TITLE:
The Cultural School of Strategic Formulation (Strategy Formulation Based on Social Interactions, Beliefs and Traditions)
AUTHORS:
Christian Narh Opata, Alfred Sarbah, Angela Nusenu, Stephen Tetteh
KEYWORDS:
Competitive Advantage, Cultural School, Culture, Strategy Formulation, Strategy
JOURNAL NAME:
Open Journal of Business and Management,
Vol.5 No.2,
April
30,
2017
ABSTRACT: The cultural school of strategy formulation is one of the 10 schools of thought identified by Henry Mintzberg et al. in their book Strategy Safari. The cultural school, having its roots in anthropology, focuses on social interaction based on beliefs and traditions shared by members of an enterprise. The foundation of the Cultural School is built on the idea that if you “hold power up to a mirror the reverse image you see is culture”. The main points of this model as outline in literature are: decision-making style, resistance to strategic change, overcoming the resistance to strategic change, dominant values, and culture clash. Although the model is limited in its conceptual vagueness and its ability to discourage necessary change, however, the culture school assumes a rich historical approach and introduces ideas of collectivism. Culture provides an effective and durable barrier to imitation and thereby enables organizations to enjoy competitive advantages. Toyota infused their company with culture and it is a foundational part of their business model (The Toyota Way).
