The two retail companies picked are Walmart and Costco whose 2017 Financial statement links are provided below: WALMART https://www.nasdaq.com/symbol/ wmt/financials?query=income- statement COSTCO https://www.nasdaq.com/symbol/ cost/financials?query=income- statement Both organizations are well known brands and position themselves well with their customer base. Walmart’s value proposition is “We save people money so they can live better”. On the other hand, Costco’s value proposition is “All-in-one convenience and everyday affordability”. Both retailers focus on cost saving for their customers. Looking at their financial statements and by analyzing them a few key areas are evident when comparing the two organization. Looking at the current ratio and quick ratio we can determine the short-term solvency of each organization. The current ratio can be determined by dividing the assets by the liabilities. Walmart’s current ratio sits at 0.86 while Costco’s sits at 0.99. The quick ratio is c...
An organization might portray a culture that is recognizably similar to the way branding is recognizable. For example, McDonald’s culture includes standardization, opportunity for people, and diversity (Thompson, 2017). Organizational culture is also the complex assimilation of multiple individual cultures which can create a comfortable or abstruse work environment.
How does an organization accurately identify the elements of its own culture?
An organization’s culture is defined by tangible and intangible attributes, specifically beliefs, values, symbols and assumptions (Cultural Intelligence for Leaders, 2012). Organizational values presented by management provide a basis for employees when interacting with others in the organization as well as with outside stakeholders. Analyzing an organization through Hofstede’s model of value dimensions: identity, power, gender, uncertainty, and time provide insight of its culture from internal and external perspectives (Cultural Intelligence for Leaders, 2012). Responses to inquiries on the value dimensions, directed toward employees, community, customers, vendors, and management, provide a picture of the organization culture from multiple perspectives.
How does it go about promoting critical awareness of culture among its personnel?
Carey (2011) refers to the Purnell Model for Cultural Competence in discussing cultural competence as a process of understanding diversity and strategizing ways to understand variances and similarities of individual cultures. Management sets an example of learning about individual cultural perspectives and initiating quantitative and qualitative measures to promote cultural competency. Methods include providing educational resources, seminars, personal conversations, management support of diversity, and assessment of awareness initiatives.
Does cultural awareness play a role in organizational success?
The definition of organizational success is ambiguous and may vary between stakeholders. Friedman and Friedman (1988) suggest a framework of management, ethics, and marketing contribute to organizational success. Based on a comparative analysis of studies by Pttigrew, Siehl and Martin, and Pozner, Kouzes and Schmidt, culture may impact organizational performance, if only indirectly, evidenced by commitment, innovation, relationships, strategy, and competitive advantage (Byles, Aupperle, and Arogyaswamy, 1991). Barney (1986), concludes that culture supports a competitive advantage based on the resource-based view argument. Therefore, cultural awareness, or understanding an organization’s culture, and the willingness and ability to advantageously use cultural benefits supports competitive advantage leading to organizational success.
Is a global organization, in the 21st century, obligated to provide opportunities for its employees to become more culturally sensitive or increase their cultural awareness through an understanding the cultural system of values, assumptions, and symbols?
Yes, organization leaders are responsible to build culturally respectful work environments (Cultural Intelligence for Leaders, 2012). Cultural awareness and understanding provide proactive and intentional steps to overcome stereotypes, integrate beneficial components of other cultures into the existing culture, and improve global business relations. Values, assumptions, and symbols are cultural fundamentals (Cultural Intelligence for Leaders, 2012). Understanding and respecting fundamental perspectives create a basis for deeper discussion and education. Culturally educated employees develop global competencies in business relations while building inclusivity (Shandler, 2015).
What do they stand to lose if they don’t?
There is no doubt that globalization is a way of life and growing, to increase human connection, innovation, and resource accessibility. Shandler (2015) emphasizes the importance of global leadership, education, and competency as a necessary skill to support a global mindset. Organizations that are not attentive to cultural intelligence may lose a competitive advantage, overlook internal and external talent, or become obsolete.
Conclusion
International competency in communication, culture, education, adaptability, and business practices highlight key areas to assess global competency (Shandler, 2015). Cultural awareness breaks down barriers, assumptions, and misunderstanding between individuals, groups, and organizations, creating opportunities to collaborate on greater outcomes than a limited, monotonous organization can achieve. Educated leaders intentionally overcoming challenges of cultural differences facilitate a culturally competent organization.
References
Barney, J. (1986). Organizational Culture: Can It Be a Source of Sustained Competitive
Advantage? The Academy of Management Review, 11(3), 656-665. Retrieved from http://www.jstor.org/stable/
Byles, C., Aupperle, K., & Arogyaswamy, B. (1991). Organizational Culture And Performance.
Journal of Managerial Issues, 3(4), 512-527. Retrieved from http://www.jstor.org/stable/
Carey, R.E. (2011, July). Cultural Competence Assessment of Baccalaureate Nursing Students:
An Integrative Review of the Literature. International Journal of Humanities and Social Science 1(9). Retrieved from http://www.ijhssnet.com/
Cultural Intelligence for Leaders (2012). Saylor Academy. Creative Commons by-nc-sa 3.0
Friedman, H., & Friedman, L. (1988). A Framework for Organizational Success. Journal of
Business Ethics, 7(3), 219-221. Retrieved from http://www.jstor.org/stable/
Shandler, D. (2015, July 2). Fostering Global Competence. Society for Human Resource
Management. Retrieved from https://www.shrm.org/hr-today/
Thompson, A. (2017, February 5.). McDonald’s Organizational Culture Analysis. Panmore
Institute. Retrieved from http://panmore.com/mcdonalds-organizational-cult
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