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    Just wondering what the points against would be with this question "Can an innovative culture be relied upon for future success" I could only thinks of workforce reacting apprehensively (mgregors theory x where employees are not motivated by extra responsibility), competition using a similar culture, the risk involved in innovation (ansoffs matrix an all that) and the cost of implementing such a culture in terms of research and development.
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    (Original post by yaboy)
    Just wondering what the points against would be with this question "Can an innovative culture be relied upon for future success" I could only thinks of workforce reacting apprehensively (mgregors theory x where employees are not motivated by extra responsibility), competition using a similar culture, the risk involved in innovation (ansoffs matrix an all that) and the cost of implementing such a culture in terms of research and development.
    From companies I've been looking at, Apple have been hugely successful thanks to maintaining their innovative culture, as has Google. Microsoft however have gone downhill of late as their innovative culture has begun to lessen. As you said, mgregor's theory x is a good point to make, but our teacher says to just include it a little bit in questions without focusing on it for marks.
    A point against might be that you could maintain an innovative culture but if it's not based on research it won't be a success, though I know that sort of speaks for itself...
    Honestly I'm finding questions for Buss4 much harder to answer than Buss3, I think mostly because there's so much information about businesses to learn and remember to put in to each answer!
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    (Original post by CharlieTT)
    • Factors influencing the Culture of an organisation.

      Factor 1 - Leadership
      Culture is more often than not derived from the leader of an organisation. According to Handy, Power Culture tends to suit an Autocratic Leadership style, Role culture is suited towards Autocratic or paternalistic leadership, Task Culture lends itself to Paternalistic or democratic leadership style and Person culture tends to suit a Democratic leadership style.
      Steve Jobbs for example had an autocratic leadership style and Apple operates under a power culture (With those in the Apple Top 100 enjoying benefits).

      Factor 2 - Ownership
      Ownership is a factor that affects culture. For example if its a PLC or LTD. PLCs tend to focus (According to Hofstede) on short-termism which is derived from profit and pleasing its shareholders. Whereas LTDs are suited more to Long-termism. Tesco is a Plc that dominates the grocery market, however its short term stint in the USA with Fresh n' Easy will damage its long term profits due to the massive cost of 300 stores with none turning a profit. JCB however is an LTD, thats long term view recently saw it breaking even after 15 years.

      Factor 3 - Market Size/Growth/Structure
      The market size, growth and structure can also affect culture. A business in a market with low size but high growth may have an entrepreneurial culture, wheras one with large size and low growth might have a high uncertainty avoidance as to not lose its foothold in the market. The market for baked beans has been stagnant for 20 years so companies like Heinz would have a high uncertainty avoidance, sticking to what they know to maintain their market share.

      Factor 4 - Past Recruitment Policies
      Past recruitment policies can affect cultuere too. A monochromatic recruitment culture (where most people hired are the same) may have a culture of collectivism due to a lack of individuality. Whereas polychromatic recruitment culture may have a culture of individualism. Google has a very open, passive culture that encourages collectivism, and in each of its main offices the type of people tends to be very monochrome.

      Factor 5 - External Factors
      There are many External Factors that can affect culture. For example economic factors may cause a change to a business' uncertainty avoidance and masculinity/femininity. Wider cultures (Multi-business cultures) can also be affected such as the libor fixing scandal that affected all banks.
    • Impact of Organisational Culture on Strategy and Performance

      Impact of Culture on Strategy
      +Apple has an innovative culture driven by success.
      +Waitrose/John Lewis have employees that maintain the strategy of good customer service.
      -Morrisons have a culture of good value which misses the strategy of convenience. Their market share is slipping due to home delivery.
      -Metropoliton Police have a culture of collectivism which blinds them from the correct strategy.

      Impact of Culture on Performance
      +Pepsi had an individualistic culture and was rated as one of Britain's top Employers.
      -Apple recruited the boss of Dixons to head retail but his short-term focus did not match the long-term focus of Apple and cause their retail sector to fall short.
      -GAME/Gamestation holds a monopoly on high street video game retailers, and have a general anti-customer culture.
    • Reasons for Changes in Organisational Culture

      Why would an organisation change its culture?

