Week 7 - Importance of Culture

 

Alhussain Ali Murshed TP078072

 

Culture is important because it creates a framework for expression and communication, forms our identities, and promotes social cohesion. It has a large economic impact, protects our legacy, and fosters creativity via diversity. For additional research, consult anthropological, sociological, and cultural studies resources; online databases and the websites of cultural organizations are also good places to look, the contribution of culture to the economy is substantial. Cultural products and attractions are essential to the success of industries like tourism,

 

Reference: joseph, S. (2015, October 28). Why is Culture Important? Www.linkedin.com. https://www.linkedin.com/pulse/why-culture-important-stanley-j-oakley/\

 

Because of WhatsApp's meager revenue, Facebook's $19 billion acquisition of the messaging app first seemed excessive. Nonetheless, the acquisition was calculated since WhatsApp enhanced Facebook's offerings, had a sizable user base, and had room to grow. In addition, it provided long-term monetization potential and helped Facebook maintain its competitiveness, which made the acquisition worthwhile even at a high cost.

 

Reference: Edwards, J. (2014, February 20). Why Facebook Had No Choice But To Pay $19 Billion For WhatsApp. Business Insider. https://www.businessinsider.com/why-facebook-paid-19-billion-for-whatsapp-2014-2

 

Adding new investors can provide a number of difficulties, including dilution of ownership, conflicting interests, disparities in valuation, problems with integration, incomplete information, difficult decision-making, and regulatory compliance. 

Reference:

 Rassolli, M. (2021, September 6). 6 Common Challenges Faced By New Investors And How to Face Them. TrendScout UK. https://www.trendscoutuk.com/blog/6-common-challenges-faced-by-new-investors-and-how-to-face-them/

Ali Hussein M. Ahmad TP077707

Our identity, values, and behaviors are shaped by our culture, which makes it essential. It promotes unity in society and collaboration by giving people a feeling of connection and belonging. We preserve our legacy and collective wisdom by passing on knowledge, customs, and values from one generation to the next through culture. It promotes many viewpoints and ideas, which feeds creativity and innovation. Furthermore, culture provides opportunities for self-expression and enjoyment through the arts, music, literature, and food, all of which enhance our lives. In the end, accepting and appreciating other cultures encourages tolerance, understanding, and harmony in our global community.

Oakley, S. (2015, October 28)

Facebook paid excessively for WhatsApp because of its extravagant $19 billion price tag, which at the time seemed out of line with WhatsApp's business plan. Though WhatsApp has a sizable user base and room to develop, there were concerns about the acquisition's logic. But Facebook probably saw it as a calculated effort to increase its worldwide presence and drive out rivals in important markets."

Kerravala, Z. (2014, February 20).

One major hurdle in bringing in new investors is the lack of investor education. Without a solid understanding of financial markets and investment strategies, potential investors may hesitate to get involved, fearing financial losses.

(Funds Europe .2020, March 23)

References:

Oakley, S. (2015, October 28). Why is Culture Important? Www.linkedin.com. https://www.linkedin.com/pulse/why-culture-important-stanley-j-oakley/

Kerravala, Z. (2014, February 20). Did Facebook overpay for WhatsApp? Network World. https://www.networkworld.com/article/748104/cisco-subnet-did-facebook-overpay-for-whatsapp.html

Funds Europe. (2020, March 23). Challenges in attracting new investors. Funds Europe. https://www.funds-europe.com/challenges-in-attracting-new-investors/

Abdullah Mahmoud Alghandour TP077275

The culture is of course very important, since it determines the way people work in an enterprise and creates a common understanding of how people make up the organization, what the colleagues can do for each other, and how they can, participate in a creative way of thinking. It forms the basis, choosing between options, relates with the workers’ attitude toward the job, and then translates to a company’s overall results. 

Facebook most probably paid too much for whatsapp by valuing it on the basis of its strategic strength in augmenting users to Facebookworldwide, especially in emerging markets, as well as it being able to emergence as the dominant messaging platform. There are some difficulties of attracting new investors for example: keepting your own controll and autonomy, setting up an investment agreement that will be consistent with the companys vision and preventing conflict over these issues.

New investors will have different assumptions that risky communication and cultural differences potentially can destroy an established ambience inside the company. Hence, preserving cultural fit of the company to investors and matching value alignment would lead to a long-term successful outcome.

References:

edgar h. schein (2010, Januray 1st) (Schein, Organizational Culture and Leadership) https://ia800809.us.archive.org/14/items/EdgarHScheinOrganizationalCultureAndLeadership/Edgar_H_Schein_Organizational_culture_and_leadership.pdf

Mc Sweeney, Brendan & Happonen, Elina.(2012 June 7th) ("Predeal Management") Mc Sweeney, Brendan & Happonen, Elina. (2012). Pre-deal Management. 10.1093/acprof:oso/9780199601462.003.0007. 

