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A strategy is meant to provide clear decision making which relies on plans and a number of choices by people. Groysberg notes that leadership comes hand in hand with developing a strategy and most leaders understand the basic principles however culture can consist of a range of unspoken behaviours, social patterns and mindsets. He describes how leadership and culture are linked and how the development of culture and the values of the businesses are imprinted early on by its leaders (Groysberg et al., 2018). However, due to a lack of focus on ensuring culture is managed sufficiently by leadership it can become a major bottleneck in supporting a strategy which doesnt understand the internal power and dynamics within the business.
Culture is defined as the social order with a company and if created correctly can greatly support a business to achieve its goals through the idea of a shared purpose allowing a company to thrive. Peter Drucker coined the term Culture eats strategy for breakfast where he outlines how disconnecting the two puts any business at risk. Rick describes how a number of studies how found a correlation between a healthy and productive culture and a businesses success and how aligned strategy, capabilities and culture are necessary for real organisational transformation (Rick, 2020).
A number of examples can be seen such as Starbucks which focusses on developing its culture and atmosphere over its coffee or IBM who has cultivated value through a worker collective capacity rather than finance, strategy and marketing. Craig finds that innovation is created when strategy and culture align where leadership and its employees understand the vision and its strategies are clear. By supporting employees and customers to assist in developing the purpose of the business and identifying the company values it will assist in aligning culture and strategy together (Craig, 2018).
Do you have an example of a company which survived a tough period in its history because of its company culture?
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