      An organisation may want to change its culture due to internal reasons.
      Such as: Poor performance, Market Conditions, New Leadership (For example Apple's change in leader from Steve Jobs to John Sculley then back to Steve Jobs.), Change of Sector between Public and Private sector (Royal Mail.), Corporate Objectives, Organic Growth and New Ownership (For example Innocent being bought by Coca Cola)

      An organisation may also want to change its culture due to external reasons.
      Such as: Economic change (Boom to Recession in the period of 2007-2009), Change in Competition (Apple and Samsung) and Global Culture (Tesco in America).

      The main circumstances for Change however tend to be when there is a Business turnaround, in which a decline leads to a crunch point which has been noticed in companies such as Woolworths and Sony, and a New Opportunity presenting itself to the business such as Jaguar-Land Rover being bought by Tata.
    • Ways of Changing Organisational Culture

      Ways of Changing Culture
      Cultural change comes from actions not words. Such as sacking senior staff members, promoting younger staff, getting all Board Members to spend a week on the shopfloor to understand the position of a standard supervisor and making a fundamental change to recruitment or promotion policies.

      Ways of Trying to change culture
      Trying to change culture is often watered down, which means that culture may not enter changing at all. It tends to come from words as opposed to actions.
    • Problems of Changing Organisation Culture

      The Problems of Changing culture depend on the strength of the culture, the type of the culture, the reason for change and the habits of employees.

      Resistance of change can be caused by Lack of Trust, Fear of change and Impact on self.


    I'm going to try and update the 2nd, 4th and 5th Bullet Points because I'm not that happy with the notes I did on them.
    You, sir, deserve a medal. Thank you so much for these notes!
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    (Original post by snowster)
    From companies I've been looking at, Apple have been hugely successful thanks to maintaining their innovative culture, as has Google. Microsoft however have gone downhill of late as their innovative culture has begun to lessen. As you said, mgregor's theory x is a good point to make, but our teacher says to just include it a little bit in questions without focusing on it for marks.
    A point against might be that you could maintain an innovative culture but if it's not based on research it won't be a success, though I know that sort of speaks for itself...
    Honestly I'm finding questions for Buss4 much harder to answer than Buss3, I think mostly because there's so much information about businesses to learn and remember to put in to each answer!
    I knew what I was doing with unit 3, with this exam I cannot think of examples to answer every question with, Most of the time Im using my knowledge of information from 3 years ago to answer some of these questions tbh. As for the theory thing I only include it in my answer so it literally takes up about 4 words in my whole paragraph lol I just wanna include it to hope I scrape a mark here and there. I wondering how many marks I'll need to get 69 ums.
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    I'm really struggling with the evaluation points on the 3rd bullet point (reasons for change)

    I've talked about how firms would change their culture in order to remain competitive, to restore their image and to comply with new regulations.

    With my evaluation I've only prioritised and said which is the most significant reason and why.

    Can't think of anything else.
    Anyone has any ideas?
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    (Original post by dan94adibi)
    I'm really struggling with the evaluation points on the 3rd bullet point (reasons for change)

    I've talked about how firms would change their culture in order to remain competitive, to restore their image and to comply with new regulations.

    With my evaluation I've only prioritised and said which is the most significant reason and why.

    Can't think of anything else.
    Anyone has any ideas?
    So you'll want to follow the basic AIM formula in evaluation paragraphs.

    A - Answer/Address. You answer the question at hand. Say which you think is the most significant reason and why. You've already done this which is good.

    I - It Depends. You discuss what the overall issue depends upon. So you expand on your Answer and come up with a few issues that the reason depends on, explaining with examples preferably.

    M - Most Important. Pinpoint the most important issue when considering your conclusion and explain why it's important.
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    We've done bullet point 4 but didn't go into illegal companies culture that much, does anyone have any info on this?

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    Hey guys:


    Here is my answer for the third bullet point:



    Organisational culture can be define as the beliefs and behaviors that determines’ how a company's employees and management interact and handle outside business transactions or in other word “how things are done around here”. There are different types of cultures that exist. Perhaps the most famous of all is Harrison’s classification in 1972. He defined a four-quadrant model based on centralization and formalization. These quadrants were filled in with role, task, power and person culture.
    A key role of an organisational culture is to differentiate an organisation from others and to provide a sense of identity for its members.

