Week 6: What is Culture and investment problems

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Introduction

Culture in business

(Braxton Choo Ying Shun TP079069)

In today's globalized economy, understanding and incorporating culture into business operations is a key of success for a business. Culture refers to a group's common values, beliefs, practices, and habits, which influence how business is conducted and viewed (Wong, 2024). It influences communication, decision-making, leadership styles, and customer relations. Strong cultural awareness may improve collaboration, encourage creativity, and develop stakeholder trust. Businesses that appreciate and adapt to cultural differences are better positioned to enter worldwide markets, manage diverse workforces, and achieve long-term success (Daley, 2024). Embracing cultural diversity not only provides a competitive advantage, but it also improves the corporate climate by encouraging inclusivity and resilience in an ever-changing global landscape.


Why is Culture Important? 

Improve Employee Engagement and Retention (Alvin Ting Sing Ngie TP070429)



Culture is a cornerstone of business success because it has a great impact on employee engagement and retention. A strong company culture fosters a sense of belonging and purpose among employees. This aligns employees with the goals and values ​​of the organization. When employees feel connected to the workplace culture, they are more likely to be motivated and enthusiastic about their work. This intrinsic motivation can increase productivity because engaged employees are willing to go above and beyond their duties and collaborate effectively with other colleagues. This can help companies come up with more new and innovative ideas (Morgan, 2024). Additionally, a strong company culture creates a work environment where let employees feel valued and respected. This can improve employee’s retention rates at a company. High retention rates are important for companies to reduce recruitment and training costs and maintain team cohesion (Stoltz, 2023). A company with a strong culture will generally see lower turnover rates because employees are less likely to leave an environment that makes them feel satisfied and comfortable. This kind of company environment not only preserves the company's intellectual capital, but also gives the company's owner a reputation as an employer of choice to attract top talent seeking a satisfying work environment (Tarver, 2024). In summary, a good culture can bring many benefits to employees and the company, including the two I mentioned above.


Company Image and Reputation (Lai Mun Tao TP078470)

    Over the past few years, there has been an increasing recognition of the significance of organizational culture in the business world. Each company worldwide possesses its distinct culture, which is exclusive to that organization and mirrors the collective "personality" of the firm and its relationships, both internally and externally, with their clients (Saner, 2022).

    Organizational culture is a reflection of a company's reputation and public image (Bhutto, 2022). From their experiences both inside and outside the organization, people form opinions about businesses. Customers could be unwilling to conduct business with individuals linked to the brand if it doesn't have a strong organizational culture or a good reputation. Having a unique identity for your company helps bring in customers and employees who share your beliefs and can get behind your cause.

    It is also crucial for a company to prioritize the worth of its employees above all else, as it is the individuals who shape and embody the firm's culture (Stoltz, 2023). The employee voices contribute to the establishment of a company's identity and enhances its reputation. It has an impact on the company practices and responses to problems. It has an impact on how the world perceives the company. That quantity appears substantial because it indeed is. The foundation of it all lies in a strong corporate culture.

    Core values are the building blocks of a strong company culture. When we can build a team that shares the same mission and goals, it keeps people inspired and engaged in their work. They are also more likely to know why they do what they do. A strong team that lives out the company's values creates a setting where people can work together and help each other, which boosts productivity and new ideas.

    Establishing and upholding a consistent corporate identity that aligns with the company's beliefs, principles, and objectives fosters customer loyalty by enabling customers to form a strong connection and create loyalty towards the organization (Verma, 2023). Consistency in brand messaging and actions ensures that customers know what to expect, reinforcing their positive experiences and further strengthening their loyalty.


Do you think Facebook overpaid for WhatsApp? Why? 

(Chew Wei Bin TP078770) 


Facebook and WhatsApp are well known social media platforms. According to news, WhatsApp was bought a decade ago by Facebook company which now known as Meta. This purchase has been recorded as one of the larges tech buy in its industry surpassing Google and Apple (Deutsch, 2024). At first, the deal on paper was recorded for $16 billion USD but it ended up for a price of $19.6 billon USD with the compensation of keeping current employees in WhatsApp.

