On which Organizational strategy should be based

Organizational strategy should be based on a mission statement that indicates what the organization wants to accomplish and how it will meet customer needs. Goals and objectives should flow from that statement. Strategy options may be constrained by numerous factors.

 

How the organization is structured provides some constraints on who within the entity has authority and responsibility for tasks. The core competencies of an organization dictate internal strengths and capabilities and, thus, help indicate appropriate business functions to outsource. 

 

Strategy may also be constrained by the level of capital (monetary or intellectual) available to the organization. Organizational culture provides a foundation for normal business practices and protocol for interactions among employees, managers, customers, suppliers, and the public. 

 

Lastly, environmental factors such as market structures, government regulations, and national cultures may help or hinder strategic options. A business intelligence system can help management understand the factors that influence the organization’s choice of strategies.