1. Leadership- One of the main factors to be considered while developing a strategy is leadership, which is the ability to motivate people to behave in a manner that helps achieve goals (Ansoff, 2007). A person that possesses leadership will have a vision that is not only believable as it is created by understanding the capabilities of the organisation, but is also based on its best interests. This vision provided by a leader is a vital ingredient of an organisations strategy as it creates a purpose for developing and implementing the same. As this vision is based on the strengths of the organisation, it helps identify a timeframe within which it can be achieved. Thus, this vision becomes a milestone that organisations are looking to achieve
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Culture- The culture of an organisation is described as the way things are done in an organisation and is a combination of the assumptions regarding expected behaviour and the actual behaviour (Jeffs, 2008). An organisations culture influences the way they view factors, such as their environment, whilst developing their strategy. When analysing its external environment, because of its cultural assumptions, an organisation focusses only on those factors which it considers to be relevant, and not the entire environment (macro or industry).These assumptions pertaining to their environment influence the organisations perception of the stability of its environment. The culture of an organisation also determines the sources from where it gathers data pertaining to its environment (e.g. quantitative information and qualitative information). Finally, the manner in which this information is interpreted, and plays a vital role in determining the type of strategy an organisation chooses (e.g. low cost or differentiation), is once again determined by the organisations culture (Hannagan, 2002). Organisations are comprised of employees that belong to various cultural backgrounds. The expectations, behaviours, and thought process of these employees differ and can dictate the way they in which they perceive situations e.g. employees that belong to a collectivist culture view their leader as someone who believes in team work and unity, whereas employees from an individualistic culture expect their leader to be someone that has a mind of their own and are capable of working independently (Wendt, Euwema, & Emmerik, 2009). As mentioned earlier, organisational culture is an assumption pertaining to behaviour. This implies not only to the employees but also to the leaders within the organisation as it determines the style of leadership they incorporate (e.g. high power culture in which leaders exercise complete control and dominance and are responsible for decision making).
Culture- The culture of an organisation is described as the way things are done in an organisation and is a combination of the assumptions regarding expected behaviour and the actual behaviour (Jeffs, 2008). An organisations culture influences the way they view factors, such as their environment, whilst developing their strategy. When analysing its external environment, because of its cultural assumptions, an organisation focusses only on those factors which it considers to be relevant, and not the entire environment (macro or industry).These assumptions pertaining to their environment influence the organisations perception of the stability of its environment. The culture of an organisation also determines the sources from where it gathers data pertaining to its environment (e.g. quantitative information and qualitative information). Finally, the manner in which this information is interpreted, and plays a vital role in determining the type of strategy an organisation chooses (e.g. low cost or differentiation), is once again determined by the organisations culture (Hannagan, 2002). Organisations are comprised of employees that belong to various cultural backgrounds. The expectations, behaviours, and thought process of these employees differ and can dictate the way they in which they perceive situations e.g. employees that belong to a collectivist culture view their leader as someone who believes in team work and unity, whereas employees from an individualistic culture expect their leader to be someone that has a mind of their own and are capable of working independently (Wendt, Euwema, & Emmerik, 2009). As mentioned earlier, organisational culture is an assumption pertaining to behaviour. This implies not only to the employees but also to the leaders within the organisation as it determines the style of leadership they incorporate (e.g. high power culture in which leaders exercise complete control and dominance and are responsible for decision making).