Question

The strategy that a firm chooses dictates such structural elements as the division of tasks, the need for integration of activities, and authority relationships within the organization. This implies that

strategy can effectively be formulated without considering structural elements.

structure typically has a very small influence on the strategy of a firm.

structure follows strategy.

strategy follows structure.

Answer 1

The correct answer is "strategy follows structure."

Organizational structure refers to the structure that coordinates and motivates employees to work together in meeting organizational goal. It helps in deciding about the reporting relationship and the tasks performed by each. The factors that affect structure are: -

• Strategy
• size of the organization
• technology
• environment

Strategy refers to the plan of action that are made for the organization to meet the overall goal. The strategy is important part that helps in gaining competitive advantage. Strategy provides focus and direction to business to meet the desired goals. Developing the business strategy is important because it helps in driving performance within the team and the organization. Business strategy provides clear picture of present business situation and what needs to be changed or implemented to achieve the futuristic goals. Business will agree to the long term vision and goal after developing a business strategy. Strategy helps in identifying the key steps and how different organizational functions need to coordinate in order to achieve the goals. Strategy provides new opportunities to business as it contributes toward creating innovative ideas. Strategy helps in achieving better business results by focusing on improving the business performance.