Corporate Culture

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Corporate Culture

• What is it?

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Elements of Corp. Culture

• Business Environment
• What is its market?
• Values
• Beliefs of the Co. which define success and
  establish standards
• Heroes
• Embody the cultures values
• Rites Rituals
• Systematic routines of day-to-day
• Exemplify expected behavior
• The Cultural Network
• How values are communicated through the company.
  How to understand whats really going on.

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Starbucks in Macau
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Starbucks in Macau
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Starbucks in Macau
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Starbucks1. Business Environment

• Starbucks purchases and roasts high-quality whole
  bean coffees and sells them along with fresh,
  rich-brewed, Italian style espresso beverages, a
  variety of pastries and confections, and
  coffee-related accessories and equipment --
  primarily through its company-operated retail
  stores.

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Starbucks - 2. Values

• Establish Starbucks as the premier purveyor of
  the finest coffee in the world while maintaining
  our uncompromising principles while we grow.
• The following six guiding principles will help us
  measure the appropriateness of our decisions1.
  Provide a great work environment and treat each
  other with respect and dignity.2. Embrace
  diversity as an essential component in the way we
  do business.3. Apply the highest standards of
  excellence to the purchasing, roasting and fresh
  delivery of our coffee.4. Develop
  enthusiastically satisfied customers all of the
  time.5. Contribute positively to our communities
  and our environment.6. Recognize that
  profitability is essential to our future success.

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Starbucks - 3. Heroes

• Howard Schultz
• Grew up in working-class Brooklyn.His father
  never made more than 20,000 a year and the
  family lived in government-subsidized housing,
  which gave Howard an intense drive to succeed. In
  his late 20s, working in sales for a company in
  New York City, Schultz visited a client firm
  called Starbucks, then a small Seattle purveyor
  of coffee beans. It was love at first sight. He's
  a man who lives via revelation, not analysis, and
  he follows up on each epiphany with unwavering
  conviction.

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McDonalds1. Business Environment

• It is one of the worlds most well-known and
  valuable brands and holds a leading share in the
  globally branded quick service restaurant segment
  of the informal eatin-out market in virtually
  every country in which we do business.
• Serves the world some of its favorite foods
  World Famous French Fries, Big Mac, Quarter
  Pounder, Chicken McNuggets, and Egg McMuffin

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McDonalds2. Values

• We're not just a hamburger company serving
  peoplewe're a people company serving
  hamburgers.
• For McDonald's to achieve our goal of being the
  world's best quick service restaurant experience,
  we must have the best experience for all
  McDonald's employees. So we formalized our
  beliefs into our People Vision and our People
  Promise.
• Our People Promise is how we remind our people
  what they can expect and how high our goal is To
  be the best employer in each community around the
  world.

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McDonalds2. Values (cond.)

• People Vision Defines what we strive to be as
  an employer.
• Simply put, we aspire to Be the Best Employer in
  EachCommunity Around the World.
• People Promise
• To the 1.5 million people who work at
  McDonald'sin 119 countries around the world, and
  to all futureemployees, we want you to know
  that
• We Value You, Your Growthand Your Contributions.

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• Our culture supports our vision
• 1. We Care We want to have lifelong
  relationships with our customers. We seek to
  understand, meet their needs, care about our
  employees, and are concerned about our
  environment
• 2. We Innovate We create, build and market
  innovative solutions constantly looking for new
  and innovative ways to work and new ways to spark
  new innovation
• 3. We uphold Quality we produce reliable
  products, but quality for us also encompasses the
  quality of the experience of using the product as
  part of a total solution that delivers lifestyle
  benefits.
• 4. We Celebrate Enjoyment We aim to bring
  enjoyment and pleasure to our customers as we
  celebrate the beauty we see in life.

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Corporate Culture

• System of Rewards
• Hiring Decisions
• Management Structures
• Risk Taking
• Physical Setting

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National Cultural Influences

• Asians place a high value on concepts associated
  with social harmony, while Westerners put greater
  emphasis on individuals rights and
  responsibilities.
• There is no escaping the fact that a national
  culture HELPS shape corporate responsibilities,
  practices, and traditions.

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Cause and Effect

• the type of organizational structure that has
  emerged across Asia is one of a very
  hierarchical, bureaucratic corporation that
  values such intangibles as respect for learning
  and honesty.

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Profitable Corp. Culture

• Does it have any measurable impact on a
  corporations bottom line or staff behavior?

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Strong Corporate Culture

• Clear sense of identity for staff
• Clarifies behavior
• Clarifies expectations
• Makes decision making fairly easy because so much
  is already defined

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Weak Corporate Culture

• Employees will vote with their feet
• Decisions are hard to make and wrong decisions
  are easily made

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Views of Success

• The main goal of any corporation is to be
  successful.
• How you define success will have an impact on how
  you organize your business and its culture.

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Cultural Differences

• China and America
• Is salary talked about?
• How do vertical relationships affect promotion?

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Geert Hofstedes Research

• A corporate/organizational level of culture is
  achieved according to the way employees have been
  socialized by their work organization.
• Power Distance
• Individualism
• Masculinity
• Uncertainty Avoidance
• Long Term Orientation

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Power Distance

• predicted upon
• geographical latitude
• population size
• nations wealth

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Individualism vs. Collectivism

• Individualist items
• Personal time
• Freedom
• Challenge

Collectivist items Training Physical
conditions Use of skills
High PDI Low PDI
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Masculinity vs. Feminity

• Statistics showed relationship between
  masculinity and age. Young men and women tend to
  be more masculine, wheras the older men and women
  tend to be more feminine.

Manager, Cooperation, living area, employment
security
Earnings, recognition, advancement, challenge
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Uncertainty Avoidance

• Relationship between the strength of uncertainty
  avoidance in a country and the maximum speeds
  allowed in freeway traffic in that country.

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Long Term Orientation

• Long term
• Persistence/perseverance
• Ordering relationships by status and observing
  this order
• Thrift
• Sense of shame
• Respect for traditions
• Short term
• Personal steadiness and stability
• Protecting your face
• Respect for tradition
• Reciprocation of greetings
• Favors gifts
• Adaptation of traditions to a modern context

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