AQA BUSS 4 - Corporate Culture Discussion
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Here's my notes for GOOGLE. Can somebody please critique on what elseI need to be looking for.
-"Person culture", focused on ensuring workforce 'productivity', keeping employees happy and motivated etc. Large capital employed into doing so - risk/reward concept?
-Founders: Larry Page, Sergey Brin.
-Larry Page management style is to avoid bureaucracy and has a 'problem with traditional management'.
-Over 120 acquisitions since 2001.
-Google sees consistent financial sustainability each year - still growing!
-Innovation focused - this is the key behind what Google 'do'. They always listen to "crazy ideas" in order to stay ahead of the game; Technology is advancing rapidly and is at the heart of what Google have to offer - cannot miss out on a gap in the market that a competitor may exploit.
-Perfect example of where culture has provided a competitive advantage: Where would Google be today without their innovative culture?
-"Person culture", focused on ensuring workforce 'productivity', keeping employees happy and motivated etc. Large capital employed into doing so - risk/reward concept?
-Founders: Larry Page, Sergey Brin.
-Larry Page management style is to avoid bureaucracy and has a 'problem with traditional management'.
-Over 120 acquisitions since 2001.
-Google sees consistent financial sustainability each year - still growing!
-Innovation focused - this is the key behind what Google 'do'. They always listen to "crazy ideas" in order to stay ahead of the game; Technology is advancing rapidly and is at the heart of what Google have to offer - cannot miss out on a gap in the market that a competitor may exploit.
-Perfect example of where culture has provided a competitive advantage: Where would Google be today without their innovative culture?
Original post by iggyDash
Yeah and the nature of the industry and external factors aswell?
Yeah thanks for the examples but i meant actual factors. e.g leadership and management style, nature of industry, external factors. You need examples of the above factors aswell as the ones you have which are primarily leadership (one factor) so if a question like "is leadership the strongest influence on an organisatons culture?" you can use the other factors :-)
Yeah thanks for the examples but i meant actual factors. e.g leadership and management style, nature of industry, external factors. You need examples of the above factors aswell as the ones you have which are primarily leadership (one factor) so if a question like "is leadership the strongest influence on an organisatons culture?" you can use the other factors :-)
Yeah, definately. Now that i think about it, leadership and founder are pretty similar. I think the skill of the employees could be a factor? A highly skilled workforce would likely want a more task/entrepreneurial culture.
Original post by Infamous12
Does anyone have any good suggestions for research on the competitive environment?
Not sure if its right but id talk about the electronics market with the success of Apple amd even Samsung more so Apple and the decline in revenue and share prices for Sony and nokia both being forced to rentrenchment
I have used these companies for A and B:
Barclays, John Lewis, RBS Bank, Apple, Zappos, Amazon (although I haven't found much on culture - just how they are successful), Nokia, Cadbury/Kraft, BP, Royal Mail and Google.
Any other companies I could use? Are these okay for both?
Need to start practice essays now..
Barclays, John Lewis, RBS Bank, Apple, Zappos, Amazon (although I haven't found much on culture - just how they are successful), Nokia, Cadbury/Kraft, BP, Royal Mail and Google.
Any other companies I could use? Are these okay for both?
Need to start practice essays now..
Original post by Infamous12
Does anyone have any good suggestions for research on the competitive environment?
You could talk about the recent colluding allegations made against BP and Shell operating as a cartel.
http://www.guardian.co.uk/business/2013/may/14/bp-shell-oil-price-rigging
Original post by Superunknown17
You could talk about the recent colluding allegations made against BP and Shell operating as a cartel.
http://www.guardian.co.uk/business/2013/may/14/bp-shell-oil-price-rigging
http://www.guardian.co.uk/business/2013/may/14/bp-shell-oil-price-rigging
Original post by Oliver1234
Not sure if its right but id talk about the electronics market with the success of Apple amd even Samsung more so Apple and the decline in revenue and share prices for Sony and nokia both being forced to rentrenchment
Thanks guys!
Original post by Oliver1234
Not sure if its right but id talk about the electronics market with the success of Apple amd even Samsung more so Apple and the decline in revenue and share prices for Sony and nokia both being forced to rentrenchment
Yeah, you can talk about the smartphone competitive industry. Nokia had 50.8% market share in the mobile phone industry, they even designed prototypes for a new smart phone but failed to risk it by selling it to the market.
Apple advantaged significantly in this as they grew greatly in the mobile phone industry (specifically the smart phone industry), as when they released the iPhone in 2007 it made Nokia's market share go down to 30.8%. They missed out on an innovation, where Apple used their own innovation as the competitive advantage.
