Internal Factors including Corporate Culture - UB

Question 1

What is corporate culture?

Answer 1

The values, belief and norms related to the organisation that is shared by all its members

Question 2

What is the benefits of Corporate Culture? (7)

Answer 2

• Employees feel they are part of, and belong to, the organisation
• It can motivate staff, which in turn will lead to improved efficiency and higher productivity
• It can create positive relationships within the organisation that will enable better communication and decision-making
• Employee loyalty can be increased, which will decrease staff turnover and staff absence rates
• The image and identity of the organisation can be improved, which will be visible to all stakeholders
• Customer loyalty might be higher because they associate with the identity (eg logos, uniform and store design) of the organisation. It may also be recognisable across the globe if it is a multinational organisation
• There will be consistency across the organisation which will allow employees to work in different locations or branches if necessary

Question 3

What factors need to be considered when it comes to corporate culture. (5)

Answer 3

• The visions and aims of the organisation
• The opinions and views of employees; consulting employees on matters will help to encourage good working relationships and improve motivation
• The designs of stores, logos and uniforms. This is because these are visible and promote the identity of the organisation, though can be expensive to design and then to implement
• How people (eg employees and other stakeholders) are made aware of the culture. This might involve holding events, which could be costly
• The policies and procedures that the organisation has. These lay down the expectation and behaviour expected and will have an impact on corporate culture

Question 4

What does typical corporate culture look like?

Answer 4

Everyone blocked off from each other sitting in little boxes on computers all day.

Question 5

What does Google’s corporate culture look like?

Answer 5

The floor is open for all employees to be free allowing creativity to flow.

Question 6

What are internal factors?

Answer 6

• Management
• Financial
• Existing Technology
• Employees

Question 7

What are the main internal factors?

Answer 7

• Financial
• Employees
• Management
• Existing Technology
• Corporate Culture
• Decision Making

Question 8

What is the min internal factor: Financial?

Answer 8

There might not be enough finance to make new purchases. This might mean that raw materials cannot be purchased and production stops. If production stops orders might be delayed and customers become unhappy. A lack of finance might also mean that objectives, eg growth, cannot be met.

Question 9

What is the internal factor: Employees?

Answer 9

• Employees might not have the correct skills or motivation required to carry out a task. If they don’t have the correct skills, the quality of their work might be poor, which results in a product of poor quality. Customers might be put off if a product is of poor quality
• If the motivation of employees is low (ie they don’t want to work as hard as they could), their productivity will be low and deadlines might be missed. Low motivation could also result in a higher absence rate.

Question 10

What is the internal factor: Management?

Answer 10

Managers might not have enough experience of skill in decision-making. This could result in poor decisions being made that impact upon the whole organisation, eg fewer sales

Question 11

What is the internal factor: Existing Technology?

Answer 11

• The technology that a business has might not be the best available or suitable to carry out certain tasks. If technology is out of date, the production process might not be as effective as it could be and machinery could break down.
• A lack of technology might also mean that a business cannot keep up with what their competitors are doing, eg if they are unable to e-commerce but their competitors are, then they might lose customers