Of course, there are many more famous companies like Nike that also started from a small office and have reached multinational success. A particular culture has developed inside these successful companies with their growth. The factor that keeps the physical structures of a company together is the way it is managed. Famous companies interacted with their customers for a long time to earn trust and a good relationship. This interaction then shaped their principles and management.
Impact on the Company’s Management
Management as a discipline developed sometime after 1900. It is still a relatively recent and young field that specialists are continuing to discover. At first, the management of a company dealt solely with organizing the production. However, as consumers became more demanding and informed, the field of management started to involve the customer in its processes.
In the past, the question was: “How do we manage the company so we can produce more and cheaper products?” Today, the question has transformed into: “How do we manage the company so the client is happy?”
When we discuss the “how–to’s” of a business, we need to look at two things: the culture of the business and the skills and qualifications of personnel business possesses.
The culture of a business
At the beginning of this chapter, we used a quote from Jeff Bezos, the CEO of Amazon, who claims that for 18 years they have been working by the same principles: customer-focus, innovation, and patience. This sketches out the culture of the Amazon company.
The culture of any company is a set of values and principles that govern all its layers, starting with the business owner and including the most recent employee. These values and principles are the guidelines by which the business is managed.
In the case of Amazon, the managers of the company have to understand the consumer’s behavior and be aware of the customer’s importance. Moreover, they have to be open-minded and creative people, and of course, all Amazon employees have to be patient – both with each other and with the customers.
Most of the time, the culture of business includes principles that are the common sense practices of the particular society in which it is established. For example, Japanese companies almost always revolve around the idea of family. Japanese society is strongly family-focused, and this value is transferred into business, as well.
The challenge for multinational companies is to create a set of values that are common and can be practiced by everyone, regardless of age, color or religion. While some companies succeed in creating an efficient and simple business culture, other companies come up with a set of values that create pressure on the employee and then translate into bad customer service.
Essentially all companies have a strong hierarchy, but some make it easier for employees to get promoted while others keep employees stuck in one place. Some companies value the older employees more than the new employees, creating a competitive and unfair working environment. When it comes to deciding which principles are better for a business culture, the values of a good customer service system can be taken as the most important points:
- Positive motivation;