    The corporate culture can change due to a new owner taking over. Different owners have their own philosophy and therefore they may implement their philosophy on the firm and have an affect on the culture, however new owners does not necessarily leads to change in culture of the firm because its difficult a procedure to integrate. New owners are not the only reason for a change in culture. There maybe external influences such as changes in market condition, new legislation or to restore public image.

    Failing to see the need to change in light of increasing competition can sometimes be down to arrogance, which stems from past previous success and this appears to be the problem with Nokia. Pre-2000 Nokia were at their prime rolling out masterpiece after masterpiece and their only competition was Motorola. Nokia was known for having a role culture, bureaucratic firm where authority is defined by job roles, this was perhaps the reason for the downfall of Nokia. They were to slow to respond in a fast paced technological environment. A few years before Apple released the first iPhone Nokia were presenting an Internet-ready, touch-screen handset with a large display in Finland to its business customers at Nokia’s headquarters. However managers rejected the idea as it seemed too risky and it was tagged as a “flop”.
    Even few years later in 2004 the idea of a Nokia online application store was rejected and 3 years later Apple adopted this technology.
    As a result of their poor corporate culture Nokia’s market share fell from 35% in 2002 as opposed to 6.4% in 2012.
    However with the appointment of a new CEO, Stephen Elop, Nokia started changing its culture. At first Stephen Elop described Nokia as a “burning platform”. He brought in changes, in 2011 he announced a deal with Microsoft to rebuild Nokia’s business using windows smart phones. However sales have been very slow due to heavy competition from Apple and Samsung and this has meant that in at least the short run Nokia has adopted a cost-focused culture to compete effectively. They have cut down ten of thousand of jobs and factories closed. Mr. Elop said that the ground lost to Apple will take some years to be recovered but some say that it may be too late for Nokia!

    A very similar story is Kodak. In the 1990s Kodak owned nearly 90% of the film and camera market, but ignored a new rival, Fuji and whilst at the same time failed to take on board the digital age. These two mistakes proved to be costly in terms of brand recognition and sales revenue. The only differences between the Nokia story and the Kodak story is perhaps that Kodak was only facing competition from Fuji, whilst Nokia was under pressure from Apple, Samsung, HTC and BlackBerry. Clearly Kodak needed a more externally focused culture such as the market culture. This is a type of culture where firms function like a market. They have a clear purpose and adopt an aggressive strategy lead to productivity and profitability. As part of a turnaround strategy, Kodak focused on digital photography and digital printing and attempted to generate revenues through aggressive patent litigation. However Kodak announced bankruptcy and had to sell its intellectual property to raise funds and emerge from bankruptcy.
    Reputation is the way stakeholders view an organisation. Building a good reputation is an expensive and time-consuming activity and hence it can only be achieved in the long run. Reputation is often explained as the firm’s most important asset as it has a major influence on their turnover and ultimately their level of profit. A good image can give a business a great competitive advantage in the market place and it can allow a firm to charge premium prices, hence firms try and maintain or restore their image through changing their culture.

    One prime example is Starbucks. They have been accused of not paying any corporation tax in the UK during the last three years despite the fact that senior management have announced their project to be profitable in the UK. This has damaged its image entirely. Its “buzz” score, which measures the number of negative and positive comments customers have heard, hit -16.7. This is slightly higher than the lowest level it hit during the most heated point of the controversy last month, at -28.6. A year ago its rating was at +3.1.
    As a result of its damaged reputation Costa saw its like for like sales rise by 7.1% during this controversy. As a result Starbucks has had to make new core values for itself and it agreed to pay £10m in corporation tax in 2012.

    Barclays also damaged their image by getting involved in an interest rate fixing scandal and miss-selling of payment protection insurance. As a result Financial Service Authority has fined the bank £290m. In order to clear up its image Antony Jenkins was brought in to replace Bob Diamond who was forced out by the LIBOR fixing scandal.
    Antony Jenkins introduced a ‘Transform Programme”, where he cited the 5 new core value for business: Respect, Integrity, Service, Excellence and Stewardship.

