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Corporate Culture What is it?.

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Presentation on theme: "Corporate Culture What is it?."— Presentation transcript:

1 Corporate Culture What is it?

2 Elements of Corp. Culture
Business Environment What is it’s market? Values Beliefs of the Co. which define success and establish standards Heroes Embody the culture’s 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 what’s really going on.


4 Starbucks in Macau

5 Starbucks in Macau

6 Starbucks in Macau

7 Starbucks 1. 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.

8 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 decisions: 1. 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.

9 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.

10 McDonalds 1. Business Environment
It is one of the world’s 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

11 McDonalds 2. Values We're not just a hamburger company serving people; we'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.

12 McDonalds 2. Values (cond.)
People Vision Defines what we strive to be as an employer. Simply put, we aspire to Be the Best Employer in Each Community Around the World. People Promise To the 1.5 million people who work at McDonald's in 119 countries around the world, and to all future employees, we want you to know that: We Value You, Your Growth and Your Contributions.

13 “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.

14 Corporate Culture System of Rewards Hiring Decisions
Management Structures Risk Taking Physical Setting

15 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.

16 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.”

17 Profitable Corp. Culture
Does it have any measurable impact on a corporation’s bottom line or staff behavior?

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

19 Weak Corporate Culture
Employees will “vote with their feet” Decisions are hard to make and wrong decisions are easily made

20 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.

21 Cultural Differences China and America Is salary talked about?
How do vertical relationships affect promotion?





26 Geert Hofstede’s 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

27 Power Distance predicted upon: geographical latitude population size
nation’s wealth


29 Individualism vs. Collectivism
Collectivist items: Training Physical conditions Use of skills Individualist items: Personal time Freedom Challenge High PDI Low PDI


31 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


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


35 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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