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Organizational culture is an essential aspect to a company that can influence the strategy of the organization. Organizational culture can define as one organization share their own traditions, values, policies and attitudes during their daily operation (Luthoms 2002 ) Organizational culture is a basement of company strategy. Company can achieve their business goal very easily if they put organizational culture into their business vision and mission; make sure the culture can match with company strategy, in this way company culture can push their business keep going.. Each of organization has their unique culture which the company can benefit from it. The culture can give a large effect to employees, even the companys customers. As long as staffs know about the culture of company, they know the core business of the organizational hence the strategies they make will surround the organizational culture and that will not deviate their organizational goal. On the other hand, a clear and strong organizational culture cans attract customers attention that will let them know the business goal of company and they feel the organization is formal and official(Robbins.P&Judge.A 2010)Strategy can be defined as Match Companys internal resource with opportunity to create an external factor (David.R. 2007) Sometimes companies have to choose one of strategy form many of them. Before they do that, do strategy analysis is necessary, such as SWOT analysis is one of good methods to help employees to make decision. Let see some detail regarding how organizational culture influence company strategy with relevant example.
Importance of vision and mission
Most of successful companies are match their organizational culture with business visions. They try to create a positive relationship between organizational culture and organizational performance to ensure employees can work effectively and customers can fully understand what the organization is about. Business vision and mission should answer two basic questions:what do we want to become? and what do we want to do in long-term?(Huczynski.A & Bunchan.A 2007) A good example is Durex Company. When we mention the brand Durex the first item comes out is condom and most of people will feel embarrassed. Employees can not advertise their products easily if they feel like that and their business can not become successful. However, the organizational culture they create can balance this negative effect. The culture is Successful; Social responsible and Lively (SSL) which means Durex Company will do a successful business, to fulfill social responsibility and make the life become great. The wonderful part is Social responsible. On the employees side, the organizational culture try to tell them the company you work for is not a simple manufactory to produce condoms, the brand Durex can represent a social healthcare organization. They put the social responsible into their business mission and vision; besides produce their products another companys mission which is more significant, to publicize health sexual behavior to their customer, especially young generation and teach them how to prevent the disease by use condoms .Employees who work for Durex is not just a seller or producer, they are people who provide knowledge of health as well. In this way employees will feel proud and confident during the daily operation. Because Durex Company has a positive organization culture and they can match it very well with their business vision and mission most of countries government are support them when Durex do extend their market and do marketing research that why the brand can become famous and has a good reputation all over the world. On the other hand, Durex Company tries to make their customers to understand the organizational culture. Because organizational culture is a good view let people know what the business is and what are they doing to society. Durex Company will explain their organizational culture to customers when they do marketing research, sometimes they can do a face-to face interview with customers, the purpose is that break the wall when people talk about a topic regard sex. In this way the staffs can keep going to publicize health sexual behavior and how important to prevent HIV in our life. As a matter a fact, employees are trying to show we are here is not just for advertise how good or how safe about our products to attract customers to buy. They are here is for provide knowledge which can make your life become better. Customers buy the products not only because Durex provide a good quality items, but also customers are fully understand what is the organization about and how can the company to help society.
It is not enough only ask employees understand the business mission and vision, actually that can support the company from both side, employees side and customer side. Make sure employees understand is the first step, as long as employees know about the organizational culture, they can explain to their customers very easily and the decision they make will around the core business of company that is good for company to advertise themselves. (Clegg& Kornberger 2006 )For instance Durex Companys advertisement is quite acceptable, although their product is a kind of obscure topic in our life. They never mention about the how good quality of their product, they try to use a interesting drama to show why we have to use condom and how is it important. Such as use condom is kind of respect when people (male and female) have a sex and each of us have to show our respect to our lover, the advertisement try to tell audiences use condom is a kind of moral attitude in our life, Durex Company using this method to attract more and more customers to buy their products and to persuade audiences their products are important and necessary. This kind of advertisement demonstrates that their advertising department still follows the organizational culture which is fulfilling society responsible when they create advertisement for Durex. Advertisement is a good media to transfer companys organizational culture to public. Personality, Durex Company is a very good example to match organizational culture with business vision and mission and bring a positive effect to internal and external; employees feel confident to their company, on the other hand, customers are recognized that Durex is a healthcare company and fulfill society responsible, not just a producer. Durex is one of successful international company in the world, their product has been prove by World Health Organization (WHO) that all benefit form they have a clear vision and mission and transfer an obscure topic become acceptable.
