Corporate Strategy and Organizational Performance
Name
Liberty University - Lynchburg, VA
BUSI 101 - Introduction to Business
Corporate Strategy and Organizational Performance
In reference to Porter (2004), strategies empower firms to increase competitive advantage from
three perspectives; cost administration, differentiation, and focus. Cost leadership pressures of
giving organized things at a low for each unit cost for purchasers who are worried about cost.
Cost leadership can be a minimal effort strategy that offers services to a broad assortment of
customers at the lowest cost accessible in the market or the best framework that gives products or
services to a remarkable range of customers at the best value available in the market. This
technique expects to give customers scope of products and services at the most decreased cost
accessible compared with rivals products with comparable traits.
As shown by Porter (2004), focus recommends making products that fulfill the necessities of a
small group of clients. Low cost strategy offers items to a little extent of customers at any rate
cost conceivable accessible while best esteem center system gives items or administrations to a
little scope of clients at the best value esteem accessible available. Low cost and differentiation
are the ordinarily acknowledged bland dimensions of strategy that have effectively withstood
numerous experimental tests in the strategy literature (Robinson and Pearce, 2005). A low-cost
strategy represents attempts by firms to generate competitive advantage by becoming the lowest
cost producer in an industry (Porter, 2004).
Organizations can pursue product differentiation strategy that underscores a form of uniqueness
that stems either from the product, process or administration. Mill, (2008) argues that there are
no less than two sorts of differentiation strategies: product differentiation and marketing
differentiation. Unlike a product differentiation strategy, a marketing differentiation strategy is
based on creating customer loyalty by uniquely meeting a particular psychological need.
Mwema, (2008) a corporate strategy model of Kenyan Public Corporation Self sustainability.
The study focused on Kenyan local authorities in Eastern using an exploratory plan. A semi-
structured survey questionnaire was used to collect data which was analyzed using descriptive
and inferential statistics. He established that 78% of the Kenyan public corporations were not in
a position to sustain their processes due to internal inadequacies that required sensible
streamlining. He precisely associated anomalies to deprived work ethics, stringency in
management, resource misallocation, and structural flaws but failed to take in to account the
competitive strategies applied. The present study, therefore, seeks to conceptualize the
competitive strategies as used in Kenya state corporations and measure concerning performance
to come up with a model that may contribute to the management and policy-making process on
the influence of competitive strategies on the performance of Kenya state corporations.
Corporate Strategy, Organisational Structure, and Organisational Performance
Organisational Structure has permitted organizations to universally react rapidly and effectively
to new opportunities and unanticipated pressures, thereby establishing their competitive
advantage. The competitive advantage recognized by the organizational Structure is beached on
reordering its industrial processes and approving that it is in the paramount position to contest
while building best practices and internal process that thrust it above its competitors. This
eventually makes the firm able to familiarize quickly and formulates it for quick challenging the
competitors (Gibson, 2010). He further contends that organizational structure to support
corporate strategy or to take advantage of a business opportunity.
As indicated by Akinyele (2011), the organizational structure and strategies embraced by oil and
gas advertising corporations influence market portion positively. Hajipour, et al., (2011) studied
on the relationship between industry structure, strategy type, organizational characteristics, and
performance. The outcomes demonstrated that organizational structure determines attributes of
an organization. Mansoor et al., (2012) contended that a perfect organizational structure is a
recipe for more magnificent performance.
Oyewobi et al. (2013) study on the effect of organizational structure, corporate strategies on
organizational performance, found that organizational structure has no direct influence on both
financial and non-financial performance. On the contrary, Gibson, (2010) contended that
organization structure has an unswerving result in the achievement of an organized operation
strategy. His argument supports the argument that organizational structure results in
organizational performance.
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