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



External environments as well as their
Internal capabilities
(SWOT)
Strategic Planning
SWOT
 Boston Consulting Group (BCG matrices)
 Ansoff
 Porters Five Forces
 Competitive Advantage

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
Analysis of national
competitiveness (Porter diamond)
Chance
Firm strategy,
structure,
and rivalry
Factor
conditions
Demand
conditions
Related and
supporting
industries
Government
Porter’s five forces model
New entrants
Industry level
Market
Competitors
Suppliers
Market level
Buyers
Intensity
of rivalry
Substitutes
Value chain analysis
Customer
Perceived value/
price A
Perceived value/
price B
Relative cost
Firm A
R&D
Firm B
Production
Marketing
Sales
& services
R&D
Production
Marketing
Sales
& services
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
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

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)
Cultural models of Strategy

Controlling Model




Centralized
Formalized
Monochronic
Adapting model



Decentralized
Informal
Polychronic
P 433-435
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
Strategic Content
conservative vs innovative
cost-cutting vs market expansion

Strategic Process
Contolling
Vs.
 adapting


Strategic Profile
Defender
Vs.
 Prospector
