Culture and power:
A) Do not affect long-term competitive advantage
B) Affect the choice, incidence and application of the modes of strategy creation
C) Do not influence how relationships with customers and suppliers are maintained
D) Affect key performance indicators

Question

Quizplus · Accepted Answer

Culture and power play a significant role in shaping the company's strategy and its effectiveness in the long run. These factors influence the choice of strategy creation, its application, and incidence. For instance, a hierarchical culture may prefer a top-down approach to strategy formulation, while a collaborative culture may prefer a joint effort. Similarly, power dynamics in a company may affect the way a strategy is executed, even if it is well-formulated. Therefore, B is the correct answer. The other options, A, C, and D, are incorrect because culture and power do affect long-term competitive advantage, influence relationship building with stakeholders, and affect key performance indicators.

Culture and Power