Corporate Culture and LeadershipPertemuan 25

Matakuliah : J0114/Manajemen PemasaranTahun : 2008

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Learning Outcome

•Students are able to disentangle components required to develop corporate culture for organizations applying experiential marketing

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Material Outline:

• Culture and experiential marketing• Building a strategy-supportive corporate culture• Strong versus weak culture• Adaptive cultures• Creating a strong fit between strategy and culture

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Culture and Experiential Marketing

• Experiential marketing requires support from higher management

• It is a comprehensive responsibility to conduct superior customer experience

• Employees need morally support from high management

• Corporate culture deals with organization’s belief and philosophy about how its affaires ought to be conducted.

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Building A Strategy-Supportive Corporate Culture

• A Culture grounded in values, practices, and behavioral norms that match what is needed for good strategy execution helps energize people

• A tight culture-strategy alignment acts in two ways to channel behavior and influence employees to do their jobs in a strategy-supportive culture

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Building A Strategy-Supportive Corporate Culture

– A work environment where the culture matches the conditions for good strategy execution provides a system of informal rules and peer pressure

– A strong strategy-supportive culture nurtures and motivates people to do their jobs in ways conducive to effective strategy execution.

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Strong versus Weak Culture

• Strong culture:– Companies conduct the business according to a clear and

explicit set of principles and values.– Management needs to devote considerable time to

communicate these principles and values to organization members and explaining how they relate to its business environment.

– Two factors contribute to the development of strong cultures:• A founder or strong leader who establishes values, principles and

practices that are consistent and sensible in light of customer needs, competitive conditions and strategic requirements

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Strong versus Weak Culture

• A sincere, long-standing company commitment to operating the business according to these established traditions.

• Weak Cultures:– In the sense that many subcultures exist, few values and

behavioral norms are widely shared– Little cohesion and glue across organization units– Top executives do not repeatedly espouse any business

philosophy or exhibit commitment to particular values

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Strong versus Weak Cultures

– Organization members typically have no deeply felt sense of corporate identity.

– Lack of a definable corporate character tends to result in many employees viewing company as a place to work

– This condition results in unhealthy culture:• A politicized internal environment that allows influential

managers to operate autonomous fiefdoms and resist needed change

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Adaptive Culture

• Members share a feeling of confidence that the organization can deal with whatever threats and opportunities come down.

• There is a spirit of doing what’s necessary to ensure long-term organizational success provided core values and business principles are upheld in the process.

• Top management proceeds in a manner that demonstrates genuine care for the wll being of all key constituencies

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Creating a strong fit between strategy and culture

– Changing problem culture:• Changing a company’s culture to align it with strategy• Analyze firs which facets of the present culture are

strategy-supportive and which are not.

– Symbolic culture-changing actions:• Managerial actions to tighten the culture-strategy fit need

to be both symbolic and substantive.• The most important symbolic actions are those that top

executives take to serve as role models:– Leading cost reduction efforts – Emphasizing the importance of responding to customer’s

needs

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Creating a strong fit between strategy and culture

– Substantive culture-changing actions:• Implanting the needed culture-building values and behavior

depends on a sincere, sustained commitment by the chief executive

• Strategy implementer must enlist the support of first line supervisors and employee opinion leaders

• The bigger the organization and the greater the cultural shift needed to produce a culture strategy fit, the longer it takes.

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Conclusions:

• Experiential marketing requires support from higher management

• A Culture grounded in values, practices, and behavioral norms that match what is needed for good strategy execution helps energize people

• Strong culture company is companies conduct the business according to a clear and explicit set of principles and values.