Organizational Culture Role In Corporate Strategic Management Business Essay


Origination culture can be summed up as a complex set of assumptions, beliefs, perceptions, symbols and values that define how a company goes about doing business. With certain economic conditions, social practice and become members of society to follow the common sense of values​​, ethics, code of conduct and guidelines for the sum. The business in their own development process in the formation of the unique culture as the core value management approach. The organizational culture is the product of the fusion of social culture and organizational management. organizational culture is a concept comprises of value, mission, belief of an organization. Put it into simple language,we can view it as the common norms and values of personal and teams within the scope of an organization. Because of the mutual understanding established by organizational culture, corporation can guide the way individuals behave. Under the di-spline or mission set by organizational culture, every staff can interact with corporation and play a part. Clients, suppliers and other shareholder outside specific organization boundary can also involve into it. The organizational culture is the basis of the strategic enterprise management.

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Organizational culture plays an extremely important role in corporate strategic management process. An excellent culture can make the culture as an important resource, and vision for the development of enterprises in the form of cultural penetration to employees, so that the corporate strategy have been reliable protection from planning to implementation. It is these excellent corporate culture to guide the implementation of the corporate strategy, supporting enterprise development. The organizational culture is the ideal, spiritual and cultural beliefs. These spiritual and cultural are formed in the long-term business activities. Enterprise as an economic organization, its culture must be able and businesses a variety of strategic interaction, applied to the management practices in order to produce the actual value. Firstly, it's a critical factor which has a crucial determining influence on a company capacity, effectiveness, and productivity. Secondly, since every organization has its own unique culture or value set, so customer or partners can easily derive the organization's brand image and brand promise from it. Thirdly, Organizational Culture creates energy and momentum. Every staff in an organization is part of the culture, the create the culture and influenced by it in return which means a positive and active culture can generate a positive physical energy and stimulate the growth of a corporate. How things are said and done in a company reflects and shapes its culture, so as part of the culture we should get to share and appreciate it. Should potential staff know what the culture is before steps in? Should business partners exam it before start business and corporation? In order to answer these questions we must get to know how to capture the organization culture. Since the culture of the organization is typically created unconsciously, based on the value of the top management or founder of an organization, so to certain extend we can assume that the culture will reflect how the business and operation is going to be in a long term process. Strategic decision can be understood from culture because it reflects the willingness and future business planning. Most important is it teaches employee what is acceptable and what is not and sets the standard of behavior and drives action. On the other hand, we can conclude that corporate board has to take organization culture into consideration when determine how the strategic choice is in a long run. Each stage of the implementation of corporate strategy in order to achieve the strategic objectives of the stage, while the enterprise through each stage of the realization of the strategic goals are ultimately in order to complete the mission of the enterprise.Therefore, the corporate culture of corporate mission based basis for the formulation of corporate strategy. Strategic objectives to guide the final determination of the entire strategic program. Analysis of the enterprises in strategic management, adequate attention should be given to the corporate culture. Only the corporate culture and strategic role to play in order to enable enterprises to better development. Wal-Mart is a very successful example. Wal-Mart spreads all over the world as a famous grocery firm with a striking 3000 chain stores. Its success comes from the extraordinary business strategy, outstanding organization, incentive system, best quality with the most reasonable price and the unique organizational culture passing on all the way. As the founder of Wal-Mart, Same set three mottoes for companies which are: "customer is god"," respect every personal"," and strive for excellent". Wal-Mart defines itself as a customer-oriented firm, it provide fine quality service and obeys the unconditionally refund clause. In America, Wal-Mart will always refund customer even though without any reason or even a receipt. All staffs should smile naturally to customer with the revealing of eight teeth which we called smile service. Staffs should promote customer for their enquiries with friendly eye contact when the customer is 10 inches away. Wal-Mart hold the opinion that states employee is partner. The core value can illustrate in three aspects which consists of profit sharing scheme, share purchase scheme, lost compensation scheme. Profit sharing scheme makes staff eligible for company bonus upon certain hours of service. Share purchasing scheme makes employee to be the shareholder of company for a lower price than stock market. Lost compensation scheme tries to award employee with right effort to minimize property stealing. High end e-commerce technique, sales and distribution center tracking system increase the productivity and lower the cost which makes the always lowest price slogan realistic. Every employee is required to finish duty before the sunset, if a customer makes a request, the request must attend before sunset as well. In a word, no matter which Wal-Mart store you visit, you will always feel like home. For such a long period, Wal-Mart organizational cultural unite the company, employees work together and are proud of the responsibility as well as the honor being part of Wal-Mart.