The World of Work Project ( 2019 October 9th) (“Cameron and Quinn’s Competing Values Culture Model”) https://worldofwork.io/2019/10/cameron-quinns-competing-values-culture-model/

Ahmed AbdulAziz Omar Baflah TP078277

Culture is the heart of a vibrant society, reflected by the many ways we tell our stories, celebrate, remember the past, enjoy ourselves and envision our future (WolfBrown, 2011). Culture is also the lens in which we view our world, every waking moment of every day, which makes it difficult to see our own culture in which we are living in. Culture can also be viewed as our way of life, the way that was taught by parents, friends, community, and teachers (Oakley, 2015).

Furthermore, WhatsApp is a good example of how technology affects our culture. WhatsApp changed the way we operate and see the world by its varies features which enables smooth communication between people, even those who lack information in technology find it fairly more easy than using google. WhatsApp achieved this by their language support, group chats, status updates and local payment systems. Due to such, Facebook felt pressured into purchasing WhatsApp for a huge amount due to its massive potential to easily outdo Facebook as WhatsApp’s users are mostly international while Facebook had its users mostly centered around USA and recently starting to expand globally as of 2013 (Edwards, 2014) (Kerravala, 2014).

The issue with attracting ne  w investors varies from the investors lacking knowledge about the financial markets, difficulty in managing personal finances while trying to invest, and the fear of risks involved. They also struggle with understanding different investment strategies which may lead to requirements that increase the company costs.

References

Edwards, J. (2014, Feb 20). Why Facebook Had No Choice But To Pay $19 Billion For WhatsApp. Retrieved from businessinsider: https://www.businessinsider.com/why-facebook-paid-19-billion-for-whatsapp-2014-2

Kerravala, Z. (2014, Feb 20). Did Facebook overpay for WhatsApp?Did Facebook overpay for WhatsApp? Retrieved from networkworld: https://www.networkworld.com/article/748104/cisco-subnet-did-facebook-overpay-for-whatsapp.html

Oakley, S. J. (2015, Oct 28). Why is Culture Important? Retrieved from linkedin: https://www.linkedin.com/pulse/why-culture-important-stanley-j-oakley/

WolfBrown. (2011, Sep). Ontario Arts Engagement Study . Retrieved from torontoartscouncil: https://torontoartscouncil.org/TAC/media/tac/Reports%20and%20Resources/Reports%20by%20outside%20organisations/Arts-Engagement-Study-REPORT_2011.pdf

 

 

-Faris Mohammed Ata Abulathou (TP077862)

Culture is very important as it shapes our identity, influences our behavior, and unites people with shared beliefs and values. That is what makes culture so important in our lives, it allows us to unite and share our histories with modernity, which helps contribute to society.

Facebook saw potential in WhatsApp’s rapidly growing user base and its potential for monetization, in 2012 alone WhatsApp accumulated more than 450 million users, which lead Facebook into believing that it will reach 1 billion users in a short period of time. Facebook claiming WhatsApp also eliminated a potential competitor in the market.

There is the issue of dilution of ownership when it comes to problems that arise from investors, which can lead to conflicts in decision-making. Investors also expect quick returns, which can pressure companies to prioritize short-term gains over long-term growth, which limits their potential. Lastly, finding investors who align with the company’s vision and values can be difficult, but it is crucial for maintaining the company’s culture and direction.

References:

DEUTSCH, A. L. (April 28, 2024). WhatsApp: The Best Meta Purchase Ever? CORPORATE FINANCE. https://www.investopedia.com/articles/investing/032515/whatsapp-best-facebook-purchase-ever.asp

 

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-Basem Ghasan Mansoor Ali (TP076027)

Culture is the identity, values, and behaviors that shape our societies and it’s the hidden link that connects people within the same society together, and the importance of culture lies in its deep connection to ways of thinking, precepting, and even behaving, which led to the diversity of people around the world (Joseph, 2015).

In 2014, Facebook paid 19B to acquire WhatsApp, which was considered an overpay due to WhatsApp's revenue at the time (Edwards, 2014). However, there was a long-term plan behind all this, because, after the acquisition of Facebook over WhatsApp, Facebook didn’t only get rid of its competitor, but they also succeeded in what they were seeking with Messenger.

Bringing in new investors may lead to difficulties and problems for companies, including conflicts of interest and changes in the company’s direction. In addition, the entry of new investors may lead to new requirements that will raise the company's operating costs.

 

References

Edwards, J. (20 2, 2014). Why Facebook Had No Choice But To Pay $19 Billion For WhatsApp. Retrieved from Business Insider: https://www.businessinsider.com/why-facebook-paid-19-billion-for-whatsapp-2014-2

Joseph, S. (27 10, 2015). Why is Culture Important? Retrieved from linkedin: https://www.linkedin.com/pulse/why-culture-important-stanley-j-oakley