Differences in Organizational Strategies in Asia, Europe, and the USA

Topics: Strategic management, Management, Corporation Pages: 7 (2747 words) Published: October 15, 2008
Organizational strategy can be defined by examining: the analysis of the strategy, the choice of strategies and the realization of strategies. The analysis of the strategy: the process begins with the definition of the mission and the long-term objectives of the company. Any choice has to predict its future evolution and continuously follow the undergoing of the process. The analysis of the strategy points out: what is or what should be the strategic position of the company towards the competing companies and the environment; decides the actions for achieving company’s goals and the relative times; chooses between the many options that present themselves; which competences and resources does the company have and how they can help to get a wide range of opportunities. After the analysis of the strategy, different options that could lead to the realization of the company’s objective have to be valued and selected. In order to be successful, the strategy has to be, first of all, based upon the capacities and the competences of the company and it has to carefully choose in which position to collocate the company towards its rivals. All this means to build and defend the competitive advantages of the company. To generate, value and select the best strategic solutions is the no.1. management responsibility of any company. But without the strategy the management would not have the principles capable of leading the organization, it would not have a plan for making competitive advantages and for responding at the expectations of the market. Each company has a unique culture and its own personality. Each company has its own folklore that reflects the company values, and its own ways of dealing with problems, making decisions, doing things. The definition of culture in the corporate context would be: a system of values, norms and ideas shared by a group of people, that when taken together provide a design for thinking, living and potential acting. So corporate culture reflects the values of the founders, illustrates the vision and the mission of the firm, establishes the main operating orientation of the company and provides the basis for a shared identity for company members. Its importance lies in the fact that not only does culture constitute a kind of inter-personal glue that holds an organization together, but also it can function as an informal control mechanism that may help coordinate employee efforts. Drawing from an international management sphere, a human resources manager from a global pharmaceutical company discovered that a major challenge in China, Korea and Taiwan was to persuade managers there to accept promotions. Among other things, their values were such that they did not wish to compete with their peers for career rewards and did not want to assume cross-national responsibilities. This example shows that national cultural values can affect company cultural values and policies. There are also several examples of companies who have a strong sense of shared values and this seems to lead them to better performance. In other words, there appear to be links between culture, strategy, and performance in the marketplace. A key element in successful strategies to woo the global consumer is the understanding of cultural diversity and the ability to perceive the products, particularly consumer products, in a multicultural context. Three elements seem to contribute to the creation of a strong corporate culture: 1.a leader who establishes strong values and practices, 2.company commitment to operating according to established principles, and 3.concern for the well-being of employees, customers and shareholders. This leads us to the question of Corporate Social Responsibility. The European Commission defines CSR as “a concept whereby companies integrate...
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