ANALYSIS OF CORRELATIONS BETWEEN COPRPORATE STRATEGY AND OPERATIONAL STRATEGY CONSIDERING MANAGEMENT SYSTEM STANDARDS

Abstract

Organizations today have to position themselves correctly in the market in order to survive in the competitive landscape. Corporate strategy often forms the way the operational business is executed. Corporate strategy therefore plays an important role for the internal structure of an organization. But is also the opposite true? The goal of this study is to identify relationships between the internal organization of a company and overall goals and strategic settings of the enterprise. This research empirically compares the use of standardized management systems, developed levels of knowledge management and strategic goals of car manufactures. The main question is how the use of certain methodologies and best practise approaches (TQM, ISO-based management systems, etc.) influences the strategies of an organization.

The result of this study shows that there is a correlation between the internal organization and the strategies of corporations. Internal methodologies and processes are defined according to strategic decisions of an organization. Internal processes and methodologies on the other side have an effect on the strategy as well. This study also suggests a holistic framework to assess this effect on strategy.