Free «Corporate Culture Paper» UK Essay Paper
Corporate culture can be perceived as a kind of mindset and a belief system of an organization. In many instances, it is defined in simple terms as a way of doing things. It defines organization’s principles, vision, and mission that binds its stakeholders to it. According to Slater, Olson, and Finnegan (2011), in the current business world, corporate culture has become more and more common and significant. Consequently, gaining an understanding of corporate culture has become a strategic decision for businesses. It is no wonder that many companies today are including their corporate culture into their business strategy. That is, many organizations are using their corporate culture to drive their business strategy. Therefore, this asserts that corporate culture plays a fundamental role in the achievement of the success of a company since it highly depends on a company’s business strategy (Janićijević, 2012). The inclusion of corporate culture in the company’s business strategy with the active participation of management is vital in leading to the impeccable performance of the organization.
Importance of Including Corporate Culture in a Business Strategy
It is important to include corporate culture in the company’s business strategy because of the following reasons. First, the implementation, as well as the development of this business strategy, heavily depends on this inclusion. This can best be explained by the example of a culture that supports ethical standards. In the opinion of Nawaser, Shahmehr, Kamel, and Vesal (2015), such a culture is essential in impacting the tasks of crafting and executing strategy. Corporate culture truly provides the necessary guidance for the company’s strategy. This way, both the development and implementation of the business strategy can be achieved taking into consideration ethical standards that will improve the company’s chances of adopting an acceptable business strategy. Another reason for including corporate culture in the company’s business strategy is that this is essential for the company’s long-term success. This is because the concept of corporate culture tends to allude to a much tender side of the human personality. Shahzad, Luqman, Khan, and Shabbir (2012) opine that it is a facilitator of success because it also plays an essential role in guaranteeing the sustainability for the company, which can be demonstrated by the adoption of a culture promoting corporate social responsibility. Such a corporate culture enhances the sustainability of a company by ensuring mployee well-being and fostering better relations between the organization, its stakeholders, and the community. Additionally, including corporate culture in the company’s business strategy is critical because it will be essential in unifying stakeholders in making decisions directed at enabling the organization to achieve its long-term objectives. Janićijević (2012) asserts that in this regard, the organizational culture should assume the characteristic of being unifying in nature and thus be strong and flexible. For instance, creating a common goal of the company to include ethics in all its operations will be beneficial in bringing everyone together.
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Role of Corporate Culture in Driving Business Strategy
Corporate culture is essential in helping drive the company’s business strategy, which can be achieved in the following ways. Firstly, corporate culture drives the organization’s business strategy by fostering the process of goal unification. Given that corporate culture indicates the way a company does things, all employees are able to know the goal that is in place as it relates to business strategy (Ahmadi, Salamzadeh, Daraei, & Akbari, 2012). In this regard, corporate culture fulfills the role of guaranteeing that an organization is able to move in the right direction and thus brings about the concept of organizational sustainability. Secondly, corporate culture fulfills the role of driving the company’s business strategy by facilitating process implementation of this strategy. This is essential given the fact that part of corporate culture alignment and business strategy implementation entails the aspect of process implementation. Processes in this sense can include finding ways of facilitating goal attainment by meeting the needs of stakeholders. It is evident that this requires a significant amount of adapting of ethical principles. Consequently, a culture that promotes ethical standards and principles is essential because by being an integral part of the company’s identity and self-image, it will also impact its ways of operating. Finally, corporate culture is crucial in driving the company’s business strategy because it fosters the attainment of success and growth. According to Nawaser et al. (2015), corporate culture has the ability to play the role of improving performance. This is more so when the culture is related to ethics and organization’s increase of interest in the social well-being of the communities where it operates. This works to create an environment that enhances the productivity of employees.
Role of Management in Ensuring Corporate Culture Drives Business Strategy
There are many things that management needs to do to ensure that the corporate culture that is adopted by their organizations helps to drive business strategy. An example of one thing that management needs to undertake is to carefully diagnose and redefine various business processes of their companies. The significance of doing so is to ensure that these processes align well with organizational culture and, consequently, its strategy. This will be useful in ensuring that the company is able to adequately guarantee its sustainability. Another thing that management needs to do to ensure that corporate culture drives their business strategy is to lead by example. For instance, Slater et al. (2011) point out that management has the responsibility to lead by example when it comes to compliance with their company’s ethical code within a culture of ethics. Thus, management can undertake the task of ensuring that the strategy that is proposed is compliant with the set standards of ethics. Ensuring this can also entail assessing whether there can be possible areas of uncertainty that may need to be addressed. At the same time, management can also lead by example by investigating whether there are any elements in the proposed business strategy that may be found to be ethically questionable or objectionable. Shahzad et al. (2012) suggest that this can be achieved by assessing the perception of stakeholders of the organization. An additional relevant action that needs to be taken by management in order to ensure that corporate culture continues to drive their business strategy is to promote the alignment of these two elements by using the discipline of competing values. From the perspective of a culture of ethics, this culture can be aligned with the company’s business strategy only when ethical principles are integrated into the culture. Consequently, culture becomes a powerful tool communicating a company’s business principles and values.
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From the above discussion, it is evident that corporate culture has a strong influence on the business strategy of any single organization. For this reason, it is more than critical for a company to adopt the corporate culture that will enhance its success and growth in the long term. Accordingly, a culture that promotes business ethics through means such as corporate social responsibility can work to promote this. In the end, corporate culture will function well to enhance the sustainability of a company.
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