Chapter 5 Managing Across Cultures Schneider & Barsoux RBC p 428 Culture and Strategy Chapter 5 Managing Across Cultures Schneider & Barsoux RBC p 428

Similarities Culture as solutions to problems of External adaptation and Internal integration Strategy in devising and implementing organizations need to assess their External environments as well as their Internal capabilities (SWOT)

Strategic Planning SWOT Boston Consulting Group (BCG matrices) Ansoff Porters Five Forces Competitive Advantage

Two approaches to Strategy The rational / economic view ”Assumes that the environment and the organization are objective realities that are similarly perceived and analyzed by intelligent managers” p 429 A dynamic view ”Strategy is a dynamic process which is energized through feelings. It is not a bundle of facts, figures assembled in order by the logical mind” p 430

Analysis of national competitiveness (Porter diamond) Chance Firm strategy, structure, and rivalry Factor conditions Demand conditions Related and supporting industries Govern- ment

Porter’s five forces model New entrants Industry level Market Competitors Intensity of rivalry Market level Suppliers Buyers Substitutes

Value chain analysis Customer Perceived value/ price A price B Relative cost Firm A Firm B R&D Production Marketing Sales & services R&D Production Marketing Sales & services

The dynamic view Japaneese view: Mintzbergs view: ”Reality cannot be boxed into two-by-two matrices and that thruth cannot be determined by simplistic theories of cause and effect” p 431 Mintzbergs view: ”Rather than planned, strategy is considered as emergent, or as evolutionary” p 431

Ressource-based view Developing organizational resources and capabilities Building core competencies and corporate character Provides the capabilities and flexibility to respond to environmental events Assumptions based on what the company is more than what the company does

Summing up: Strategic view: Cultural model: Versus Rational economic view SWOT, Porter, Boston etc. Cultural model: Controlling Model (next slide) Versus The dynamic view Ressource-based view Adapting Model (next slide)

Cultural models of Strategy Controlling Model Centralized Formalized Monochronic Adapting model Decentralized Informal Polychronic P 433-435

Cultural Determinants of Strategy External adaptation i.e. Human Activity Doing versus being Achievement vs. ascription Internal integration i.e. Nature of Relationships Individual vs collective Task vs social See figure 5.2 p 437

Strategic Content conservative vs innovative cost-cutting vs market expansion Strategic Profile Defender Vs. Prospector Strategic Process Contolling Vs. adapting