Role In Corporate Strategic Management Process Commerce Essay

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Corporate culture plays an very important role in corporate strategic management process. It is based on the spirit of organization as the core, condensed a sense of belonging of employees、enthusiasm and creativity of the management theory. Organization must establish common values between employees and organization, to mobilize the enthusiasm of the employees and a sense of responsibility, so that can stimulate the enthusiasm of staff, unify will of all employees, guide their behavior to the common business development goals and direction, strive for the implementation of the organizational strategy. In the analysis of the strategic management, due attention should be paid to the corporate culture. Only the corporate culture and strategy role to play together, and then organization can develop better and faster. Seemingly these two entirely different concept of corporate culture and strategy, but corporate culture has a very close links with corporate strategy, when corporate making strategic choices, it is particularly important to evaluate and consider corporate culture and strategy, the relationship between the two is mainly manifested in the following three aspects: promote to each other、constraints、and non-related.

On the on hand, corporate strategy is an important component unit of organisational culture, it is reflection of the organizational cultue, different corporate culture will generate different corporate strategy; Corporate strategy wil hard to be realized, because there is no support of the corporate culture. And it reflects the corporate purpose and and core values as well, has a profound corporate culture imprint; Good corporate culture tends to guide an effective corporate strategy, to achieve the driving force and important pillar of corporate strategy. On the other hand, corporate culture should serve the corporate strategy, organization need to creat a good organisational culture that is conducive to achieve the organizational strategies; corporate culture is not only the guide of corporate strategic development, but also the guarantee of strategy implementation and strategy evaluation. If organization want to achieve strategic objectives, must take advantage of the corporate culture to navigate and develop, and also need to take advantage of culture to establish a corporate reputation, to spread corporate image, and to build corporate brand, to enhance the competitiveness of organization. Therefore, effective strategies and good culture is the foundation of business success. Corporate culture is guiding the corporate strategy, while corporate strategy is the guid to action under the constraints of the corporate culture and guidance of culture, so, corporate behavior and the behavior of employees must be consistent with the corporate culture, no excepting the organisational development strategy. While the relationship between the choice of corporate strategy and corporate culture, specific performance in the different traditional culture of countries、customs and habits、the recognition of employees and their values, and will creat conflict of organisational culture, if the culture of two or more parties can not be a good run-in, then will face a huge obstacle to the implementation of the organisational strategy, even organisational strategy will fail, because of the conflict. ( Arthur 1985).


Strategic management: Stratey and strategic management are different but related, strategy is just one part of strategic management. (Wiley,J.1976) " strategic management" not only includes the meaning of the "strategy", but also it contains "the process of implementation for management method." Strategic management includes understanding the strategic position of a organization, making strategic choices for the future, and managing strategy in action. While, "Strategy is the direction and scope of an organization over the long term, which achieves advantage in a changing environment through its configuration of resources and competences with the aim of fulfilling stakeholder expectations." (Johnson et al.2009). American management expert said: "Strategic management which is trying to coordinate the relationship between the organization and the environment, and to complete the process of the organizational mission". ( James Higgins 1983). American strategic management expert said: "Strategic management is the term that used in the private sector and public organizations, it shows that high-level corporate policies、proposed strateies, trategy refers to the basic of organizational mission、and objectives of the research."(Steiner 1992)

Definition of Culture: Broadly speaking,culture is the sum of material wealth and spiritual wealth of human history,narrow sense, culture is a social ideology and organization or system. While corporate culture is gradually formed during the production and management practices, and corporate culture is actually the container for the vision, mission and values. it is not synonymous with them. in a thriving profitable company, employees will embody the values, vision, and strategic priorities of their company.Its different with education,scientific research,and military organizations. From essentially says, coporate culture is a culture phenomenon came from the internal of enterprises. It is inseparable to the development of the theory and practice of modern enterprise management. From a management perspective, corporate culture is a management tool that applied to achieve the management objectives. Therefore, organization culture is not only a culture phenomenon, and also a connotation of management tool. Culture and success: Deal and Kennedy (1982) argued that culture was the single most important factor accounting for success or failure, and they identified four key dimensions of culture. Values: the beliefs that lie at he heart of the coporate culture. These should be strongly held and openly supported, because identification with other things ( the union, colleagues, instrumental goals ) can mean weak or fragmented culture. Heroes: the people who embody values. Organizational heroes are the actors who carry culture; by providing role models they assist in getting values widely accepted and adopted.( Naomi 2010)

