Question

In: Operations Management

How can a strong, positive culture enhance a firm’s competitive advantage? How can a week negative...

How can a strong, positive culture enhance a firm’s competitive advantage? How can a week negative culture rode competitive advantages? Explain and provide examples.

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Solutions

Expert Solution

A strong positive culture motivates the employees to work with a great coordination, offers a supportive work environment and provides norms for positive behavior of employees. Because of this the companies get sustainable competitive advantage specially in human and social capital. Culture and reputation are proportional to each other when the employees work with full enthusiasm then the company gets advantage over the rival firms. Because employees are the biggest asset for any organization and biggest contributor to the profit. Maintaining a strong positive culture is very difficult and if it is maintained by any company then the competitors will find it very difficult to duplicate. It is a characteristic of a company which helps them grow in long run and make them more conversant. It is not just a trend which gets fade away with the time. That is why a strong positive culture helps a company to get competitive advantage.

At the same time week and negative culture rode competitive advantage. Companies having weak and negative culture do not focus on the work that is why the quality of their output is not up to the mark. Discipline is very necessary in culture and poor and negative culture does not show discipline that is why there are various issues like time management issue and because of this it is very difficult for them to get their commitment on time. Further there is lack of motivation to the employees and that is why the productivity of the employees gets reduced resulting the overall productivity of company gets reduced. There is a lack of maturity and team spirit among the members of team that creates problems for the company in the long run. As there is lack of coordination among the employees then common personal interest can be seen.

Because of these attributes the negative culture road competitive advantage.


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