Strong and weak organizational culture
Create a strong organizational equal to build a stable basement for company. Employees have the same option about core business of organization and a strong organizational culture will affect members behavior. (Hellriegel 2009 )It is looks like behavior control, make sure staffs performance on the same level..Strong organizational can reduce employee turnover rate as well that can create a kind of internal organizational climate which can attract employees work for company(Schein.H 2010) However, the method of company use to pass down organizational culture is very important. Sometimes organizational culture itself is not weak, it is because company uses an unsuitable method to pass down and explain the culture to employees and lead to staffs misunderstanding. Strong organizational culture is not means management level use internal culture to force their members that is not the purpose. The correct way is that make sure employees understand the organizational culture, each of them can transfer the culture to their own understanding. Company need to use organizational culture to persuade members, not force (Hellriegel 2009 ) After staffs understand it, they will follow by themselves. On the other hand, week organizational culture means the internal culture is not clear or lack of explanations and staff control, employees will lose business goal and guideline that should be improved if company wants to do a successful business. The following paragraph will demonstrate a relevant example to support how important to build a strong organizational culture and how to pass down by a correct method.
Resort world sentosa(RWS) Singapore is a good example to explain how strong organizational culture to help company become successful. RWS is a large resort which provides service and entertainment and there is more than 2000 staffs work for them. It is hard to do a successful business if RWS does not have a strong organizational culture. Let image, they have such a large group of employees, if organizational culture is not strong enough that can not pass down to each one of them, the employees performance will floating up and down. First of all, let see what the culture of RWS is. They call is as RWS fun which means Responsible, Warm, Supersize and Fun. The organizational culture try to encourage employees become a responsible person in the daily life, when staffs deliver service to guests, try to let customer feel warm and welcome, and remember to supersize their guests, let them feel something different or special. Lastly, create fun to your colleagues and customers; let everyone enjoy themselves in Resort world sentosa, no matter your staffs or guests. Actually, the author himself was an intern in Resort world sentosa, he can feel how strong is their organizational culture. RWS will provide some training section before new staff officially goes to work. It is not only for tech basic work skill, but pass down organizational culture as well. First of all, senior staff demonstrates what the organizational culture of RWS is with explanation, after that they will ask new staff to explain one more time with their own understanding. Second of all, RWS Company print the organizational culture on the back of the staff card, staffs can read it every moment. Third of all, every month RWS will organize a staff training in every department, staffs will be separate as group to join it and announce the culture as well. Managers will watch over their own department, make sure all of members understand internal culture in RWS. Finally when employees join the staffs activity, employees who can answer the questions about RWS will win the prize if they can give the correct answer and the questions are include knowledge of organizational culture. Top management levels of RWS try to use training section and staff activity plus staff card let all of 2000 employees to review their organizational culture everyday that is one of the reason they can become welcomed resort in Asia. Because no matter which department you go, such as Hotel, Casino or Universal Studio, most of staffs performances are on the same level. Another way round, service quality will drop down if the organizational culture (RWS fun) is weak or pass down in a wrong way in Resort world sentosa,Singapore.
