Final answer:
Company values guide strategic management by influencing decision-making, fostering cohesive teamwork, and aligning employee actions with the company's long-term vision, while fostering operational flexibility and innovation.
Step-by-step explanation:
Company values are essential in strategic management as they influence corporate culture, decision-making, and set priorities that guide the company's long-term direction and daily operations. Values such as integrity, customer service, innovation, and teamwork shape the policies and actions of a company, serving as a compass during strategic planning and execution. Exploring the values underlying a company's actions can foster mutual understanding among stakeholders and can lead to more cohesive and effective strategies.Understanding the company's goals and priorities, which are often rooted in its values, can help employees make decisions that align with the company's strategic objectives. This alignment is crucial when dealing with uncertainty (20.5 Flexibility in Uncertainty) and in influencing the overall upshot on strategies (20.6). Moreover, employees who demonstrate initiative rooted in shared values are more likely to contribute positively towards the company's strategic goals and add value to the team.In conclusion, company values play a pivotal role in strategic management by guiding decision-making, fostering cohesive teamwork, and ensuring alignment with the long-term vision of the company. They encapsulate not only the ethical stance of the organization but also influence operational flexibility and the pursuit of innovation amid a rapidly changing business environment.