Internal Market Orientation and Strategy Implementation

Internal Market Orientation and Strategy Implementation

Jose Ruizalba (University of West London, UK) and Anabela Soares (University of West London, UK)
Copyright: © 2016 |Pages: 12
DOI: 10.4018/978-1-5225-0356-9.ch011
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Abstract

Managing People within organisations is a complex and intricate challenge much insight can be gained from complementing the mainstream trends with other research fields. This Chapter shall focus on the role Internal Marketing Orientation (IMO) as a key element that contribute to link the strategy design and its implementation. IMO is an emerging paradigm that enables organisations to focus on the needs and wants of their employees by defining them as primary internal clients. To have the right people in the right job is crucial. Hence the importance of strategic design and implementation. Consequently, in order to be successful, any decided strategic direction must rely first and foremost on the alignment of its employees with mission and overall corporate objectives: ultimately with its business model. This focus on internal clients, is what mainly makes possible the delivering of the promise of value offered by organizations and influences the management of human capital. It has been empirically analyzed how IMO contributes to improve job satisfaction and employees' commitment.
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2. Strategy: Background And Definitions

Academically, the field of strategic management is relatively recent, borrowing most of its theoretical background from economic and organizational theories. Early foundations include therefore Frederick Taylor´s scientific management, Max Weber´s bureaucratic organizations and Chester Barnard`s administrative functions and open system organizations (Coulter, 2013). As a result, acknowledging its military roots, many definitions of strategy have been suggested (e.g., Chandler, 1963; Porter, 1996; Mintzberg, 2007) that ultimately share similar dimensions. As such, strategy can be said to refer to a long term overall direction or orientation that guides the organization forward in all managerial levels.

It is however important to distinguish between concepts which are usually used as synonyms such as: business model, strategy and tactics. Casadesus-Masanell and Ricart (2011, p.107) suggest that all organisations have a business model but not all have a strategy. For these authors, a business model refers to the overall company logic and their system of choices and consequences. In turn, strategy would be the contingent plan to create a unique and valuable position involving a distinctive set of activities. And tactics represent the range of options available to compete which are determined by the chosen business models.

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