Martin-Luther-Universität Halle-Wittenberg

Principles of Management

Prof. Dr. Julia Mueller-Seeger

M. Sc. Liudmila Gapeyeva-Yukce

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 Overview Day 3
 Orientations
 Corporate values

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Today‘s lecture ist about stakeholders and shareholders, corporate values and organizational culture.

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 Process of Strategic Management
Vision & Business model

Leadership

Product life cycle

Experience curve

principles
Strategic
Economies of Scale
Economies of Scope
ROI & Market share
Price Quality (Value Map)

External Analysis Internal Analysis

Market definition Customer Value-Analysis
PESTAnalysis Core competencies

Strategic Analysis
Industry analysis Value chain analysis
Competitor analysis

SWOT-Analysis

Corporate level SBU level

formulation
Strategy diamond

Strategy
Portfolio-Analysis Competitive (Generic) strategies
Ansoff-Matrix Specific strategies
New product development

Strategy evaluation
Balanced Scorecard
Assessment and adjustment

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If we look at the process of strategic management in this model, the topics of corporate culture and orientation
belong to the first stage of the model, namely vision and business model.

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 Business Orientation
 A company’s orientation represents how much a
company attends to the interests of all its relevant
stakeholders, and thus it attempts to address such
interests.

 Different businesses apply different orientations,

depending on their individual goals and strategies.

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A company’s orientation represents how much a company attends to the interests of all its relevant stakeholders, and thus it
attempts to address such interests.

Different businesses apply different orientations, depending on their individual goals and strategies.

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 Stakeholder vs Shareholder

 A stakeholder is anyone who has any type of stake or

interest in a business, while a shareholder is someone who
owns shares (stock) in a business and thus has an equity
interest.

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A short note should be made at this point, namely with regard to two phenomena: stakeholders and shareholders. It is
important to clarify the difference between them, also in order to talk further about business orientations.

A stakeholder is anyone who has any type of stake or interest in a business, while a shareholder is someone who
owns shares (stock) in a business and thus has an equity interest.

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 6 Principles of Mgmt

A company has got many various stakeholders, which can be internal and external. They all have different needs and interest
such as influence on the company itself. In the table you can see a list of different stakeholders.

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 Other stakeholders
Communities
Stake: Health, safety, economic development
Communities are major stakeholders in large businesses. They are impacted
by a wide range of things, including job creation, economic development,
health, and safety. When a big company enters or exits a small community, they
will immediately feel the impact on employment, incomes, and spending in the
area. In some industries, there is a potential health impact, as companies may
alter the environment.

Governments
Stake:Taxes and GDP
Governments can also be considered a major stakeholder in a business as
they collect taxes from the company (corporate income), as well as from all
the people it employs (payroll taxes) and other spending the company incurs
(goods and services taxes). Governments benefit from the overall Gross
Domestic Product (GDP) that companies contribute to.

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Apart from the stakeholders who work or cooperate directly with a company (employees, owners, customers, suppliers,
retailers, creditors), there are indirect stakeholders but they can sometimes have significant influence on a business. Among
them are communities and governments.

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 Satisfying all Stakeholders

1. Identifying Stakeholders

2. Defining and weighting

satisfying criteria

3. Evaluating and benchmarking

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Stakeholders are very important for every organization, so it is also important to satisfy their needs. To do so you first have to
identify your companies stakeholders. Second you have to define and weight the satisfying criteria before developing a
strategy for evaluating and benchmarking.

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 Stakeholder Analysis
evaluate:
1 the relevance of each …
stakeholder for your firm/SBU
100
2 how the efforts of your
firm/SBU are perceived by … 80
Customers
each stakeholder 60

40

20

Partners in strategic Employees

networks

Shareholders and “financial

Suppliers community”

Society

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To make decisions about business orientations , it might be useful to run a stakeholder analysis. First you have to evaluate the
relevance of each stakeholder for your firm/SBU and second how the efforts of your firm/SBU are perceived by each
stakeholder. Based on this analysis a company should get a better picture of its stakeholders and understand whose interests
and to what extent it should meet.

