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Chapter 12 Corporate Culture and Leadership: Keys to Good Strategy Execution
266
ASSURANCE OF LEARNING EXERCISES
1. Go to the company website for REI (www.rei.com). Click on the Stewardship tab, and then click on some
of the tabs below to learn more about the company’s culture and values. What are the key features of its
culture?DofeaturesofREI’scultureinuencethecompany’sethicalpractices?Ifso,how?
ACTIVITY
This Assurance of Learning exercise is available as a Connect Assignment. The assignment can be
graded and posted automatically.
Response:
ThestudentshouldidentifythatREIfocusesstronglyonbothprofitableoperationsandgoodstewardship.
Stewardship values include (1) encouraging the active conservation of nature, (2) inspiring the responsible
use and enjoyment of the outdoors, (3) enhancing the natural world and communities through responsible
The student should be able to identify how the values expressed are integral to the company’s culture
(sharedvaluesandbeliefs)andhowthosevaluesareactedon(ethics)inthreespecificareas;(1)REIinthe
2. Based on what you learned about REI from answering the previous question, how do you think the company’s
cultureaffectsitsabilitytoexecutestrategyandoperatewithexcellence?
Response:
The student should be able to identify how the actions REI takes help to embed their desired cultural norms
within the organization and perpetuate the culture. A full review of the Stewardship links in the company
websitewillrevealeffortsthecompanytakesin:
• Incorporating discussions of the company’s culture and behavioral norms into orientation programs and
training courses.
• Holding periodic ceremonies to honor people who excel in displaying the company values and ethical
principles.
3. Illustration Capsule 12.1 discusses Epic’s strategy-supportive corporate culture. What are the standout
Chapter 12 Corporate Culture and Leadership: Keys to Good Strategy Execution
267
ACTIVITY
This Assurance of Learning exercise is available as a Connect Assignment. The assignment can be
graded and posted automatically.
Response:
What are the standout features—The student should identify Epic’s 10 Commandments and Principles
which help create a high-performance culture.
How does Epic’s culture contribute to its winning best in class awards—The student should identify that
4. If you were an executive at a company that had a pervasive yet problematic culture, what steps would you
take to change it? Using Google Scholar or your university library’s access to EBSCO, LexisNexis, or
other databases, search for recent articles in business publications on “culture change.” What role did the
executivesplayintheculturechange?Howdoesthisdifferfromwhatyouwouldhavedonetochangethe
culture?
Response:
One example the students might find would be cultural change at Google. By navigating to Google’s
CorporateInformationpageandselectingtheInformationLink,thestudentwillfindwhatGooglehastosay
aboutitsculture.Also,inthe“Ourphilosophy”section,thestudentwillfind“TenthingsGooglehasfound
to be true about culture and strategy execution.
The ten things include:
1. Focus on the user and all else will follow.
2. It’s best to do one thing really, really well.
10. Great just isn’t good enough.
The “ten things” and Google’s corporate culture are linked very closely. Each of these points sums up a very
important idea behind the way “Googlers” interact with one another.
Chapter 12 Corporate Culture and Leadership: Keys to Good Strategy Execution
268
Johnson & Johnson is another company students might examine. The J&J Credo as found on their website
5. Leadingthestrategy-executionprocessinvolvesstayingontopofthesituationandmonitoringprogress,
putting constructive pressure on the organization to achieve operating excellence, and initiating corrective
actionstoimprovetheexecutioneffort.Usingyouruniversity’s accesstobusinessperiodicals,discussa
recentexampleofhowacompany’smanagershavedemonstratedthekindofeffectiveinternalleadership
needed for superior strategy execution.
Response:
Student responses will vary widely as there are countless examples. One example in the last couple of years
hasbeenLizClaiborne,Inc.whichhasbeenengagedineffortstoturnarounditsfalteringMexxchain.
Thecompany’sleadershipfocusedontwoprimaryefforts,anewexecutiveleadershipwiththeinterimCEO
taking charge of the brand, and a new management team with an overseas expansion plan. Both of these are
substantive changes designed to remove entrenched management and its associated behaviors.
Inthefirstarticlecitedbelow,theauthordiscussesthenewexecutiveleadershipindetail,whileinthesecond
appropriate action and divested the failing brand.
Article 1) LIZ CLAIBORNE INC. TAKES STEPS TO ACCELERATE TURNAROUND AT MEXX
Appoints Tom Fitzgerald as Interim CEO and John Moore as Consulting Vice President, Creative
Source:http://lizclaiborneinc.com/c/journal/view_article_content?groupId=10123&articleId=73736&
version=1.0
Article 2) LIZ CLAIBORNE INC. REPORTS 3RD QUARTER AND FIRST NINE MONTHS RESULTS
Source: http://www.liz.com/web/guest/2010news/journal_content/56/10123/80331
Article 3) Liz Claiborne cleans closet with Mexx sale
Source: http://nypost.com/2011/09/03/liz-claiborne-cleans-closet-with-mexx-sale
