Business Strategies: Levels and Range of business strategies, Culture: Functions and analysis of culture, Impact of corporate Culture on Business Strategy and 12 Reasons Why Culture Eats Strategy for Lunch

1. Culture & Strategy
By: Sharan, Sayan, Rohan, Rajeev, Mayuri, Prajakta

2. Business Strategy
BUSINESS STRATEGY REPRESENTS CLEARLY
IDENTIFIED FEASIBLE ROUTE FOR STEERING
ACTIVITIES ONTO ATTAINMENT OF GOALS
AND OBJECTIVES.

3. Three Levels of
Strategy
1. Corporate Level Strategy
2. Business Unit Level Strategy
3. Functional/Operational Level
Strategy

4. Corporate Level
Strategy
 Managing Activities and Business
Interrelationships.
 Corporate Responsibilities.
 Management Practices.
 Competitive Contact.

5. Business Unit Level
Strategy
 Influencing the layout of competition
by means of action such as vertical
integration.
 Positioning the firm’s business
against competitors.
 Modifying actions to cope with
changes in demand, supply,
regulations and technology.
 Developing useful partnerships with
customers and other business units.

6. Functional/Operational
Level Strategy
 Business development
 Production
 Finance
 Human resource and materials
management

7. Generic Range of
Strategies
Differentiation Strategy
Cost Leadership Strategy
Focus Strategy

8. CULTURE

9. Corporate Culture
“Corporate culture is a system of
shared values, assumptions, beliefs,
and norms that unite the members of
an organization.”
- Kathryn Bartol, Management

10. Interactivity of Culture
and Strategy
Strategy
Culture
Cultural
Thrust
Impacting
Strategy

11. Functions of culture
Organisational
Culture
Organisational
Identity
Collective
Commitment
Social System
Stability
Sense-Making
Device

12. Cultural Analysis
Cultural Analysis focus on identification of
the key components of an organisation’s
culture and ascertainment of resultant
alignment with strategic intent, strategies,
policies and business development
imperatives.

13. Two Levels of
Cultural Analysis
• Analysis of Elements of Culture
• Analysis of Cultural Expressions

14. The Impact of Corporate
Culture on Business Strategy
•Risk
•Employee Retention
•Incentive Pay
•Focus

15. Aligning Business Strategy
with Corporate Culture
In effect, the whole goal for aligning
business strategy with corporate culture is
to ensure the components of active culture
within the organisation would facilitate
seamless operability for established
strategies.

16. Forces of Corporate
Culture
• Leadership
Stream
• Teamwork
Dynamics
• Workplace
Communicatio
n
• Paradigms
• Rituals and
Routines
• Power
Structures
• Symbols
• Exploratory
Engagement
• Social
Connectivity
• Organisational
Structures

17. - Peter Drucker

18. 12 Reasons Why Culture
Eats Strategy for Lunch

19. Southwest Airlines didn’t earn the highest loyalty in the
industry with its bags fly free and fuel price hedging strategies
Reason #1
People are loyal to culture, not to
strategy

20. A resilient culture was more important than new strategies in
saving Starbucks
Reason #2
Culture provides resilience in tough
times

21. During the fuel price crisis of 1991, Southwest Airlines didn’t
have to execute a strategy of pay cuts – employees
volunteered for it.
Reason #3
Culture is more efficient than strategy

22. Les Schwab sells the
same tires you can buy
anywhere else – but
no one can compete
with their culture
Reason #4
Culture creates competitive
differentiation

23. Toms Shoes has become a
cultural icon – creating a
level of success that could
never be attained by
strategy alone.
Reason #5
Culture can spark a contrarian business
strategy

24. Reason #6
A brittle culture can doom even a great
organization (or product)

25. Robert Nardelli’s strong-fisted
GE strategies increased sales,
profits, and stock price…
Reason #7
When strategy and culture collide,
culture will win

26. Not fixing Dave Carroll’s guitar cost
United $millions
Reason #8
Cultural miscues are more damaging
than strategic ones

27. • Hundreds of people tour
Zappos every week but no
one can copy the Zappos
culture
• Getting a job at the Zappos
call centre is more
competitive than gaining
admission to Harvard
Reason #9
Strategies can be copied but no one can
copy your culture

28. We don’t need to tell
people they can’t smoke
in our buildings or
discipline them when
they do – co-workers will
take care of that
Reason #10
Culture provides greater discipline than
disciplinary action does

29. • Wal-Mart’s culture of
low price at any cost has
come at a huge cost to
the company.
• Wal-Mart has spent over
$100 million on the
investigation of these
ethical scandals.
Reason #11
Culture provides a level of risk prevention
that cannot be attained with strategy alone.

30. Your bottom line next
year will largely be
determined by your
current strategies; your
bottom line in the
following years will be
more influenced by your
current culture.
Reason #12
Culture will have a significant impact on your
future bottom line.