A culture is a selection of beliefs, myths and practices shared by people such that they feel invested in. The culture of the organization is the strong bonding between employees held together by their shared beliefs and practices. It can be weak as it varies from employees to employees and going through the test of times and the waves of history myths and beliefs. If corporate culture is strong and good in theory it can augment production, reduce the price, and cost factor. There can be lower in monitoring costs, shared beliefs, myths and practices deriving a corporate culture as an informal means of controlled mechanisms that can coordinate the effort and manage the crisis. The company’s aim and goal becomes clearer and the risk of uncertainty is reduced and the coordinated efforts enhanced and less conflicts and margin of error arising out of these. In this way the corporate culture is less tagged to the employees and employees are not bound by the privacy concerns and other related issues, employee motivation is on the high and the exercise of control by the superiors is far less than usual practice and need. Low layout costs because of paper factors and if the organization has strong corporate culture then the employee will work harder than usual time an the goal of corporate is achieved smoothly. So, the strategic culture extracts unpaid labor from employes and makes the savings. So, the company with stronger corporate culture ensures higher and significant economic performances and it is known as the culture effect. In simpler words the strong cultures creates excellent performance. It can represent the powerful advantages over competitors as the contingent value decides when to invest in culture in your organization and when to protect the culture and when to bother about it.