Week 6

EZZALDEEN ALI ABDO SAEED ALSARMAH TP076013

Culture is the most beloved activity in a human community. It is the aspect that guides fidelity in our beliefs, values, and perspectives hence a feeling of belonging and self-worth. It grows imagination, innovation and in the end understanding the view of the other party. Moreover, it facilitates the transmission of ancestral information and stimulates reciprocal respect (Ali, 2023).

 

The acquisition of WhatsApp by Facebook can often be perceived in a multifaceted way. The user base on WhatsApp was very large and the latter was popular in developing markets thus it was simply a proper place for the advancement of Facebook. While the initial purchase price as high, the Facebook share’s value skyrocketed by the time the company received government clearance, raising the overall selling price (Deutsch, 2024).

 

Attracting new investors is always having its speed bumps. These can be found in uncertain risks, information excess, insignificant capital, absence of investor literacy, plunderous job product performance, and the danger of resulting from an investor origin background. All these underpinnings concern potential roadblocks for new investors, so it is vital to conduct comprehensive due diligence and investor education (Tellers, 2017).

 

References:

Ali, Y. (2023, September 10). 15 reasons why is culture important | Curious desire. Curious Desire. https://curiousdesire.com/15-reasons-why-is-culture-important/

 

Deutsch, A. L. (2024, April 28). WhatsApp: the best meta purchase ever? Investopedia. https://www.investopedia.com/articles/investing/032515/whatsapp-best-facebook-purchase-ever.asp

Tellers, C. (2017, March 3). Issues to consider when bringing in new investors to a business - social actions. Social Actions. https://www.socialactions.com/issues-consider-bringing-new-investors-business/

Temirlan Ospan TP077066

An organization's culture plays a critical role in defining its identity and influencing its overall performance. The collective thoughts and actions of employees inside a company dictate how they interact and oversee corporate operations. The saying "culture eats strategy for breakfast," coined by Peter Drucker, encapsulates the idea that a robust corporate culture supersedes strategic planning (Engel, 2018). This is true since culture is the underlying factor that either helps or hinders the strategy's execution.

Facebook considered factors other than financial gain when deciding to acquire WhatsApp, including the potential for cultural convergence and strategic alignment between the two companies. Facebook may have justified the premium by pointing to WhatsApp's substantial user base and alignment with its mission of fostering global connectivity (Berman, 2014).

However, new investors have the power to destroy an established culture. Divergent perspectives among founders and investors may lead to business issues, as exemplified by a distillery in Texas. This demonstrates how challenging it can be to maintain cultural integrity while seeking outside funding (Risen, 2014).

 

References:

1.     Engel J. M. (2018, November 20). Why Does Culture “Eat Strategy For Breakfast”? Forbes. https://www.forbes.com/sites/forbescoachescouncil/2018/11/20/why-does-culture-eat-strategy-for-breakfast/?sh=63b46a331e09

2.     Berman D. K. (2014, February 24). I Thought Facebook’s WhatsApp Deal Was Crazy. Then I Did Some Math. The Wall Street Journal. https://www.wsj.com/articles/SB10001424052702304834704579403012327306216

3.     Risen C. (2014, December 27). How Dreams and Money Didn’t Mix at a Texas Distillery. The New York Times. https://www.nytimes.com/2014/12/28/business/how-dreams-and-money-didnt-mix-at-a-texas-distillery.html

Why culture is important?

Culture is a reflection of a community or nation. This makes culture a vital and important determining factor of how the community reacts, responds, and grows. Culture plays a major role in the lives of everyone in the society. Culture gives you a sense of belonging, especially when everyone speaks the same language. Language evolves with the culture as an intimate product of the way those within the society communicate (Painter, 2020).

Do you think Facebook overpaid for WhatsApp? Why?

Whether Facebook paid over the odds or not for WhatsApp depends on the variables such as the size of WhatsApp user and the strategic role of this messaging app as well as the proof of future great accomplishments. WhatsApp's enormous user base, its major strategic worth in messaging, and the chance to wipe out the nose of a tool would have been a boon to Facebook. In spite of this, facebook’s rivals believe that facebook might have failed to provide enough information about the monetization prospects of WhatsApp and privacy is a big issue with WhatsApp. In the end, the taking over value is measured by specific particular perceptions (Metz, 2014).

what are some problems bringing in new investors?            

-Unknown risks in Investments Challenge.

-Overload of information Challenge.

-Limited Capital to Invest Challenge.

-Too much diversification Challenge.

-Timing is Crucial Challenge (Mo Rassolli, 2021).

References:

Painter, S. (2020, October 30). Why Is Culture Important? Impact on People & Society. LoveToKnow; LoveToKnow. https://www.lovetoknow.com/life/lifestyle/why-is-culture-important-impact-people-society

Metz, C. (2014, February 20). Here’s why Facebook paid $19bn for WhatsApp. WIRED; WIRED. https://www.wired.com/story/facebook-whatsapp/

Mo Rassolli. (2021, September 6). 6 Common Challenges Faced By New Investors And How to Face Them - TrendScout UK. TrendScout UK. https://www.trendscoutuk.com/blog/6-common-challenges-faced-by-new-investors-and-how-to-face-them/

TP076893 Cyirima kevin

 

1.Why is culture important?

