Lec 5 Organisational Culture
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Transcript of Lec 5 Organisational Culture
The Strategic Marketing Audit: Culture and Operations
Internal Analysis
Culture and Leadership
Operational analysis
Analysis of specific internal marketing activites and Portfolio Models
What guides the organisation?
Strategy
LeadershipCulture
Employees
‘Strategic fit’
Values
Style
Business EthicsCorporate Governance
Organisational purposes
Stakeholders Cultural context
Who should the organisation serve?How should purposes bedetermined?
Which purposes should be prioritised?
Why?
MissionObjectives
Which purposes are prioritised?Why?
Whom does the organisation serve?
Influences on organisational purposes
‘Organisational structure follows strategy’
Organisation structures are skeletons that define the general shape of: activities information flows responsibilities & accountabilities
They may facilitate or constrain the performance of those activities
Types of organisation structure
Simple No formal structure. E.g. small company
Functional Activities organised by function. E.g. Finance, marketing, operations, distribution and HR
Product (or divisional)
Activities organised by product, category or, in a much larger company, division or SBU. E.g. domestic and business services groups
Matrix A structure combining functional and product structures, often with a geographic dimension
Hybrid A structure combining any of the other forms
Virtual An organisation with little formal structure that works through loose mechanisms such as partnership, collaboration and networking
What is organisational culture?
‘The deeper level of basic assumptions and beliefs that are shared by members of an
organisation, that operate unconsciously ad define in a basic taken-for-granted fashion an
organisation’s view of itself and its environment’
E. Schein (quoted in Johnson & Scholes)
Representing assumptions: The ‘cultural web’
Symbols
Control systems
Organisat-ional
structures
Stories
Rituals & routines
Power structure
s
Theparadig
m
Source:Johnson & Scholes
LEADERS
L - look and listen with your eyes, mind and soul
E - empowerment of yourself and groupA - awarenessD - doing, being action orientedE - expansion of consciousnessR - responsibilityS - synchronicity, the ability to create your
own ‘luck’Selection based on accent, looks and how
‘sexy’ they are, that’s why dysfunctional (Chopra)
Leadership Qualities
Clear Vision – Core competences, market opportunities
Strong Communications – Convey direction of the company to stakeholders
Decisive follow up – Targets and goalsStamina – 80 hour weeks, staff, customers and
stakeholdersEthical Standards – no supportNetworking skills - relationshipsSource: Hill & Jones (2002)
INTERNAL POSITIONING
Assumption - creating competitive advantage- need for investment in physical and human
resources- need to manage interface between internal
environment, technology and people- opportunity through adaptability; lower costs;
product quality; enhanced service.Adopting “inside out “approach- what
capabilities/Resources/Core Competencies Sustainability
Operational Analysis
All processes in an organisation including raw material sourcing, purchasing, production and distribution logistics, service delivery:
the contribution of the production function to the organisations ability to add value to its goods and services.
Resource-based viewof the organisation
The organisation is an unique bundle of resources which have certain capabilities
Its competitive performance is dependent on these historically developed resource endowments (its legacy), including capabilities & skills organisational assets organisational processes information & knowledge
Successful strategy depends on understanding & applying these capabilities
Identifying Value/Potential Value
The value chain - an attempt to identify key activities within the organisation, their relationships and how the creation of core competence's (skills/knowledge) deliver synergistic benefits.
The flow of products and services within the organisation - the chain or links between primary and secondary activities.
Add it as cheaply as possible and capture the value
Firm infrastructureHuman resource management
Technology developmentProcurement
Inbound logistics
OperationOutbound logistics
Marketing & sales
Service
margin
Primary Activities
Support Activities
The Value Chain
Adopted from Porter M. 1985
R&D Production
Outputs
Axioms of Value
Customers determine the value of a product ; Importance of research
Expectations are formed by considering alternatives; importance of competitive advantage
Expectations vary over time; importance of research and customer orientation
An integrated approach is required in the delivery of value; importance of managing the organisations value chain
Management Commitment
Ref: “Consumer Perception of perceived value and satisfaction in marketing” Vranesevic, T.,Vignali,C.,Vignali,D.(2004)
Journal of food product marketing, 10(3) pp. 61 -87
Work shop Activity
Read Journal article “Culture in Defining Consumer Satisfaction in Marketing
Highlight the Key issues related to the creation of culture
Workshop Activity 1: Strategic Analysis
Continue working on strategic analysis for Lidl