Corporate Culture and its Influence

This assignment delves into the significance of corporate culture within organizations. It examines how different cultural dimensions influence factors such as innovation, consumer-brand relationships, investment decisions, and employee satisfaction. The provided research papers offer insights into the multifaceted nature of corporate culture and its implications for businesses.

Running head: CORPORATE OR ORGANIZATIONAL CULTURE
Corporate or Organizational Culture
Name of the Student:
Name of the University:
Author’s note:

1CORPORATE OR ORGANISATIONAL CULTURE
Executive Summary
This report focusses on organisational culture of Woolworths. It is seen that the company’s
corporate culture is one of the dominant drivers of company’s success. A good corporate culture
also helps the business firm to retain the advantageous position in the retail sector of Australia. A
brief overview of the respective company is discussed in this particular study. It has been noticed
that this company mainly sells vegetables. However, it also sells other goods like DVDs,
magazines, beauty products and pet supplies. It has been noticed that a work-friendly
environment is being provided to the skilled employees working at Woolworths. Integrity and
transparency is maintained throughout the work culture of Woolworths. It is seen that consumer-
driven approach has been followed in the working procedures of this multinational retailer of
Australia. In order to sustain its comparative edge in the market, this company seems to have
prioritized its goals and objectives. Expansion of drinks business is one of its aim. Establishing a
store-led culture is its another objective. It aims to become the lean retailing firm via end-to-end
processes as well as system excellence. It has been observed that efficient employees receive
rewards like retirement funding as well as educational assistance from this particular business
organization. Not only this, funeral cover, guaranteed pay, variable pay, healthcare, annual CEO
awards and discounts are the other rewards which are given by Woolworths to its efficient
employees. In addition to this, disability benefits are provided to people with disabilities. It
examines the various factors responsible for impacting the organisational culture is discussed in
this specific study. Different factors such as mentality as well as interests of people,
management style as well as leadership style. nature of business and mission along with vision
creates an effect on organisational culture. This report focusses on the role of organisational
culture on the company’s success and corporate culture of Woolworth are discussed in this
particular study. Apart from this, different issues faced by work culture of this company are

2CORPORATE OR ORGANISATIONAL CULTURE
covered in this specific study. Communication issues, absence of leadership and absence of
management are the issues that are faced by this multinational company of Australia. This study
sheds light on various strategies such as free snacks , free gym memberships, adoption of
participative style of leadership that will resolve the current problems faced by Woolworth.
Therefore, it can be concluded that a good organisational cultural determines the success of the
companies.

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Table of Contents
Introduction......................................................................................................................................2
Background of Woolworths.............................................................................................................2
Corporate culture of Woolworths....................................................................................................2
Factors influencing corporate culture..............................................................................................3
Impact of corporate culture on organizational success....................................................................5
Issues of Organisational Culture......................................................................................................6
Ways of improving corporate culture..............................................................................................7
Conclusion.......................................................................................................................................8
References......................................................................................................................................10

4CORPORATE OR ORGANISATIONAL CULTURE
Introduction
In accordance with Hickman and Silva (2018), Corporate culture can be described as a
culture which emphasizes on the values as well as attitudes, which characterizes the business
firm. It has been observed that an internal culture of the business firm is expressed in its vision as
well as mission statement. From the perspective of Jiang et al. (2017), A good corporate culture
is one of the key determinants of a company’s success. In the opinion of Zoghbi-Manrique-de-
Lara and Ting-Ding, 2016), the main purpose for building a good corporate culture is to
strengthen the relationship between the managers, executives and employees so that business
goals can be achieved by the employees. A good work culture will help the skilled professionals
to give their best input in their organization. It has been observed that a strong corporate culture
in a company motivates the skilled professionals to deliver their best performance within the
organizational workflow. Davidson, Dey and Smith (2015) commented that this approach of the
workforce aids the business firm to fulfill the targeted objectives in order to sustain its
comparative edge. This study focusses on the corporate culture or organizational culture of
Woolworths. It has been noticed that a brief overview of the respective business organization has
been covered in this particular study. This study also focuses on corporate culture of
Woolworths. In addition to this, various factors impacting the corporate culture of the respective
company are highlighted in this particular study. Apart from this, the impact of corporate culture
on organizational success are covered in this specific study. In addition to this, various ways for
enhancing the corporate culture of the respective business firm are explained in this specific
study.

