Photo AI
Assess the likely consequences for Sports Direct of its corporate culture. - Edexcel - A-Level Business - Question 2 - 2022 - Paper 2
Question 2
Assess the likely consequences for Sports Direct of its corporate culture.
Worked Solution & Example Answer:Assess the likely consequences for Sports Direct of its corporate culture. - Edexcel - A-Level Business - Question 2 - 2022 - Paper 2
Step 1
Corporate culture is the unwritten code that affects the attitudes and behaviour of employees within a business.
Answer
Sports Direct's corporate culture, characterized by its demanding environment and tight control mechanisms, can lead to several consequences for the company. Employees may experience low morale as they are often paid below minimum wage and feel pressure from management, negatively impacting their productivity and mental health.
Step 2
Possible consequences of low morale.
Answer
The low morale resulting from workers feeling pressured and undervalued might lead to higher labor turnover rates. Employees who feel compelled to remain in their jobs despite dissatisfaction may lead to a toxic work environment, which not only affects their efficiency but also tarnishes the company's reputation. Furthermore, bad publicity from investigations regarding working conditions can drive consumers away from Sports Direct.
Step 3
Step 4
Potential counterbalances.
Answer
However, it is important to consider that this same culture may drive employees to be highly productive due to fear of job loss. Employees may feel the need to work hard and meet demanding targets, which could, paradoxically, lead to increased outputs and financial efficiency for Sports Direct.
Step 5
Review of Human Resource strategies.
Answer
Sports Direct is reportedly reviewing its Human Resource strategies, which could suggest a pivot towards improving employee satisfaction. This could mitigate some of the negative consequences of its current corporate culture, aligning it more positively with stakeholder expectations.