Company Self-concept

A major determinant of a firm’s success is the extent to which it can relate functionally to its external environment. To achieve its proper place in a competitive situation, the firm realistically must evaluate its competitive strengths and weaknesses. This idea—that the firm must know itself—is the essence of the company self-concept. The idea is not commonly integrated into theories of strategic management; its importance for individuals has been recognized since ancient times.

Both individuals and firms have a crucial need to know themselves. The ability of either to survive in a dynamic and highly competitive environment would be severely limited if they did not understand their impact on others or of others on them.

In some senses, then, firms take on its members in other ways than their individual interactions. Thus, firms are entities whose personality transcends the personalities of their members. As such, they can set decision-making parameters based on aims different and distinct from the aims of their members. These organizational considerations have pervasive effects.

Ordinarily, descriptions of the company self-concept per se do not appear in mission statements. Yet such statements often provide strong impressions of the company self concept.

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