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 Ranking/Prioritizing Stakeholders

 Companies often struggle to prioritize stakeholders and

their competing interests. Where stakeholders are aligned,
the process is easy.

 However, in many cases, they do not have the same

interests at stake.

 For example, if the company is pressured by shareholders

to cut costs, it may lay off employees or reduce their
wages, which presents a difficult tradeoff.

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Companies often struggle to prioritize stakeholders and their competing interests. Where stakeholders are aligned, the
process is easy.

However, in many cases, they do not have the same interests at stake.

For example, if the company is pressured by shareholders to cut costs, it may lay off employees or reduce their wages, which
presents a difficult tradeoff.

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 Guiding principles towards Stakeholders
(Example of British Petroleum)

Corporate Social Responsibility

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To ease the interaction between a company and its stakeholders, it might be helpful to develop some guiding principles. BP
has shown how this can be done.

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 Corporate Social Responsibility

 The field of corporate social responsibility (CSR) has

encouraged companies to take the interests of all stakeholders
into consideration during their decision-making processes,
instead of making choices based solely upon the interests of
shareholders. The general public is one such external
stakeholder now considered under CSR governance.
 When a company carries out operations that could increase
environmental pollution or take away a green space within a
community, for example, the public at large is affected. Such
decisions may be right for increasing shareholder profits, but
stakeholders could be impacted negatively. Therefore, CSR
creates a climate for corporations to make choices that
protect social welfare, often using methods that reach far
beyond legal and regulatory requirements.

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When talking about business orientation and especially when a company decides to work fairly with the interests of all
stakeholders, the concept of corporate social responsibility comes into play.

The field of corporate social responsibility (CSR) has encouraged companies to take the interests of all stakeholders into
consideration during their decision-making processes, instead of making choices based solely upon the interests of
shareholders. The general public is one such external stakeholder now considered under CSR governance.
When a company carries out operations that could increase environmental pollution or take away a green space within a
community, for example, the public at large is affected. Such decisions may be right for increasing shareholder profits, but
stakeholders could be impacted negatively. Therefore, CSR creates a climate for corporations to make choices that protect
social welfare, often using methods that reach far beyond legal and regulatory requirements.

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 Corporate values
 The operating philosophies or principles that guide an
organization's internal conduct as well as its relationship
with its customers, partners, and shareholders.

 Core values are usually summarized in the mission

statement or in the company's statement of core values.

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Now that we have discussed about business orientations, we will move on to the values of the company, the so called
corporate values.

Corporate values – are the operating philosophies or principles that guide an organization's internal conduct as well as its
relationship with its customers, partners, and shareholders.

Core values are usually summarized in the mission statement or in the company's statement of core values.

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 Corporate values
 Values that are important for the company
 Formal: top-management
 Informal: employees and top-management
 Represented in corporate culture
 “the way things are done here”
 „a set of basic tacit assumptions about how the world is and ought
to be that a group of people share and that determines their
perceptions, thoughts, feelings, and, to some degree, their overt
behavior.” (Schein)

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Corporate values are very important for the company and are represented in corporate culture.

Corporate culture refers to the beliefs and behaviors that determine how a company's employees and management
interact and handle outside business transactions.

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 Different cultures

(Sackmann, 2003)

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Talking about corporate culture, we first need to define what culture is in general.
Culture is the collective programming of the mind which distinguishes one group or category of people from another.
As can be seen on the slide, there are different levels and types of cultures that are interconnected and influence each other.
Apart from that, different framework conditions promote the formation of subcultures.
For example:
Strongly determined organizational structures with many departments, hierarchical levels, highly structured work processes
etc. can lead to the development of subcultures. Subcultures of this kind can be seen, for example, when cross-departmental
teams are put together to work together on a project, since communication difficulties can then arise.
You can also consider how professor Schein distinguishes three different cultures, namely the worker culture, the technician
culture and the manager culture. These subcultures have different assumptions, which is why the coordination of the three
subcultures can be difficult, for example, if workers assume that the success of the company is based on the actions of the
individual employees, while technicians assume that the perfected work processes and machines are important and put
managers on control mechanisms.
Moreover,
• The type of tasks and the necessary qualifications can favor the development of subcultures. Through joint training, practice
and daily collaboration, separate groups are formed because employees feel they belong to this profession.

