Week 95 (8.2.09)

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Strategy development as the outcome of Cultural and Political processes -
Exploring Corporate Strategy by Gerry Johnson & Kevan Scholes

• Organisational culture is the 'deeper level of basic assumptions and beliefs that are shared by members of an organisation, that operate unconsciously and define in a basic taken-for-granted fashion on organisation's view of itself and its environment.
• Such taken-for-granted assumptions are likely to exist at the organisational level - organisational paradigm - can be especially important as an influence on the development of organisational strategy.
• The relationship between the paradigm and organisational strategy needs to be made clear.
• Environmental forces and organisational capabilities do not in themselves create organisational strategy; people create strategy.
• The forces at work in the environment, and the organisation's capabilities in coping with these, are made sense of in terms of the individual experience of managers and the collective assumptions within the paradigm.
• However, environmental forces and organisational capabilities, while having indirect influence on strategy formulation, nonetheless impact on organisational performance more directly.

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As consumer buying behaviour and buying power changes to become more centralised, it is good to recognise the impact of such changes. Champix, a drug for smoking cessation, should be easily made available at all pharmacies in Malaysia. The environmental forces permit Champix to be marketed and continue to gain its market share because it is Category C drug; which means can be dispensed without prescription.