The Role of Cultural Identity in Business Performance - Case Study Example

Topic 2 Cultural identity is a very important aspect of business performance. With borders disappearing and companies looking to expand their reach this topic has gained relevance. Organisations for their successful running needs to ensure measures which will help them to ensure that in all the countries of operations they are able to gain advantage. This is also important as the population has a mix of different religion, geographical areas, language, caste and others. A research shows that “people from different countries have different culture as a result of which their pattern of influencing other is also different there by suggesting that culture brings about a change in the way person behaves and this gets moulded by the group he belongs to”. (Ralston, Hallinger, Egri & Naothinsuhk, 2005) Cultural identity affects human behaviour. It is something which humans acquire. This brings a change in human pattern. It makes them do different things. Culture gets ingrained by the group he has. “People belong to different caste, country, creed, colour, and region which affect the manner in which they carry out their duties”. (Corinne, 2007) This can be seen in case of Woolworths Limited which is a retail giant. The company deals in “liquor, hotels, petrol, consumer electronic, everyday requirements and home improvements”. (Woolworths Website, 2010) The company has used cultural identity to their advantage. This has shaped the fortunes of the company and helps them expand their reach. This is true as dealing with different customers, suppliers and distribution network requires the cultural identity to be matched. When we look at Woolworth we see that the company which manufacturers products have moulded the cultural identity of labourers from different country by giving all a common platform. This common platform is for the compensation and executing similar strategies for all. On the distribution front they have used it at their advantage. The company has been able to direct the desires and requirements of the distributor and have been able to influence their behaviour. Different culture also gives rise to conflicts. People think differently. This affects the growth part. It creates conflicts. People belong to different regions, countries and differ in their process of thinking and doing things. (Innah, 2009) So when this people come together it results in difference in opinion and looking at things differently which gives rise to conflicts in the organisation (Jameson, 2007) Woolworth has been able to manage the conflicts which arise due to difference in cultural identity well. The company has drafted a strategy which ensures that the suppliers and the management don’t fight over petty issues. Since, the company is involved in manufacturing and needs different materials so conflicts arise regarding the price of raw materials. Woolworth has been able to identity the cultural issue and ensures it there by ensuring proper management. Also on the front of execution of duties Woolworth has resolved the cultural identity issue which leads to conflicts and has been successful in bringing all teams together. Woolworth has different types of team depending on the basis of the requirement of the company. Different type of teams ensures that specific problems related to a particular team are dealt in a better way as they have specialization in those areas. (Kosmitzki, 2000) This helps to deliver better results. Woolworth has been able to evolve the teams together with the senior management team. Senior management team comprises of members who hold position of responsibilities and contribute towards the decision making. These teams comprise those members who define the way the organisation will perform. They have special knowledge and experience and based on that they are able to take strategic decision which can alter the growth of the organisation. These teams define the success of the organisation as the vision and mission is defined by them and others commit to themselves to achieve those. (Denise, 2009) The company has been able to integrate the senior and lower level management and ensured that the cultural identity doesn’t leads towards conflicts. Cultural identity shapes the manner in which the organisation will perform. The manner in which culture has affected the working of different companies can be reflected by the changes world economies are encountering. This has ensured that Woolworth to deliver proper distribution services. The company based have identified the different language barriers which cultural identity rises. They have enhanced their behaviour in such a manner that it accounts for all the changes that are required for the organisation to establish a network which delivers goods to the customer on time. Woolworths by using all its experience has ensured that they integrate culture in their scheme of work so that all changes on this front can be accounted for. Woolworths has shaped the working of the employees and suppliers by integrating the culture that is prevalent in their company so that they are able to guide the behaviour of the employees. Culture has also brought a change in the performance of the company by making them take steps in the direction which makes them develop their workforce and ensure that the performance of the company improves. Thus, culture affects the manner in which a person behaves and it is necessary to encounter those changes to ensure that conflicts reduce and employees are motivated and brought together to work as a unit. It is seen that Woolworth has used it to mould their behaviour. This ensures that the employees know what to deliver. It also creates a conducive environment and employees, customers and person associated with the company feel satisfied. This thus goes a long way in shaping the performance of the organisation and business units needs to identify the importance of cultural identity and use it while preparing a strategy for the future. This will help them combat the necessary changes that business units need to encounter with. Thus, cultural identity is a vital part of business. An organisation which is able to draw references from cultural identity is able to shape the manner in which the company will perform and helps to ensure that growth permits. References Corinne K, “integration of social identities in the self: towards a cognitive development model”, Social Psychological Review, Volume 11, page 364-388, 2007 Denise B, “how to pull together the price of fragmented team”, (2009), retrieved from http://www.askteamdoc.com/index.php/2008/04/27/how-to-pull-together-the-pieces-of-a-fragmented-team/ on September 1, 2010 Innah A, “the effect of cultural factors in consumer buying behaviour”, 2009 Jameson, D, “Reconceptualizing cultural identity and its role in intercultural business communication”, Journal of Business Communication, Vol 44 (3), p199-235, 2007 Kosmitzki C, “The dynamic nature of cultural identity through culture transition”, Social Psychological Review, Volume 4, page 355-373, 2000 Ralston D, Hallinger P, Egri C & Naothinsuhk S, “The effects of culture on work place strategy of upward influence”, University of Bangkok, Elsevier Inc, 2005 Woolworths Website, retrieved from http://www.woolworths.com.au on September 1, 2010 Read More