    Another reason for a change in organizational culture is to comply with new legislations and regulations. Legislations and regulations are intended to protect those with weak bargaining power. Its main purpose is to reduce the possibility of a firm exploiting its customers or its employees through unfair practices. Although the implementations of these legislations are extra costs to the firm, however it could be used to build a strong reputation.
    Some legislation and regulations have forced firms to endorse socially responsible values in their reports and adopt a more socially responsible culture.

    The competition commission following any investigation in to unfair competition may lead to investigation businesses having to adopt their culture in order to comply with the commission’s instructions. In march 2009; the commission ruled that BAA must sell off both Gatwick and Stansted and either Edinburgh or Glasgow airport. The commission wanted to reduce BBA’s power and alleviate the lack of competition between airports. As a result of these changes in ownership there was a change in culture, with a great emphasis on the customer as a result of the increased competition. Gatwick for example, became much more consumer orientated and placed great emphasis on the reduction of queuing at security and passport control.

    In contrast firms can now use external assistance in order to comply with new regulation or legislations. In order to ensure compliance with environmental legislations more firms are carrying out environmental audits to assess their performance with regards to pollution. Environmental audit are an independent check of a firm’s polluting activities, such as emissions, wastage level and recycling. They set environmental goals for the firm and the monitor and evaluate the performance of the firm. Many firm have also written environmental policy statement to encourage environmental responsibility amongst employees. This can be linked to Herzberg’s motivating factors.

    On balance there are different number of factors which maybe the reasons for a change in culture, however the most important factor I believe is the fact that firms will want to remain competitive in the market hence they will have to change culture. This was evident with both Kodak and Nokia as they were both losing grounds to their competitors.
    Although most of the times it’s a mixture of reasons and not particularly a single reason that causes a change in culture. For instance, with Barclays, there was the negative publicity arising from mis-selling of PPI and LIBOR scandal. David Buik, a City commentator, on Antony Jenkins plans to change the organizational culture says that: “He has to do this for three reasons. Firstly, when he took over he said he would. Secondly, he’s employed the most expensive compliance officer in the City. Thirdly, he wanted to steal a march on the other banks. While they’re fighting fires of their own, Barclays wants to be seen to be stepping up”.

    What do you guys think? Give me some tips and give me an approximation of what marks I would be getting. Cheers!
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    I have been told to write 2 arguments FOR and 2 arguments AGAINST, which is fine for some questions as they are a statement like 'Will good CSR inevitably lead to higher profits?'.

    But what about questions like 'What are the influences that can affect the culture of an organisation?' - here you can't put two arguments against, so is it best to write 3 in depth paragraphs?
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    (Original post by CharlieTT)
    Here's my notes on bullet point one:

    Factor 1 - Leadership
    Culture is more often than not derived from the leader of an organisation. According to Handy, Power Culture tends to suit an Autocratic Leadership style, Role culture is suited towards Autocratic or paternalistic leadership, Task Culture lends itself to Paternalistic or democratic leadership style and Person culture tends to suit a Democratic leadership style.
    Steve Jobbs for example had an autocratic leadership style and Apple operates under a power culture (With those in the Apple Top 100 enjoying benefits).

    Factor 2 - Ownership
    Ownership is a factor that affects culture. For example if its a PLC or LTD. PLCs tend to focus (According to Hofstede) on short-termism which is derived from profit and pleasing its shareholders. Whereas LTDs are suited more to Long-termism. Tesco is a Plc that dominates the grocery market, however its short term stint in the USA with Fresh n' Easy will damage its long term profits due to the massive cost of 300 stores with none turning a profit. JCB however is an LTD, thats long term view recently saw it breaking even after 15 years.

    Factor 3 - Market Size/Growth/Structure
    The market size, growth and structure can also affect culture. A business in a market with low size but high growth may have an entrepreneurial culture, wheras one with large size and low growth might have a high uncertainty avoidance as to not lose its foothold in the market. The market for baked beans has been stagnant for 20 years so companies like Heinz would have a high uncertainty avoidance, sticking to what they know to maintain their market share.