 

Culture is crucial as it shapes behavior and mindset within an organization(TechCrunch, 2014). It guides decision-making and actions, fostering engagement, teamwork, and alignment. A strong culture attracts and retains top talent, impacting organizational success.

 

2.Do you think Facebook overpaid for WhatsApp? Why?

 

Regarding Facebook's acquisition of WhatsApp, the $19 billion price tag initially seemed high. However, considering WhatsApp's subsequent growth and user engagement, the investment has proven valuable. Facebook aimed to integrate WhatsApp, expand its reach, and strengthen its messaging position (TechCrunch, 2014). The acquisition provided access to valuable data and market consolidation opportunities.

 

 

3.What are some problems bringing in new investors?

 

Bringing in new investors poses challenges. Valuation and negotiation complexity arise, with potential dilution of existing shareholders. Investor alignment, due diligence, regulatory compliance, and cultural fit must be considered. Effective management requires careful planning, negotiation, and objective alignment.(Times, 2014).

 

References:

- TechCrunch. (2014, April 12). "Culture Eats Strategy For Breakfast." Retrieved from: https://techcrunch.com/2014/04/12/culture-eats-strategy-for-breakfast/

 

- The New York Times. (2014, December 27). "How Dreams and Money Didn't Mix at a Texas Distillery." Retrieved from: https://www.nytimes.com/2014/12/28/business/how-dreams-and-money-didnt-mix-at-a-texas-distillery.html

RIAN ABDALWAHAB AYASH TP075789

TOPIC 6

Importance of Culture in Business

Culture is a critical element in any business, influencing both internal dynamics and external perceptions. A strong, positive culture fosters employee engagement, satisfaction, and productivity. It creates an environment where employees feel valued, leading to higher retention rates and attracting top talent. Externally, a well-defined culture can differentiate a company from its competitors, enhancing its brand identity and customer loyalty. Companies with a strong culture are better positioned to navigate challenges, as shared values and a cohesive vision provide a clear direction and purpose.

(2018). Designbridge.com. https://www.designbridge.com/insights/culture-why-it-matters-to-investors

‌ (The Power of Corporate Culture: Influencing Investor Relations, 2023)

 

Facebook's Acquisition of WhatsApp

Facebook’s acquisition of WhatsApp for $19 billion in 2014 sparked debate on whether it overpaid. Critics argue that the price was exorbitant given WhatsApp’s revenue at the time. However, supporters highlight the strategic value, noting WhatsApp’s vast user base and potential for future monetization. By integrating WhatsApp, Facebook strengthened its foothold in the messaging space, complementing its existing services and expanding its global reach. The deal also eliminated a potential competitor, securing Facebook's dominance in social media.

 

The Culture Equation. (2022, October 23). Why Investors Care About Workplace Culture & You Should Too! The Culture Equation. https://thecultureequation.com.au/why-investors-care-about-workplace-culture-and-why-you-should-too-2/

 

Challenges of Bringing in New Investors

Introducing new investors can present several challenges. First, it may lead to conflicts over the company's strategic direction, as new investors might have differing priorities. Second, there is a potential for dilution of existing shareholders’ equity, which can cause discontent. Additionally, managing investor expectations and maintaining transparent communication are crucial to avoid misunderstandings. New investors also often demand a say in management decisions, which can disrupt existing governance structures and impact company culture.

(The Culture Equation, 2022)

Hamza Khaled Mohammed Almakhathi TP077218

Importance of Culture: The Effects of Relationship Involvement on Learning to Adapt and Bounce Back. Culture is also not just about preserving traditions and values but should be also associated with strengthening the resilience and responsiveness of an organization. Being cult or having positive corporate culture can increase effectiveness of crisis management and change. If workers’ values and objectives are aligned, they may demonstrate the ‘buy-in’ effect where they seek to help one another and work together to address problems. This group-wide ability to respond to challenges helps it address changes in markets and technologies as well as other unexpected events to ensure the continued stability and progress of the organization. During urgent situations, a well structured culture will be the centre for making decisions and sustaining organization’s morale. Furthermore, adaptable cultures are more innovative, as they tend to involve changes and the introduction of improvements. Hence, a flexible and positive organizational culture entailing change is considered the central pillar for organizational sustainability and profitability over time. (Farideh Salili, Chi-yue Chiu & Simon Lai 2019)

 

Salili, F., Chiu, C. and Lai, S. (1970) The influence of culture and context on students’ motivational orientation and performance, SpringerLink. Available at: https://link.springer.com/chapter/10.1007/978-1-4615-1273-8_11