Mission and vision: Organizational mission is an organization's reason for existence,corporate mission determinate the type of product and range of business, to clarify the basic nature of the organization and raison d'etre, to describe the field of organization operation, business ideas, to provide the basis for the establishment of corporate goals and strategy formulation. A good mission statement can motivate employees to work, and also can guide employees in decision-making and to establish what the organization does. So, organization have to determine the corporate mission before the organization develop strategies. While, organizational mission is the philosophy positioning of enterprise production and management, it is the concept of business. It is not a specific strategic objective, or exist in the abstract, not expressed as wordage, but it will impact operator's decision-making and thinking. It includes the organizational philosophy positioning, and value highlights corporate image positioning: what is the guiding ideology of our business? How do we know our cause? etc. Organizational mission is the purpose and reason for existence of organization. To clear corporate mission, organization must assume the responsibility and obligation. (Stefan 2010)

For example: Ford Motor Company's mission : "Entering car into the family". The world's leading car manufacturers----Ford Motor Company.U.S established 80 years of the unchanging core values for the organization and employees in 1920 : " To popularize car in the United States", " The purpose of produce car is that let each family can enjoy the happy hour from the god". These two core values stimulate the Ford Motor Company to develop, always maintain the vitality of innovation, to develop a steady stream of core technology, to became the world's leading car manufacturers.

For example: Sony's vision: To creat and realize their dream, including our shareholders, customers, employees, and even business partners. Sony's mission: Experience and develop technology to benefit people's happiness. Sony's values: Experience and benefit the truly happiness from the advancement of technology, applications and technological innovation, to enhance the Japanese culture and statehood; Do pioneer, do not follow others, but do the impossible things; Respect and encourage the ability and creativity of each employees. (Sony 2008)

For example: Microsoft's mission: "Every family and office has a computer", and they are committed to provide the working, learning, PC software, everyone will use Microsoft software. Microsoft core values: integrity, honesty; full of enthusiasm about customers, partners, core technology. Respect for others and helpfulness; Courageous to meet the challenges and perseverance; Self-discipline, good thinking, adhere to self-improvement and perfection; While Microsoft's corporate culture has been evolving : today and in the future, passion for technology, and never give up. I think this is why Microsoft has been leading PC field for many years.

People-oriented: Today, human resource development is regarded as the biggest rate of organization input-output development, human resources is regarded as the core resources of organization.Human resources including physical agility, mental ability, work skills, and culture, to maximize give full play to their physical agility, mental ability, we must try to generate cultural identity between employees and businesses, and to guide the development of human resources rely on excellent cultural system. Once employee agree with enterprise's goals, vision, spirit, and values, their career and organization development will combine consciously. Personal value orientation will unify corporate value, and personal physical agility,mental ability,and skills will come out to contribute enterprises. "People-oriented" management philosophy, promoted reform of modern management and building of organization culture. If a organization just focus on the continuous progress of knowledge and technology, but the construction of corporate culture is lagging behind, then will make a contrast. After that, will harm to organization. Enterprise has strong knowledge and technology, but lack of common advocating value guidelines,and no common code of conduct, and then knowledge and technology can not use effectively, otherwise can obstacle the development of organization. ( Scott 2006)

For example: Samsung Group has developed a very distinctive talent strategy, the core of the strategy is to recruite many famous engineers and important scientific and technological talents who are from South Korean, the United States, Japan, and Europe. While, there are thousands experts and total of 141,000 employees in Samsung Group, 54,000 people from overseas and 87,000 people in domestic. (Zhang 2012)

The Importance of Organization Culture: Actually organization is a combination of human, and people has their own mind, the behaviour of any person will be subject to the guidance and constraints of their own thinking, that organiztion culture exist as the concept of value for each employees, so that it will impact the behaviour of employees and organiztion strategies, and organiztion culture is a code of conduct for employees, then has a great significance on organization and organization strategies, this role includes both stimulate the vitality of organization and constaint corporate behavior. Because of that organization culture exist as the concept of the value of employees, and employees will be influenced by their own ideas, so, organization culture enable employees to implement organization system consciously, implement organization strategy, therefore organization culture is a Spiritual safeguard of organization system and organization strategy. On the one hand, organization culture is to reflect on the concept of the value of employees and enterprise system and the requirements of the business strategy, on the other hand, corporate culture has a reactions to the corporate system and the choice of business strategy as well. (David 2006) Because human values dominate people's choice and behavior. Because of this, the innovation of corporate culture, it will necessarily affect the innovation of employee's value, while this value innovation can promote the innovation of organization system and business strategy. Organization culture has a very important significance on the innovation of organization system and organization strategy. Today, there are many companies rely on innovation to survive and develop, such as P&G, Apple company, Google company, Samsung, General Electric and Sony company and so on.

