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Drin and Limpio Case Evaluation Essay

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Updated: Jun 22nd, 2019

Introduction

Drin is an Italian mobile phone company and it was motivated to venture into commercial business in Peru in a bid to create dynamic thinking on how an enterprise should be organized to gain a huge customer base. Drin targeted the presumably missing strategy in the telecommunication industry in Peru like targeting the young and low earning population, which was not served by the Telefonica Movil BellSouth.

This article seeks to answer several questions based on Drin’s organizational culture and its strategies on commercial operations.

How the two cultures compare based on Hofstede’s scale

Different factors influence organizational cultures. Organizational culture can be defined as shared beliefs, standards, and values based on organizational objectives (Vance 21). The culture depicted by Drin is highly flexible as it offers an alternative way of doing business by giving workers at subordinate level the freedom to initiate new ideas, exercise judgment, innovate, and express creativity.

Drin did not necessarily focus on meeting targets. On the contrary, it aimed at gaining effectiveness. However, the management assumed a bottom up strategy where employees experienced little pressure with no predetermined goals or mechanized procedures.

On the other hand, Peru had a different corporate culture, which was highly mechanized, predetermined goals, and deadlines had to be met. The hierarchical system involved powerful leaders who evaluate employees as individuals as opposed to gauging teamwork. Such management aspects make employees less creative and insecure to take responsibilities.

Drin’s corporate culture

Drin provides a desirable culture, which is flexible, and thus it gives chance to unforeseen alterations towards an effective enterprise. For Drin to realize growth, it emphasized teamwork, viz. the Drin team. Katz posits, “Having shared beliefs about realistic goals, relationships, and behaviors serves as a precursor for cooperation towards efficiency” (92).

Embracing workers’ freedom as embedded in the company logo gives employees the enthusiasm and motivation to work beyond the usual benefits of salary and hunger for effectiveness. Drin embraced young and astute workers who reflected the goal of the company to attract young clients who were somehow sidelined by the existing telecommunication company.

However, Drin’s freedom crossed the official limits. Allowing workers to wear casual clothes affected the company’s outlook. Having defined uniform shapes identity coupled with increasing cohesion among workers and customers.

Strengths of Drin’s corporate culture

Drin’s philosophy to adopt a culture that embraced shared beliefs by young employees geared towards innovation with the support of top management ensured flexibility towards effective production. The Drin training programs offered employees a lifeline opportunity to build their career.

This aspect ensured that their skills did not become obsolete and the company was in a position to produce tailor-made talents that could fit appropriately to the set objectives. Being part of the team provides the platform to learn from others and enjoy success together rather than individual, which might result in internal competitions and risk inefficiency (Katz 95).

The Drin management provided administrative alternatives, which were different from the convectional predetermined plans, roles, and goals set by management and expected to be executed by employees without deviation. When the management serves as a guide and support to the entire system, workers feel respected and they are encouraged to give their best through cooperation and consultation (Palthe 43).

Environmental and organization assumptions

Drin wanted to create competition in Peru and break the monopolistic power by the Telefonica Movil BellSouth. In addition, there was a need to link the opportunity gap existing in the market. The young and low-earning population needed an affordable product such as the pre-paid card system, which Drin introduced.

Drin believed that the corporate culture in Peru was becoming obsolete and there was a need to change the way business was conducted by creating flexibility in the workplace. This move improved the workers’ motivation, creativity towards satisfaction of company’s goals, and the clients’ satisfaction.

Drin held organizational assumptions that the existing telecommunication company had a culture, which was limiting innovation and workers were subjected to mechanized procedures. Based on this assumption, Drin was ready to risk new evaluations and meet the real needs for all individuals in society.

Towards Drin’s withdrawal, employees had started to feel the absence of order. The notion of freedom was becoming exaggerated and change in structure was inevitable. A highly organized and well-coordinated model was necessary to improve the culture, which was been compromised by excess freedom, thus risking unnecessary additions and inefficiency.

The subsidiary can be salvaged, but few changes need to be incorporated in the initial structure of Drin. Drin’s initial corporate culture provided a wide array of opportunities for effective growth of the company. However, some unforeseen segments were overlooked.

First, replacing the casual wear with branded uniforms creates a unique addition and a sense of identity to the company.

Second, the role of management to supervise and coordinate the staff should be tightened to avoid time wastage and ensure proper usage of resources whilst upholding close relationships.

Third, dropping the employee of the month award would be critical in a bid to avoid unnecessary competition among workers. Instead, awards should be done in terms of promotions based on performance and credentials.

Finally, policymaking should remain flexible by giving employees a chance to make changes, but with prior consultations from the team leaders. This move will ensure that informed decisions are made, while at the same time encouraging creativity.

Works Cited

Katz, Robert. Skills of an Effective Administrator, Boston: Harvard Business Press, 2009. Print.

Palthe, Jennifer. “The Relative Importance of Antecedents to Cross-cultural Adjustment: Implications for Managing a Global Workforce.” International Journal of Intercultural Relations 28.1 (2004): 37-59. Print.

Vance, Charles. Managing a Global Workforce: Challenges and Opportunities in International Human Resource Management, New York: Routledge, 2015. Print.

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