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The three strategies used are
- the focused strategy,
- the cost leadership strategy, and
- the differentiation strategy.
The focused
strategy is used by organizations targeting a niche market. This is
unique from the other methods which target industry-wide markets. A
focused strategy relies upon the ability to generate repeat business
The three primary factors that influence organization design decisions are environment, business strategy, and technology. Environment refers to the environmental forces and external stakeholders that directly affect the organization's survival. Major stakeholders include customers, suppliers, regulatory agencies, shareholders, and creditors.
The three primary factors that influence organization design decisions are environment, business strategy, and technology. Environment refers to the environmental forces and external stakeholders that directly affect the organization's survival. Major stakeholders include customers, suppliers, regulatory agencies, shareholders, and creditors.
Business strategy refers to the strategic choices made by top management to enable an organization to capitalize on its unique capabilities in order to build and sustain a competitive advantage. Three underlying strategies appear to be essential in doing so: low-cost, differentiation, and focused. Finally, technology influences organization design in terms of the creation of teams and departments, the delegation of authority and responsibility, and the need for formal integrating mechanisms.
