Post on 14-Oct-2014
TELENOR PAKISTAN: IMPACT OF ORGANIZATIONAL CULTURE ON BRAND
PERFORMANCE
By:Muhammad Mohiuddin Baig
Brief Overview
Literature Review
Research Methodology
Findings & Analysis
Results & Conclusion
PRESENTATION OUTLINE
Objective: To analyze the impact of organizational culture on brand performance
Using a grounded theory standpoint, a survey for a sample size of 100 has been conducted to gather data on brand perception and performance
Three research papers considered
Base Paper: The Impact of Organizational Culture on Brand Performance
BRIEF OVERVIEW
DESIGN OF STUDY
LITERATURE REVIEW
Base article chosen: “Interactions between Organizational Cultures and Corporate Brands” by Leslie de Chernatony and Susan Cottam.
The other two articles include:
◦ A Step by Step Process to Build Valued Brands by Peter Boatwright and Jonathan Cagan
◦ The Impact of Culture on Brand Perceptions: A Six Nation Study by Thomas Foscht and Cesar Maloles
ARTICLES SELECTED
Definitions of Culture:
“A company’s overall philosophy, a set of values and beliefs that shape the way people think
and behave”Hankinson and Hankinson (1999)
“The pattern of shared values and beliefs that help individuals understand organizational
functioning and thus provide them norms for behavior in the organization”
Deshpande´ and Webster (1989)
ORGANIZATIONAL CULTURE
Develop an understanding of the interaction between organizational cultures and corporate branding which contributes to brand performance.
Corporate culture was a factor in organizational success; specifically, strong, strategically appropriate and adaptive cultures were positively associated with long-term economic performance. (Kotter and Heskett ,1992)
Link between relatively open, externally oriented organizational cultures and better performance (Deshpande´ and Farley, 2004)
CONT’D…
Behavior of employees which give the brand substance and influences perceptions(Alloza et al., 2004; Bitner et al., 1990; McDonald et al., 2001; Gabbot and Hogg, 1994)
Without an appropriate and supportive organizational culture, there is little chance of employees living the brand (Schultz, 2003)
CONT’D…
“There is little doubt that organizational culture affects performance; in the long run, it may be the one decisive influence for the survival or fall of the organization” (Hofstede, 1998 )
Culture has also been found to influence employee retention rates (Sheridan, 1992)
CONT’D…
Cultural pitfalls to avoid while
seeking brand success
Inconsistency between organizational culture
and brand values
Internal value consistency between
organizational subcultures
Overly 'tough' organizational culture
Focus on quantified, financially centered performance targets
Unsuccessful or poor thought out cultural change intiatives
CULTURAL PITFALLS TO AVOID WHEN SEEKING BRAND SUCCESS
Societal values change over
time
Organizational culture is no longer synchronized with
societal values
Culture stagnates and brand suffers
Cultural change efforts initiated
within organization
Factors impeding and
facilitating culture change
Culture change unsuccessful or
short-lived
Culture change successful
Organizational culture is
synchronized with societal values and
brand thrives
Organizational culture adapts
naturally to societal value
change
ORGANIZATIONAL CULTURE CHANGE IN RESPONSE TO CHANGE IN SOCIETAL VALUES TO ACHIEVE BRAND SUCCESS
A company should stay focused on managing talent pool as closely as managing brands
The dimension 'Rewards based on merit vs. politics' was listed as the single most important issue that drove a company's success, as well as the biggest opportunity gap
EXCERPTS FROM THE OTHER ARTICLES
RESEARCH METHODOLOGY
Qualitative research which is inductive
From the data, emerging patterns are identified and a theoretical framework is developed, rather than testing hypotheses formed from existing theory
Once data is collected, incidents within the data are compared and categories/themes are formed
GROUNDED THEORY
Target Population
◦ Current users of Telenor from NBS
Sample Element
◦ Age: 18-25 years
Sample Size
◦ 100 current users of Telenor from NUST Business School
Rationale
◦ Greater speed of data collection due to time constraint.
◦ The sample size is assumed to be representative of the greater population
and their opinions while rendering a perfect fit with the scope of the
project.
