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AQA BUSS 4 - Corporate Culture Discussion

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Has anyone researched Starbucks? I don't know what to write for them :/
Reply 282


Yes guys, go for it! Experts in the Business Studies A-level can answer any question!
right in the buss4 thing it said that you had to refer to the case study in section A, it said you can either make it as your point or you could either compare and contrast, but what does the compare and contrast thing mean???

if you were to do

4 points

2 point for, 2 points against but on different companies to the one in the Section A case study,

by comparing and contrasting does that mean within all your points you compare or contrast it to the case study company in section A?
Reply 284
Hey, what points could you write for this question if it came up for Section A:

'Will organisational culture inevitably get in the way of a significant change in a strategic direction?'
Reply 285
Original post by CubePL
I've got this:
Company name - Apple Inc.
Leader - former iconic founder and leader Steve Jobs, later Tim Cook
Leadership style - democratic/ lassez-faire
Culture - Handy's task and power culture. Generally a culture of innovation, secrecy and discipline

Apple is a company where one man, Steve Jobs, established how things are done around the company. The distinctive culture had helped to increase productivity, sustain a comptetitive advantage and establish a worldwide-known brand which makes it one of the biggest and most profitable companies in the world.
Apple’s culture is as distinct as its products are groundbreaking. That’s no accident; one leads to the other.
The main characteristics of Apple's culture are:
Apple's culture is brutal and unforgiving, where accountability is strictly enforced and decisions are swift.
Simplicity is the key to Apple's organisational structure. The hierarhy is deceptively straightforward.
Specialisation is the norm at Apple, with every employee NOT working outside their area of expertise.
Culture of innovation because the business is 'run by ideas', a key in the market they operate in.
THE NEW CEO
As a result of Steve Jobs's medical problems, new CEO, Tim Cook, was appointed. He focuses more on valuing employees, e.g. praising them publicly and giving them discounts on the company products.


Thanks alot man! I was wondering whether or not it was too vague! How long roughly did it take you to get all the information?
Reply 286
Original post by xxm
Thanks alot man! I was wondering whether or not it was too vague! How long roughly did it take you to get all the information?


Not long, really - about 20 minutes! The thing is that you need to focus on getting the information which are explicitly linked to the culture and you don't need 'extra' info on the company's history etc.

I realised that you'll use one or two lines from the research anyway in the question, as I did one today. However, I still think that if you get like a page of relevant stuff on company's culture, it will help you to understand it fully and therefore select appropriate points for the specific question you're asked. I tried to select companies which cover a number of bullet points, with Apple linking to bullet point 1 (influences: rapidly-growing market + mainly Steve Jobs), 2 ) and bullet point 2(performace: maket leader, high revenues etc.; strategy; innovation, secrecy)
Reply 287
Original post by sofiax0
right in the buss4 thing it said that you had to refer to the case study in section A, it said you can either make it as your point or you could either compare and contrast, but what does the compare and contrast thing mean???

if you were to do

4 points

2 point for, 2 points against but on different companies to the one in the Section A case study,

by comparing and contrasting does that mean within all your points you compare or contrast it to the case study company in section A?


To get 'good' application you have to make a REFERENCE to the company given to you in the short case study. You can make a separate point on it e.g. one question was on whether the product determines whether a company can be fully socially responsible. BAT (British American Tobacco) was given as the case study firm and you could make a separate point how the product itself means that the company is not socially responsible.

You can compare and contrast, but you DON'T have to use it in all your bullet points. The top-tip would be - just make sure you mention it at least once :biggrin:
Reply 288
Original post by monika_s
Hey, what points could you write for this question if it came up for Section A:

'Will organisational culture inevitably get in the way of a significant change in a strategic direction?'


Firstly, identify the key words in the question, which in this case is definately INEVITABLE, IN THE WAY, SIGNIFICANT CHANGE, STRATEGIC DECISION.

