Week 6

WEEK 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)

 

Reference 

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. 

Morgan, P. (n.d. (2024). Understanding The Importance Of Corporate Culture After The Great Resignation. Forbes. Retrieved April 29, 2024, from https://www.forbes.com/sites/paulamorgan/2022/08/19/understanding-the-importance-of-corporate-culture-after-the-great-resignation/?sh=62060dca18cd 

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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.

References 

Facebook. (2014, February 19). Facebook to Acquire WhatsApp.https://web.archive.org/web/20140224184730/http://newsroom.fb.com/News/805/Facebook-to-Acquire-WhatsApp  

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.

References:

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.