Businesses and the Social Environment
British Petroleum - BP have had a very bad relationship with the social environment due to numerous disasters caused by their company's assets over the past 50 years. In 1965 BP's first Offshore oil rig's legs collapsed killing 13 crew members. In 2005 BP's oil refinery in Texas exploded, causing 15 deaths, 180 injuries and nearby residents to remain sheltered. This caused a massive amount of hydrocarbons to be released as fumes, this violated the Clean Air Act of 1963 and BP was forced to pay $50million to the State of Texas. In March 2006, an oil spill in Prudhoe Bay started after a rupture in a pipe across North Alaska. Under the Clean Water Act of 1972, BP were forced to pay $20million to the State of Alaska. In 2010 there was a chemical leak which released over 240,000kg of chemicals into the air, 50,000 residents of the State of Texas joined in a lawsuit against BP. In July 2010, a devastating Oil Spill happened in the Gulf of Mexico which destroyed several wildlife habitats, claimed 11 lives and spilled 210million gallons of Oil into the ocean. The spill has costed $42.2billion in total to BP. They were also named the Worst Company in America 2011 by the Consumerist as a result.
BP could also be talked about if writing about Contingency Planning.
Cadbury - In 2009 Cadbury set themselves CSR targets to meet by 2010. These included saustainable sourcing of half their raw materials, ensuring all packaging is recyclable or biodegradable and donating 1% of their pre-tax profit to community projects. Cadbury have since met each of these targets and continue to improve their relationship to the social environment to this date. Their Dairy Milk brand was Fairtrade Certified in Summer 2009 and Cadbury has since been committed to making more of their products Fair Trade Certified.
Primark - In 2008/2009 Primark faced a PR disaster after it was discovered that its suppliers all made use of Sweatshops to produce their products. Primark has severed any ties with all suppliers that used Sweatshops and has made a strong ethical stance against them. This culminated in an on-air apology that they released on BBC Journalism Program "Panorama". Despite the massive outcry from the public, Primark saw massive growth in their profits between the years of 2008/2009/2010. Speculation being due to the recession and Primark's brand of cheap products.
British Petroleum - BP have had a very bad relationship with the social environment due to numerous disasters caused by their company's assets over the past 50 years. In 1965 BP's first Offshore oil rig's legs collapsed killing 13 crew members. In 2005 BP's oil refinery in Texas exploded, causing 15 deaths, 180 injuries and nearby residents to remain sheltered. This caused a massive amount of hydrocarbons to be released as fumes, this violated the Clean Air Act of 1963 and BP was forced to pay $50million to the State of Texas. In March 2006, an oil spill in Prudhoe Bay started after a rupture in a pipe across North Alaska. Under the Clean Water Act of 1972, BP were forced to pay $20million to the State of Alaska. In 2010 there was a chemical leak which released over 240,000kg of chemicals into the air, 50,000 residents of the State of Texas joined in a lawsuit against BP. In July 2010, a devastating Oil Spill happened in the Gulf of Mexico which destroyed several wildlife habitats, claimed 11 lives and spilled 210million gallons of Oil into the ocean. The spill has costed $42.2billion in total to BP. They were also named the Worst Company in America 2011 by the Consumerist as a result.
BP could also be talked about if writing about Contingency Planning.
Cadbury - In 2009 Cadbury set themselves CSR targets to meet by 2010. These included saustainable sourcing of half their raw materials, ensuring all packaging is recyclable or biodegradable and donating 1% of their pre-tax profit to community projects. Cadbury have since met each of these targets and continue to improve their relationship to the social environment to this date. Their Dairy Milk brand was Fairtrade Certified in Summer 2009 and Cadbury has since been committed to making more of their products Fair Trade Certified.
Primark - In 2008/2009 Primark faced a PR disaster after it was discovered that its suppliers all made use of Sweatshops to produce their products. Primark has severed any ties with all suppliers that used Sweatshops and has made a strong ethical stance against them. This culminated in an on-air apology that they released on BBC Journalism Program "Panorama". Despite the massive outcry from the public, Primark saw massive growth in their profits between the years of 2008/2009/2010. Speculation being due to the recession and Primark's brand of cheap products.
Say for example I use a popular case-study such as Apple, would it be possibly less effective than using a lesser known business example or one purely from my own knowledge (Was thinking about Sir Alex Ferguson in regards to leadership for example) or would it not matter how popular they are with candidates?
Original post by Oliver1234
Not sure if its right but id talk about the electronics market with the success of Apple amd even Samsung more so Apple and the decline in revenue and share prices for Sony and nokia both being forced to rentrenchment
Not once have I thought of doing the electronics market for that, thanks a lot! Does anyone have a couple of examples for Social Environment? I've got a couple of examples (Apple with problems, Lush's success and Starbucks with tax although I'm not sure whether that is that strong) but I think I could do with some others
Original post by Infamous12
Did you do BUSS 4 in jan?
