Chapter I Introduction
1. Research Background
With the rapid development of China's economy, the environment for enterprise development is more and more complex, business competition is becoming more and more intense. Currently, with the fast development of science and technology, the traditional industry is facing unprecedented challenges with rapid development in the high-tech industry. The retail industry is one of the traditional industry, although once the retail industry is indispensable to people which constantly bringing new consumption patterns, but new technologies and business models such as e-commerce, cross-border online shopping, new retail pattern and so on, now impact and challenge to traditional retail industry. At the same time, consumer demand is also upgrading relatively, retail industry is more than just provide shopping area and goods, but the product of the overall configuration and consumption experience which needs higher requirements. In the face of such a rapid developing market environment, if the enterprise wants to win enough market shares, it has to take actions to respond to development need, such as improvement ideas, innovation thinking, brand new products or services and even business transition. B Company is also facing the same situation as described above.
B Company is the Chinese business unit under the Hong Kong invested group enterprise of China, which is mainly engaged in beauty and health care retail business. It entered the Chinese mainland in 1989 and has been developing continuously during these 29 years. The first store opened in Beijing in 1989, which is symbol of B Company’s establishment, now it has more than 3,000 physical stores in more than 430 cities all over the country, as well as online stores in multiple e-commerce channels and shopping APP in mobile terminal, B Company’s performance developed rapidly in these ten years. At the same time, the number of employees in the whole country has exceeded 30,000, covering a second-tier city in almost all the province of China.
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2. Significance of the Research
The corporate culture of any industry or any form is not immutable, but constantly evolves with the changes of the industry environment and the internal changes of the enterprise. With the change of internal and external environment of B Company, the development trend of the business, the changing of management, the process requires the cohesion and incentive of the culture, and the need to constantly change and improve the culture of the enterprise.
In this paper, in view of B Company corporate culture transformation demand and the theoretical model of corporate culture, the problems existing in the current corporate culture construction of B Company are diagnosed and analyzed, and specific suggestions are proposed to improve and enhance corporate culture construction. According to the case study above, the research in this paper would like to provide better guidance to B Company to carry out corporate culture transformation and build a strong corporate culture atmosphere.
Through literature study and theoretical research, this paper conducts a questionnaire survey and interview from the perspective of quantitative evaluation, which is helpful to enrich the theories in this field and has relevant enlightening reference significance. In the practice, it can provide reference for the construction of corporate culture of B Company, and further provide reference for the transformation of corporate culture of enterprises of the same type.
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Chapter II Literature Review
1. Corporate Culture Concepts
The first step of any research is literature review and theoretical research. Therefore, it will focus on studying the concepts and theories related to corporate culture, and define corporate culture from the aspects of culture elements, culture levels, presentation methods and functions, and further elaborate the basic procedures and development trend of corporate culture reform and construction.
Corporate culture is a kind of unique culture. Culture is formed in the long-term social development process which from faith, values of general public, etc.. Culture is subconscious standards of people's behavior, and will last for a long time. From the first day of any business, corporate culture was been formed in the company, and it's real in the enterprise, and it is different from the products or services, the brand, marketing strategy and management mode, the corporate culture has continuity, it has a profound effect on development of the enterprise.
By referring to relevant literature, the concept of corporate culture originates from modern management experience and research. Since the 1950s, Japan's economy has grown unusually fast, and by the 1970s American companies were increasingly challenged by Japan. Therefore, in the late 1970s and early 1980s, the comparative study of management between the United States and Japan appeared, which gave birth to the theory of corporate culture. Up to now, both domestic and foreign scholars still have different opinions on how to understand and define corporate culture, all of them are forming different views. The following is a review of the research experience of domestic and foreign scholars in recent years, which is mainly divided into four aspects, that is, culture elements, culture levels, presentation methods and functions.
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2. Research Theories of Corporate Culture
Corporate culture theory originated in the United States and Japan in the early 1980s, William Ouchi "theory Z - the United States how to meet the challenge of the Japanese". Kennedy, John Deere “the company culture - life etiquette and ceremony ", Peters and Waterman's "best company management experience of the pursuit of excellence - the United States", Drucker's "innovation and entrepreneurship" and so on are the earliest foreign about corporate culture. Since the 1990s, a new direction has emerged in the study of corporate culture. First dimension is to study the theories deeply. Second dimension is the study on how to apply corporate culture to enterprise development and benefit. The third dimension is research on how to measure corporate culture. The fourth dimension is study of diagnosis and evaluation of corporate culture.
In the rapid development of corporate culture, many theoretical systems of corporate culture construction have been formed in the study of corporate culture by domestic and foreign scholars. Classical theories include (1) Concentric circle model (2) Denison organizational culture model (3) Organizational Culture Assessment Instrument (4) Schein’s Organizational culture model.
2.1 Concentric Zone Model
The corporate culture concentric circle model was proposed by Canadian scholar Neuhauser et al. (2000), corporate culture is divided into three concentric circles: inner circle, middle circle and outer circle. Three concentric circles are connected to each other, restrict with each other and promote each other. Inner circle is the soul culture and the core of corporate culture. Middle circle is the legal culture, system and the guarantee of enterprise execution. The outer circle is the enterprise activities, including ceremony and celebration. Only the three can combine with each other and achieve the desired effect.
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Chapter III Case Description .................................... 27
1. B Company Background Information ............................... 27
2. Current Situation of Corporate Culture in B Company .......................... 28
Chapter IV Corporate Culture Diagnosis .................................... 32
1. Reasons for Corporate Culture Diagnosis ........................ 32
2. Diagnosis Process of Corporate Culture ......................... 33
Chapter V Suggestions ................................ 50
1. Overall Objectives and Principle .............................. 50
2. Suggestions .......................................... 51
Chapter V Suggestions
1. Overall Objectives and Principle
1.1 Corporate Culture Project Objectives
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Chapter VI Conclusion and Research Prospects
1. Research Conclusion
As China's social and economic development is more and more fast, more and more traditional enterprises have been challenged. As an important soft power, corporate culture will also be proposed when traditional enterprises are seeking for transformation methods. This is a universal problem that lots of companies will encounter, therefore, this paper selected the case for further research.
In this case, B Company is a leading health and beauty company in traditional retail industry, but it has also encountered the same problem, in the moment of the new CEO come, he proposed the need for corporate culture transformation to rebuild the soft power of the company. After a preliminary study on management data of company B, this paper conducted a questionnaire survey of all employees and employee representative interview. In the results of the survey, it was found that company B had the following problems, including inconsistency between current corporate culture and business strategy, the inaccurate description of corporate culture and deficiency of comprehensive corporate culture communication system.
In this case, B Company is a leading health and beauty company in traditional retail industry, but it has also encountered the same problem, in the moment of the new CEO come, he proposed the need for corporate culture transformation to rebuild the soft power of the company. After a preliminary study on management data of company B, this paper conducted a questionnaire survey of all employees and employee representative interview. In the results of the survey, it was found that company B had the following problems, including inconsistency between current corporate culture and business strategy, the inaccurate description of corporate culture and deficiency of comprehensive corporate culture communication system.
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