Exploring Business Strategy
WEN.XU
lecture_5b_culture_and_strategy.pptExploring Business Strategy (247SAM)
Lecture 5b Culture and Strategy
(For self-guided study)
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Expected learning outcomes
- Analyse the influence of an organisational culture on its strategy using the cultural web.
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What is organisational culture
- There are various definitions from various aspects.
- Organisational culture is the taken-for-granted assumptions and behaviours that make sense of people’s organisational context (Johnson et al., 2014:147)
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Edgar Schein’s framework of organisational culture
The paradigm/assumptions
- The paradigm is the set of assumptions held in common and taken for granted in an organisation.
- The paradigm is…
- built on collective experience
- informs what people in the organisation do
- influences how organisations respond to change.
Culture’s influence on strategy development
- The taken-for-granted nature of culture is what makes it centrally important in relation to strategy and the management of strategy.
- How do you understand the following impact?
- Cultural ‘glue’
- Captured by culture
- Managing culture
Culture’s influence on strategy development
Analysing culture: The cultural web
- The cultural web shows the behavioural, physical and symbolic manifestations of a culture that inform and are informed by the taken-for-granted assumptions, or paradigm, of an organisation
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The cultural web of an organisation
The cultural web of an organisation *
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Case study: Google’s organisational culture
- Watch the following YouTube video;
- Google’s organisational culture (3.08min)
- Take note while watching;
- Group discussion (15min) after watching: what is Google’s core value and culture?
Summary
- Organisational culture is the basic assumptions and beliefs that are shared by members of an organisation, that operate unconsciously and define in a basic taken-for-granted fashion an organisation’s view of itself and its environment.
- An understanding of the culture of an organisation and its relationship to organisational strategy can be gained by using the cultural web.
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Seminar: Case study of Club Med’s culture
1. Analyse Club Med’s culture before 2000.
2. Explain the reasons for Club Med’s success between the 1950s and the 1990s.
3. How do you explain Club Med’s difficulties in the early 1990s?
4. Why did Bourguignon’s plan fail? Do you think that Giscard d’Estaing’s plan will be more successful?
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