3 Organizational Strategies to Benefit Your Business - Growth Freaks

3 Organizational Strategies to Benefit Your Business

Organizational chart drawn on neutral background

Organizational strategies represent various decisions a company needs to take if it wants to achieve the long-term goals. Today we are going to learn more about organizational strategies and how to approach them for the best results with your business.

Organizational Strategies – Definition

Basically, an organizational strategy refers to all the actions a business takes to fulfill their goals. Taken all together, the actions make up the strategic plan of the company, which can stretch even for a year. Naturally, all the levels of the company participate in reaching these goals, on a smaller or larger scale. As such, the strategy is important because it impacts all the workers, regardless of their position in the company.

Types of Organizational Strategies

There are three types of organizational strategies:

  • Corporate Strategies;
  • Business Strategies;
  • Functional Strategies.

#1 Corporate Strategy

This type of strategy focuses on evaluating the business. Whether it’s the one where the company wants to enter or the one where it’s already in, it focuses on evaluating the possibilities with the businesses. Basically, it aims to pinpoint the direction or the big goals of the company in their entirety. Further on, it describes the steps required to achieve them. This is a good strategy if you’re not sure where are you headed with your company or want to make some important changes.

#2 Business Strategies

The corporate strategy is broken down by each unit of the organization into different business strategies. These are the following:

  • Cost Leadership Strategy – the organization aims to have the lowest cost in the entire industry.
  • Differentiation Strategy – the company aims to differentiate itself from its competitors by offering unique products; it hopes that customers will value widely the products/services;
  • Focus Strategy – focusing on a narrow industry segment, companies adopting this strategy are aiming for a differentiation or cost advantage;
  • Stuck in the Middle – this is a phase where the organization cannot develop any competitive advantages, neither through cost nor through differentiation.

#3 Functional Strategy

Lastly, this is the strategy adopted by any functional department in the attempt to support the bigger organizational strategies. It might sound a little complicated, so here’s the simplified version. Any business has a marketing department, for instance. Besides the bigger strategy, the department has its own strategy for achieving their own goals. Most likely you know already about marketing tactics, techniques, etc.


You may be asking yourself how to choose the best option with all these organizational strategies. You should be thinking about what is your own approach towards the company and what is the company’s aim for the specific market you’re in. It’s very important to instate a good strategy on all the levels of the company, as we detailed with the functional strategy type.

Finally, the point here is that for a strategy to benefit your business, all the employees need to work together. A coherent work will undoubtedly lead you towards your goals, whereas a chaotic work environment is a recipe for failure.

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Author: Amanda Knowles