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Culture & Strategy By: Sharan, Sayan, Rohan, Rajeev, Mayuri, Prajakta
31

Culture and Stretegy

Jul 15, 2015

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Rajeev Kumar
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Page 1: Culture and Stretegy

Culture & Strategy

By: Sharan, Sayan, Rohan, Rajeev, Mayuri, Prajakta

Page 2: Culture and Stretegy

Business Strategy

BUSINESS STRATEGY REPRESENTS CLEARLY IDENTIFIED FEASIBLE ROUTE FOR STEERING

ACTIVITIES ONTO ATTAINMENT OF GOALS AND OBJECTIVES.

Page 3: Culture and Stretegy

Three Levels of

Strategy

1. Corporate Level Strategy

2. Business Unit Level Strategy

3. Functional/Operational Level

Strategy

Page 4: Culture and Stretegy

Corporate Level

Strategy

Managing Activities and Business

Interrelationships.

Corporate Responsibilities.

Management Practices.

Competitive Contact.

Page 5: Culture and Stretegy

Business Unit Level

Strategy

Influencing the layout of competition

by means of action such as vertical

integration.

Positioning the firm’s business

against competitors.

Modifying actions to cope with

changes in demand, supply,

regulations and technology.

Developing useful partnerships with

customers and other business units.

Page 6: Culture and Stretegy

Functional/Operational

Level Strategy

Business development

Production

Finance

Human resource and materials

management

Page 7: Culture and Stretegy

Generic Range of

Strategies

Differentiation Strategy

Cost Leadership Strategy

Focus Strategy

Page 8: Culture and Stretegy

CULTURE

Page 9: Culture and Stretegy

Corporate Culture

“Corporate culture is a system of

shared values, assumptions, beliefs,

and norms that unite the members of

an organization.”- Kathryn Bartol, Management

Page 10: Culture and Stretegy

Interactivity of Culture

and Strategy

Strategy

Culture

Cultural Thrust

Impacting Strategy

Page 11: Culture and Stretegy

Functions of culture

Organisational

Culture

Organisational

Identity

Collective

Commitment

Social System

Stability

Sense-Making

Device

Page 12: Culture and Stretegy

Cultural Analysis

Cultural Analysis focus on identification of the key components of an organisation’s culture and ascertainment of resultant

alignment with strategic intent, strategies, policies and business development

imperatives.

Page 13: Culture and Stretegy

Two Levels of

Cultural Analysis

• Analysis of Elements of Culture

• Analysis of Cultural Expressions

Page 14: Culture and Stretegy

The Impact of Corporate

Culture on Business Strategy

•Risk

•Employee Retention

•Incentive Pay

•Focus

Page 15: Culture and Stretegy

Aligning Business Strategy

with Corporate Culture

In effect, the whole goal for aligning business strategy with corporate culture is

to ensure the components of active culture within the organisation would facilitate

seamless operability for established strategies.

Page 16: Culture and Stretegy

Forces of Corporate

Culture

• Leadership

Stream

• Teamwork

Dynamics

• Workplace

Communicatio

n

• Paradigms

• Rituals and

Routines

• Power

Structures

• Symbols

• Exploratory

Engagement

• Social

Connectivity

• Organisational

Structures

Page 17: Culture and Stretegy

- Peter Drucker

Page 18: Culture and Stretegy

12 Reasons Why Culture

Eats Strategy for Lunch

Page 19: Culture and Stretegy

Southwest Airlines didn’t earn the highest loyalty in the industry with its bags fly free and fuel price hedging strategies

Reason #1People are loyal to culture, not to

strategy

Page 20: Culture and Stretegy

A resilient culture was more important than new strategies in saving Starbucks

Reason #2Culture provides resilience in tough

times

Page 21: Culture and Stretegy

During the fuel price crisis of 1991, Southwest Airlines didn’t have to execute a strategy of pay cuts – employees

volunteered for it.

Reason #3Culture is more efficient than strategy

Page 22: Culture and Stretegy

Les Schwab sells the same tires you can buy

anywhere else – but no one can compete

with their culture

Reason #4Culture creates competitive

differentiation

Page 23: Culture and Stretegy

Toms Shoes has become a cultural icon – creating a level of success that could never be attained by strategy alone.

Reason #5Culture can spark a contrarian business

strategy

Page 24: Culture and Stretegy

Reason #6A brittle culture can doom even a great

organization (or product)

Page 25: Culture and Stretegy

Robert Nardelli’s strong-fisted GE strategies increased sales,

profits, and stock price…

Reason #7When strategy and culture collide,

culture will win

Page 27: Culture and Stretegy

• Hundreds of people tour Zappos every week but no one can copy the Zappos culture

• Getting a job at the Zappos call centre is more competitive than gaining admission to Harvard

Reason #9Strategies can be copied but no one can

copy your culture

Page 28: Culture and Stretegy

We don’t need to tell people they can’t smoke in our buildings or discipline them when they do – co-workers will take care of that

Reason #10Culture provides greater discipline than

disciplinary action does

Page 29: Culture and Stretegy

• Wal-Mart’s culture of low price at any cost has come at a huge cost to the company.

• Wal-Mart has spent over $100 million on the investigation of these ethical scandals.

Reason #11Culture provides a level of risk prevention

that cannot be attained with strategy alone.

Page 30: Culture and Stretegy

Your bottom line next year will largely be determined by your current strategies; your bottom line in the following years will be more influenced by your current culture.

Reason #12Culture will have a significant impact on your

future bottom line.

Page 31: Culture and Stretegy