Points for:

1. People make up the culture and sometimes they are resistant to change. Therefore, it might be difficult to change a strategy which would probably mean a change in approach. Evidence: possibly Nokia and the story now about the re-focusing of the company and the need to change the culture as well, making the employees more innovative and independent as previous culture of bureaucracy would most certainly hinder the new strategy of innovation and trying to 'fight back' market share from Apple & Samsung.

2. Some significant changes might clash with the culture, but if it's managed carefully it can succeed. Evidence: Royal Mail and Moya Greene's more focused approach on valuing employees more during her transformation programme which involves modernisation.

Points against:

1. Not necessarily, as if a culture is strong it can also be flexible to changes.

2. Culture even can help in a significant change in strategic direction.

[But for this area I have no idea which companies to use. I would really hope for help from the case-study firm :colondollar:]

Evaluation: It can but not inevitably. There are many factors which it depends on, for example employees and their flexibily, the strength of the culture and what the strategic change would involve, e.g. totally changing the approach from democratic to authoritarian?
(edited 10 years ago)
Reply 289
was Steven Job's an autocratic leadership? and wat businesses can you use for bonus culture and why was bonus culture used? and also wat businesses has a toxic culture, dynamic culture, static culture and why?
Original post by CubePL
To get 'good' application you have to make a REFERENCE to the company given to you in the short case study. You can make a separate point on it e.g. one question was on whether the product determines whether a company can be fully socially responsible. BAT (British American Tobacco) was given as the case study firm and you could make a separate point how the product itself means that the company is not socially responsible.

You can compare and contrast, but you DON'T have to use it in all your bullet points. The top-tip would be - just make sure you mention it at least once :biggrin:


Ah okay! thank you! :biggrin:




Can anyone help me with what type of culture the royal mail has, if they're focusing on communication and having a better culture and expanding to parcels??

also before, where they were resistant to change would this be a role culture?

thanks :smile:
(edited 10 years ago)
Original post by OEAFAS
was Steven Job's an autocratic leadership? and wat businesses can you use for bonus culture and why was bonus culture used? and also wat businesses has a toxic culture, dynamic culture, static culture and why?


Yes, Steve Jobs was quite autocratic as he took most of the major decisions between himself and a few senior execs.

Barclays used a bonus culture and it was used to maximise revenues in the short term, Barlcyas were seen as too short termist which ultimately led to the culture shake up that is happening now.
Reply 292
Original post by sofiax0
Ah okay! thank you! :biggrin:




Can anyone help me with what type of culture the royal mail has, if they're focusing on communication and having a better culture and expanding to parcels??

also before, where they were resistant to change would this be a role culture?

thanks :smile:


Royal Mail faced a rapid decline in revenue from letters, a huge pension deficit; union opposition to government plans for privatisation. Royal Mail was also trying to compete in the faster-growing parcels business against global operators such as DHL and TNT, which enjoyed greater efficiency due to their scale. In less than three years, Greene appears to have succeeded in achieving much of the necessary change in Royal Mail as it tries to improve its financial performance ahead of privatisation. Greene has attributed much of the success of the organisational change achieved so far to an emphasis on strong, constant communication within the business as it has undergone the change.

So therefore they are trying to improve the financial position of the business, and so be able to compete with competitors in the market, as well as plans for privatisation.
Reply 293
Original post by Superunknown17
Yes, Steve Jobs was quite autocratic as he took most of the major decisions between himself and a few senior execs.


I disagree with you. I think that that the leadership approach Jobs used is lassez-faire/democratic. Even though, yes, decision-making was centralised, the workers in the company had some freedom and innovation was encouraged.
Reply 294
Original post by Superunknown17
Yes, Steve Jobs was quite autocratic as he took most of the major decisions between himself and a few senior execs.

