Effect of Corporate Culture on Global Marketing Organization at L’oreal East Africa Limited in Kenya

Abstract

Corporate culture defines the core set of attitudes and practices shared by members of the firm. Culture therefore gives an organization a sense of identity and determines through the organization’s legends rituals, beliefs, meanings values, norms and language the way in which things are done around here. This study was a case study. The choice of a case study is founded on the fact that the unit of analysis is a single firm. Data was collected by use of an interview guide consisting of ten (10) questions. The data was analyzed using content analysis. The researcher transcribed the data from the interview and organized if into topics under which the various issues raised were discussed. The main aim of the study was to establish the effect of corporate culture on the organization of global marketing at L’oreal East Africa Ltd. The study therefore looked at Marketing Division relationship with the Human Resource division, Understanding of corporate culture, Corporate culture influence on staffing decision in global marketing function, Perpetuation of corporate culture in the organization, new employees induction on corporate culture, balance between corporate culture and company objectives, global marketing structure, global marketing structure and corporate culture, global marketing organization, corporate culture on marketing organization changes, effect of culture on promotional decisions, aspects of corporate culture critical to determining global marketing organization, auditing of corporate culture and the future of corporate culture. From the study there was significant relationship between marketing division and human resource division. Due to the transcendent role of the human resource division it was expected that marketing division’s skill base would result from recruitment activities of the human resource division. The meaning of corporate culture was generally understood in relation to values and concepts such as ethics, respect, beliefs, norms and behavior were common themes indicative of corporate culture. There was interrelationship among corporate culture, staffing decisions and global marketing function, an indication that human resource functions and the global marketing organization functions were informed by certain elements of corporate culture. Corporate culture was generally inculcated through slogans and ceremonies especially during induction of new employees. The induction process was done at the head office of the organization and new employees would be taken through a set of rules and regulations and their role within the organization as well as on internal corporate culture elements. The organization had externally oriented values and beliefs and internally oriented values and beliefs, which at times had a blurred characterization. The effectiveness of their organization was a function of the values and beliefs held by the members of the organization, and that it was incumbent upon all the staff members at least to translate core values and beliefs into action in their areas of operations. The top management indicated that the organization had working plans that supported effective management of interrelationships of core values and beliefs espoused by the organization, policies and practices of the organization and the business environment of the organization.