INTRODUCTION
Corporate culture has a significant influence on business strategy. It establishes the parameters
for the creation and application of a strategy as well as its potential for success. Therefore, in
order to develop a winning strategy for their company, business leaders must comprehend how
their organizational culture affects their business strategy.
Strategic management and corporate culture are closely related. The organizational culture
establishes the values, beliefs, and principles that guide management and strategic decisionmaking within a company. Culture aids in goal accomplishment by encapsulating the
organization's common values and beliefs, while strategy establishes the organization's
direction and focus, elaborates plans, and creates a formal environment for employees to
understand the organization's goals. The organization's vision must first become ingrained in
the culture. A strategy can only be put into action if the corporate culture supports it.
An organization gains a competitive advantage in the global industry when organizational
culture and strategic management are in sync. The board's responsibility is to determine the
organization's risk appetite and risk tolerance, and the strategic plan must remain consistent
with the culture. After the board approves a culture, management is in charge of implementing
it, keeping an eye on it, and coordinating it with the company's business plan. The management
also has to guarantee staff training.
What is organisational culture?
The common values, attitudes, behaviors, and beliefs that underpin an organization's
interactions and teamwork are known as its organizational culture. It affects how workers feel,
think, and behave, which in turn affects how they communicate with the company and its
stakeholders. As a result, the culture of an organization influences how various initiatives are
managed, how resources are distributed, and how business decisions are made.
It also affects how goals are made, resources are distributed, and strategic objectives are set.
Creativity, innovation, and taking calculated risks are all fostered by a strong corporate culture
and are necessary elements of a successful business plan. Additionally, it encourages candid
dialogue and teamwork to guarantee that the organization's plan is carefully considered and
executed.
https://www.synergita.com/blog/how-does-organizational-culture-impact-business-strategy/
conclusion?
The success of any business strategy is dependent upon the presence of an organizational
culture. To ensure long-term success, organizations need to build a strong culture that aligns
with their business strategies. Organizations can cultivate a culture that promotes cooperation,
communication, and teamwork by encouraging employees to be creative and innovative. These
are all essential components of winning business plans that raise the likelihood of success.
Figure 1:The connection of strategy and culture