Identify and discuss a generic strategy which will be supported by mechanistic and an organic form of organization structure. Support your answer with examples Custom Essay

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The generic strategies mentioned here are usually regarded to be those suggested by Porter, namely cost leadership, differentiation and focus. However, some candidates discussed the strategies of stability, growth, etc., or those mentioned in the product/market matrix developed by Johnson et al. These are acceptable, but must be clearly explained and linked to the appropriate structure.

Looking now at the generic strategies suggested by Porter, it is first important to explain what these approaches are and then demonstrate which strategy will be supported by which structure. Good answers also provided good practical examples to demonstrate the relationships.

A mechanistic structure might support a cost leadership strategy. This is a type of competitive strategy with which the organisation aggressively seeks efficient facilities, cuts costs and employs tight cost controls to be more efficient than competitors. There is close supervision, finite employee empowerment, etc.

An organic structure might support a differentiation strategy which is a type of competitive strategy with which the organisation seeks to distinguish its products or services from its competitors. The organisation needs to have strong creative flair and reward innovation, with strong marketing abilities and good leadership.

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