For example: Procter & Gamble not only inculcate the "concern on superior products" in their culture as a successful strategy, but almost a religious creed, this value passed 150 years in P&G, develop and produce leading products as the survival of the P&G and employees. That is why P&G became a corporation that very successful in the field of innovation. And many innovations promoted the development of the whole industry masterpiece and subverted the whole industry. Therefore, company made a huge profit through the internal reform. ( Lafley 2008)

For example: The first thing that comes to peoples minds of the company and products of Sony is its high-technology-filled-with-gadgets electronic goods and innovation. As Sony co-founder Mr Masaru Ibuka said " Everything comes from the heart". If you do not creat by your heart, it is impossible to design our product, to meet the demand of the people's heart, sience will achieve their real worth. The spirit of innovation is still a very important coporate culture, can drive the company forward. ( Swotattack 2005)

How organisational culture impact stategy: With the development of globalization, and international market competition increasingly fierce, the original strategy of many businesses are no longer meet the new competition requirement, they must change. Corporate culture has an important influence on the development of strategies and long-term performance of corporate, will direct impact on the ability of enterprises to change the strategic direction, therefore,they have to pay attention to the construction of corporate culture when planning strategy, so that corporate culture can adapt to the new corporate strategy. And also corporate decision-making is a critical part of the corporate culture, it reflects the corporate management thinking, determines the direction of corporate development, thus it is an important part of corporate culture.( Baisham 2011)

Good corporate culture is an important condition for the success of the corporate strategy formulation. And good culture can highlight the characteristics of the organization, form a common value of the corporate members, meanwhile, corporate culture has a distinct personality, can help the corporate to make distinctive and good strategy.

Corporate culture is an important means of the implemention of the strategy. After the formulation of corporate strategy, all members need to observe and implement actively, it is the impact of oriented, constraints, condensation,and incentive, to stimulate the enthusiasm of the staff, unified their will and desire of the corporate members, to achieve the objectives of the organization.

When the organization strategy formulated, organization culture should vary with the formulation of new strategy. However, once the organization culture is formed, it is very difficult to change the culture, which means that, there is a greater rigidity for organization culture, and it has a certain continuity. Therefore, from the viewpoint of the implementation of strategy, organization culture should service for the implementation of strategy, will restrict the implementation of corporate strategy. When associate the new strategy with the corporate culture, the speed of original culture change will very slow, it is difficult to respond to the strategy, the original culture will be the resistance of the implementation of the new strategy, therefore, in the process of strategic management, replacement of internal old and new cultures and coordination is a guarantee of the success of the implementation of strategy. (Zhu 2008)

For example: Apple's slogan is "change". So, when Apple launch a new product, always caused a change in the market. It can be said that this is a culture, but also a strategy for Apple. But it will not change as the strategy changes. This is why Apple is a very successful company. Because every one is following their slogan.


Through the above analysis, I will make conclusion. The role of culture in business management, explained that corporate culture is strict management in business management, focus on incentive, and cultivate their responsibility and solidarity are intangible, but it is the same as the physical form of the product, can perceive, corporate culture has cohesive energy, external image which can improve the operation, and strengthen management, so that vitality of enterprise can develop and creat a strong competitive. The history of ancient and modern shows that, closed cluture inevitably lead to a stagnation and degradation of the society, open culture inevitably lead to a prosperity and evolution of the society, enterprise also, so to strengthen the integration of corporate culture is the right choice for business survival and sustainable development. ( Tendai 2007) In my own opinion, first of all, the choice of the corporate culture and strategic posture is a process of dynamic equilibrium, the construction of organisational culture can not be separated from the organisational development strategy, while the organisational culture will inevitably consider the impact of organisational culture, they affect each other and promote each other. Secondly, for some organizations who have not carried out the development of the strategic planning, one of the most important task for corporate culture construction is that must outline the contours of organisational development strategies, or formulate a development strategy of organization, as the basis of culture construction. And the choices of the strategy to the future of organization, only by fully consider the current corporate culture and expected corporate culture, and also they have to tolerate and promote each other, and then will be implemented successfully. Finally, I want to say is that whether a corporate culture is strong or weak, good or bad strategy, it is not important, the most important thing is that to creat a organisational culture and strategy in line with its own characteristics, and a organization must have a sense of social responsibility, should return something to the society.