Strategy analysis and choice
Decision-making will be influenced by how you are going to analysis your strategy and the strategy you choose.( Tony Mordon 2007) Even employees follow the organizational culture to plan their strategy, but sometimes there are still some strategies around and management level have to decide to choose which one is the best. When company selecting strategies, they have to consider many things, for instance, is that the strategy can improve profit? How to control cost under the strategy and is this long-term or short-term strategy? The strategy analysis should consider about internal and external information regarding to the company(Henry 2010 )One of good method that can develop strategy is SWOT analysis which from four aspects to help company, SO (strengths-opportunity), WO (weakness-opportunity), ST (strengths-threats), WT (weakness-threats).For example, he the company want to grow up or become competitive, SO strategy is more suitable which means use companys internal strength as an advantage of extend trend( Fred.R.David 2007)Such as, KFC did in China. Normally, KFC only provide fries chicken with chips to customers, however after a few years, McDonald come into market in China the food they provide is fast-food as well, KFC and McDonalds become competitors. Nowadays, KFC try to do some innovation about their food. They offer congee, rice and some Chinese traditional food to match with the local culture and you can not find this kind of food in KFC where local in the other countries. Because of KFC come into Chinese market earlier than McDonalds, so KFC has brand effect, most of Chinese know about KFC first that is one of strength they have, on the other hand, there is no fast food restaurant serve traditional food match with local culture, KFC is first restaurant to do this kind of innovation they take the opportunity to attract customer to come. After the innovation, KFC become more competitive than McDonald in Chinese market and even now, they keep doing the food innovation, every quarter a new thing will come out and the food is very welcome.
Another example can explain how WO strategies work in an organization which is Coca Cola Company. WO strategies means use external opportunity to improve internal weakness (Fred.R.David 2007) Coca Cola Company is one of global beverage organization, the soft coca cola famous all over the world. Because of they have brand awareness; they have a high revenue return. However, in the recently year, one of weakness is coming out which is soft drink coca cola is not a health drink and as a old brand coca cola lack of innovation. Because of this, the company receives some negative effect. The future strategies for coca cola is overtake their competitors and launch healthy drinks that can make the brand follow the future trend and survive for a longer time. Under the WO strategy, the company train or hire employees with required technology to innovate the drink.
ST strategy is that companies use their internal strengths to avoid or reduce negative effect that has been bring in by external threats (Fred.R.David 2007) Apparently, copycats are biggest threats to a firm. The products they provide are almost same to your company and most of them have a lower price that will reduce companys revenue and lose customer loyal. Starbucks is one of organization which to use their advantage to reduce external threats. Starbucks as a famous coffee company, a lot of small company tries to copy the coffee of Starbucks; however what Starbucks did is acquire the copycat company, let the copycats become a part of Starbucks. In this way, they can make the Starbucks Company grow very easily. Eventually, WT strategy is a kind of defensive strategy which means reduce internal weakness and avoid external threats (Fred.R.David 2007)time to use this strategy to save the firm means the organization does not running a good business. Perhaps, they can merge with other company to save themselves.
The SWOT analysis demonstrate a very clear formation regarding strategy analysis, the four aspects can be used depends on the different situation and company stage, based on that choose the suitable strategy. Use positive element to cover negative effect. (Hill & Jones.R 2011 ) When we choose strategy, employees have to follow internal culture and external politics, such as government politics which is a potential factor influence strategy choice. A good strategy should be solve problem by the companys special way and has been accepted by the government as well.( Mcgee.J & Wilson.D 2006)
Every organization should build an organizational culture before business start, base on the culture to show their own feature and when the top management level wan to plan their future strategy for the company, the strategy they make have to match with organizational culture and direct go to the companys mission and vision.. Create a positive relationship between organizational culture and organizational performance to ensure employees can work effectively Weak organizational culture is lack of control, sometimes that will confuse staffs as well, hence as a successful organization, internal culture should be clear and strong enough to unit all the employees in the organization, make sure members can explain the culture by their own understanding.( Alvesson.M 2002)On the other hand organizational culture need to be demonstrate to customer, let them know what the company is and what kind of business they running. Employee is a good media to pass down culture to customer and partner, the method of company to pass down culture is essential as well, especially for large organization, if they can pass down the culture well that can prevent employees performance floating up and down. SWOT analysis can help organization to make a wise decision, choice a suitable strategy. Indentify the merit and demerit form internal and external; recognize the business stage of company, is that time to grow or defend. The strategies they choose have to support firm increase revenue or control cost, therefore match strategy with internal culture, make sure the strategy has been accepted by local government politics.( Michael A. Hitt & R. Duane Ireland 2008)The organizational culture is the basement of organization, all the strategy has to around the culture. In this way, the organizational goal can be achieved in a successful way.