Part 1.In this essay, I am going to discuss the corporate culture.
Corporate culture is a business’ particular culture image consists of its rituals, values, symbols, beliefs and ways of its daily operation(JC Hayton, G Cacciotti, 2013). The primary functions of corporate culture can define as following factors: guidance, restraint, cohesion, motivation, commissioning and radiation(JP Kotter and JL Heskett, 2008). I am going to focus on why is corporate culture essential, how can it help a business become better and how to build up positive corporate culture. I will list five key terms and relevant academic articles in Part 2 and 3 what I would use to research and summarise. After read through these data, I would present the research question in Part 4 and choose a company as an example to defend that question in Part 5.Part 2.There are five key terms I would use to research corporate culture, what are Corporate Culture, nature of corporate culture, how to build the corporate culture, connection between corporate culture and business and the advantages of corporate culture.
I would define corporate culture as a positive impact on the business. Therefore the definition, the nature and components of corporate culture, its advantages and its positive influence on the business will be the core issue which I am going to do the research and fill this essay.Part 3.JP Kotter and JL Heskett, (2008) ‘The power of culture’, Corporate culture and performance: 5-12.Kotter and Heskett outline the definition and natures of corporate culture and its main functions. They suggest that there are two levels of organizational culture, which ‘differ regarding their visibility and resistance to change'(JP Kotter and JL Heskett, 2008: 4). They discuss the different impacts of two conditions what less visibility and more visibility of corporate culture are.
But the research shows the influences are mostly positive for the development of the business. They highlight that corporate culture is one of four factors that shape managerial behaviour and discussed the power that corporate culture can make to shape the behaviour of a firm’s management.H Schwartz, SM Davis (1981), ‘Matching corporate culture and business strategy’, Organizational Dynamics. 10 (1) :30-48Schwartz and Davis focused on the link between the corporate culture with business strategic success and failure. In this article, authors set a lot of real examples to prove their point. For instance, they use a case-study of AT;T’s the largest organisational transformation in the history of U.S.
industry in 1978, to prove that the critical term which helps its strategy succeed is its ability of transform the corporate culture. Besides, authors based on Richard F. Vancil’s research, outlining that culture can reflect past works and suggest that ‘the primary influence on their behaviour is top-management behaviour’ (H Schwartz, SM Davis, 1981).Edgar H. and Schein (2009), ‘When and how to build up Your Culture’, The Corporate Culture Survival Guide. Pp77-102Edgar and Schlein suggest the methods of setting the corporate culture in a business. During the research of Procter and Gamble company, They analysis the main components of corporate culture and work through these factors respectively.
They suggest the most critical point of a culture is its value. If a business wants to build up its own corporate culture, it has to let their staff and customers identify with its value. The authors suggest that positive group activities and training can help staff to build corporate identity(Edgar and Schiein 2009).Jesper B. Sørensen (2002), ‘The Strength of Corporate Culture and the Reliability of Firm Performance’In this article, author analysis the impact of strong corporate culture can cause to the variability of business performance and what leads to this relationship. Jesper suggests this relationship depends on how cultures influence organisational learning in response to the change of external and internal situation. The author assumes that business with dominant corporate culture is good at incremental change.
Comparing with the performance that strong-culture business showing in the stable environment which is good, but not as good as the business in a turbulent environment. As a result of analyses of a variety of companies from different industries, strong-culture businesses have better and less variable performance, but the benefits will disappear in volatile environments (Armour, H. O., Teece, D. J., 1978).Jay B.
Barney (1986), Organizational Culture: Can It Be a Source of Sustained Competitive Advantage?In this article, the author discusses which the organizational culture can be a sort of sustained competitive advantage by analysing previous results of research. He summarised three attributes that the culture of a firm must have to make sustained competitive advantages are isolated. Therefore, these cultures are the foundation of sustained competitive advantages. The author also discusses the normative influences of the analysis. Businesses without required cultures cannot attend activities what can change their culture and produce sustained great financial performance because their modified cultures usually do not imperfectly copy or rare. Those businesses with their required cultures and attributes can acquire sustained great financial performance through their cultures (Jay B. Barney, 1986).