Barclays used a bonus culture and it was used to maximise revenues in the short term, Barlcyas were seen as too short termist which ultimately led to the culture shake up that is happening now.


why do they want to maximise profit?
Reply 295
Original post by sofiax0
Ah okay! thank you! :biggrin:




Can anyone help me with what type of culture the royal mail has, if they're focusing on communication and having a better culture and expanding to parcels??

also before, where they were resistant to change would this be a role culture?

thanks :smile:


:biggrin:FACTS & FIGURES:
Cash negative four years in a row before the transformation
Operating profit after transformation costs grew from £152 million to £440 million due to cost control and improved revenue generated by parcel volume and letter revenue growth. This means that Royal Mail's change programme is starting to deliver significant improvements in profitability largely as a result of substantial reductions in operating costs and higher mail pricing.
A 13% increase in Royal Mail’s parcels business it handled nearly 1.1billion packages last year was fuelled by a boom in internet shopping. This shows that economic conditions were important to some degree in the success of the Royal Mail.
:biggrin:SUMMARY:
Bureaucratic culture; bad in fast-growing market; need to respond to changes flexibly
Moya Greene employed to change the culture
Investment in technology to minimise costs and improve productivity/efficiency
Be more customer-focused
Value employees more
Focusing on fast-growing parcel market and managing the decline in letters.
Reply 296
Original post by OEAFAS
was Steven Job's an autocratic leadership? and wat businesses can you use for bonus culture and why was bonus culture used? and also wat businesses has a toxic culture, dynamic culture, static culture and why?


Steven Jobs - democratic/ lassez-faire; centralised decision-making but innovation encouraged.

Bonus culture - banks, e.g. Barclays - profit-orientated, culture of short-termism leading to illegal actions such as tax avoidance, mis-selling PPI and fixing Libor rates - this led to scandals.
Compare this with John Lewis Partnership/Waitrose - they have bonus culture, but in this company owned by employees there is a culture of shared responsiblity and trust which means that if employees work hard and make profit, they will get a bonus. Recently, they received 17% bonuses (equalling to nine-weeks pay) despite competition and recent recession.

Toxic culture - Enron
Static - probably Nokia and Royal Mail because they were unresponsive to the changes in the market

Dynamic - Apple probably, flexible to the changes in the market
Reply 297
Original post by CubePL
Steven Jobs - democratic/ lassez-faire; centralised decision-making but innovation encouraged.

Bonus culture - banks, e.g. Barclays - profit-orientated, culture of short-termism leading to illegal actions such as tax avoidance, mis-selling PPI and fixing Libor rates - this led to scandals.
Compare this with John Lewis Partnership/Waitrose - they have bonus culture, but in this company owned by employees there is a culture of shared responsiblity and trust which means that if employees work hard and make profit, they will get a bonus. Recently, they received 17% bonuses (equalling to nine-weeks pay) despite competition and recent recession.

Toxic culture - Enron
Static - probably Nokia and Royal Mail because they were unresponsive to the changes in the market

Dynamic - Apple probably, flexible to the changes in the market


ok thanks but if I may ask what is Toxic, static and dynamic culture?
Reply 298
Original post by OEAFAS
ok thanks but if I may ask what is Toxic, static and dynamic culture?


Toxic - It is relatively easy to identify evidence on how organisational culture can be an intangible asset of a business - a source of competitive advantage and a key reason for a business enjoying industry-beating financial performance.However, the reverse can also be true. If organisational culture is managed incorrectly or (worse) left un-managed, it can become dysfunctional or toxic. In these situations the organisational culture of a business can become a liability, not an asset. It can even lead to the failure of the business. (taken from tutor2u)

Static - this culture is probably inflexible and unresponsive to changes, kinda bureaucratic culture

Dynamic - I think it's the culture which is opposite to 'static'.

However, personally, I'd stick to Handy's four cultures - power, role, task and person. Also, include entrepreneurial and bureaucratic (I think that's just fancy names for dynamic and static, but I might be incorrect). I don't think you really need many more. Plus just the 'toxic' to describe cultures which can bring disadvantages to a company, example being Enron.
Reply 299
Just wanted to know what it means when it says "Company's such as Nokia became too inward looking which led to rivals such as Apple taking away their market share".

What does it mean if a company is too "inward looking"?

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