Communicating strategy; culture and structure in decision making; strategy case studies: formula sheet

Key formulas

Handy's four culture types

Power | Role | Task | Person

Power: central control. Role: rules and procedures. Task: teams and expertise. Person: individuals come first.

Cultural web elements

Paradigm at the centre + Stories, Symbols, Power structures, Organisational structures, Control systems, Rituals and routines

Six outer elements plus the paradigm. Learn all seven names.

Core logic of culture and strategy

Strategy fit = strategy requirements vs. current culture

If they clash, change the strategy, change the culture, or manage the gap. Culture change is slow.

Span of control

Span of control = number of direct reports per manager

A wide span gives fewer layers and a flatter structure. A narrow span gives tighter supervision but more layers.

Structure fit rule

Best structure = the one that fits strategy, size, environment and risk

This is a judgement rule, not a calculation. Always justify with the case facts.

Decision trade-off

Centralised: more control and consistency, less speed. Decentralised: more speed and local fit, less control.

Use as a frame for any structure question. It is a general tendency, not always true.

Matrix reporting

Matrix = functional line + product (or project) line, dual reporting

State both lines of authority when you describe a matrix.

Case answer structure

Facts → Framework → Implication → Recommendation → Risks

Use this chain for every written case question. Each link should refer to the scenario.

PEST

Political, Economic, Social, Technological

Used for the external environment. Add only the factors that matter to the case.

Porter's Five Forces

Rivalry, threat of new entrants, threat of substitutes, buyer power, supplier power

Used to judge how attractive and competitive an industry is.

Porter's generic strategies

Cost leadership, differentiation, focus

Used to describe or recommend how a firm competes. Warn against being stuck in the middle with no clear position.

Option appraisal criteria

Suitability, acceptability, feasibility

A common way to test strategic options. Does it fit the situation, will stakeholders accept it, can the firm do it?

Quick revision

• Stakeholders differ, so the message, channel and detail should differ too.
• Good communication is two-way: it includes listening and feedback, not only announcing.
• Inconsistent messages to different groups damage trust.
• Culture is the shared values, beliefs and habits that shape how people behave.
• A culture that conflicts with the strategy often makes the strategy fail.
• Structure sets roles, reporting lines and where decision authority sits.
• Centralised structures give control and consistency but can be slow; decentralised ones are faster and closer to customers but can lose coordination.
• Culture and structure influence each other and should be assessed together.
• In a case study, always tie theory to named facts from the case.
• Finish written answers with a clear, justified recommendation.
• Check the risks and limits of your recommendation before you stop.

Common mistakes

• Giving one generic message for all stakeholders. Fix: Tailor content, tone and channel to each group. Show that you know what each group wants.
• Listing channels without linking them to the audience. Fix: For every channel, say who it reaches and why it suits them.
• Listing the cultural web elements without applying them to the case. Fix: For each element you mention, add a fact from the case and say what it implies for strategy.
• Forgetting the paradigm or treating it as a seventh outer element. Fix: Place the paradigm at the centre. It is the core assumptions that the six elements reinforce.
• Listing advantages and disadvantages with no link to the case. Fix: Use at least two facts from the scenario, such as the firm's size, products or regions, in every answer.
• Confusing functional with divisional structure. Fix: Functional groups by what people do. Divisional groups by what the unit sells or where it operates.
• Writing a theory essay that defines frameworks without using the case. Fix: Spend at most one line on the framework. Spend the rest on case facts and what they imply.
• Using every framework you know. Fix: Pick the frameworks that match the problem. Depth on two beats a shallow list of five.

Exam tips

• Always name the stakeholder groups from the case. Marks usually go to tailoring, not to generic lists.
• Give a reason with every channel or message. 'Because' sentences earn the mark.
• In insurance scenarios, include regulators and policyholders as well as staff and investors.
• Mention feedback and barriers even in short answers, because many students skip them.
• In MCQs, watch for options that describe one-way communication as sufficient. These are usually wrong.
• Always tie the model to case facts. Marks go to application, not to naming the model.
• Name the model you use at the start of your answer so the examiner can follow your structure.
• For MCQs, be clear on what distinguishes each Handy type: power centre, rules, teams, individuals.