The Role of Culture in the successful implementation of Strategy

A crucial component of a company’s design, organisational culture describes its employees’ jointly held beliefs and standards. By socialisation, a process wherein employees internalise a company’s values and standards through absorption in the day-to-day operations, employees learn about their company’s culture. (Rothaermel)

The culture was a primary priority at Tractor Supply Company when I was there. The culture of the store, which essentially upholds the customer service objective, is crucial. TSC searches out candidates who share its commitment to providing excellent customer service. Tractor Supply is dedicated to “work hard, have fun, and make money by providing legendary service and outstanding items at everyday cheap prices” as a business focused on upholding its mission and values. Ten principles – ethics, respect, balance, winning attitude, communication, development, teamwork, change, initiative, and accountability – serve as the foundation for this mission statement and guide all company decisions and interactions with clients and team members. (TSC)

There were numerous ways to socialise people into that culture and entrench it. All new hires at TSC undergo training that covers their attitudes towards providing excellent customer service and fostering a compassionate workplace. All management personnel also participate in supplementary training to collaborate with staff members to advance the store’s culture. TSC does focus heavily on culture because it is an essential component of generating profit through interacting with customers. District managers also visit stores monthly to check on how effectively they uphold business values and culture.

TSC goes a step further and incorporates questions about store atmosphere into the customer questionnaires that are provided following every purchase. TSC analyses the information to determine whether or if consumers feel welcomed, get what they need, and are likely to revisit the store. The questionnaires assist in determining how extended personnel spent assisting customers and whether they were friendly.

This culture is significant to TSC because the retail sector is fiercely competitive. Customers keep returning to the store because it distinguishes them from the competition. The TSC has a competitive advantage over big box stores because of its influential culture, which helps it welcome consumers and spend more time with them so they can ask questions.

References

Rothaermel, Frank. (2018) Strategic Management: Concepts.. 4^th Ed. [Columbia College].

Tractor Supply Company. (2020). Mission and Values. https://corporate.tractorsupply.com/company-overview/mission-and-values/default.aspx

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The chapter describes the role of culture in the successful implementation of the strategy.

Consider an employment experience of your own or of someone you have observed closely (e.g., a family member). Describe to the best of your ability the values, norms, and artefacts of the organization. What was the socialization process of embedding the culture? Do you consider this to be an example of an effective culture for contributing to the organization’s competitive advantage? Why or why not?

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