Organizational Strategies and Change

3088 Words Oct 30th, 2010 13 Pages





The purpose of this research is to summarize several strategies and describe how these strategies can help bring about changes in an organization. The authors show how different strategies can be used for successful implementation of change process. The article compares the four level strategies, namely functional level strategy, business level strategy, corporate level strategy and global strategy.

There are many strategies to bring about a change in an organization but the most commonly used strategies are summarized in this article. An organization is a group of people working together to achieve a common goal. As change is a
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➢ Monitoring product or service markets so that strategies conform to the needs of the markets at the current stage of evolution.

The strategies in business level are:

1) Cost leadership strategy

The cost leadership strategy emphasizes having the lowest costs, not necessarily the lowest price, in a market. A firm attempting to realize a low cost strategy should stress resources that facilitate efficiency. A firm that has successfully achieved a low cost position will have the lowest costs relative to competitors. A firm can use such a position to either lower its prices and gain market share and sales from rivals or keep its prices at the present market level and make relatively more profit per unit sold. The key idea is that cost and price are independent choices, and this strategy is focused on cost.

2) Differentiation

The differentiation strategy focuses on developing a unique product or a perception of a unique product that customers are willing to pay a premium for. If a firm is not receiving a premium price for its goods or services it is not a differentiator. A firm seeking to follow a differentiation strategy should attempt to develop and enhance its resources that promote customer responsiveness, quality, and/or innovation. Note that costs are still important to a differentiator because it is possible that the costs of making the product unique will be greater than the premium consumers are willing to pay for it. Differentiation often