ABSTRACT
In most models of team performance, based on organizational behavior perspectives, there has been a conspicuous absence of the important role of the organization’s external environment and its influence on team performance. The literature on organizational performance from a strategic perspective has a very lengthy and successful history. M. E. Porter suggested that two business strategies exist: low cost and differentiation. The low cost strategy allows the firm to produce and sell its products or services at the lowest possible cost. The differentiation strategy involves producing products or services that differ markedly from others on the market. Organizations that adopt the process effectiveness market strategy must keep in mind several aspects of production and delivery. M. Treacy and F. Wiersema argued that organizations adopting an operationally excellent strategy primarily devote their energies to providing an acceptable product at the lowest total cost. H. Diller spoke to the outcome of customer loyalty as central to the relationship marketing strategy.
