Valerie Jackson Reed
Culture is a way of life of a group of people which includes the accepted social Values and Norms. Culture is associated with the people's beliefs and perceptions. Every Business usually has a culture established within its premises, and it plays a significant role in the success of the firm. Management must put into consideration the culture of the organization while making decisions. Plan act as a road map toward attainment of a given set objective of business. Through planning the business can achieve its mission and vision precisely.
While planning for a culture strategy the organization should consider the aspect of globalization. Businesses today are putting their effort toward expanding their operations internationally. This strategy aims at increasing the profits and market share due to many customers in the international market as compared to local demand. Worldwide market entry, requires a lot of capital investment in resources which are limited and marketing (Frynas & Mellahi 2015). Resources is a necessary factor of production, and every business needs it’s to start and operate. Therefore, it calls for enough capital accumulation and efficient utilization to attain optimum results.
Corporate social responsibility(CSR) is another cultural consideration that a business should account for. It requires the company to maintain a close relationship with the society within which it operates through involving the community in some of its operations (Harvard Business School 2002). It should consider the society as one of the stakeholders, and this will boost the image of the business (Manos & Derori 2016). Many companies today like Coca-Cola and Walmart have adopted this strategy, and improvement has been reported.
Technology has been changing at a high rate, and the business should consider this aspect in their strategy. Change is inevitable, and the company cannot ignore the technological advancement that is taking place as it creates new threats and opportunities. Through adopting technological progress, the business can improve its efficiency, effectiveness, and productivity (Thomas, Smith, & Diez. 2013). The aspect of the business adopting new technologies enhances improved quality, reduced production cost, enhanced environmental ethics, and improved customers’ goodwill.
Resources are limited, in case of any increase in financial requirements the business needs to come up with a plan of fetching more funds. Also, it may also be required to cut down some of its operations which may have an impact on the business strategy (Peng 2013). Technological advancement will call for training of works to gain the new skill of the advancement. CSR will call for a budget adjustment which will affect the current strategy implementation.
When setting a new strategy, there changes that will occur and business should first analyze it to know which factors to consider. However, resources are the backbone of every strategy and failure to consider this factor the strategy will not be implemented effectively.
References
Frynas, J.G., & Mellahi, K. (2015). Global Strategic Management. USA: Oxford University Press. https://global.oup.com/academic/product/global-strategic-management
Harvard Business School. (2002). Harvard business review on culture and change. Boston, MA: Author.
Manos, R., & Derori, I. (2016). Corporate responsibility: Social action, institutions and governance. Basingstoke, Hampshire: Palgrave Macmillan.
Peng, M. (2013). Global Strategy. USA: Cengage Learning. http://www.cengage.com/search/productOverview.do;jsessionid
Thomas, H., Smith, R., & Diez, F. (2013). Human Capital and Global Business Strategy. USA:
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