Organizational Scope and Purpose

Organizational scope refers to the range and diversity of products, services, markets, and geographic locations in that an organization operate. It encompasses the breadth of an organization’s operations and the extent to which it engages in related or unrelated business activities.

Organizational purpose, on the other hand, refers to the reason why an organization exists, the fundamental reason for its existence beyond making profits. It is the fundamental belief or mission of the organization, which guides its actions and decision-making.

The scope and purpose of an organization are closely interlinked, as the scope is often determined by the organization’s purpose. For example, a company that is focused on environmental sustainability may have a limited scope of products and services that reflect this purpose, while a more diversified company may have a broader scope.

Understanding and defining the scope and purpose of an organization is critical for its success, as it helps to establish a clear direction for the organization and guide its actions and decision-making. A well-defined organizational purpose and scope can help to motivate employees, attract customers and stakeholders, and drive sustainable growth and profitability.