Respond to these students posts about How strategy formation differs from a small vs a large organization? How it differs from a for-profit vs a nonprofit? Use 200 words when responding to each student.

Jenny

There are a few ways strategy formation differs for a small versus a large organization. For one, with small firms, the process is usually more informal. This is due to its size and limited resources compared to a large organization. In addition to this, in a large firm, there are four levels of strategy making: corporate, divisional, functional, and operational. On the other hand, in a small firm, there are only three levels: company, functional, and operational (David et al., 2020). As a result, a large organization requires coordination of resources and communication amongst more levels and people to accomplish their objectives. Strategy formation for a large organization is more complex and the process may stretch over a longer period of time.

The first difference between a for-profit and a nonprofit organization is the existence of shareholders. When formulating and implementing strategies, for-profit companies need to take into consideration what will return dividends to shareholders. In some cases, shareholders may also be investors that have lent money to the organization. Therefore, for-profit companies might rely on additional funding from investors to move forward with a strategy. However, with nonprofit organizations, their focus is to have enough money to fulfill their purpose and continue operations. Furthermore, for a for-profit company the people who are involved in strategy making are part of the organization while for a nonprofit company the people involved include employees and volunteers. For the latter, strategy formation can be more challenging since with employees their main priority is the organization but with volunteers, they may have other obligations outside which means less time to contribute.

Alexis

Strategic formulation is very important in achieving the long term goals of the company and defining its operations. The small and large organizations are differentiated according to the size and method of operation and the method of operations. Small organizations generally have less number of employees and few layers of management within the organization. But large organizations have more number of employees and several management layers with complex reporting structure. The small organizations have flat structure and most of the employees in the front line are assigned with more tasks than the front line employees of a large organization. The strategic decision making is more centralized in small organizations due to less number of employees and most of the decisions are taken by company owners. When the business grows it becomes difficult for single person to take each decision and strategic decision making is divided into different layers of management in large organization. The small organization strategy is to assign wide range of task to each employee but in large organizations employees are assigned with only one task and have well defined structures. Small organizations are usually located at a single point while large organizations are spread into various locations and the work need to be coordinated. small organization strategy related to communication is direct communication since most of the employees and executives work in the same location. But in large organization the communication is mainly over phone and email and not in person in most of the cases.

Profit and nonprofit organizations differ in strategic planning. The profit organizations are mainly involved in making profit and divide the profit among its shareholders and other stakeholders. The nonprofit organizations make profit only to continue their operations and the mission is to focus on social activities. The strategy formulation of profit organizations are done by the stakeholders within the organization, but in nonprofit organization, the strategy is formed by the outside stakeholders who get benefit out of the operations. The employees of profit organizations are paid staff, but the nonprofit organizations include both paid staff and volunteers. The nonprofit organizations are owned by the public but profit organization has private owners and they control the business.

(THIS HAS TO BE DONE CORRECTLY)