Part 4According to the research I have done so far, I will discuss the features of corporate culture by analysing a mature business and find out the function of that. Because as far as the researchers present, corporate cultures can generally make good effects to businesses, but the most valuable and challenging question for developing business is: what are the common features? Therefore in my research essay, I am going to discuss the characteristics of corporate culture and what is the function of it.Part 5In this part, I will choose Burger King as my object of study. As everyone knows, Burger King is the second biggest fast food chain in the world with its unique corporate culture, which is support high performance among workers. A business’ corporate culture is the set of traditions, values and habits that affect the behaviours of employees. Burger King’s unique corporate culture brings sustained competitive advantages to the business and support it to hit the industry leader – McDonald all the time. Burger King keeps staffs in line with its corporate culture to make sure they apply the unified method in exploding human resources.
This method can make sure that Burger King applies unified effort to leverages the synergy achievable and push firm performance globally.Burger King’s corporate culture focused on performance and attitude and providing a comfortable workplace plus making sure staffs obey rules. As the research shows, Burger King’s corporate culture have following main features: Accountable, Bold and empowered, Performance-driven and Meritocratic and fun (Burger King Corporation 2018). I would talk about these features separately by analysing the examples of Burger King.Accountable: The staffs of Burger King must be responsible for their behaviour. This feature of Burger King’s corporate culture guarantees staffs has certain autonomy while they are taking the result of their decisions and following rules (Burger King’s Code of Conduct 2018). Therefore, the corporate culture helps Burger King to keep the consistency of products and services.
Besides, it is also minimising mistakes in staffs’ actions (Cameron, K. S., ; Quinn, R. E. 2005).Bold and Empowered: The corporate culture of Burger King allows staffs achieve higher performance because this feature gives a certain degree of autonomy and flexibility to staffs. The different business structure has different levels of autonomy (Burger King’s organisational structure 2018).
As a result, corporate culture can keep the resilience required to maintain continued global growth.Performance-driven: The corporate culture of Burger King encourage staffs to keep high performance, this feature is fit with the business’ ‘policy of using performance-based appraisals (Burger King 2018)’. The staff of Burger King expect and understand that better performance can help with their career in the business in this way.Fun: This feature emphasises the morale of staff. A fun and enjoyable workplace can reduce staff turnover as well; this is a powerful effect on the business’ financial performance. Burger King tries to keep and attract qualified staffs. The business uses the fun character by methods of management while applying for incentives and benefits in the compensation system (Burger King’s Salary Regulations 2018).
The main advantage of the corporate culture of Burger King is its support of high performance which is emphasised by empowerment and meritocracy. The autonomy and empowerment are motivating features for high performance among staffs. The autonomy factor makes sure that under the condition of maintaining flexibility and autonomy, unnecessary costs and mistakes are minimised (Justin Y 2017).Part 6In this essay, I have chosen corporate culture as my topic and discussed its natures, functions, effects and features by analysing five authoritative articles and a mature business- Burger King. The general research announces that powerful corporate cultures can help business performance to improve by promoting internal consistency in enterprises. Generally, corporate culture is connected with internal consistency and enhance the business by affecting on that.Reference ListArmour, H.
O., Teece, D. J.: 1978 “Organization structure and economic performance: A test of the multidivisional hypothesis.” Bell Journal of Economics, 9: 106–122Available at:http://www.jstor.org/stable/3003615?origin=crossref[Accessed at 1978]Burger King https://www.
bk.com/franchising/why-BKCameron, K. S., ; Quinn, R. E. (2005). Diagnosing and changing organizational culture: Based on the competing values framework.
John Wiley ; Sons.Available at: https://www.researchgate.net/file.PostFileLoader.html[Accessed at:2005]H Schwartz, SM Davis (1981), ‘Matching corporate culture and business strategy’, Organizational Dynamics. 10 (1) :30-48Available at:https://www.
sciencedirect.com/science/article/pii/0090261681900103[Accessed at 1981]Jay B. Barney (1986), Organizational Culture: Can It Be a Source of Sustained Competitive Advantage?Available at:http://amr.aom.org/content/11/3/656.short[Accessed at 1986]Jesper B. Sørensen (2002), ‘The Strength of Corporate Culture and the Reliability of Firm Performance’Available at:http://journals.sagepub.com/doi/abs/10.2307/3094891[Accessed at 2002]JC Hayton, G Cacciotti, (2013) Entrepreneurship ; Regional Development, issue 9 – 10, Is there an entrepreneurial culture? A review of empirical research pp708-731.Available at:http://www.tandfonline.com/doi/full/10.1080/08985626.2013.862962?scroll=top;needAccess=true[Accessed 17 Dec 2013]