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• Common experiences, such as surviving crises, founding the company or being taken over by a competitor, can lead to the formation
of subcultures.
• In addition, factors such as age, gender, nationality, union membership can make employees feel that they belong to certain groups
and build your own cultural values. Because outside of the company, employees are exposed to different cultural aspects at the intra-
organizational, organizational, trans-organizational and super-organizational level and can accordingly be members of different cultural
systems that influence behavior.

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 Three levels of culture
1. Artifacts and Creations
Visible but often not
Technology
decipherable
Art
Visible and audible behavior patterns

2. Values
Greater level of
Testable in the physical environment awareness
Testable only by social consensus

3. Basic Assumptions Schein, 1991

Relationship to environment Taken for granted,
Nature of reality, time, and space invisible, preconscious
Nature of human nature
Nature of human activity
Nature of human relationships

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Professor Schein, who was mentioned before is also famous for his model of organizational culture. The three levels refer to
the degree to which the different cultural phenomena are visible to the observer.
The basic elements of Schein’s cultural concept are basic assumptions, values and artifacts that are mutually connected.
The top level (material phenomenon) in the form of cultural artifacts is clearly visible and obvious, the bottom level (basic
assumption) is difficult to access and implies unspoken common basic assumptions. The level (immaterial phenomena) in
between includes various values, norms and codes of conduct of the company members.
According to this model, Schein defines corporate culture as “the pattern of basic assumptions that a given group has
invented, discovered, or developed in learning to cope with its problems of external adaptation and internal integration, and
that have worked well enough to be considered valid, and, therefore, to be taught to new members as the correct way to
perceive, think, and feel in relation to these problems. ”

The deepest level comprises common basic assumptions, the “essence of corporate culture” and reflects assumptions about
the nature of people and the corporate environment. The basic assumptions are formed from shared values and beliefs that
have successfully held their own over time and guide the behavior of the members by distinguishing acceptable from
unacceptable actions, beliefs and opinions. They are taken over by the company members through social interaction and
taken for granted; therefore, they remain unspoken and are unconsciously anchored deep in the minds of the employees. In

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order to understand and change the culture of a group, these basic assumptions must be recorded.

• The basic assumptions are expressed in the declared values. They are common beliefs and guidelines that affect the behavior and
attitudes of members. In doing so, guiding principles, strategies, social principles, philosophies, goals and standards are defined, which
state what is socially acceptable. If a declared value is profiled, it changes over time to a common basic premise. However, one should
not overlook the fact that these "publicly propagated" values do not necessarily have to correspond to the values lived or to the basic
assumptions. It is therefore important to consider all three levels when analyzing a corporate culture.

• The third level are artifacts and creations and include visible structures, processes, behaviors, atmosphere, language, clothing, etc. -
everything "you can hear, see and feel". The difficulty of the artifacts is that, although they are easy to observe and clearly visible, they
are difficult to decipher. Since they visibly reflect the other two levels, an interpretation of the artefacts by the values and basic
assumptions is required.

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  Culture differences are seen in 4 criteria:
 Symbols (Words, attitudes, language, dressing…)
 Heros (dead, alive, real or from our imagination…), as behaviours models
 Rituals (collective activities, very important inside a culture, but seen as
unecessary from outside)
 Values (are the heart of a culture; build a behavioural model and define what is
good, bad, normal, unnormal…)

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Culture differences are seen in four criteria:

• Symbols, such as Words, attitudes, language or dressing,
• Heros, which can be dead, alive, real or from our imagination as behaviours
models,
• Rituals, such as collective activities, which are very important inside a
culture, but may be seen as unecessary from outside and
• Values which are the heart of a culture. They build a behavioural model and
define what is good, bad, normal, unnormal etc.