No but we were set the section B part of the paper as a mock
Original post by xxm
I think I've finished my revision for Culture. I'd like some feedback
Org culture- the way we do things around here.
Charles Handy believes there is 4 different cultures a company can take - Power(Decision making stems from small amount of people) , Role( responsibilities and roles are easily identifiable) , task (companies culture related to projects usually small team set up to achieve the objective), person (focuses on developing employees and so forth a university will adopt this culture)
Cultures can also be bureaucratic and entrepreneurial. B- is more conservative and less
inclined to take risks more focused on the role culture - advantages brings stability disadvantages may be too slow to react to changing market. E- is opposite more risk taking and links in with power culture and task- adv innovative dis- can take unnecessary risks.
Factors that affect culture:
Leadership- Authoritarian leadership is likely to link with power culture as it is a more controlling leadership - paternalistic and Authoritarian are more bureaucratic cultures. Democratic and laissez- faire more entrepreneurial culture.
Mergers/takeovers -Reasons obvious. A new company will have it's own Culture and dependent on it's share of the business will look to implement it.
Objectives- If a company aim is to achieve maximum profit it is likely to be bureaucratic and adopt a power culture in order to achieve it's goals. Whilst a company looking to diversify in markets is likely to adopt Entrepreneurial culture as innovation is a good tool to break into a market.
Other factors include, Market size and external environment -i.e Nokia had to change it's bureaucratic culture to try to ragain control in the phone market.
The importance of culture is simple - Culture can help a company achieve it's aim through motivating and empowering staff. An Entre culture can help the company diversify into new markets. Can also help create the mission statement of a company amongst other things.
Resistance to Change- Staff, need to recruit new staff, disruption of current programme for the company.May need to change organisational structure.
Companies - Nokia Stephen Elop was bought in to change the culture of Nokia as the Bur culture stagnated their growth as they failed to innovate their phones and thus saw Apple and Samsung amongst many overtake them. The new Culture focuses on a more Entre culture and a more task culture to try to bring innovation amongst the company. projects such as partnership with Microsft highlight the new emphasis on innovation.
John Lewis has a pratnership with it's employees and focuses on theory Y as a result many customers highlight it's fantastic customer service as employees are motivated. The Culture may be Bur however it also is a person culture as emphasis is on employees too. Ceo Andy street believes the success to a businesss comes from it's staff. John Lewis one of the major department stores in the UK and show's culture to be a success.
Barclays- Involved in Libor scandal and former CEO bob diamond handed out many bonuses and focused on short term which gave Barclays bad reputation new CEOAnthony Jenkins focusing on a more Bur culture to try and restore companies image.
Apple-Innovative and an entre culture as well as theory Y steve jobs focused on innovation from staff in order for apple to become on of the key companies in the world. New CEO Tim cook has continued his culture.
Google- Entre culture, founders SErgey and Larry believe in theory Y and also believe in PErson culture as a means to improve and innovate the company.
Now all this was done within 3 hours today, so I would like feedback is it too basic do I need more companies? Any plus points? Feedback wil be hugely appreciated! I need an E to get a B overall and a B to get an A overall.
Org culture- the way we do things around here.
Charles Handy believes there is 4 different cultures a company can take - Power(Decision making stems from small amount of people) , Role( responsibilities and roles are easily identifiable) , task (companies culture related to projects usually small team set up to achieve the objective), person (focuses on developing employees and so forth a university will adopt this culture)
Cultures can also be bureaucratic and entrepreneurial. B- is more conservative and less
inclined to take risks more focused on the role culture - advantages brings stability disadvantages may be too slow to react to changing market. E- is opposite more risk taking and links in with power culture and task- adv innovative dis- can take unnecessary risks.
Factors that affect culture:
Leadership- Authoritarian leadership is likely to link with power culture as it is a more controlling leadership - paternalistic and Authoritarian are more bureaucratic cultures. Democratic and laissez- faire more entrepreneurial culture.
Mergers/takeovers -Reasons obvious. A new company will have it's own Culture and dependent on it's share of the business will look to implement it.
Objectives- If a company aim is to achieve maximum profit it is likely to be bureaucratic and adopt a power culture in order to achieve it's goals. Whilst a company looking to diversify in markets is likely to adopt Entrepreneurial culture as innovation is a good tool to break into a market.
Other factors include, Market size and external environment -i.e Nokia had to change it's bureaucratic culture to try to ragain control in the phone market.
The importance of culture is simple - Culture can help a company achieve it's aim through motivating and empowering staff. An Entre culture can help the company diversify into new markets. Can also help create the mission statement of a company amongst other things.
Resistance to Change- Staff, need to recruit new staff, disruption of current programme for the company.May need to change organisational structure.
