Eric Hulsman in Business Nov 12, 2019 · 1 min read · +100

The Importance of Company Culture

The Importance of Company Culture

Concrete culture is, arguably, the most important pillar of any business. The past several decades have seen a substantial increase in emphasis on businesses to create a strong corporate culture. To create a strong market presence and competitive advantage, every business must emphasize on having a strong organizational culture.

Corporate image

A company culture serves as a mirror for every business. The business’s public reputation is closely tied to what it stands for in the market. Having a strong brand culture ensures that the business can maintain a good public image. For example, a company that greatly values the well-being of its employees and customers will be known for good practices that promote their social welfare. Such a boosted corporate image is crucial in ensuring that the business stands out in the market.

Creating a Strong Identity

Every new business needs a strong identity in the market for purposes of attracting customers and great talent. Part of the most effective ways of ensuring that such a strong identity is obtained and maintained is by having a strong company culture. The company culture, in this regard, gives outsiders an overview of what the business stands for, the strategic direction it intends to take, as well as its value proposition in the market.

Market Differentiation

All businesses, especially those that have invested in the same industry, are quite similar in many ways. The only way that such businesses can differentiate from the rest is by having a unique proposition of corporate culture. The corporate culture gives the business an opportunity to differentiate itself in terms of how it associates with the public as well as in its products and services. If well-coordinated, this level of differentiation ensures that the business can stand out from the stiff competition.

Employee Retention

Businesses endeavor to attract great talent and retain employees for as long as possible. The only way that businesses can achieve this objective is by having a unique and well-adhered-to company culture. The culture serves as an identity that enables talented workers to find a perfect match for an employer. Adhering to the company culture improves their business’s reputation among the employees, thereby generally improving their morale while reducing employee turnover rates.