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 Influence of national culture on corporate
culture
 “ If you ask the people at Toyota to make a chair, they will
first develop a plan. They will then develop a coordinated
work system to simplify the construction process for the
chair. They will gather all the people who will work on the
chair and make sure they understand their responsibilities
and have the necessary job qualifications. Finally, they will
discuss where the chair will be made and what they might
need to charge for it. If you ask people at Hyundai to
make a chair, they will go and get some wood.“ (Shim &
Steers, 2012, p. 581).

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As it was mentioned before, types of cultures are interconnected and influence each other. This can be very well
demonstrated on the example of national and organization cultures.
Different national cultures reveal differences in business practices and values, which is why knowledge of the other cultures is
required to work together.

This can be shown on the example of Toyoata and Hyundai

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 Influence of national culture on corporate
culture
 Toyota has, what they call a ‘symmetric’ culture, which
emphasizes stability and is characterized by norms and
risk-avoidance, while Hyundai pursues an ‘asymmetric’
culture, which embraces uncertainty and is fueled by
entrepreneuriall leadership.

 Japanese culture is more risk-averse and Korean culture is

rather risk-embracing in general.

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Toyota has, what they call a ‘symmetric’ culture, which emphasizes stability and is characterized by norms and risk-avoidance,
while Hyundai pursues an ‘asymmetric’ culture, which embraces uncertainty and is fueled by entrepreneuriall leadership.

Japanese culture is more risk-averse and Korean culture is rather risk-embracing in general.

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 Culture dimensions (Hofstede)
 Power distance: the degree of inequality expected and accepted by individuals
 Austria, Denmark, Norway: less centralization, flatter organization pyramids, small wage
differencies
 Brazil, India, Mexico: greater centralization, tall organization pyramids, large wage differenies
 Individualism, collectivism: relationship between individual and the society
 Columbia, Greece, Mexico: Organization as family
 USA, UK, Netherlands: Organization is more impersonal
 Uncertainty Avoidance: what is different and dangerous; the expression of the level of anxiety
in a society with an uncertain future.
 Denmark, India, Sweden, UK: few written rules, greater willingness to take risks
 Japan, France, Portugal: many rules, more risk avoidance
 Femininity, masculinity: “tough versus tender” cultures
 Denmark, Finland, Sweden, Thailand: Gender roles are minimized, social skills are rewarded,
preference for cooperation, modesty, caring for the weak and quality of life
 Venezuela, Japan, Austria, Italy: competition is rewarded, preference in society for achievement,
heroism, assertiveness, and material rewards for success
 Long- vs. Short-term orientation
 France, Russia, USA: focus on results in negotiation
 Japan: Focus on process in negotiations

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There are many studies on cross-cultural differences and theories about national cultures. Nevertheless, there is a model of
local cultures that prevails in academic literature which was developed by Hofstede (1993). In his research the author came
up with five bipolar cultural dimensions that describe the differences between nations: power distance, uncertainty
avoidance, individualism-collectivism, masculinity-femininity, long-term vs short-term orientation. These national culture
dimensions were detected during the study and subsequent analysis of the values of employees in 64 subsidiaries of the
multinational IBM Corporation.

The Power distance is the degree of inequality expected and accepted by individuals.
In societies with high power distance there are well-developed systems where everyone’s place is strictly defined, a high
degree of authority and authoritarian styles of management prevail. The companies in such countries tend to have less
employee participation.

The Individualism or collectivism shows the relationship between individual and the society. Basically, in individualist
countries people are used to act individually and bear personal responsibility for their actions, while in collectivist countries
people feel better when they are so to say protected by a group. As a rule, communitarian societies are characterized by high
or moderate degree of power distance.

