Course_session_6.pdf - Strategic Management(course S3STR401 Fabien Quintard Session 6 6.1 Organizational culture path dependency 6.2 Conclusion of

Course_session_6.pdf - Strategic Management(course S3STR401...

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Strategic Management (course S3STR401) Fabien Quintard Session 6 : 6.1. Organizational culture & path dependency 6.2. Conclusion of section 1 : SWOT
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Session 6 : Strategic position / culture
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To achieve a competitive advantage, companies need to possess capabilities difficult to imitate : unique resources + core individual and collective competencies Capabilities are embedded in a company’s culture (basic assumptions, values, collective and individual beliefs) Capabilities are influenced by a company’s historical developments Capabilities develop over time, depend on collective behaviors, are dynamic… and can also become rigidities Why are history and culture important?
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Organizational culture is often `taken for granted’, not managed or discarded in the analyses being made because it is difficult to observe, objectivize and control. But : Organizational culture assists and constrains the strategic development of organisations. History and path-dependency may play a significant part in the success or failure of an organisation. Why are history and culture important?
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Definition : “the basic assumptions and beliefs that are shared by members of an organization, that operate unconsciously and define [...] an organization’s view of itself and its environment” (Edgar Schein) Organizational culture includes taken for granted ways of doing things, the routines : A routine is an usual or fixed way of executing tasks on a regular basis. This regular sequence of actions or behaviors may be prescribed or just the result of culture, habits or history. It can be conscious or unconscious Ex : behaviors in addressing or welcoming clients, conducting a sales process, managing an internal meeting… … but also, attitudes to work, authority, equality Organizational Culture
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Organizational culture is a driver of strategy: Staff usually cohere around the founding principles and values of an organisation Weaknesses and competitive advantages may be a direct result of the organizational culture more than the result of rules or processes (e.g. day-to-day interactions with customers) Managers faced with a changing business environment are more likely to react using the unwritten « rules » and « values » of the organizational culture The stronger the organizational culture, the more reluctant to change -> organizations can become prisoners of their culture Organizational culture’s influence on Strategy « Here, thing are very different. » Most frequent sentence heard by consultants…
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Culture generates superior performance through 3 channels it simplifies information processing
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  • Fall '18
  • Bardon Thibault

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