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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
Consequences of Low Morale
Answer
Employees at Sports Direct might experience low morale due to being paid below the minimum wage and enduring excessively strict security measures. This can lead to feelings of discontent and frustration among workers, causing a deterioration in workplace atmosphere and subsequently affecting overall productivity.
Step 2
High Labour Turnover
Answer
The negative environment contributed by low morale may result in high labour turnover, where employees frequently leave the company. High turnover is costly for Sports Direct, as it involves expenses related to recruiting and training new staff, which further strains the existing workforce.
Step 3
Impact of Bad Publicity
Answer
Sports Direct has faced negative media attention from outlets like the BBC and The Guardian. Such publicity may damage its reputation and consumer trust. This can result in potential customers boycotting the brand, which could significantly impact sales and profitability.
Step 4
Potential Counterbalance
Answer
Despite these issues, some employees may feel compelled to be more productive due to fear of losing their jobs under Sports Direct's strict work ethic policies. This culture may incentivize some to work harder, resulting in a temporary uptick in productivity despite overall low morale.
Step 5
Reviewing Human Resource Strategies
Answer
Sports Direct is reportedly reviewing its Human Resource strategies, which may lead to better treatment of staff. This could help mitigate some negative consequences of its corporate culture if implemented effectively, ultimately enhancing employee satisfaction.