Vancity, Doing Good, Doing Wel Case Solution
Many financial institutions were doing their best and try to gain competitive advantage and moving towards community focus, but instead of that Vancity was leading.
Vancity defines new strategy for social finance and wealth generation, this strategy based on justice (not violating the rules of an environment), and set up Corporate Social Responsibility (CSR). Vancity generates social, corporate, economic benefits for a community.
Apply Hofstedeâ€™s Value Dimensions to evaluate Vancityâ€™s Corporate Culture. Discuss how/whether your results support the Organizationâ€™s Mission, Vision and Structure:
About the current organizational structure of Vancity, it has been determined that the financial institution is seeking to provide the organic structure that would motive the employees as well the current internal evaluation strategy of the company. So from the following condition of Vancity on its culture, Hofstede’s value dimensions model provides a deep analysis of how the company operates its organizational structure and how it is matched with its long-term mission and vision.
- Individualism vs. Collectivism:
From the analysis, it has been identified that Vancity is using the collectivistic approach in which each member would have a chance to show the ideas and share the company’s long-term objectives that could grow the reputation overtime. In other sense, this term means that a group of members would make collective decisions to achieve the company’s long-term vision and mission instead of focusing on the individual ideas.
- Masculine vs. Feminine: :
In the context of social responsibility, Vancity was focusing to grand power to the female for making the decisions of their financial perspective instead of allowing the husbands and the dependent males to take the decision on their behalf. This trend focused the female to increase their confidence concerning the proper decision makers.
- Uncertainty Avoidance:
According to the group efforts, it has been determined that the company was increasing the collective power of the members to easily overcome the uncertainty events that might hurt the entire operations. So the group decisions would be analyzed as the key to surviving every uncertain event and to manage the continuous change accordingly.
- Power distance
It has been determined that Vancity had equally distributed the power to the related members considered as the customers. These members had the equality to generate the ideas and had control over the company’s stack. So with the use of equal power distribution, it has been indicated that a company still has no power distance among its members or the shareholders.
- Time perspective
About the long-term strategy, Vancity is always looking to work with people and help them prosper their life under easy terms and condition. Therefore, according to the certain statement, it clearly shows that it would manage the time under the group based decisions and provide an organic culture to motive the members to fulfill their future goals.
Based on chapter#1 and chapter#6 this organization was leading in British Colombia and showing positive growth rate in earnings, revenues, profit, earning per share and members. In 2005 2006 growth rate was increasing but in decreasing rate because Vancity sold many of its fixed assets for cash due to this Return on Equity and Return on Assets are declining. When Vrooman became CEO of the Vancity in September 2007, then in 2008 earnings were increasing by 43 percent and members were also increasing.
Vancity should increase the revenues back to the years where it was facing a peak growth of the profits and the revenue margin. This should be done through increase the members of the company through the business expansion that would allow generating large operational activities. To implement the strategy, it should manage the organizational structure in the same way and motive the members regarding give freedom to provide and generate the relevant ideas suitable for the company’s future growth perspective. Â ……………………..
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