Organizational culture is based upon the behavior of people working in an organi

Question

Organizational culture is based upon the behavior of people working in an organization. It is a system where all values, beliefs are shared among the employees in an organization. Different people from different backgrounds and cultures come together to attain a common goal in an organization. They work mutually and coordinate so well with each sharing thoughts, opinions, ideas, etc. This system of working together of different people give rise to an organizational culture. A good organizational environment is a result of good organizational culture. Organizational culture can be adapted in any organization and at every level of management.

Organizational culture is also referred to as corporate culture. It shows the style of work in an organization, how a company runs a business, how it treats its employees, clients, customers and in wider how well it behaves within a society or a community, it all depends upon organizational culture.

Organizational culture can affect the growth of an organization as it maintains a level of performance, as a result it affects the productivity of the organization. It comprises of business ethics, code of conduct, do's and dont's, norms and procedures. Ethics simply show you what is good and what is bad and what is right and what is wrong.

Organizational culture helps in making business strategies. It involves the methods used to implement and evaluate the strategy. In case, unethical organizational culture is adapted in a company, it affects the growth and eventually the survival of the organization.

Adapting good organizational culture stimulates good strategic execution. Walmart has been the world's biggest retailer in the retail industry. Walmart has always been a titan worldwide. However, its dominance is not of much level in America. Americans are moving to online shopping. Online sales in America are rising giving a 30% hike. On the contrary, Americans account for three-quarters of Walmart's sales. In 2000, Walmart stores introduced their official website Walmart.com. It emerged as successful in internet and online industry too.

However, Walmart's strategy to offer its products at such lowest prices in comparison to its competitors has affected the product quality somewhere. Same items are available on other websites with some few more dollars offering premium quality. Now, the customer not just want low price but desires for premium quality products. Customer demands has moved towards such products which offer high quality in their products range.

Explanation / Answer

Edgard Scheib divided organizational culture into three levels: artifacts, espoused values and basic assumptions and values and posited that attempting to implement a strategy without a full understanding of the culture in which that strategy will reside often results in the failure of a good strategy.

As you reflect on Walmarts organizations culture, what artifacts, espoused values and/or basic assumptions and values do you believe could cause the strategy to be implemented (diversification) to fail? Explain clearly what the cultural component(s) is/are and why/how not acknowledging and understanding that component(s) could have a negative effect on the implementation of the diversification. Offer supporting rationale for your explanation and be sure to reference your statements using proper APA formatting.

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