ABSTRACT
Any approach to strategy quickly encounters a conflict between corporate objectives and corporate capabilities. The strategy enhances the culture which, in turn, enhances strategic opportunities. After painstaking study and analysis, strong and healthy U-Haul dramatically shifted its strategy by replacing its nationwide dealer network of independent service stations with company-owned moving centers. Quaker Oats made a mistake when it tried to transfer the strategy and culture it had developed in food products to the toy and restaurant businesses. When executives set about the arduous task of forging an ideal alloy from a brilliant strategy and a strong culture, they begin by carefully analyzing two important groups: customers and employees. Executives must remain constantly alert to discover matches and possible mismatches among the six elements of strategy and culture. When they spot danger signals, they must be prepared to act decisively.
