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Relationship Between Organizational Culture And Strategic Management Commerce Essay

Paper Type: Free Essay Subject: Commerce
Wordcount: 3505 words Published: 1st Jan 2015

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The vision driven strategy, strategy driven culture. Enterprises must set a goals, and then achieve it. Goals has to be supported by strategic, implementation of the strategy requires the support of the faith. Therefore, there is very close relation between organizational culture and strategy. The mainly in the following aspects:

First, excellent corporate culture is an important condition for the formulation of corporate strategy and is able to highlight the characteristics of the enterprises, the formation of the common values of the corporate members, and the corporate culture has a distinct personality, help companies develop different the strategy of defeating the enemy.

Second, the corporate culture is an important means of implementation of the corporate strategy. After corporate strategy development, it requires all members of the active and effective implementation, is the corporate culture oriented, constraint, cohesion, motivation and radiation effect, stimulate the enthusiasm of employees, unified corporate members will jointly strive to achieve the enterprise’s goals.

The Third is that corporate culture and corporate strategy must adapt to each other, mutual coordination and strategy development, corporate culture should change with the new formulation of strategy, however, to change corporate culture is very difficult once the organizational culture is formed, Therefore, from the point of view of the implementation of the strategy, the corporate culture to the implementation of the corporate strategy, will restrict, that the corporate culture has greater rigidity and a certain continuity, enhanced gradually in the process of enterprise development. The implementation of the corporate strategy. enterprises in major changes must be considered with the basic nature and status of the relationship, because the basic nature and status of the enterprise is to determine the basis of the corporate culture, at the same time to play existing corporate personnel role in ensuring the implementation of change in the original culture conditions. senior corporate managers to focus on to be considered compatible with the original enterprise culture change, do not break the code of conduct, then the companies have formed.

In summary, the analysis of the enterprises in strategic management, corporate culture should be given enough attention only corporate culture and strategic role to play in order to enable enterprises to better development.( Jing, L. 2007)

Definition of strategic management

Strategic management is the manangement of an organization’s overall purpose, to ensure that the needs and enablers of the present are balanced with those of the future

From the view of the future development of enterprises, strategic as a plan, and from the view of the course of development in the past, the strategy as a Pattern. If you look at the industrial level, the strategic performance as a Position, look at the enterprise level. Strategy as a Perspective. ( Peter F¼ŽDrucker)

i.e: Through analysis, forecasting, planning, control, and other means to achieve the full advantage of the enterprise, financial, and material resources, in order to achieve optimal management, improve economic efficiency purposes. ( Chris .J2008)

The meaning of strategic management for a company and why is important.

Due to strategic management makes the grow and development into a changing environment, the f management job use by the future trend as their basic of making decision, so it makes the manager of enterprise to focus on research of operating environment, properly determine the development direction of a company and to select suitable operation area or marketing area, therefore able to catch the chance for outside environment, and enhance the adaptability of the business activities of the external environment, and thus to achieve the best combination of the two.

i.e: Wal-Mart’s annual sales exceeded $ 40 billion, one of the world’s large-scale retail enterprises. Their successful is most depend on their business strategic:

“One-stop” shopping

(1)Free Parking: Shenzhen Sam’s business area more than 12,000 square meters, nearly 400 free parking spaces, while another business area of ​​over 17.8 thousand square meters Wal-Mart shopping plaza also has about 150 parking spaces.

(2) The store employs professionals to customers free advice about computers, cameras, video recorders and their associated supplies, to help reduce the risks of blindly buy.


Wal-Mart in order to provide more benefits to customers, while trying to reduce the cost of advertising, for promotional creative a lot of thought, and strive to get the best effect with minimum capital investment.


Wal-Mart brand management strategy, select a variety of retail forms for the different grades of the target consumers. It is because of Wal-Mart’s all-round attack, seize the high-and low-end market, so Wal-Mart replaced Sears has swept throughout the United States, to become the first in the retail brand.

Its own brand

Wal-Mart has been active in the Chinese market development and promotion of Wal-Mart’s “own brand”, launched a “high quality and price cheaper” own brand merchandise, covering food, household goods, clothing, footwear and other flagship category.(Soderquist, D. 2005)

Definition of organizational culture:

The organizational culture is the sum of the enterprises in the construction and development of material civilization and spiritual civilization. Including the organization and management of both hardware and software, explicit cultural and implicit cultural

Organizational culture is formed by the organization in the long-term survival and development of organization-specific, and the sum of the target value is the organization most members follow the highest standards, the basic beliefs and behavior norms in the organization reflects

Specifically: organizational culture is the general term for organizations of all members of the commonly accepted values​​, codes of conduct, team spirit, way of thinking, work style, psychological expectations and feelings of belonging sense of community.

About the concept of corporate culture, there are many different understanding and expression:

(1) The corporate culture is gradually formed in the working groups of the specification.

(2) The corporate culture is the values ​​espoused as a business major.

(3) Corporate culture is the purpose of the guide enterprises to develop the policy of employees and customers.