In my opinion this deal is worth and also not overpaid as it contributes so much to the development and growth of both Facebook and WhatsApp platforms. This is because the user base of WhatsApp is very huge which recorded around 2 billion user registered and 700 millions active users everyday (Masigan, 2023). Meanwhile, Facebook needed this user base and data so much to link their services and business. Therefore, this is a huge business opportunity for Meta company to expand its user base and revenue either in Facebook or Instagram.

The way of Facebook make uses of the WhatsApp user and data base is by linking their current paid services on Facebook to WhatsApp by keeping WhatsApp as an Ad-free applications. Many user are attracted with the Ad-free environment provided by WhatsApp and Facebook business integrated WhatsApp contacts of Paid business user smartly. This greatly help other user especially those online businesses(Rowan, 2018). Benefits not only gained by the Facebook but also WhatsApp as Meta expands its features such as adding a whole new sets of emoji and services  like business contact or tap-to-message after the binding of two applications.


What are some of the problems bringing in new investors?

(Matthew qua jin chuan TP079471)

Investors are important to company growth as they provide high capital for the growth of the company. However, one of the few problems face when bringing new investors are having alignment of interest with the investors. New investors may have different interest such as short-term financial returns or a long term growth which ill conflict with the company's current strategy or the founders vision. Interference with operations such as investors with a hands on approach might want to involve themselves with daily operations, leading to potential clashes with existing management.

 

Another problem faced when bringing in new investors is the financial costs. There is potential impact on valuation and future financing. Issuing new shares to investors dilutes existing shareholders ownership which potentially affects the company valuation and future financing rounds. Investors also may impose terms and conditions that affect future fundraising efforts, such as liquidation preferences, anti-dilution provisions, and board representation which may complicate future financing and increase the overall cost of capital


References

Bhutto, A. R. (2022, October 30). Importance Of Organizational Culture In The 21st Century. LinkedIn.
https://www.linkedin.com/pulse/importance-organizational-culture-21st-century-abdul-rauf-bhutto


Daley, S. (2024, March 28). Company Culture: Definition, benefits and Strategies. Built In. 
https://builtin.com/company-culture


Deutsch, A. L. (2024, April 28). WhatsApp: the best meta purchase ever? Investopedia. https://www.investopedia.com/articles/investing/032515/whatsapp-best-facebook-purchase-ever.asp 


Masigan, A. J. (2023, April 4). The real reason why Facebook bought WhatsApp. Philstar.com. https://www.philstar.com/opinion/2023/04/05/2256935/real-reason-why-facebook-bought-whatsapp.


Morgan, P. (2024, February 20). Understanding the importance of corporate culture after the great resignation. Forbes.
https://www.forbes.com/sites/paulamorgan/2022/08/19/understanding-the-importance-of-corporate-culture-after-the-great-resignation/


Saner, N. (2022, May 26,). Why Is Culture So Important In Businesses? Chorus.
https://www.chorus.co.uk/resources/why-is-culture-so-important-in-business/#:~:text=It%20helps%20employees%20understand%20the,influence%20an%20organisation's%20brand%20perception. 


Stoltz, R. (2023, August 11). The importance of company culture. Workhuman.
https://www.workhuman.com/blog/importance-of-company-culture/


Tarver, E. (2024, April 22). Corporate culture definition, characteristics, and importance. Investopedia. https://www.investopedia.com/terms/c/corporate-culture.asp


Verma, P. (2023, August 2). What Is Corporate Identity? – Importance, Elements, & Examples. Feedough.
https://www.feedough.com/what-is-corporate-identity/


Wong, B., JD. (2024, May 30). What is company culture? Definition & Development Strategies. Forbes Advisor. https://www.forbes.com/advisor/business/company-culture/


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