An analysis of the impact of corporate culture on the execution of strategy at Interfin Bank (2010 - 2011)
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Corporate culture can either be an asset or a liability to an organization depending on the nature of the internal and external environments within which a company finds itself. In this study the researcher analysed Interfin Bank, a registered commercial bank which is faced with the need to develop a sustainable high-performance culture which supports strategy implementation. Interfin Bank is a new institution formed in the year 2010 after the merger of CFX Bank Limited and Interfin Merchant Bank of Zimbabwe Limited. The study looked at the fit between corporate culture and strategy implementation at Interfin Bank from year 2010 to year 2011. The researcher analysed the background of Interfin Bank, that is, its formation and current performance. The researcher also explored the current problems facing the merged bank. The researcher looked at the various concepts on corporate culture and strategy from authors such as Schein (1985), Thompson (2005) and Johnson (2004), among others. The methodology used in this study is based on a research design that combined quantitative research with a qualitative exploratory procedure. The research instruments used were interviews on senior management at Interfin Bank as well as questionnaires which were administered to the chosen sample. The response rate was good at 80 percent which enabled a fair analysis of the data. The main conclusion is that corporate culture at Interfin Bank is not yet supporting strategy execution and the bank has not yet developed its own set of values or shared culture. The respondents also view the new bank’s management as being radical since the merger took place in year 2010. The recommendation by the researcher is that Interfin Bank needs to develop its own unique and shared culture that will support strategy implementation in view of competition from the several financial institutions. This will enable Interfin Bank to realize the benefits of acquiring another bank such as the enhancement of financial performance.