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Background of Woolworths
Woolworths Supermarket is a supermarket chain of Australia. It is a subsidiary company
of Woolworths Limited. This company was established in 1924. The headquarter of this retail
company is situated at Bella Vista, South Wales. This organization mainly sells items like
vegetables, meat, packaged fruits and meats (Woolworths.com.au 2018). However, it sells
DVDs, magazines, household items and health as well as beauty items. Apart from this, pet as
well as baby supplies, stationary items are sold by this company in the retail sector of Australia.
Presently, it conducts its business at 1000 outlets in the existing retail market of Australia. About
1,11, 000 skilled proffessionals work at this company. In 2015, approximately AUD 43 billion
revenue has been earned by Woolworths Supermarket (Woolworths.com.au. 2018).
Corporate culture of Woolworths
It has been observed that the company will be diligent and maintain dignity throughout
the working procedures. The management of Woolworths believes in following a down-to-earth
culture within its working environment. It has been observed that it offers friendly and positive
atmosphere to its workforce (Sovacool. and Enevoldsen, 2015). It has been observed that the
authorities working at this particular organization undertakes a customer-driven approach in
order to provide a healthy life and simple life to its existing users and buyers of Australian retail
market (Stone and Joseph, 2015). Transparency in business dealings is being maintained by
Woolworths in its workflow. In addition to this, company tries their best to fulfill the
expectations of manufacturers, clients, suppliers, and team members. It is seen that this
organization has strengthened its relationship with its supplier groups, which reveals the fact that
they can offer their products timely to their customers (Zoghbi-Manrique-de-Lara and Ting-
Ding, 2016).

6CORPORATE OR ORGANISATIONAL CULTURE
This company aims to cater and fulfil the expectations of their customers. Therefore, they
have already set their priorities, which is aligned with their strategic goals. Its first priority is to
establish a store-led culture as well as team within its workflow. The second goal is to generating
a durable sales momentum in the foods. The third priority is to expand its drink business by
making it more convenient to its users and buyers. Woolworths aims to become the lean retailer
via end-to-end procedures along with system excellence (Dempsey, 2015). Rewards and
recognition plays a vital role in enhancing the corporate image of Woolworths. In this particular
company, top performers receive certain benefits such as retirement funding and educational
assistance. Efficient working professionals can avail benefits like discounts, healthcare and
funeral cover. It is seen that employees with disabilities receives disability benefits. Apart from
this, guaranteed pay and variable pay are given by the management to its employees. Annual
CEO awards are given to efficient workforce and teams of Woolworths (Guckian et al. 2018).
Factors influencing corporate culture
Various factors directly impact on the corporate culture of any business firm. According
to Carlos Pinho et al.(2014), the people working at a company is considered as an important
factor, which creates a direct impact on the company. From the perspective of Guiso Sapienza
and Zingales (2015), mentality and interests of the individuals affects the corporate culture of a
business firm. In addition to this, attitudes, perceptions as well as thought process also creates an
impact on the organizational culture. As for example, if a company recruiting skilled
professionals with an army background, then it has been observed that such individuals have a
tendency to adhere to a strict culture within the working environment of the company. In other
words, these employees usually follow all the rules and regulations of company’s policies as well
as guidelines.

