Matakuliah : J0114/Manajemen Pemasaran
Tahun
: 2008
Corporate Culture and Leadership
Pertemuan 25
Learning Outcome
•Students are able to disentangle components
required to develop corporate culture for
organizations applying experiential marketing
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Material Outline:
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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 strategysupportive 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.
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