Industry Culture – Who Shapes It?

This topic contains 5 replies, has 6 voices, and was last updated by  Eric Hubacheck 1 week, 5 days ago.

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  • #109996

    Paul Gray, MBA
    Participant

    As we explore culture of a company and our need to understand it, especially in contemplating M&A activities, it is interesting to explore the question as to whether the organization’s culture is largely influenced by (a) National Ways of Being? (b) The Regulatory Environment? or (c) The underlying ethics, principles and behavior of the founders? Your thoughts?

    #110164

    Connie Howe
    Participant

    For smaller organisations, culture is largely influenced by (c) the underlying ethics, principles and behavior of the founders. For larger organisations, it would be a combination of (a), (b) and (c) as well as other internal and external factors such as consumer movement and non government organisations.

    #110281

    Rubhen Jeya
    Participant

    It depends by reputation of the company (and the need to live up to it) and the industry. In the commodity industry, especially on the traffic component – several players are known as ruthless. In the case of the mergers of equals, it was the acquiring CEO who had a dominant personality and culture of that company shaped the merged entity.

    #110440

    Sonia Shah
    Participant

    I think that’s a great discussion topic. I believe that an organization’s culture is largely influenced by National Ways of Being as well as The Regulatory Environment and The underlying ethics, principles and behavior of the founders. In the engineering and construction industry, I absolutely see that to be the case, and particularly the last point re ethics and principles/behaviour of the founders if it is a smaller ‘mom and pop’ business.

    #111766

    Kent Anderson
    Participant

    I think the automobile industry industry shows just how mono-culture many industries can become. Every car maker, despite claiming to be different, has pursued the same business model of minimal vertical integration, focusing instead upon supplier management and outsourcing. Exposing both the fact of this mono-culture and it’s inherent vulnerability to large market shifts is Tesla. Tesla has rejected this culture and via fresh thoughts and vertical integration has put the rest of the auto industry on their heels.

    #112330

    Eric Hubacheck
    Participant

    Perhaps in industries where regulatory environment is extremely rigid, it’s my hunch the founders must quickly fall in line or they’ll be cast out. Pharma comes to mind here, but I could be mistaken. In industries where there is this sort of “old boys club” or “wild west” mentality, such as exploration/mining or even video games, where the regulatory environment tends to turn a blind eye in many cases, (c) will take over in most companies, even the large ones.

    I am particularly confused & conflicted when thinking of the financial sector. Most large banks you would think would be mainly controlled by (a) and (b), however, it seems like in the world of finance, (a) and (c) aren’t much different when greed takes over! Netflix Dirty Money episode on Wells Fargo comes to mind.

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