7CORPORATE OR ORGANISATIONAL CULTURE
It has been observed that the mission and the vision of the company is considered as one
of the components, which influences on the corporate culture of an organization like
Woolworths. In the opinion of Strese et al. (2016), strategies as well as processes that are
designed by the organizational management contributes to the corporate culture. As for example,
event management business organization always look for workforce who are aggressive, and
hyper active by nature (Fiordelisi and Ricci, 2014).
In accordance with Borodai (2017), the nature of the business also creates an impact on
the corporate culture of the respective company. It has been observed that the aim, market along
with business operations determines the corporate culture of a business firm. The nature of the
business operations also depends on the external environment. In this context, it can be stated
that stock broking business organizations, financial service along with banks depends on
different factors such as demand and supply, earning per share along with market cap (Iglesias
and Saleem,2015). Therefore, this termination of so many employees will create a negative
impact on the corporate culture of the respective company (Stone and Joseph, 2015).
.In other words, if market fluctuates, employees sometimes feel demotivated towards
their work, which leads to low productivity of the company. As opined by Groysberg et al.
( 2018), customers along with external parties are also responsible for creating an impact on
organizational culture. It is mandatory for the employees to match the work-timing as per the
convenience of the clients. Moreover, it is seen that business firms like Woolworths dealing
with UK as well as US clients have to work at night shifts because usually these clients are
available at night. In this context, it can be stated that the employees working at these companies
have to match their work time in order to mitigate the requirements of such international clients.

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From the perspective of Korsakova et al. (2016), management style along with leadership
style influences the organisational culture. It should be noted that there are some business firms
which emphasizes on participative leadership. Under participative style of leadership every
employee can take part in the decision-making process. As a result, these employees shares a
strong relationship with the managers of these firms. Good leadership and effective management
style can help the company to form a strong organizational culture. For instance, Howard
Schultz, ex-CEO of Starbucks is a good leader. Every individual is treated with equal dignity as
well as respect under his leadership.
Impact of corporate culture on organizational success
Success of an organization is dependent on its corporate culture. Corporate cultures can
be assessing on the basis of substance, strength as well as adaptability. It should be noted that a
good corporate culture is formed in alignment with the missions and vision of the respective
company. Korsakova et al. (2016) commented that company’s corporate culture should have set
its priorities, in order to meet the targeted objectives of the business organizations. For instance,
the mission statement of Google is ‘Don’t’ be evil (Entrepreneur.com 2018).’ This statement
clearly indicates that its goal is to do ‘good’ for customers. On the other hand, the employees
should always strive for delivering their best performance within the working environment of the
company. The mission statement of Facebook is to connect individuals all across the globe. This
shows that it becomes easier for the company with a good corporate culture to achieve its
targeted business objectives in order to retain in the advantageous position in the market. Every
company seeks for hiring talented individuals. As a result, these companies post job
advertisements, recruits professional recruiters in order to recruit talented employees for their
organisations. Moreover, Clarke (2018) commented that talented individuals also search for

9CORPORATE OR ORGANISATIONAL CULTURE
companies cu a strong organizational culture where they will receive rewards and recognition for
their good performance. As for example, employees enjoy working at Tesco because they get an
opportunity to actively participate in recreational activities and they can opt for team outings.
They receive promotions and salary hike for their good performance (Tescocontrols.com 2018).
In addition to this, the culture of company can be termed as good culture if the company
succeeds in retaining its skilled professionals for a long time(Woolworths.com.au. 2018).
Stronger the culture, lesser the tendency of the workers to resign from the respective company.
Therefore, Dempsey (2015) commented that it is the responsibility of the management to inspire
the employees through offering rewards, appraisal and growth opportunities. As commented by
Carlos Pinho et al. (2014), the company need to allow its employees to share their innovative
ideas without any hesitation. As a result, employees delivers better performance. In this regard, it
can be stated that encouraging passion and interests of the employees is the primary
responsibility of the managers in order to build a strong corporate culture of the company. Strong
brand identity is required for establishing a good corporate culture.
Issues of Organisational Culture
In accordance with Stone and Joseph (2015), communication issues is the most important
issues that are faced by companies. Sharing information in all department becomes difficult for
the companies like Woolworth, that leads to miscommunication between its employees and
managers . Besides, constant reinforcement of organisational values, beliefs as well as ethics is
required in order to maintain a healthy atmosphere within the work culture of the company. In
this context, it can be stated that sometimes lack of leadership often leads to non-reinforcement
of organisational values, beliefs and ethics. In other words, mismanagement often leads to non-
reinforcement of these values and beliefs thereby setting an instance of poor corporate culture in