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Uncertainty Avoidance - This dimension means the extent to which people in a society feel threatened by ambiguity, prefer structured
situations to unstructured, seek stability and formalization. As a rule those who belong to high uncertainty avoidance culture resist
innovation and believe that what is different might be dangerous. Such societies tend to provide stability of employment and
emphasize the importance of professional and technological expertise. In general, societies with high score on this dimension are called
rigid, and those that score low on ucertainty avoidance are flexible societies.

Femininity or masculinity – can be explained as the extent to which tough values, such as assertiveness, success and competition
prevail over tender values, such as quality of life and environment, suppoting warm personal relationships, concern about people,
service and solidarity.

And Long- vs. Short-term orientation defines the focus of plans and actions.

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 How would you evaluate …?
 How would you describe your home culture using 3 to 5
adjectives?

 How do others describe your home culture using adjectives?

 How would you evaluate your home culture regarding the

following dimensions?
 Power distance
 Individualism, collectivism
 Uncertainty Avoidance
 Femininity, masculinity
 Long- vs. Short-term orientation

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Please think about your own culture. How would you describe your home culture using 3 to 5 adjectives? How do others
describe your home culture using adjectives? And how would you evaluate your home culture regarding the discussed
dimensions?

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 22 Principles of Mgmt 25.10.2021

The following slides will show the ranking of different countries for various indexes. First you can see the classification of
individualism-collectivism index and masculinity-famininity index. The red circle marks Germany.

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 23 Principles of Mgmt 25.10.2021

In this figure the indexes are about masculinity-femininity and power distance.

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 24 Principles of Mgmt 25.10.2021

And the last figure shows the classification in masculinity-famininity and uncertainty avoidance indeces.

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 Organizational Culture Assessment
Inventory

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Coming back to organizational culture and values, there exist numbers of approaches to classifying and describing it. For
describing an organizational culture, you can, for example, use an assessment inventory including the following checkpoints:
• The history of the organization
• Values and beliefs
• Myths and Stories that explain the organization
• Cultural norms
• Traditions, rituals and ceremonies
• Heroes and heroines

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 Organizational Culture Profile (OCP)
Ashkansy et al 2000
Dimension Description
Leadership The role of leaders in directing an organization, maintaining its culture and serving as a role model.
Structure The degree to which the organizational structure limits the actions of members, looking after the
influence of policies and procedures on member behaviors and the concentration of power in
organizations
Innovation The organization’s risk preference: the willingness of the organization to take risks and the
encouragement it shows for innovation and creativity
Job The degree to which the organization emphasizes task performance – the extent of task orientation
Performance and whether performance is rewarded
Planning The extent to which the organization has clear goals, has plans to meet those goals and strives to
follow those plans
Communication The free sharing of information among all levels within the organization where possible, the direction
it takes (bottom-up, top-down) and the importance of rumor in communication
Environment The Extent to which the organization is responsive to the needs of its clients and the extent to which
it is influenced by and influences the actions of the other similar organizations
Humanistic The extent to which the organization respects and cares for individuals;
Workplace
Development of The extent to which the organization expends sufficient effort in providing opportunities for members
the Individual to develop their skills and rewards development with career advancement and challenging work
26 on
Socialization The time new members take toPrinciples of Mgmt
settle in, the 25.10.2021
degree to which employees feel they understand the
Entry organization, the extend of formalization, and the effectiveness of the socialization process

For describing and defining the organizational culture profile you can not only use the mentioned assessment inventory, but
also the shown table with its dimensions. It includes leadership, structure, innovation, job performance, planning,
communication, environment, humanistic workplace, development of the individual and socialization on entry. In each
dimension you can describe the plans and actions which leads you to a detailed culture profile of the company.

