrative problems are declining profitability and performance a shift 2 more appropriate organisation structure and then recovery of improved strategy exclusion and profit and performance however the sequence can be broken it suitable business structure is not considered the starting point point of the strategic implementation relationship between both should not be viewed merrily as one way traffic rather it should be viewed as two way traffic on the other hand the structure should be according to the need of the strategy so that it can be implemented effectively the structure of the organisation me Priya critical role in influencing the choice of strategy recognisation of these two way interaction between strategy and structure is crucial for completing understanding of the criteria which under like structure design it becomes obvious that the top management perspective is structural design is necessary when one understands that such design is a result of the overall strategy and the success of the strategy also depends on that design the interdependence of the structure which strategy can be summarised by putting Canon who has derived from his long experience of consultancy firms in device in statistical organisation company he observed the experience of support the view that need a strategy or structure can be determined independently of the other they can broadly be related by the functions and activities performed for the success of the strategy the structure adaptable to the pressure of external environment II difficulty results from the fact that symptoms of organisational and functions are not always explicit Unlike the physical . the third problem in applying the test of adequacy is that that the malfunctioning syptoms causes many of the external factors may cause malfunctioning in the organisation and not the structure itself.