(4) The corporate culture is sought in the enterprise competition for survival “principle”, the new employees to the enterprise hired must master the “inner rules.

(5) The corporate culture is a way to convey the feeling or atmosphere within the object layout, as well as corporate members dealing with customers or other external members.

(6) corporate culture is the traditional atmosphere of a company culture, it means that the company values, such as aggressive, defensive or flexible – these values ​​constitute of company employees vitality, opinions and behavior norms. Managers personally, these norms and instill in employees from generation to generation.

(7) corporate culture is a business formed some kind of cultural stereotypes and historical tradition, a common value criteria, ethics and life information, unified the various internal forces in a common guiding ideology and under the operating philosophy, brought together to a common direction.

(8) The corporate culture is a mix of economic significance and cultural significance, refers to the formation of values ​​in the corporate world, the code of conduct in the crowd and community cultural influences. It does not refer to the cultivation of knowledge, but rather refers to the attitude of the people of knowledge; than profit, but profit mental; than interpersonal relationships, but interpersonal life skills embodied in human philosophy. The corporate culture is a penetration in the activities of all the things, it virtues.

(9) The corporate culture is the basic information of the business organization, the basic values ​​and the basic view of the internal and external environment, is a code of conduct to abide by all the members of the enterprise and beliefs, value system and guiding the people engaged in the work of philosophical concepts.

(10) corporate culture, production and operation and management activities with the spirit of the enterprise features to create wealth and physical form in certain social and historical conditions. It includes cultural attitudes, values, entrepreneurship, ethics, code of conduct, history, tradition, enterprise system, cultural environment, enterprise products, etc.. Values ​​are the core of the corporate culture.


1. American scholar John Kotter and James Heskett, corporate culture refers to the various departments in an enterprise, or at least those business executives who have corporate values ​​and operating practices. … Refers to the various departments of the enterprise segment, or located in different geographical environment departments have the kind of common cultural phenomenon.( John P. Kotter,James L.1992.)

2. Tres Deere and Alan Kennedy believes that corporate culture values, heroes, customs, ceremonies, cultural networks, enterprise environment.

3. William Ouchi, the corporate culture is “aggressive, defensive, flexibility – that determine the values ​​of the activities, views and behavior patterns.

The role of organizational culture

The corporate culture is a new theory of modern enterprise management, enterprises really want to step into the market, to embark on a rapid development, better efficiency, and continuously improve the overall quality, must popularize and strengthen the building of enterprise culture.

1. Integration role

Traditional scientific method or scientific management functions bound to live the behavior of employees, but can not win the hearts of the staff. Strong organizational culture, but it can stimulate the enthusiasm of the staff, the employees are committed to working power. A cohesive organizational culture, organizational values ​​deeply rooted among the employees to the organization as their own home, and are willing to contribute their strength in order to organize a common goal, so that staff and organizational integration.

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Organizational culture fundamentally change the old valuable concept of employees, establish new values, to meet the needs of the organization normal practice activities. Once the tissue culture to promote values ​​and code of conduct to be accepted and recognized, the members will make behavior choices meet the organizational requirements, you will feel guilty if the violation of organizational norms, disturbed or. Remorse, will automatically correct their behavior. In this sense, organizational culture has a strong integration.

2. Improve performance

Management guru Peter Drucker (Peter F.Drucker) said: “the nature of the enterprise, that decided the most important principle of the nature of the business, economic performance.” If the organizational culture does not impact on firm performance, then it highlights not see its importance, we know indeed play a positive role in tissue culture in the organization of internal integration, but whether it is possible to improve the economic efficiency of enterprises? The answer is yes.

3. Improve the organizational role

Cultural heritage organization formed in a continuous process of development through numerous radiation, feedback, and strengthen, we will constantly updated as practice development and optimization, and promote organizational culture from one height to another highly forward. In other words, the organizational culture continue to deepen and perfect once formed a virtuous circle, will continue to promote the organization’s own rise development, in turn, the organization will promote progress and improve the organizational culture of the rich, perfect and sublimation. Successful organizations and enterprises facts indicate that the prosperity of the organization is always inseparable from the self-improvement of the organizational culture.

4. Shaping products

Organizational culture as a human creation, it is the best form of expression is the company’s products. When the company’s products are infiltrating the tissue culture, the vitality of its products will not be compared to any other enterprise. Organizational culture is a very important role in shaping the enterprise product, product design, production and sales enterprises in accordance with the organizational culture, only in line with the corporate culture products to on a firm foothold in the market. Enterprise products, in turn, selling, consumers will further understand the organizational culture, which is a mutual promotion and development of the relationship.

i.e.: After the study, the Côte and Hess Côte (1992) that:

(1) organizational culture has a major role on the long-term results of operations;

(2) the organizational culture of the next 10 years is likely to be the key factors that determine the success of enterprise;

(3) organizational culture negative role on the a good corporate long-term operating results are not uncommon, these organizational culture is easy to propagate extension, even if that brings together a lot of common sense, knowledge of a high degree of talent;

(4) Although the organizational culture is not easy to change, but they can translate into organizational culture that is conducive to the growth of the business performance.