Companies - Nokia Stephen Elop was bought in to change the culture of Nokia as the Bur culture stagnated their growth as they failed to innovate their phones and thus saw Apple and Samsung amongst many overtake them. The new Culture focuses on a more Entre culture and a more task culture to try to bring innovation amongst the company. projects such as partnership with Microsft highlight the new emphasis on innovation.
John Lewis has a pratnership with it's employees and focuses on theory Y as a result many customers highlight it's fantastic customer service as employees are motivated. The Culture may be Bur however it also is a person culture as emphasis is on employees too. Ceo Andy street believes the success to a businesss comes from it's staff. John Lewis one of the major department stores in the UK and show's culture to be a success.
Barclays- Involved in Libor scandal and former CEO bob diamond handed out many bonuses and focused on short term which gave Barclays bad reputation new CEOAnthony Jenkins focusing on a more Bur culture to try and restore companies image.
Apple-Innovative and an entre culture as well as theory Y steve jobs focused on innovation from staff in order for apple to become on of the key companies in the world. New CEO Tim cook has continued his culture.
Google- Entre culture, founders SErgey and Larry believe in theory Y and also believe in PErson culture as a means to improve and innovate the company.
Now all this was done within 3 hours today, so I would like feedback is it too basic do I need more companies? Any plus points? Feedback wil be hugely appreciated! I need an E to get a B overall and a B to get an A overall.
I am not expert in this but it looks great, i think you could include some more companies like:
Morrison (i noticed no one actually mentioned): has a yorkshire slow to react culture - a focus on good value shopping, which led to miss the two major trends, one is the online delivery and other one is the convenience store. as a result market share fell 12.4% to 11.8% in 2013. failed to responded to the external change (technological). now with a new leader and the removal of Morrison family members (as directors), it is moving to online (market development: Ansoff) and changing its bureaucratic culture to more innovation and enterprising.
Royal Mail: aim to become the best delivery and media business in the UK, employees are at the forefront of the change programme, increased investment in training and equipment, recruit the best personnel, spending on safety, promoting equal opportunity and diverse workforce, due to the transformation operating profit up from £152 million to £440 million. 13% increase in parcel business due to increase in sales of online shopping (external environment). had a four years of negative cahsflow. new CEO Moya Greene.
Hope it helps!
Anyone else think mergers or leadership could come up? Mergers was the research theme last year, so you never know!
Original post by Infamous12
Anyone else think mergers or leadership could come up? Mergers was the research theme last year, so you never know!
Do you know any business for merger and takeover? i only have one which is daimler and chrysler
Original post by MrBobb
Do you know any business for merger and takeover? i only have one which is daimler and chrysler
AOL and time warner was a big one that failed. Kraft & Cadbury is a good one aswell.
Original post by MrBobb
I am not expert in this but it looks great, i think you could include some more companies like:
Morrison (i noticed no one actually mentioned): has a yorkshire slow to react culture - a focus on good value shopping, which led to miss the two major trends, one is the online delivery and other one is the convenience store. as a result market share fell 12.4% to 11.8% in 2013. failed to responded to the external change (technological). now with a new leader and the removal of Morrison family members (as directors), it is moving to online (market development: Ansoff) and changing its bureaucratic culture to more innovation and enterprising.
Royal Mail: aim to become the best delivery and media business in the UK, employees are at the forefront of the change programme, increased investment in training and equipment, recruit the best personnel, spending on safety, promoting equal opportunity and diverse workforce, due to the transformation operating profit up from £152 million to £440 million. 13% increase in parcel business due to increase in sales of online shopping (external environment). had a four years of negative cahsflow. new CEO Moya Greene.
Hope it helps!
Morrison (i noticed no one actually mentioned): has a yorkshire slow to react culture - a focus on good value shopping, which led to miss the two major trends, one is the online delivery and other one is the convenience store. as a result market share fell 12.4% to 11.8% in 2013. failed to responded to the external change (technological). now with a new leader and the removal of Morrison family members (as directors), it is moving to online (market development: Ansoff) and changing its bureaucratic culture to more innovation and enterprising.
Royal Mail: aim to become the best delivery and media business in the UK, employees are at the forefront of the change programme, increased investment in training and equipment, recruit the best personnel, spending on safety, promoting equal opportunity and diverse workforce, due to the transformation operating profit up from £152 million to £440 million. 13% increase in parcel business due to increase in sales of online shopping (external environment). had a four years of negative cahsflow. new CEO Moya Greene.
Hope it helps!
Thank you ever so much! I will!
Original post by MrBobb
Do you know any business for merger and takeover? i only have one which is daimler and chrysler
BA and Iberia
Original post by Infamous12
AOL and time warner was a big one that failed. Kraft & Cadbury is a good one aswell.
How did AOL and time warner fail?
Original post by MrBobb
Do you know any business for merger and takeover? i only have one which is daimler and chrysler
Amazon's acquisition of Zappos is an example of one that worked. Both cultures and business models were kept intact
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