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.
Corporate culture is the unwritten code that affects the attitudes and behaviour of emplo... show full transcript
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
Possible consequences of low morale and productivity
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Answer
Low morale can lead to several adverse outcomes for Sports Direct. Workers receiving below minimum wage and facing security checks may become disengaged, which can result in higher staff turnover and a reduction in productivity. When employees do not feel valued, their commitment to the company diminishes, affecting overall performance.
Step 2
Impact of bad publicity
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Negative media coverage from outlets like the Guardian and BBC can significantly harm Sports Direct's reputation. If consumers perceive the company as exploitative, this could lead to a decline in sales and loss of customer loyalty.
Step 3
Counterbalancing factors
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However, the corporate culture might drive employees to be more productive due to fear of job loss through the company's stringent policies. Additionally, despite negative press, some consumers might still support Sports Direct for its low prices.
Step 4
Evaluation of Human Resource strategies
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Sports Direct acknowledges its corporate culture has flaws and is reportedly reviewing its Human Resource strategies. This evaluation may help address issues of employee disengagement and enhance workplace morale, potentially leading to improved productivity and a better corporate image.
