Corporate culture in strategic management. Why Is Culture Important in Understanding Strategic Management? 2022-10-31
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Corporate culture is a complex and multifaceted concept that plays a vital role in strategic management. It refers to the shared values, beliefs, behaviors, and practices that define a company and shape its interactions with stakeholders. A strong and positive corporate culture can have a powerful impact on the success of an organization, while a weak or toxic culture can be detrimental to its performance and sustainability.
In the field of strategic management, corporate culture is often seen as a key factor in the formulation and implementation of strategic decisions. It can influence the way in which a company responds to changes in the market, the level of innovation it is able to achieve, and the level of commitment and engagement among its employees. For example, a company with a strong culture of innovation and risk-taking may be more likely to take advantage of new opportunities and adapt to changing market conditions, while a company with a culture of fear and conformity may be less willing to take chances and may struggle to keep up with the competition.
One way in which corporate culture can be leveraged in strategic management is through the use of cultural alignment, which involves aligning the company's culture with its strategic goals and objectives. This can involve implementing policies and practices that support the desired culture, as well as aligning the leadership and management team with the company's values and mission. For example, a company that values diversity and inclusion may implement policies and practices that support these values, such as hiring and promoting diverse candidates and fostering a respectful and inclusive work environment.
Another way in which corporate culture can impact strategic management is through the use of cultural fit, which refers to the extent to which an individual's values and beliefs align with those of the company. When a company is able to hire and retain employees who are a good cultural fit, it can lead to increased commitment and engagement, as well as higher levels of productivity and performance. On the other hand, when there is a misalignment between an individual's values and those of the company, it can lead to conflict, low morale, and high levels of turnover.
In addition to its impact on strategic decision-making and employee performance, corporate culture also plays a role in the overall reputation and image of a company. A strong and positive culture can help to attract and retain top talent, as well as build trust and credibility with customers and other stakeholders. On the other hand, a toxic or negative culture can have a damaging impact on a company's reputation and may lead to negative consequences, such as boycotts or legal action.
In conclusion, corporate culture is a critical aspect of strategic management that can have a significant impact on the success and sustainability of an organization. By aligning the company's culture with its strategic goals and objectives, and by hiring and retaining employees who are a good cultural fit, companies can leverage the power of culture to drive innovation, engagement, and performance.
The Role of Culture in Strategic Management
They can serve as a beacon for behavior necessary to progress toward all manner of success. The study also concludes that governance practices have positive influence on the implementation of strategic plans and that management commitment has positive influence on the implementation of strategic plans at the organization. She is currently a teacher and horse rancher. But because of the strong culture build in the past, the workers are resisting to make any strategy changes. New and unconventional products and services are the main outcome of the adhocracy culture. The strong organizational cultural which not only can help to be smoother and easier in managing but also can perform a good leadership to lead the development of project organizing and the adaptation in strategic management planning or implementing. Managements in here also constantly check their competitors price to make sure that Walmart offer the best drive.
Importance of Organizational Culture in Strategic Management
It is also help in an organization and leadership sector to think and settle about future existence plan, fulfilling the responsibility in the level of management executive to manage a direction for the organization and its employees. Walton met staff, calling them by their first name and encouraged change to maintain the competitive edge Sadri G 2001. The role of organizational culture can help to individuals or teams understanding between different behaviors and different culture by interacting in positive ways and taking interchange ideas, even some behaviors are and are not appropriate within an organization. Apple does not like to hear someone accusations that he is wrong, and hope that regardless of their own employees, or the hot suitors of the outside world can stand together with his firmly. Their eager is to get changes, to welcome changes, to support changes, to resist changes and to create opportunities and adaptations when changes occur. References 1 Peter Ashworth, 2015. They create a foundation of attitudes and practices that every members have to agree to follow in order to support the vision and long term success of the organization.
Why Is Culture Important in Understanding Strategic Management?
Workplace culture is larger than the company mission statement or its stated organizational goals. Hierarchy Culture A hierarchy culture is a traditional corporate culture that functions according to a company's executive, management, and staff organizational structure. Watkins, 2013, Harvard Business Review. In the successful organizations and enterprises, indicating that the prosperity of the organization is always inseparable from the self-improvement of the organizational culture. Strategic management of the enterprise is to unify to form a unified concept of progress of the internal culture, it needs to coordinate the various departments grading, but this requires enterprises to pay the considerable cost, but also need to do ideological adjustment for the department have a propensity of conflict.
How Strategic Is Your Corporate Culture? The What, Why & How of a Strategic Corporate Culture
So, globalization has become to transform totally in the field of trading and investing through digital ways. Market Culture Market culture is focused on meeting specific targets and bottom line goals. In the other hand, there may cause to ease and believe to generate business revenue and develop while offering for investors, partners, shareholders and stakeholders who willing to participate or cooperate in the process investment to merge business or partnership for future. Beside this, they also enjoy many others benefits such as worker morale improved, better working environment, better team work, openness to new ideas and sharing of information. One of the Wal-Mart case studies shows the benefit from strong culture. All the tasks in each department of the organization are dependent on the management policies, regulations directions and guidance.
The Role of Organizational Culture on Strategic Management
Training and education can also provide employees with a path to new opportunities within their companies. Besides, these situations may impact in the new partnerships building, cooperation relationship and re-establishing old ones to continue delivering the best possible products and services to in local and global markets. Employees are one of the most important determinants and leading factors in several ways that can determine the success of an organization in a competitive or dynamic business environment. However, according to Bate 1994 , for those who take an anthropological stance, culture is not readily manipulated or changed, and is not created or maintained primarily by leaders. If a particular strategy does not match the organization's culture, it would hinder the ability to accomplish the strategy's intended outcomes, it could barrier other ability to utilize or waste of their talent and it would a huge lose for organizational adaptation.
(PDF) The Impact of Corporate Culture and Identity on Strategic Management
This essay is dedicated to the definition of role and importance of corporate culture in the strategic management understanding. The study also shows that the resistance to change is a function of organizational culture. Its culture is based on low cost end of every transaction in order to make profit, not from the pricing end. This will not only hold down real estate costs but also protect the company from heavy competition in metropolitan areas. Due to they have no need to consider about who is their superior to report or to get right decision, they know that they have right person to report and discuss their path, they can rely on each other and believe in each other. The companies believe that this can boost the organization to achieve enterprise multifaceted progress.
Corporate Culture Definition, Characteristics, and Importance
However, managing strategy often involves change. Strategic Management To be success in strategic management, there are three main element need to understand which includes strategic position, strategic choice, and strategic in action, as shown in Figure 1. The strategic management in organization can be more difficult and traditional management, because there have to bring any changes such as management style or outcome or decision-making ways and may have to resist or welcome challenging. As an organization where operating with strong organizational cultural, there will face strong relation and understanding each other as well as working ease and peace by sharing knowledge and teaching each other, including the ideas, information, languages, behaviors and cultural. Some companies seek to associate themselves with a specific set of values, such as by defining themselves as an innovative or environmentally-conscious organization.
How importance of organizational culture in strategic management
Organizational culture is overlaps between cultures, especially the broader culture of the societies to operate. On the other hand, the reason of business expansion is to create more opportunities, global competitiveness by reducing operational costs and increase in effective knowledge by utilization cross cultural diversity that can provide a source of experience and innovative thinking in strategic management to enhance the competitive position of organizations. The implications of the study are also discussed. The culture and strategy of the organization are considered as critical because most of organization are facing competitive challenges. A positive culture in business environment today is unfortunately some exception rather than normal, however a strong organizational culture can clearly differentiate a business adaptation.
