Influence of corporate culture on corporate strategies

By Parul Goyal on January 24, 2012

Corporate strategies are the determinants of the future of the business and its various integrated functions. The success of the business venture is directly proportionate to the formulation and implementation of the corporate strategies. However, there are innumerable factors that influence the corporate strategies and their outcome. Corporate culture is one of the integral factors.

Strong corporate strategies are important for success

It has been observed many times in the past that strategies are unsuccessful not because of flaws in strategy formulation but the deficient implementation of corporate strategies. While formulating a coherent strategy is a tough chore for the management of any organization, ensuring the effectiveness of a strategy i.e. implementing it within the organization at all levels is all the more challenging (Hrebiniak, 2006).

Corporate Strategies are about selecting the course of functioning for the company and its business unit aiming at managing the many product lines and strategic business units for maximum profitable value. There are innumerable factors that have the potential to affect the strategy formulation of any organization and corporate culture is one of the most essential factors. Hills and Jones (2001) have defined corporate culture as “the specific collection of values and norms that are shared by people and groups in an organization and that control the way they interact with each other and with stakeholders” (Hills and Jones, 2001). Corporate culture aims at inter-department coordination and cooperation in order to assure a significantly satisfactory level of business performance and outcome through effective and efficient accomplishment of strategic plans to provide high customer value and business generation (Yoon and Lee, 2005).

Hence, it can be rightly said that organizational culture exerts guidance in strategy formulation and implementation and how employees adapt to it. Organization culture has an extensive impact on the organization’s capability to implement corporate strategies and accomplish business goals and objectives.

References

  • Hill, C. and Jones,G. 2011. Strategic Management. Houghton: Mifflin.
  • Hrebiniak,L.2006. Obstacles to Effective Strategy Implementation. Organizational Dynamics. 35.Pp.12-31.
  • Yoon, S. and Lee, S. 2005. Market-Oriented Culture and Strategy: Are they Synergetic? Market Bulletin. 16.
Avatar
 

Discuss