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Management in the structure of the organizational culture generally can be divided into three levels: spirit layer, system layer and physical layer. The first one is spirit layer. The spirit of the layer is the core and the main body of the organizational culture. The spirit of enterprise is the consciousness of the modern consciousness and corporate personality combined to form the basic beliefs of the entire or majority employees abide by or have willpower and ideological realm. Summary of the positive factors in the existing concept of consciousness, traditions, forms of behavior, refining and advocacy, entrepreneurship is a source of organizational culture, the spirit of enterprise is a public exhibition of organizational culture to a certain stage of the product. Business philosophy, which is the corporate leadership achieve business goals, uphold and basic belief in the entire production and management activities, is a corporate leader in enterprise production and management guidelines, the development of strategies and tactics philosophical thinking and abstract summarizes, formed by the enterprise in which the social system and the surrounding environment to decide and way of thinking by business leaders, policy level, practical experience, personal qualities and other factors. The corporate culture conventional code of conduct is a comprehensive reflection of the corporate culture the employees ideological style, traditional habits, ways of working, mode of production. The organizational culture of an enterprise generally has two meanings, the first layer is generally a good atmosphere and the second layer is different from the futures enterprise refers to an enterprise unique atmosphere. Organizational culture once formed will cause a certain atmosphere in the enterprise, and the formation of enterprise collective mind-set, to form a collective majority of the members of the same attitudes and behavior patterns, and thus become the great invisible forces affect all members of the enterprise. Organizational ethics and internal high-speed people, units and unit, the individual and the collective, the relationship between the individual and society, enterprise and social standards and norms, which includes three parts of moral awareness, moral relations and moral behavior. The purpose of the enterprise is the existence of the business value of their commitment to the community as an economic unit. These aspects together constitute the spirit of corporate culture layer, all aspects of focus, a different point of view, but in essence, they are unified, coordinated.Content overlap each other. Follow by the system layer. This is the intermediate level of the organizational culture, mainly refers to the normative enterprise workers and enterprise organizational behavior, and part of the binding effect, it is mainly to provide enterprise members in the co-production and operation activities should follow the guidelines for action and the habits of customers. Besides, physical layer is the surface part of the corporate culture, corporate culture artifacts created, is the carrier of the spirit of the layer, it often reflects the enterprise's business ideas, management philosophy, style of work and aesthetic sense. After a company formulate their culture, how do they make customers know about the core culture of a company and how does the organizational culture affect their own strategic? The impact of the company's strategy by the organizational culture include the followings:

1. The decision-making style

2. To prevent changes in strategy

3. Overcome barriers to strategic change

4. The dominant values

5. The cultural conflict

Here have one example about the famous chain coffee shop - Starbucks. As the largest coffee distributor, coffee processing factory and branded coffee chain store, Starbucks has become part of American culture. The attractiveness not only come from the fine coffee quality, but also resides in the operational impression it delivers, green logo on top of a brown design accent, fashion music, warm lighting theme which transform Starbucks into a premium place for recharging the tired body in a fast paced city life. Coffee is just a media, the true reason why Starbucks prevail is the service or the organizational culture it conveys. Starbucks knows the needs of customer well, keeps providing excellent service and gradually grows as a giant in instant coffee market. All the continuous motivation derives from the corporate culture behind, it drive Starbucks into an extraordinary firm. Perhaps we can take a glance of how the practice Starbucks takes in its business. Some considerate norm is necessary requirement for its personal, for instance, the staff should have a friendly eye contact with 10 second upon the guest enter, 18 to 23 second rule must follow in order to obtain the best taste, the creamer for latte must heat up at least to 150 Celsius degree but below 170 Celsius degree. Their colleagues work as a team, staff does not get scolded if he or she spoils a milk jar, on the contrary, their team members are required to clean up the mess and comfort the staff. Fully respect could be concluded from these instances and it's the winning formula to attract the consumer. Starbucks' culture makes it into a smart trend, and it is going to produce for a long time for its business planning. Another case is Hewlett Packard (HP). Through the image of Hp shows to the public that can roughly see some of its organizational culture. First is to have trust and respect for individual, second is to focus on a high level of achievement and contribution followed by to conduct business with uncompromising integrity lastly is to achieve common objectives through teamwork and encourage flexibility and innovation. Those value hold impact significantly on its business expanding and enable it to standing among many competitors. With the help of its unique organizational culture of HP, it manages to give birth a unique management style known as the HP way, HP's strategies nowadays comprise mainly the "Management by Objectives", " open door policy", "Management by Wandering around" meaning informal communication within the company, and "Total Quality Control" which aims at producing highly qualified products.

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In my option, I believe organization culture plays an important part in a company growth and business success. It sets the guidelines which everyone has to comply with show the image of how the company is. Future global competition to be in an invincible position, must establish their own corporate culture of excellence.But corporate culture involves many aspects, the need for systematic thinking and harmonious relations, the most important is the corporate culture must meet the business development strategy requirements.Corporate strategy can make use of the advantages of the corporate culture, managers often can be a quick and easy implementation strategy. Different means should be taken as different target contingency thinking as reflected in the corporate culture and strategy match each relationship. Strategy more stage characteristics compared to the corporate culture, and culture is more emphasis on continuity. Although companies at different stages of development, strategic planning, but also need to match the different characterization culture, but the core of the cultural values ​​should not be a large offset, the inheritance and development and at different stages of the core value system, the different stages of different concrete manifestation. Obviously, it needs to be emphasized in the rise in the transition of enterprise culture is different. However, in order to achieve the ultimate goal of the core concept should be the same. So, the century-old successful experience for people's inspiration is consistent with the different stages of the core concept of flexible change makes evergreen. The high degree of match between this culture and strategy is the only way for businesses to pursue long-term development. The organizational culture need to make clear the purpose of the enterprise with the vision, mission, corporate culture construction, at this stage of the development strategy of the enterprise. With these points, the building of enterprise culture will have beacon lights and steering wheel, a common target value system possible structures formation. Architectural design businesses, due to the large changes in the external environment, the complexity of the competitive landscape, the greater significance of the strategic activities of the enterprise, Therefore, the current architectural design companies should be instantly clear their own development strategies, the cultural construction targeted.