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 Types of corporate cultures
Competing Values Emphasis on flexibility and spontaneity
Framework (Quinn,
1988)
culture type: CLAN
• Family atmosphere, feeling of
community
• Mentor, father figure
• Loyalty, tradition
• Development of Human-Resources,
Commitment to employees, values
culture type: ADHOCRACY
• Entrepreneurship, Dynamic, readiness to
take risks
• Entrepreneur
• Risk taking innovator
• Emphasis of innovation, flexibility
• growth

Internal External
Orientation orientation
culture type: HIERARCHY culture type: MARKET

• Standardisation, formalisation • Results orientation, competition

• Coordinator, administrator • Decision maker
• Rules procedures, regulations • Task and target orientation
• Consistency, stability of • Competitive advantage, market success
procedures

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To classify the type of corporate culture of your company, you can use the competing values framework by Quinn from 1988.
Based on the values and norms of your firm, you are able to place your company in one of the following sections: Clan,
adhocracy, hierarchy or market. Which type you are depends also on your orientation (internal or external) such as on your
emphasis on flexibility and spontaneity.

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 Types of corporate cultures
Category of Paternalistic Laissez Faire Participative Professional
Assumptions
Relationships Lineal (hierarchical) Lineal Collateral (group- Individualistic
oriented)
Human nature People are basically People are “good” People are good and People are neither
trustworthy and trustworthy trustworthy good nor evil –
neutral stance
Nature of truth Truth resides in the Truth resides in Truth found in group Truth found in
founder/ family founder/ family, decision making/ professional
although participation rules on
“outsiders” conduct
given autonomy
The environment Proactive stance Harmonizing/ Harmonizing/ Reactive/ proactive
proactive stance proactive stance stance
Universalism Particularistic Particularistic Universalistic Universalistic
(nepotism)
Time Present- or past- Present- or past- Present- or future- Present- oriented
oriented oriented oriented
Human28
activity Doing oriented Doing oriented
Principles of Mgmt Being –in- becoming
25.10.2021 Doing oriented
oriented

Of course there are more types of corporate cultures as just those from Quinn’s framework. This table shows some additional
types which depend on different categories of assumptions and the leadership style.

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 Example - LETTER FROM MARK ZUCKERBERG
[…] The Hacker Way
As part of building a strong company, we work hard at making Facebook the best place for great people to have a big
impact on the world and learn from other great people. We have cultivated a unique culture and management approach that
we call the Hacker Way.
 The word “hacker” has an unfairly negative connotation from being portrayed in the media as people who break into
computers. In reality, hacking just means building something quickly or testing the boundaries of what can be done. Like
most things, it can be used for good or bad, but the vast majority of hackers I’ve met tend to be idealistic people who
want to have a positive impact on the world.
 The Hacker Way is an approach to building that involves continuous improvement and iteration.
 Hackers believe that something can always be better, and that nothing is ever complete. They just have to go fix it —
often in the face of people who say it’s impossible or are content with the status quo.
 Hackers try to build the best services over the long term by quickly releasing and learning from smaller iterations rather
than trying to get everything right all at once. To support this, we have built a testing framework that at any given time
can try out thousands of versions of Facebook.
 We have the words “Done is better than perfect” painted on our walls to remind ourselves to always keep
shipping. Hacking is also an inherently hands-on and active discipline. Instead of debating for days whether a new idea is
possible or what the best way to build something is, hackers would rather just prototype something and see what
works.
 There’s a hacker mantra that you’ll hear a lot around Facebook offices: “Code wins arguments.” Hacker culture is also
extremely open and meritocratic.
 Hackers believe that the best idea and implementation should always win — not the person who is best at lobbying for
an idea or the person who manages the most people.
 To encourage this approach, every few months we have a hackathon, where everyone builds prototypes for new ideas
they have. At the end, the whole team gets together and looks at everything that has been built. Many of our most
successful products came out of hackathons, including Timeline, chat, video, our mobile development framework and
some of our most important infrastructure like the HipHop compiler.
 To make sure all our engineers share this approach, we require all new engineers — even managers whose primary job
will not be to write code — to go through a program called Bootcamp where they learn our codebase, our tools and
our approach. There are a lot of folks in the industry who manage engineers and don’t want to code themselves, but the
type of hands-on people we’re looking for are willing and able to go through Bootcamp.
29 Principles of Mgmt WS14/15 25.10.2021

A good example of corporate culture and values can be found in this letter from Mark Zuckerberg. First he describes the
values that can be distilled from the approach to work that hackers have. But, as can be seen on the next slide, this
professional approach helped define general values that they follow in Facebook.

