Successful businesses link strategy, organizational culture, and the use of IT as a source of competitive advantage.

Topics: Strategic management, Strategic planning, Management Pages: 2 (642 words) Published: April 11, 2014
Before understanding the link between the business strategy organization culture and use of IT, it is very necessary to understand what each of the terms mean. Business strategy is nothing but a set of decisions that determine the company’s objective or goals and the environment in which the strategy would be implemented. Organizational culture being the set of deep-beliefs about how the work should be organized with the different ways in which authority should be exercised and the ways in which the people should be rewarded or restrained. The use of Information Technology is not just the use of IT equipment but also the way they make use of the equipment i.e. Information Systems that they possess. The performance of the organization has been given a lot of importance unlike money being the only priority as earlier and, the business strategy, organizational culture and the use of IT, all the three contribute to it. All the three are inter-related to each other as follows. The attitude of an organization is going to have a strong impact of the strategic goals. If the culture suits the strategy, then it will reinforce the strategic decision. The organizational culture highly influences the acceptance of IT. It can either be repulsive towards accepting the technology or it can readily accept the technology. The use of IT and business strategy can be linked either by the consideration of IT in the implementation of the strategy or consideration of technology during the process of formulation of the strategy or else IT could also be used in order to bring about the formulation of the business strategy. Thus all the three factors i.e. business strategy, organizational culture and use of IT being inter-related, the relationships them are examined in order to see how the overall organizational effectiveness and competitiveness are affected. The emotional beliefs, views and the standards of behavior of an organization collectively contribute to its culture and the...
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