Abstract
The term strategy and structure is said to be a result of decision making by managers through analysing the firm’s performance, market, segmenting the market, selecting the market, positioning themselves and using resources to implement the process. The paper seeks to examine the effects of strategy and structure on organizational performance using exploratory analysis of data of Remou Oil Nig. Ltd with an interview with management staff. The population is 50 and sample size is based on purposive sampling which are 10. It is discovered that strategy and structure are interdependent variables that firms must always consider when introducing new action or plan. It was also found that there is a positive relationship between structure and strategy that determine firm’s performance in terms of net profit. Therefore, if a firm’s structure change, strategies will also changes with changing demand and that structure affects strategy and the two variables determine the performance of a firm if properly matched and monitored. The recommendation is that: Remou Oil Nigeria Limited should use both structure and strategy as a source of increasing organizational performance in terms of profit since positive relationship exists between line structure and product differentiation strategy in Remou Oil Nig. Ltd. They should try to combine these variables together to enhance returns in terms of investment, equity, asset and net profit.
Highlights
The firm’s structure is a way of helping an organization to achieve its stated goals and because of the fact that objectives are derived from the organization’s overall strategy
This study investigates the relationship between structure and strategy on organizational performance
Based on the selected sample size of 10 management staff and structure proxy like line structure as well as product differentiation as strategy proxy, there is a positive relationship between structure and strategy that determines the organizational performance of Remou Oil Nig
Summary
The firm’s structure is a way of helping an organization to achieve its stated goals and because of the fact that objectives are derived from the organization’s overall strategy. It is logical that strategy and structure should be closely linked. If the firm focuses on providing certain services such as army services or police services and some time army protection in the community, its structure will be one that promotes standardized and efficient services. Strategy and structure is said to be one of the most fundamental and significant part of an organization. Strategy and structure come up by planning process which is during the process of management in the organization. Strategy is the direct result of decision-making and structure is the indirect result of decision making in an organization
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