Corporate Culture and Strategy Execution

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1. Examine and discuss the corporate culture of Target Corporation. Evaluate its effectiveness in promoting strategy execution.

Every organization has its own unique culture or value set. Most organizations don't consciously try to create a certain culture. The culture of the organization is typically created unconsciously, based on the values of the top management or the founders of an organization. (1) Target's core values at the top are reflected in its corporate culture: a commitment to diversity, social responsibility; expect more for less philosophy, and protecting the environment. The value of diversity especially plays into promoting strategy execution through promoting individuality; a culture of acceptance and teamwork emerged at Target. As a team, strategy execution becomes more proficient.

The importance of corporate culture is growing as the result of several recent developments. Companies are encouraging employees to be more responsible and act and think like owners. In exchange for more flexible work schedules, employees are expected to always be "on-call." With the demise of more traditional communities (e.g. neighborhoods, etc.), companies are filling employees' need to belong to a community. At the same time companies, including Target, are encouraging teamwork and the formation of teams. (1)

Culture plays a vital role in promoting strategy execution. Shared beliefs and values at Target lead to more efficient decision making since there are fewer disagreements about which premises should prevail. The leaders of Target seemed to have learned to harness the positive aspects of a culture in promoting strategy execution and change efforts. According to Khan (n.d), culture is much like the water in an aquarium. While it is largely invisible, its chemistry and life-supporting qualities profoundly affect its inhabitants. An organization requiring transformation is like an aquarium polluted by too many algae, and requires restoration. Leaders effecting an organizational transformation must understand the vital role that corporate culture plays in any change efforts through promoting strategy execution. (1) Target's corporate culture seems to be effective in promoting strategy execution through its culture of commitment to diversity and social responsibility, as seen in the following excerpt from the Target website;

"Target has a strong commitment to diversity and we work hard to make diversity an integral part of our culture-from the way we relate to each other as team members, to the way we serve our guests and communities, to the way we deliver for our shareholders by pursuing the right business opportunities. In fact, we believe so strongly in ...