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Printed By Aaron Reagan Emailprotected Printing Is For Personal
Printed By Aaron Reagan Emailprotected Printing Is For Personal
PRINTED BY: Aaron Reagan . Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. PRINTED BY: Aaron Reagan .
Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. Week 7 Discussion - Corporate Culture and Human Capital – Strategic Management In reviewing successful companies it becomes apparent they maximize a firm's human and social capital to create an energetic and engaged workforce. How critical do you believe is the culture and core values are to the overall organizational success? Please compare the best in class firms to others by utilizing a little research on "best companies to work for" rankings by Forbes. Finally take a moment and discuss your organization's culture. Going forward do you believe the company has the right individuals "on the bus" to make the strategy a success? If not where do the changes, have to be made? Please review the text materials in Chapter 10, 11, and 12 Reference: References Thompson, A., Petraf, M., Gamble, J., and Strickland, A.J. (2016) Crafting and executing strategy :The Quest For Competitive Advantage : Concepts and Cases (20th ed.). New York, N.Y. : McGraw-Hill. Week 7 Discussion - The Impact of Disposal or Residual Values in the Capital Expenditure Investment Analysis – Managerial Accounting In Chapter 10 on pages 369 and 370: Capital Investment Analysis - Measures and Methods; the text discusses several of the key aspects of capital expenditure analysis that a management team must consider when performing their strategic plan analysis and the potential capital expenditures required to support the plan's execution. The concept of "residual or disposal value" is an important factor to consider when completing an analysis. For our discussion this week, please develop your own viewpoint on whether residual or salvage values should be included in the analysis and if so, do they distort the final outcome of the capital expenditure analysis? Reference: Crosson, S. V., & Needles, B. E. (2014). Managerial Accounting (10th ed.). South-Western Cengage Learning.
Paper For Above instruction
Introduction
Strategic management emphasizes the pivotal role that organizational culture and human capital play in achieving sustainable competitive advantage. Successful companies recognize that their workforce’s engagement, aligned values, and shared purpose directly influence organizational performance. This paper explores the significance of corporate culture and core values in organizational success, compares best-in-class firms with others based on Forbes' rankings, reflects on personal organizational culture, and examines the inclusion of residual or salvage values in capital expenditure analyses.
The Role of Culture and Core Values in Organizational Success
Organizational culture encompasses the shared beliefs, norms, and practices that shape employee behavior and organizational identity. Core values underpin this culture and serve as guiding principles for decision-making and strategic direction. The significance of these elements is underscored by their direct influence on employee motivation, engagement, and overall productivity. Companies that foster a positive, values-driven culture tend to outperform competitors by creating an environment conducive to innovation, collaboration, and commitment (Schein, 2010). For example, Google’s emphasis on innovation and transparency demonstrates how a strong culture attracts top talent and promotes sustained growth.
The core values of an organization also serve as a compass during change initiatives and strategic shifts, ensuring alignment and consistency across operations. Research indicates that organizations prioritizing cultural alignment experience better financial performance, higher employee satisfaction, and enhanced customer loyalty (Cameron & Quinn, 2011). Consequently, culture and values are not merely decorative aspects of corporate identity but fundamental drivers of strategic success.
Comparison of Best-in-Class Firms and Others
Using Forbes’ “Best Companies to Work For” rankings for recent years offers insights into the attributes that distinguish industry leaders. Top-ranked firms such as Bain & Company, Google, and SAS Institute exemplify organizations with advanced cultures emphasizing employee empowerment, professional development, and meaningful work. These companies invest heavily in employee well-being and foster inclusive environments that promote innovation and high performance (Forbes, 2023).
In contrast, organizations that rank lower often exhibit cultures marked by rigidity, poor communication, and lack of recognition. Such environments tend to struggle with talent retention and engagement, ultimately impacting organizational effectiveness. The comparison underscores the importance of cultural agility, authentic leadership, and strategic alignment of core values with business objectives as key differentiators.
Personal Organizational Culture and Future Directions
Reflecting on my current organization reveals a culture focused on accountability, continuous improvement, and customer-centricity. However, there are gaps in fostering innovation and risk-taking, which are essential for adapting to rapid market changes. To enhance strategic execution, it is critical that the organization assesses whether the “right individuals on the bus” are in leadership and operational roles.
Currently, some team members may lack the necessary skills or mindset to champion transformative initiatives. Therefore, strategic hiring, targeted training, and leadership development should be prioritized to align personnel capabilities with organizational goals. A cultural shift towards embracing innovation, agility, and proactive problem-solving will strengthen the organization’s capacity to execute its strategy effectively (Kotter, 1998).
The Impact of Residual or Salvage Values in Capital Expenditure Analysis
In capital expenditure (CapEx) projects, residual or salvage values are the estimated worth of an asset at the end of its useful life. Including these values in analysis can significantly influence investment decisions. Incorporating salvage values often provides a more comprehensive view of a project's cash flows, leading to more accurate evaluation of its profitability.
However, some argue that salvage values can distort outcomes if unrealistic assumptions are made, particularly if market conditions fluctuate or if accurate estimations are difficult. Overestimating salvage values might result in overly optimistic project assessments, potentially leading to poor investment choices (Crosson & Needles, 2014). Conversely, excluding salvage values may undervalue assets, ignoring potential returns at project completion.
I believe that residual values should generally be included in capital expenditure analysis to ensure a holistic evaluation, but with caution. Managers must base these estimates on reliable data and consider potential market risks. When used judiciously, residual values contribute to a more accurate reflection of total project cash flows and support sound decision-making.
Conclusion
Organizational culture and core values are central to achieving strategic advantage, influencing employee engagement and overall performance. Comparing leading firms reveals that positive cultures driven by authentic values distinguish top performers. My organization benefits from a culture focused on accountability, but strategic changes are necessary to foster greater innovation by aligning personnel and cultivating agility. Additionally, inclusion of residual or salvage values in capital expenditure analysis enhances the accuracy and reliability of investment decisions, provided that estimates are grounded in realistic assumptions. Together, these insights underscore the importance of culture and comprehensive financial analysis in strategic management and investment planning.
References
Cameron, K. S., & Quinn, R. E. (2011). Diagnosing and Changing Organizational Culture: Based on the Competing Values Framework. Jossey-Bass.
Crosson, S. V., & Needles, B. E. (2014). Managerial Accounting (10th ed.). South-Western Cengage Learning.
Forbes. (2023). The Best Employers to Work For. Retrieved from https://www.forbes.com/best-em/employers/
Kotter, J. P. (1998). Leading Change. Harvard Business Review Press.
Schein, E. H. (2010). Organizational Culture and Leadership (4th ed.). Jossey-Bass.
Thompson, A., Petraf, M., Gamble, J., & Strickland, A. J. (2016). Crafting and executing strategy: The quest for competitive advantage: Concepts and cases (20th ed.). McGraw-Hill Education.