What is a potential disadvantage of having a strong corporate culture?

Prepare for the SQA Higher Business Management Exam. Enhance your skills with dynamic flashcards and practice questions. Explore hints and explanations to ace your exam!

A potential disadvantage of having a strong corporate culture is that cultural change can be resistant if not communicated effectively. When an organization has a deeply embedded culture, employees often become accustomed to certain values and norms. If circumstances arise that require a shift in this culture—such as a merger, new management, or changes in the market—employees may resist these changes due to their strong attachment to the existing culture.

Resistance can stem from various factors, including fear of the unknown or a belief that the existing culture is better than what is proposed. Additionally, if the rationale for change is not clearly articulated and effectively communicated, employees may feel confusion or insecurity about the future, leading to further pushback against necessary adjustments. This resistance can hinder responsiveness and adaptability, which are crucial in a rapidly changing business environment.

The other options highlight benefits typically associated with a strong corporate culture, emphasizing positive impacts like increased employee morale, attracting quality job applicants, and empowering staff. These are often seen as strengths of a strong corporate culture, contrasting with the challenges related to cultural change that may arise.

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