What business model your organization follows “Structure-Shapes-Strategy” or Strategy-Shapes-Structure?

Does your organization’s corporate strategy based on an environment or your organization creates a strategy that shapes the environment? Does your organization follows “structure-shapes-strategy” approach or “strategy-shapes-structure” approach?

For last 30 years majority of the company follows “structure-shapes-strategy” approach where they develop corporate strategy by analyzing the industry or environmental conditions in which they operate.

They assess the strength and weaknesses of their competitors. They carry out industry and competitive analysis and develops a distinctive strategic position where they can beat their competitors by building a competitive business strategy. In order to differentiate from their competitors they choose a strategy where either they charge premium price or pursue with low costs. In this kind of business strategy there is always a value-cost trade off............

Please follow my blog URL to read the full story. . . . .

http://deepakagrawalblog.wordpress.com/2010/02/07/what-business-model-your-organization-follows-%e2%80%9cstructure-shapes-strategy%e2%80%9d-or-strategy-shapes-structure/