The impact of organizational culture on business strategy implementation: A case study of AMTEC Motors (2006 - 2011)

Abstract

The study sought to investigate the impact of organizational culture on strategy implementation; the case of Amtec Motors. In this study interviews were undertaken to the Managing Director, top management, management and heads of major functions that are all at the corporate level of Amtec Motors. A qualitative research philosophy was adopted and the data gathered was analysed and presented in the form of data displays and analytic summary tables The general conclusion from literature on strategy implementation and corporate culture was that there is strong relationship between strategy implementation and organizational culture. It was deduced that the organizational culture, and specifically the extent that it is aligned or not aligned with strategy, is the single most important factor in determining whether or not a strategy is successfully executed and performance goals are achieved. It is concluded in this study that the inhibitors to the expected level success of execution of business strategy at Amtec Motors are negative attitude, poor group synergy, poor training, poor communication, lack of capital and resources. Staff attitude is affecting Amtec badly as there is serious resistance to change. The research found out that the negative staff attitude is as a result of the organization failing to communicate certain obligations like salaries. There is an empirical/observed/practical relationship between the culture of Amtec and their measured (and unmeasured) performance but not on staff turnover. The current group synergy is letting Amtec down because of the poor performance of some of its “sister companies”. The current organizational culture at Amtec can fairly make it possible for the firm to remain viable. In view of the findings the study recommends that Amtec should introduce vision awareness campaigns, re-integrate its culture and strategy, recapitalise the business and improve group synergy and implement employee engagement mitigation measures. Amtec needs to respect staff ideas and contributions in monitoring and evaluating progress on the implementation and evaluation of operations in the firm.