GROUP BLOG 6
1. Why is culture important?- MADDA TP073377
Culture is considered so important because it reflects the community of the nation. This means that culture is a great factor in determining how a community responds, reacts, and grows. Both individually and together. How people live their lives in society is also largely determined by cultural factors.
Culture creates a great sense of belonging for so many people, especially when they speak the same language that unites them. It creates a sense of security and safety for individuals as it gives them a united and unified sense of belonging.
The elements of culture definition are based on five main elements: values and beliefs, norms, symbols, language, and rituals. Aspects of culture surrounding language include body language, spoken word, and symbols, which are components of culture that are non-material. (Jones, 2021)
Organizational culture is a powerful dynamic in your company. It cements employees’ confidence in their work, and keeps them motivated and inspired to do their best. Culture is a set of beliefs and attitudes about the way things are done in your workplace. (Morgan, 2024)
2. Do you think facebook overpaid for Whatsapp? Why?- Anvar TP076628
It's difficult to determine whether Facebook's (Meta) acquisition of WhatsApp was an overpayment. It's not primarily about the information transfer technology or the WhatsApp brand, though both were a great bonus when purchasing it. (Facebook, 2014). The most attractive selling argument was access to 450 million consumers' personal information as well as control over their correspondence.
As a result, it should be noted that Meta purchased not only a competitor in the sector of social media, but also the Whatsapp database, with the additional right to regulate this information. Meta is infamous for its horrible control over other people's information and transferring it to US government agencies, thus such damage to the private liberty of hundreds of millions of users can be hard to assess in monetary terms. The price Meta paid is questionable.
3. What are some of the problem bringing in new investment?- Hamza
With the entry of new investors into the market, a company enjoys an injection of fresh capital but a hasty decision to form a partnership shouldn’t be a norm. There are several potential problems that can arise: There are several potential problems that can arise:
The fact that ownership attributes are dissipated as well as corporate control. During the act of selling new equity to other investors, it is the existing equities that go down in percentage (Weston & Weaver, 2001) This might also result in the absence of the owner sovereignty over key decisions because the new investors could gain possession of a substantial stake.
Conflicts over company strategy. The inflow of new venture capitalists could bring transformations in the perception of the company among its founders and associated investors (Feld & Mendelson, 2019). This will, most possibly, result in conflicts over focusing, allocating, and taking of strategic decisions.
Guidelines and probation requirements, as well as other accountability actions. Investors will want to analyze the financial condition of the company and the running of the business with extra zeal after they invest in the organization (Stickney et al., 2009). This changes the high level of supervision which can inevitably lead to a slower process.
Anxiety regarding the possibility of further issues when somebody decides to leave the coalition. Diversity in the timing and strategy of exiting and liquidity event transactions may prevail among different investors (Gompers & Lerner, 2004). Imposition of this will give rise to tensions.
As a start-up, a new bettor can dramatically push your business yet it is imperative to smartly identify any negative repercussions and proactively react before engaging.
AMNA
1. Why is culture important?
Culture plays a crucial role in shaping a company's personality, values, and beliefs. It involves an organization's social landscape, which is often built on shared cultural norms, traditions, and behaviors. An organization that has a strong culture will reflect a cohesive and productive workforce, a culture that can attract the right talent and create a pleasant work environment for the employees. Culture is important in instilling values and driving purpose which ultimately leads to an individual's job satisfaction, commitment, and retention within the firm.
2. Do you think Facebook overpaid for WhatsApp? Why?
Facebook's $19 billion acquisition of WhatsApp was seen by some as overpaying for the messaging app. However, it is essential to understand that the deal was not just about acquiring an app, but it was also about acquiring a network of users. Facebook was looking to expand its reach and WhatsApp's user base of over one billion users would be an excellent addition to Facebook's existing network audience. Additionally, Facebook CEO Mark Zuckerberg viewed WhatsApp's technology and business model as an asset to Facebook. Thus, the value proposition of acquiring the network of WhatsApp, its technology, and business model was worth the premium.
3. What are some of the problems bringing in new investors?
Bringing in new investors can be a challenging task for any company. Some of the problems that companies face while bringing in new investors include:
a) Dilution of ownership: Bringing in new investors may lead to a dilution of ownership for existing owners. This is because new investors typically receive equity in exchange for their investment, resulting in existing owners owning a smaller percentage of the company.
b) Loss of control: New investors may require a seat on the board of directors or a say in the company's decision-making process. This can alter the company's dynamics, and existing owners may lose control of the company.
c) Valuation: Valuation of the company can also be a significant problem while bringing in new investors. There may be differences in the valuation of the company between the existing owners and the potential investors.
d) Legal requirements: Bringing in new investors may also require legal compliance, particularly pertaining to regulations on securities laws, public disclosure and regulation governance.
References:
Feld, B., & Mendelson, J. (2019). Venture deals: Be smarter than your lawyer and venture capitalist. Wiley.
Gompers, P., & Lerner, J. (2004). The venture capital cycle. MIT press.
Stickney, C., Weil, R., Schipper, K., & Francis, J. (2009). Financial accounting: An introduction to concepts, methods and uses. Cengage Learning.
Weston, J. F., & Weaver, S. C. (2001). Mergers and acquisitions. McGraw-Hill.
Facebook. (2014, February 19). Facebook to Acquire WhatsApp.https://web.archive.org/web/20140224184730/http://newsroom.fb.com/News/805/Facebook-to-Acquire-WhatsApp
Jones, A. (2021, June 1).Why Is Culture So Important To Our Lives. Blackpool
Grand Theatre. https://www.blackpoolgrand.co.uk/why-is-culture-so-important-to-our-lives#:~:text=Culture%20Produces%20Stability%20for%20People&text=It%20creates%20a%20sense%20of,they%20have%20towards%20their%20family.
Cameron, K., & Quinn, R. E. (2011). Diagnosing and changing organizational culture: Based on the competing values framework. John Wiley & Sons.
Deve, P. (2014). The global connectivity race and acquisition of WhatsApp by Facebook. EMAJ: Emerging Markets Journal, 4(3), 89-95.
Hill, C. W., Weaver, G. R., & Knoop, C. I. (2016). International business: competing in the global marketplace. McGraw-Hill Education.
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