Assess the likely consequences for Sports Direct of its corporate culture. Corporate culture is the unwritten code that affects the attitudes and behaviour of employees within a business. Possible consequences include: - Low morale resulting from workers being paid below minimum wage/feeling their bosses/experiencing security checks/workers feeling forced to attend despite being ill. - High labour turnover and poor productivity may result from low morale. - Sports Direct may gain bad publicity from the media e.g. the Guardian newspaper and the BBC, which could result in consumers boycotting their products.

A-Level Edexcel Business Managing People: Assess the likely consequences f

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

Low morale resulting from workers being paid below minimum wage

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Answer

The corporate culture at Sports Direct may lead to low morale among employees who are paid below the minimum wage. This feeling of being undervalued can deter employees from engaging fully in their roles, leading to lower productivity.

Step 2

High labour turnover and poor productivity

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Answer

As a consequence of low morale, Sports Direct could experience high labour turnover. Employees dissatisfied with their working conditions may seek employment elsewhere, causing disruptions in productivity and increasing recruitment costs.

Step 3

Risk of negative media publicity

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Answer

The company's approach to corporate culture has been under scrutiny from the media. Continued reports of poor working conditions can lead to negative publicity, damaging the brand's reputation and possibly resulting in decreased sales.

Step 4

Consideration of review of Human Resource strategies

98%

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Answer

In response to these issues, Sports Direct may consider reviewing its Human Resource strategies to improve employee satisfaction. By investing in better working conditions, the company can potentially mitigate negative perceptions and foster a more positive workplace environment.

Step 5

Consumer attraction despite bad publicity

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Answer

Despite the media criticism, Sports Direct may still attract consumers due to its low prices. This presents a potential counterpoint to the negative consequences of its corporate culture, indicating that price sensitivity might override concerns about working conditions for some customers.

Assess the likely consequences for Sports Direct of its corporate culture - Edexcel - A-Level Business - Question 2 - 2022 - Paper 2

Worked Solution & Example Answer:Assess the likely consequences for Sports Direct of its corporate culture - Edexcel - A-Level Business - Question 2 - 2022 - Paper 2

Low morale resulting from workers being paid below minimum wage

High labour turnover and poor productivity

Risk of negative media publicity

Consideration of review of Human Resource strategies

Consumer attraction despite bad publicity

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