Why is important

Organizational culture is important for an enterprise as the function of organizational culture .

Specifically, following six main function:

(1) Oriented functions, corporate culture can play a guiding role on the value orientation of the organization as a whole, and each member of the Organization of behavior in line with the goals established by the organization. Organizational culture is just a soft bound by the shared values ​​of the organization to the penetration of personal values, enables organizations to automatically generate a set of self-regulatory mechanism to guide the behavior and activities of the organization in an adaptive culture.

(2) constraint functions, the role of the enterprise organizational culture constraints and specifications of each employee’s ideological, psychological and behavior. Constraints of organizational culture is not system-hard constraints, but a soft constraint, this soft constraints equal to diffuse organization organizational culture, groups, code of conduct and ethics.

(3) The cohesion function, when one set of values ​​is co-sanctioned by the organization’s staff, it will become a kind of adhesive to unite its members from all aspects, resulting in a tremendous solidarity and cohesion. The main reason for the success is organization, cohesion employees have a common goal and vision together, encourage enterprises to continue to move forward and development.

(4) Excitation function, the corporate culture has members from the heart to produce a high emotional and strenuously enterprising spirit of the effects, it can maximize their staff’s enthusiasm and pioneering spirit. The emphasis on people-centered corporate culture management methods. Its incentive is not an external impetus, but an inner guidance, it is not a passive to meet the psychological needs of the people to realize their own values, but through the shaping of the organizational culture, so that each employee from the heart dedication to organization combatant.

(5) Radiation function, corporate culture, once formed a fixed pattern, it will not only play a role within the organization, the impact on the organization’s staff, but will also have an impact on the community through a variety of channels. Organizations the cultural radiation to the social channels, but mainly can be divided into two categories Various forms of publicity and personal contacts. On the one hand, the spread of the culture of organizations to establish the organization’s image in the public help; On the other hand, the corporate culture has a great influence on the development of social culture.

(6) Brand function

Enterprise brand image in the minds of the public, is a hardware based products and services “and a corporate culture based software as consisting of complex. Excellent corporate culture, enhance the brand image will play a huge role. Excellent unique corporate culture can produce huge brand.

i.e.:(1) Such as “Microsoft”, “Ford”, “GE”, “Coca-Cola”, their unique corporate culture in its brand building process has played a significant role. The brand value is the accumulation of time, but also the accumulation of corporate culture.

(2) Wal-Mart is a great emphasis on brand protection company, Wal-Mart Stores Inc. in July 2011 to submit applications to the World Intellectual Property Forum, said the disputed domain OurWalmart dot com with its logo “Walmart”, that infringe on their rights and interests, the request for arbitration back to the domain name. It is understood that the OurWalmart dot com domain name is accessible, the site is a Wal-Mart employee reaction to issues related to platform, salary, working hours and other issues can be seen from this platform, the website seeks the voices of an employee to provide services solutions, is a The non-profit organization.


The organizational culture is the pillar to carry out the strategic, it means the guide line, business idea, and the work style that including the values of people, personal culture, custom, management policy and the company image of a enterprise. People is kind of social animals, as same as wolfs, wolfs will never hunting alone, they are always action by a group as a company, the culture makes them act together, therefore they are able to carry out their strategy to hunting, and due to this, the hunting get easier.

The so-called organizational culture, common values ​​held by the people as a corporate body, action, and ways of thinking. The business philosophy is the core of the corporate culture, It shows the value of the enterprise, but also provide the basis of the strategic objectives, and also includes a mode of operation, the basic norms of behavior. In other words, the business philosophy of the fundamental values ​​of the work of the business people. Such values ​​are the foundation of the corporate culture, created by companies, the guiding ideology of the major operators in the decision. Therefore, it must lay a deep imprint on the formulation of corporate strategy.

The strategy is deciding the development of the most fundamental long-term goals and short-term purpose of planning, but also includes the necessary means to achieve these goals and objectives are to be taken, and how the allocation of resources of all kinds to make decisions. Corporate culture support the corporate strategy, enterprise strategy can be implemented smoothly, largely depends on the content of the strategic behavior and corporate members, the way of thinking fit. No matter how wonderful the corporate strategy, if you do not adapt to cultural basis, it will not have a very good performance.

“I am engaged in the operation, over six years of experience and deep feelings about the importance of the business philosophy of an enterprise exists for what it? What is the purpose of operating? Operating in what ways? These issues must to have a really basic concepts. “The foundation of the business is the right philosophy. Only do solid foundation, people, technology and capital be possible to really play the role of a variety of resources make it easier to make an impact. Matsushita said: “With a clear business philosophy, my own, compared with the former, there is a firm belief that … For a long time, my business is strong. Employees listened to my lectures are very touched they deeply impressed by their mission and their responsibilities, everyone for the enterprise. masters of our enterprises have grown up at an alarming rate. ” said by Konosuke Matsushita. (Matsushita ,K. 2002)


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