Organization Theory. Steinway

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Organization Theory. Steinway

By | April 2011
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Steinway’s Strategic Orientation

Assessments of the inputs and strategic orientation
External environment can de described as: 1. The general environment and 2.The task environment or industry structure. Both of them are the key inputs that directly and indirectly impact on how an organization designs its strategic orientation. All external forces such as social, technological, economic, ecological, and political/ regulatory forces are the environmental factors that have influence on an organization’s effectiveness.

Steinway plays an important role as one of the world’s leading piano makers. Its external environment in terms of social force, the company must be aware of the music culture, the trends of each country that purchases its products. Every country has different music culture therefore; the company should be able have an awareness of the right demand and understand each culture’s arts especially in music so that it can respond to each society in the right manner. And that awareness is the input for external environment. In term of political force, Steinway is a worldwide company selling its products through more than 200 dealers worldwide. Each country has different requirements in distributing and selling products. The company should make a better understanding about each country’s rules and regulations that might have to be monitored especially in Germany, that Steinway grand piano are also manufactured. In terms of technology, since many competitors have emerged especially from Asian countries such as Japan, who sells less expensive but good quality, Steinway has adapted its product design and materials to compete with its competitors’ technology. Even though the process of making pianos has not changed much due to the fact that Steinway pianos are handcrafted, alternate methods have been created and improved. In the ecological sense, Steinway tends to waste natural resource causing environmental problems. Steinway pianos require lumber, that...
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