Workers at Yahoo enjoy a creative, relaxed and innovative culture. The wide open offices, informal structure and entrepreneurial lifestyle help to create a fun working environment.
With reference to Yahoo and/or different business you have studied to what extent will the culture with the business determine its capacity to maintain competitiveness? (40 marks) A lifestyle of a business is the value attitudes and beliefs in the people functioning an company that handles the way they interacted with each other and with external stakeholders organizations. I believe a powerful business tradition can help preserve a company competitiveness. As a business culture can easily act as a support for a organization brand graphic and reputation.
For example , Physique Shop a new distant ethical culture which in turn supported the company brand graphic and romantic relationship with customers. This provided the business a USP and helped all of them maintain its competition. However , when ever Body Store was absorbed by L’Oreal in 2006 (a company that may be known for applying animal assessment on their products), Body Shop like-for-like sale rose by simply 9. seven percent and now offer an additional 143 stores. This expansion provides therefore improved Body Store competitiveness. This suggests that the culture of a business does not affect its competitiveness alternatively the products themselves.
As Body system Shop transformed their tradition going against their brand image but managed to enhance their competitiveness. Even so, in the long term the change in Body system Shop traditions could have really an effect issues competitiveness as it becomes more integrated into L’Oreal business and consumers started to be aware of the takeover. In addition by having a culture that complements an enterprise working environment will help improve its competitiveness.
For example , Google come with an entrepreneurial lifestyle, this promotes staff to adopt risk and come up with new ideas. This enables Google to become innovative and competitive as they are consistently purchasing new business ventures. However , Ms uses a power culture this is when a business completely focus power amongst only a few persons, yet Microsoft company is still capable of maintain competitiveness.
This demonstrates that the lifestyle of a organization does not have an effect on its competitiveness. As Google and Ms have different cultures and compete inside the same industry yet both equally achieve similar levels of competition. This implies that other factors must affect a business competitiveness. Such as, the market condition, economic state and competitors.
Woolworth failed due to the downturn as this kind of overpowered the culture with the business. In addition, Innocent smoothies changed their very own ethical tradition in order to survive in the recession as the price of fruit reached a global high. In order to contend with Tropicana, Harmless took goods to McDonalds and allowed Coca Cola to buy a great 18% stake in their organization.
Innocent got very negative publicity just for this and forecasted sale expansion for 2012 reduced from 35% to 25%. Even with Harmless change of culture that did not enhance the business competiveness. This implies that the tradition of a business does not actually affect a small business competiveness alternatively the economy they are in. Because the better the economy the more potential a company has to produce profit hence improving all their competitiveness. To conclude, I believe the culture of any business helps maintain competition.
A strong corporate and business culture can assist improve staff productivities and morals because understand a particular standard of is exceptive. Improving a company culture and employees encounter at work is going to in turn increase a business profitability and competition. In addition with a tradition that matches your business company image can enhance that USP letting it be more competitiveness as it outstanding to customers as exclusive.
Nevertheless, lifestyle cannot exclusively determine it is ability to maintain competitiveness a small business has to consider external factors too. Like the market state, economic condition and opponents. Many businesses have never been able being competitive or perhaps survive inside the recent downturn such as, Woolworth and HMV as they weren’t getting enough sales to protect their cost.
In addition stores like Environment were not in a position to compete with more affordable competitors just like IKEA forcing them into liquidation. This kind of shows that a business culture will not in isolation determine this ablity to take care of competitive.