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business organizations such as Woolworths (Groysberg et al. 2018). It has been observed that
Woolworths was compelled to shut down atleast 30 stores and the management has curtailed
employment of 500 staffs. It is seen that workplace culture is very strict as well as rigid in
Woolworths. Therefore, employees are not allowed to take part in decision-making process. In
this context, it can be stated that workplace issues are hampering the overall productivity of the
respective organization. Lack of effective management has also created a negative impact on
work culture of Woolworths.
Ways of improving corporate culture
There are different ways by which it is possible to develop an organisational culture.
According to Dempsey (2015), it is very important for the company to create the pathway for the
feedback in its work culture. Feedbacks shared by the employees enables the top authorities of
Woolworths Supermarket to understand its weaknesses prevalent in its corporate culture based
on which improvements would be made accordingly. In order to incorporate feedback system in
the working procedures, it is required for the higher authorities of Woolworths to put a
suggestion box at the entranceways and exit ways. Apart from this, it will be beneficial for
Woolworths if it considers to install an automated software known as OfficeVibe within its
workflow. It is suggested for the management working at Woolworths to adopt participative style
so that employees can share their innovative ideas in front of the managers based on which
effective strategies can be undertaken by the management. In addition to this, Groysberg et al.
(2018) commented that leading companies can create a panel where all employees will freely
share their individual perspectives regarding the company. In this context, it can be stated that
these feedbacks will let the employees know about their loopholes prevalent in the working
procedures. In this regard, it can be stated that employees can share their opinions at the

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community pages of social networking sites such as Facebook, Twitter and Pinterest and the
employers rectify the loopholes based on the perspectives shared by the employees.
According to Witt et al. (2015), this sophisticated software will enable the workforce to
share their honest feedbacks regarding this renowned retail company. In the opinion of Clarke
(2018), it will be beneficial for the firms if it creates a scope for individuals to work
collaboratively. In this context, it can be stated that business organizations like Woolworths to
provide out-of-office training sessions to its team where they can freely share their thoughts and
ideas in front of top-level executives and managers of this company. From the perspective of
Quinn (2018), a company can build a strong corporate culture if it implements wellness program
throughout its working environment. In this context, it can be stated that the managers of
Woolworths is to provide free gym memberships to all the employees in order to motivate them
for leading a healthy life. Apart from this, they can provide free snacks to its workforce. Quinn
(2018)) commented that this initiative will make the employees contented and it will make the
employees feel that they are considered as valuable assets of the respective organization. Not
only this, it will also increase their satisfaction level and they would feel motivated to perform
better within their working environment.
In the opinion of Stone and Joseph (2015), the management of the respective company
should organize team outings in order to make them motivated. Apart from this, the
management should consider in organize extra-curricular activities within its working
environment. From the perspective of Groysberg et al. (2018), this method of the management
will increase the satisfaction index of its workforce and they will remain loyal towards the
company for a long time. In this context, it can be stated that company’s productivity will get
increased in the due process. It has been observed that high morale of the employees will inspire

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them to give their best effort in this business organisation thereby increasing the overall
productivity and profitability of the respective business firm. In addition to this, company can
arrange recreational activities in its working procedures so that it is possible for the workforce to
relax after meeting the company’s targeted objectives. Witt et al. (2015) commented that
potential individuals should be given incentives in order to boost their confidence. These
initiatives are useful techniques for causing developments to work culture of the respective
company.
Conclusion
From the above discussion, it can be stated that corporate culture is the culture which
shows how skilled professionals and management will communicate with each other. It is a
culture where employees are being inspired by managers to deliver better performance in order
to cater and meet the specified business goals as well as objectives. In this context, it can be
stated that corporate culture plays a crucial role in establishing a strong brand image and equity
in the eyes of the customers. It has been noticed that friendly atmosphere acts an effective
technique for improving the corporate culture of Woolworths. In addition to this, rewards as well
as recognition acts as an effective technique for boosting the confidence of the workforce. As
stated above, Woolworths is facing work culture issues that has resulted in closure of 30 outlets.
As a result, about 500 skilled professionals was terminated by the top-level management of this
reputed supermarket chain of Australia. In order to restore its previous position, it is suggested
for the management to change their style of managing of employees. In this context, it is
suggested for them to adopt participative leadership style so that it can empower its skilled
professionals to actively take part in the decision-making procedure.

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