SAMPLING DESIGN
Judgemental sampling was used since a criterion has been defined according to which only current users of Telenor are considered in the study
SAMPLING TECHNIQUE
Primary Method: Surveys◦ Self-administered Surveys◦ 8 Questions
Secondary Data Analysis: Previous work done on this area of research (World Wide Web)
RESEARCH METHOD USED
FINDINGS & ANALYSIS
CULTURE AT TELENOR PAKISTAN
Sources of Culture
Vision
Values
Organizational Structure
People (and HR
practices)
Organizational Ethics
SOURCES OF CULTURE AT TELENOR PAKISTAN
MAKE IT EASY
•We're practical. We don't complicate things. Everything we produce should be easy to understand and use. Because we never forget we're trying to make customers' lives easier.
KEEP PROMISE
S
•Everything we set out to do should work, or if it doesn't, we're here to help. We're about delivery, not over promising, actions not words.
BE INSPIRIN
G
•We are creative. We strive to bring energy to the things we do. Everything we produce should look good, modern and fresh. We are passionate about our business and customers.
BE RESPECTF
UL
•We acknowledge and respect local cultures. We do not impose one formula worldwide. We want to be a part of local communities wherever we operate. We believe loyalty has to be earned.
VALUES
Organic Structure
Open Culture
7 layers in the hierarchy
Open communication at all levels
ORGANIZATIONAL STRUCTURE
71%
29%
Do you think Telenor has designed packages and promotional campaigns aligned with the culture?
YesNo
ORGANIZATIONAL ETHICS
In most of advertisements they project themselves as the care taker of the values of Pakistani people, so they claim to cherish the core cultural norms and values of the Pakistani people.
Service Quality and Performance
through a superior network design
Convenience through the
distribution setup
Simplicity and trust through pricing structure and transparency
Efficiency through alignment of structure
and strategy
GAINING COMPETITIVE ADVANTAGE
Survey Response
COMPANY RATING (AVERAGE OF OBSERVATIONS)
Company Rating
Mobilink 3.27
Ufone 2.41
Warid 3.2
Zong 4.3
Highest ARPU (Average Revenue per Consumer)
In the year 2006 to 2007, Telenor Pakistan was able to increase its subscriber base by 200%
It has created the second largest mobile network and the largest and most advanced data network in the local market
BRAND PERFORMANCE
18%
24%
22%
28%
8%
Reasons for using Telenor
Quality of ServiceLow PriceValued Added ServicesVariety of PackagesOther
SURVEY RESPONSE
67%
33%
Customer Satisfaction with the quality of service
YesNo
SURVEY RESPONSE
12%
54%
34%
Rate the customer service of Telenor
PoorAverageExcellent
SURVEY RESPONSE
18%
52%
30%
Rate the promotional activities of Telenor
PoorAverageExcellent
SURVEY RESPONSE
52%
48%
Will you switch if Telenor was involved in an unethical practice?
YesNo
SURVEY RESPONSE
36%
64%
Will you switch if Telenor was involved in a controversy?
Yes No
SURVEY RESPONSE
58%
42%
Will you still prefer Telenor if another telecom company in-troduces an attractive package/service?
YesNo
SURVEY RESPONSE
The Pakistan Society of Human Resource Management’s Preferred Graduate Employer
Award for Most Preferred Telecommunications
Company 2007 among MBA students
SAARC Communication Industry Conference 2007’s Most Innovative Mobile Operator Award and Mobile Operator with the Most Consumer Pull Award
Telenor Global Brand Award for the year 2007
AWARDS
All Pakistan Dawn Aurora Advertising Awards in three of five nominated categories in March 2007
The National Forum for Environment & Health’s Annual Environment Excellence Awards 2008
The Helpline Trust’s 2nd Corporate Social Responsibility Award 2008
CONT’D…
RESULTS & CONCLUSION
Telenor entered the market when it was very competitive
Through its culture and HR practices it was able to gain a competitive advantage over the others
Telenor has quickly assumed the number two position behind the largest organization Mobilink, who has been operating for 13 years
CONCLUSION
The market is primarily dominated by the prepaid services
The market is characterized by price sensitivity and there is a need to provide coverage to remote and northern areas
CONT’D…
“The performance of the brand needs to be backed by a strong culture to achieve its objectives.”
Q & A