    Factor 4 - Past Recruitment Policies
    Past recruitment policies can affect cultuere too. A monochromatic recruitment culture (where most people hired are the same) may have a culture of collectivism due to a lack of individuality. Whereas polychromatic recruitment culture may have a culture of individualism. Google has a very open, passive culture that encourages collectivism, and in each of its main offices the type of people tends to be very monochrome.

    Factor 5 - External Factors
    There are many External Factors that can affect culture. For example economic factors may cause a change to a business' uncertainty avoidance and masculinity/femininity. Wider cultures (Multi-business cultures) can also be affected such as the libor fixing scandal that affected all banks.


    I'll write the rest up later, its kinda hard on a phone.

    Posted from TSR Mobile
    Hey, don't wanna be a nag but any chance you could upload some more of your notes found these really helpful - thanks
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    Okay, this is probably the most basic question I can ask but oh well! Could somebody please give me a set definition for 'Organisation Culture?! I just cant get my head around what culture ACTUALLY is all about!
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    Guys, what topics are you researching for section B? I literally have no idea what/how much research is needed for this section....
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    (Original post by aki round)
    Okay, this is probably the most basic question I can ask but oh well! Could somebody please give me a set definition for 'Organisation Culture?! I just cant get my head around what culture ACTUALLY is all about!
    A set of norms, attitudes, values, beliefs and assumptions shared by members (or the majority) within an organisation, that influence the way they perceive, think, feel and behave, and which give each organisation a distinctive character.

    That's the definition given in the bullet point info. It's long-winded but when you think about it, it's not that hard to remember
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    (Original post by dan94adibi)
    Hey guys:


    Here is my answer for the third bullet point:
    x.
    Im just wondering, are you literally gonna try remember every single one of those points in your head and in the test apply the ones you need to the question we get?

    Because there is no way I could ever write that much in the test. Wondering what did you get first time, because that looks like some very good work
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    (Original post by aki round)
    Okay, this is probably the most basic question I can ask but oh well! Could somebody please give me a set definition for 'Organisation Culture?! I just cant get my head around what culture ACTUALLY is all about!
    "Organisational Culture shall be defined as a set of shared values, assumptions and beliefs tat are learnt through membership in a group, and that influence the attitudes and behaviours of group members." - Geert Hofstede.

    You'll want to use that definition in the exam for extra brownie points considering it's by Hofstede.
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    I might try and use the P.E.E structure because its simple and mirrors the marking scheme

    Point- One reason why i think.....
    Example- Use your relevant research here (application marks)
    Explain- Business theory to back up your point. (analysis marks)

    Then, maybe evaluate what you have said after each paragraph.

    Is this a good structure to get you the higher marks?
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    (Original post by Infamous12)
    I might try and use the P.E.E structure because its simple and mirrors the marking scheme

    Point- One reason why i think.....
    Example- Use your relevant research here (application marks)
    Explain- Business theory to back up your point. (analysis marks)

    Then, maybe evaluate what you have said after each paragraph.

    Is this a good structure to get you the higher marks?
    pretty much what I do but when you talk about the explaining bit, ill use business knowledge and talk about stuff like motivation, efficency, kaizan, profit w/e is relevant to go into detail about how it basically is successful or not as my analysis. Its basically the same structure I used for unit 3 and 2 but I never use to evaluate the paragraphs at the end which ive started doing.
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    (Original post by yaboy)
    pretty much what I do but when you talk about the explaining bit, ill use business knowledge and talk about stuff like motivation, efficency, kaizan, profit w/e is relevant as my analysis. Its basically the same structure I used for unit 3 and 2 but I never use to evaluate the paragraphs at the end which ive started doing.
    Yeah, im retaking unit 3 in june, with unit 4. Its not so much the content that is difficult, but my exam technique is what is letting me down.
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    (Original post by Infamous12)
    Yeah, im retaking unit 3 in june, with unit 4. Its not so much the content that is difficult, but my exam technique is what is letting me down.
    yeh fel the same way tbh because with this one past papers feel useless because each exam is based on the pre release. Would love to pay some 500quid just get me bloody 69ums.
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    (Original post by yaboy)
    yeh fel the same way tbh because with this one past papers feel useless because each exam is based on the pre release. Would love to pay some 500quid just get me bloody 69ums.
    haha the worst part is the wait for results day, all the way until august!
 
 
 
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