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Explain how a company's culture can contribute to or detract from its ability to create and sustain competitive advantage.

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Final answer:

A company's culture can impact its competitive advantage. A positive and strong culture can enhance productivity and innovation, while a toxic culture can hinder teamwork and morale.

Step-by-step explanation:

A company's culture can contribute to or detract from its ability to create and sustain competitive advantage in several ways. A positive and strong organizational culture, characterized by shared values, beliefs, and attitudes, can foster employee engagement, collaboration, innovation, and loyalty. This, in turn, can lead to higher productivity, customer satisfaction, and a competitive edge in the market. On the other hand, a toxic or dysfunctional culture can hinder teamwork, creativity, and employee morale, which can negatively impact a company's ability to stay ahead of the competition.

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