Question

Using the concepts in Chapter 12 of textbook: Crafting and Executing Strategy The Quest for Competitive Advantage 21e by Thompson/Peteraf/Gamble/Strickland, describe the corporate culture within one famous organization (Apple, Unilever, Uber) that you know well. What effects do the nature and condition of your organizational culture have on your organization's strategy? What would you like to see happen that would improve its contribution to the organization's competitive advantage, and what mechanisms or measures would you recommend to your organization's leadership for promoting such changes?

Answer 1

Apple Inc.’s organizational culture is a key factor in the continuing success of the business. A company’s organizational or corporate culture establishes and maintains the business philosophy, values, beliefs, and related behaviors among employees. This business analysis case shows that Apple has a corporate culture that enables human resources to support various strategic objectives. For example, the company’s cultural traits are aligned with the drive for innovation, which is a major factor that determines business competitiveness in the information technology, online services, and consumer electronics industries. Based on the organizational culture, this business condition facilitates the fulfillment of Apple Inc.’s corporate mission and vision statements. Through the leadership of Steve Jobs and, now, through the leadership of Tim Cook, the company continues to enhance its cultural characteristics to maximize human resource support for business relevance in various markets around the world. Apple shapes its corporate culture and uses it as a tool for strategic management and success.

The key to a successful organization is to have a culture based on a strongly held and widely shared set of beliefs that are supported by strategy and structure. When an organization has a strong culture, three things happen: Employees know how top management wants them to respond to any situation, employees believe that the expected response is the proper one, and employees know that they will be rewarded for demonstrating the organization's values.

HR has a vital role in perpetuating a strong culture, starting with recruiting and selecting applicants who will share the organization's beliefs and thrive in that culture. HR also develops orientation, training and performance management programs that outline and reinforce the organization's core values and ensures that appropriate rewards and recognition go to employees who truly embody the values.

An organization's culture defines the proper way to behave within the organization. This culture consists of shared beliefs and values established by leaders and then communicated and reinforced through various methods, ultimately shaping employee perceptions, behaviors and understanding. Organizational culture sets the context for everything an enterprise does. Because industries and situations vary significantly, there is not a one-size-fits-all culture template that meets the needs of all organizations.

A strong culture is a common denominator among the most successful companies. All have consensus at the top regarding cultural priorities, and those values focus not on individuals but on the organization and its goals. Leaders in successful companies live their cultures every day and go out of their way to communicate their cultural identities to employees as well as prospective new hires. They are clear about their values and how those values define their organizations and determine how the organizations run. Mergers and acquisitions are fraught with culture issues. Even organizational cultures that have worked well may develop into a dysfunctional culture after a merger. Research has shown that two out of three mergers fail because of cultural problems. Blending and redefining the cultures, and reconciling the differences between them, build a common platform for the future. In recent years, the fast pace of mergers and acquisitions has changed the way businesses now meld. The focus in mergers has shifted away from blending cultures and has moved toward meeting specific business objectives. Some experts believe that if the right business plan and agenda are in place during a merger, a strong corporate culture will develop naturally.

Competition is good. In fact, a healthy rivalry challenges you to work smarter with the resources you have. To do so, leverage your team’s unique talents and build a business competitors wouldn’t dare challenge. Even if other companies in your industry attempt to undercut your prices and steal your customers, think positively about ways they can help your startup grow.

1. Avoiding complacency.

Sole suppliers in an industry quickly stop innovating simply because they no longer have any need to. Sadly, they unknowingly commit to maintaining the status quo. Competitors have a habit of keeping you on your toes.

2. Building brand clout.

Make it your mission to stand out as the leading authority in your domain of expertise. Your audience will admire your thought leadership and naturally choose you over other vendors.

3. Developing self-awareness.

Rivals force you to assess your strengths and weaknesses. Use your superpowers to create a more unique value proposition to customers. Understand your shortcomings and find ways to overcome them.

1. Make Use of Human Resources

The human resources department of any company plays a key role in the organizational effectiveness of a company. According to Forbes, human resource personnel provide assistance with organizational effectiveness by helping with the design of new business strategies. Since the human resources professionals in a company play an essential role in hiring new employees, they also impact the company goals.

Get human resource professionals involved in the design and implementation of changes within the company to improve the organization. They offer unique perspectives that leaders may overlook and play an active role in identifying the right professionals for new positions within the company.

2. Focus on Education and Growth

Organizational leadership requires active measures to work with different groups and individuals. A leader must understand the strengths and weaknesses of different professionals before making a plan of action to improve the effectiveness of the organization.

Before making any changes to the company, consider the education of professionals in different areas of the business. Find out about their abilities, skills and strengths. Identify their weaknesses or the areas where specific professionals face difficulties when working as a team.

3. Keep the Customers in Mind

Organizational effectiveness only works well when evaluating the needs and interests of the customers. The National Academies Press states that quality management is just as important as the overall efficiency of the company. If a professional does not provide a quality product or service, then customers look for alternatives for their needs and goals.

Ask customers to fill in surveys or answer questions about the services provided. Find out what the customers want from the company or the services they find the most valuable for their needs and goals. For businesses with direct interaction with a customer, provide anonymous options for customers to fill out complaints or provide feedback.