Question

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Research the Ahlstrom corporation. What is Ahlstrom’s strategy in the transmission of culture? Do you think Ahlstrom would have as clear a strategy and follow it so closely if the firm were in a commodity area? Do you think that Ahlstrom is encouraged to pursue its strategy so closely because it is in a small country like Finland? Go beyond Ahlstrom: Why would a firm that has a well-defined strategy perform better than a firm without one?

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Answer 1

Ahlstrom fosters cultural diversity in its organization for the transmission of culture by working in different countries worldwide and possessing multiple business units across the globe. The common values in the company’s culture help the culturally diverse workforce to work together for achieving the overall organizational objectives. The six cornerstones of the shared culture of Ahlstrom are innovation, sustainability, diversity, customer centricity, one team and trust.

Companies can develop a clear strategy while operating in the commodity area as well. Thus, if Ahlstrom would have been engaged in selling products to customers globally, it would have adopted a strategy for identifying the culturally different needs and demands of the customers with the help of its diverse workforce and consequently, meeting the same.

A well-defined strategy helps firms in various areas of its business including operations, marketing, finance, manufacturing, distribution, customer satisfaction and other that are aimed towards attaining the overall organizational objectives. Without a clear strategy, it becomes difficult to assign roles and responsibilities to the workforce and they become unable to understand the goals that they are working towards. Thus, a clearly stated strategy aligned with the mission and vision of the company helps in keeping all the organizational members motivated in achieving the desired objectives that would ensure overall performance enhancement of the company.

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