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AES Corporation’s Business Culture Essay

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Updated: May 1st, 2020

Every organization has a profile that makes it stand out from the rest. According to Cummings and Worley (2009), the unique portfolio reflects the core objectives of the company. What this means is that the objectives are used to formulate the portfolio of operations. For instance, a firm dealing with household products has an outline that reflects the experiences of individuals within the homestead. Consequently, the organization will be passing messages promoting social cohesion within the family. The message communicated by AES in the company’s website revolves around energy (AES Corporation, 2014). More specifically, the company is promoting a culture of clean energy.

AES has a number of subsidiaries involved in the generation of electricity. One of the objectives of the company is the provision of reliable services (AES Corporation, 2014). According to Cummings and Worley (2009), reliability enhances the success of a firm. AES is also promoted as a firm that is keen on environmental protection. To this end, its renewable power plan is illustrated as a key aspect of its unique portfolio.

The global energy crisis needs creative solutions. The information obtained from the profile created by AES indicates that the company is intent on providing these answers to address the crisis (AES Corporation, 2014). Consequently, the company emerges as a ‘problem solver’. Cummings and Worley (2009) insist that when a firm is identified with a given strategy, loyalty from clients is enhanced. AES is depicted as an organization that is trusted by the consumers.

Organizational Restructuring

Organizations are established with the intention of achieving given objectives. Business operations are geared towards the achievement of these goals. The identified goals are realized with the help of cooperation from the individuals making up the organizational structure (Cummings & Worley, 2009).

There are certain cases where organizations are faced with a number of challenges in the process of implementing their core strategies. Restructuring is one of the approaches adopted to address these challenges. Cummings and Worley (2009) are of the view that a total overhaul of the organizational structure is the only way to guarantee improved performance. One such company that underwent organizational restructuring is Kodak.

Organizational Change at Kodak

Type of change

Kodak has carried out a partial restructuring of its organizational composition. More specifically, the company has come up with new departments to increase sales and improve on other aspects of its operations (Kodak, 2012). The development has seen managers being reassigned new roles within the organization. Such changes have a number of repercussions. According to Cummings and Worley (2009), a partial reorganization translates to expenses, which are incurred in the process of acquiring officers to head the new departments. The move is targeted at improving the overall performance of the entity.

Analysis of the change

The appointment of a new financial manager signals a departure from Kodak’s bloated expenditure. According to Cummings and Worley (2009), a limited restructuring is aimed at increasing the productivity of the company. According to the information obtained from the Kodak’s website, the expenditure problem was affecting profitability negatively. The restructuring was meant to address this and other problems facing the organization. The firm’s move to come up with new departments will ultimately solve the financial problems that are currently affecting its operations.

Culture in an Organization

A typical organization is characterized by a number of cultural elements. The reason is that the company is operating in an environment made up of people from different cultures. For example, a multinational is composed of employees from different parts of the world. In addition, the entity deals with customers and suppliers from varying socio-economic backgrounds. In light of this, it is important for an organization to take into consideration the impacts of culture on its operations.

Coca Cola is such a multinational that has realized the importance of culture in its different undertakings around the world. The company is known for its significant contributions to corporate social responsibility ventures (CSR Wire, 2014). It is engaged in the provision of social services and other amenities aimed at helping neighboring communities.

Many firms have realized that it is important to adopt a culture of corporate social responsibility in the process of conducting business. The aim is to make sure that members of the community become stakeholders in the running of the company. According to Cummings and Worley (2009), corporate social responsibility is a way through which organizations give back to the society.

At Coca Cola, such a culture is cultivated within the organizational structure. Employees working for the company are encouraged to give back to their own communities. The developments have given rise to the company’s robust culture of corporate social responsibility. Firms can create a culture of their own by encouraging a similar practice within the internal organizational structure.

Organizational Challenges

There are a number of reasons why organizations are unable to fulfill their goals and objectives. The factors behind this failure range from one company to the other. The uniqueness of such issues depends on the industry the firm is operating in and the general dynamics of its undertakings. Many multi-national companies incur huge losses due to poor strategies formulated by the management. In addition, the losses can result from failure to implement existing strategies fully. For example, a misinformed plan to enter into a foreign market may lead to failure of the organization in the new market.

According to Cummings and Worley (2009), it is important for contemporary organizations to ensure that their policies are adapted to the ‘ever changing’ business environment. Today’s entities are operating in an era characterized by significant technological developments. The developments give rise to a myriad of changes that the company has to adjust to. A suitable strategy may involve relying on innovative measures to ensure that the organization comes up with new products on a regular basis. The products are mean to meet the changing demands of consumers. What this means is that the organization can overcome the aforementioned challenges by embracing technology. The management should avoid temptations to fight the adoption of new operational structures.

In the global arena, it is essential to insure assets needed to carry out business operations. Risks are another indication of challenges that firms face in today’s business world. Losses can be brought about by natural disasters. If a company is not insured, then it risks losing the very business that is expected to sustain its existence. According to Cummings and Worley (2009), companies must insure their assets as a precautionary measure. The international market is full of challenges, which creates the need to protect the assets held by the firm.

References

. (2014). A history of improving lives.

CSR Wire. (2014). CSR profile of Coca-Cola Company, the.

Cummings, T., & Worley, C. (2009). Organizational development and change (9th ed.). mason, OH: South-Western Cengage Learning.

Kodak. (2012). Kodak makes organizational changes to align with restructuring plan.

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