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 The examples above all relate to engineering, but we have distilled these principles into five core
values for how we run Facebook:
 Focus on Impact: If we want to have the biggest impact, the best way to do this is to make sure
we always focus on solving the most important problems. It sounds simple, but we think most
companies do this poorly and waste a lot of time. We expect everyone at Facebook to be good at
finding the biggest problems to work on.
 Move Fast: Moving fast enables us to build more things and learn faster. However, as most
companies grow, they slow down too much because they’re more afraid of making mistakes than
they are of losing opportunities by moving too slowly. We have a saying: “Move fast and break
things.” The idea is that if you never break anything, you’re probably not moving fast enough.
 Be Bold: Building great things means taking risks. This can be scary and prevents most companies
from doing the bold things they should. However, in a world that’s changing so quickly, you’re
guaranteed to fail if you don’t take any risks. We have another saying: “The riskiest thing is to take
no risks.” We encourage everyone to make bold decisions, even if that means being wrong some of
the time.
 Be Open: We believe that a more open world is a better world because people with more
information can make better decisions and have a greater impact. That goes for running our
company as well. We work hard to make sure everyone at Facebook has access to as much
information as possible about every part of the company so they can make the best decisions and
have the greatest impact.
 Build Social Value: Once again, Facebook exists to make the world more open and connected,
and not just to build a company. We expect everyone at Facebook to focus every day on how to
build real value for the world in everything they do.

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Here are the five core values for Facebook:

Focus on Impact: If we want to have the biggest impact, the best way to do this is to make sure we always focus on solving
the most important problems. It sounds simple, but we think most companies do this poorly and waste a lot of time. We
expect everyone at Facebook to be good at finding the biggest problems to work on.

Move Fast: Moving fast enables us to build more things and learn faster. However, as most companies grow, they slow down
too much because they’re more afraid of making mistakes than they are of losing opportunities by moving too slowly. We
have a saying: “Move fast and break things.” The idea is that if you never break anything, you’re probably not moving fast
enough.

Be Bold: Building great things means taking risks. This can be scary and prevents most companies from doing the bold things
they should. However, in a world that’s changing so quickly, you’re guaranteed to fail if you don’t take any risks. We have
another saying: “The riskiest thing is to take no risks.” We encourage everyone to make bold decisions, even if that means
being wrong some of the time.

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Be Open: We believe that a more open world is a better world because people with more information can make better decisions and
have a greater impact. That goes for running our company as well. We work hard to make sure everyone at Facebook has access to as
much information as possible about every part of the company so they can make the best decisions and have the greatest impact.

Build Social Value: Once again, Facebook exists to make the world more open and connected, and not just to build a company. We
expect everyone at Facebook to focus every day on how to build real value for the world in everything they do.

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 Analysis of Example

Homework

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This is the end of Lecture 3. The next slide will provide details about the individual task.

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 Analysis of Example 3
 Analyze corporate values and orientations in one
letter to the shareholder.
 Take one letter to the shareholders
 Read and underline key words
 Reflect on cultural values and orientations that are addressed
in the letter
 Write one page describing what you identified and use
examples from the letter to show why you identified them
 (individual task 10%)

32 Principles of Mgmt

The individual project task related to the topic.

Please Analyze corporate values and orientations in one letter to the shareholder.
Take one letter to the shareholders that will be distributed by the course representative
Read and underline key words.
Reflect on cultural values and orientations that are addressed in the letter.
Please write one page describing what you identified and use examples from the letter to show why you identified them.

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