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Culture and Strategy

Culture and Strategy. Chapter 5 Managing Across Cultures Schneider & Barsoux RBC p 428. Similarities. Culture as solutions to problems of External adaptation and Internal integration Strategy in devising and implementing organizations need to assess their

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Culture and Strategy

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  1. Culture and Strategy Chapter 5 Managing Across Cultures Schneider & Barsoux RBC p 428

  2. Similarities • Culture as solutions to problems of • External adaptation and • Internal integration • Strategy in devising and implementing organizations need to assess their • External environments as well as their • Internal capabilities • (SWOT)

  3. Strategic Planning • SWOT • Boston Consulting Group (BCG matrices) • Ansoff • Porters Five Forces • Competitive Advantage

  4. Two approaches to Strategy • The rational / economic view • ”Assumes that the environment and the organization are objective realities that are similarly perceived and analyzed by intelligent managers” p 429 • A dynamic view • ”Strategy is a dynamic process which is energized through feelings. It is not a bundle of facts, figures assembled in order by the logical mind” p 430

  5. Analysis of national competitiveness (Porter diamond) Chance Firm strategy, structure, and rivalry Factor conditions Demand conditions Related and supporting industries Govern- ment

  6. Porter’s five forces model New entrants Industry level Market level Market Competitors Intensity of rivalry Suppliers Buyers Substitutes

  7. R&D R&D Production Production Marketing Marketing Sales & services Sales & services Value chain analysis Customer Perceived value/ price A Perceived value/ price B Relative cost Firm A Firm B

  8. The dynamic view • Japaneese view: • ”Reality cannot be boxed into two-by-two matrices and that thruth cannot be determined by simplistic theories of cause and effect” p 431 • Mintzbergs view: • ”Rather than planned, strategy is considered as emergent, or as evolutionary” p 431

  9. Ressource-based view • Developing organizational resources and capabilities • Building core competencies and corporate character • Provides the capabilities and flexibility to respond to environmental events • Assumptions based on what the company is more than what the company does

  10. Summing up: • Strategic view: • Rational economic view • SWOT, Porter, Boston etc. • Cultural model: • Controlling Model (next slide) Versus • Strategic view: • The dynamic view • Ressource-based view • Cultural model: • Adapting Model (next slide)

  11. Cultural models of Strategy • Controlling Model • Centralized • Formalized • Monochronic • Adapting model • Decentralized • Informal • Polychronic P 433-435

  12. Cultural Determinants of Strategy • External adaptation • i.e. Human Activity • Doing versus being • Achievement vs. ascription • Internal integration • i.e. Nature of Relationships • Individual vs collective • Task vs social See figure 5.2 p 437

  13. Strategic Process Contolling Vs. adapting Strategic Profile Defender Vs. Prospector Strategic Contentconservative vs innovativecost-cutting vs market expansion

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