Corporate culture
Norms and values of a business
Handy’s company culture
- 4 main company cultures
- Power Culture
- Role Culture
- Task Culture
- Person Culture
Civil service
Provides service directly to people all over the country, such as…
- Paying benefits and pension
- Issuing driving licenses
Handy’s task culture
- Represented by a matrix or grid diagram
- involves teamwork on a project with a team of experts working together
Handy’s power culture
- Represented by a spider on a web - very strong owner at the heart of the business
- competitive attitude amongst employees to gain power
Handy’s role culture
- Decisions made through rules and procedures
- power to make decision comes from the title
Handy’s person culture
- grouping of similar skilled people to share expertise and knowledge
- work on client by client basis
- e.g. lawyers
Reasons for changing corporate culture
- to fit in with another company that they are trying to merge with
- rapid expansion also signals need for company change
Difficulties of strategic decision-making
- Changing external environmental factors
- hard to audit internal strengths and how they can take advantage of opportunities
- Communication problems
Difficulties of strategic implementation
- effectiveness of management communication of the strategy
- resistance by employees
- unexpected changes in the external environment
Planned strategy
- list of steps explaining how the business will achieve it’s corporate structure
- Alison known as strategic planning
Emergent strategy
- the competitive actions and reactions that a business takes to help the business continue to achieve it’s objectives in a changing environment
Reasons for strategic drift
- happens when the business fails to change strategy to respond to changes in the environment
Divorce between ownership and control
- in this situation owners of the business don’t know as much about business as directors
- managers may have different objectives to those of the business
Corporate governance
- System of rules, practices and processes by which a company is controlled
- Way in which the company is governed
- ensures those that run the business work in interests of all shareholders
Strategic planning
Set of actions that managers take to increase their companies performance relative to that of their rivals
Value of strategic planning
- Cost savings
- Better use of resources
- Focus and vision for staff
Contingency planning
Course of action designed to help a business respond effectively to a significant future event or situation that may not happen
Value of contingency planning
- Reassures shareholders
- post event recovery will be quicker
- Faster reactions in the event of a cross
Internal chanage
- Any factors that are within the businesses control and which have caused a change in the business
External change
- Pressure on businesses from outside the company
- PESTLE factors
Incremental change
Small changes that aim to modify, improve, adjust and refine exiting practices and processes
Disruptive change
Irreversible changes that may alter the businesses future e.g. the introduction of smartphones
Lewin’s force field analysis
- Has two sides - Driving forces and Restraining forces
- Change will happen if the driving forces are greater than the obstacles
