Culture and Organizational Strategy

Running head: CULTURE AND ORGANIZATIONAL STRATEGY
CULTURE AND ORGANIZATIONAL STRATEGY
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CULTURE AND ORGANIZATIONAL STRATEGY
Section 1.
According to the global leaders of corporate organizations culture is the lifeline of any
company’s effectiveness that can rise it from abyss or push it to nothingness from pinnacle of
success. The corporate culture has various facts which differently affect the strategies of that
particular firm and bring surprising outcomes. To the global management gurus, the corporate
culture of a firm determines how the management looks into any matter, how different their
perspectives are and how them react on that particular matter. In this respect the CVF or
competing values framework can be to determine the organizational values. The horizontal
axis of this framework demonstrates the focus area of the companies and the vertical one
shows its flexibility and control over the environment.
Based on these responses on the companies, four cultural types have been pointed out.
These are clan culture, hierarchy culture, adhocracy culture and market culture. The clan
culture focuses on the teamwork and collaboration (Carlos, Paula & Dibb, 2014). This invests
on the empowerment and development if the employees which lead to gain high employee
morale as well as commitment. For example, Google stresses on clan culture to get
commitment from its employees and grow impressively in this highly competitive market.
The hierarchy culture is more focused to gain stability in the company and control all the
internal process and decision. For example, Hudson’s Bay Company follows strict
hierarchical culture to strictly maintain all the situation Nd matter within the company.
In the Adhocracy culture, the companies are more flexible but remains focused on
the innovation needed for the companies. This type of companies easily adapts to the change
as they support creativity, adaptability, agility and flexibility both in the decision-making
process as well as the change in the organization for surviving or competing (Tipster, 2018).
In this regard, the example of Starbucks can be given. In this particular company, the

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CULTURE AND ORGANIZATIONAL STRATEGY
employee and stakeholders take part in the decision-making process and the rules are quite
easily changed to match the demand of the customers and the market. On the other hand, the
companies supportive of market culture are more externally focused. These often control
their employees to produce what the market needs (Yee, Tan & Ramayah, 2017). This type of
organizational culture always aims to gain competitive advantage and focus on the trends of
demands, competitiveness and productivity. Through these measures, they increase their
profitability and market shares.
Section 2.
Regarding these different types of organizational cultures, there has been a debate
among the global business leaders and each of them claims that their culture is more effective
than the other. However, according to the theorists, the organizational leaders need to make
strategies according to the needs of the situation as well as demand of the corporation
(Elsmore, 2017). In case these need immediate changes in the strategies to operate more
effectively, then the decision must provide changes. Therefore, based on the goals of the
organizations, the cultures must be fitted so that the organization does not fall due to its
cultural imparity.
Organizational culture comprises of shared beliefs, rules and values of an
organization. Culture actually sets the basis for a strategy. Hence when a strategy of an
organization is aimed to be developed and implemented, it must completely align with the
organization’s culture. Therefore, it can be stated from the above discussion that the
organizational culture is closely connected with the strategies and effectiveness of the
corporation because culture determines how a matter is perceived but the company (Tipster,
2018). Culture hence is a clear competitive advantage as this helps the companies to utilize
the time and situation in its support. Culture trumps strategy, innovation, change