To what extent is a positive culture and the correct culture ESSENTIAL to a firms success?

Culture can be important to a firms success because it can help with a product e.g Pixar has competitors like dreamworks. Pixar is only as good as its next big idea. Apple rely on iPhone, macs and iPads- if any of those three decline in sales then Apple are in trouble. 2016 is the first time that apples sales haven't grown because the market is saturated so share price could come down as a result. Product is the most important P of the marketing mix. In Peters and Watermans 'In search of excellence' one of the characteristics of successful companies is that they launch products quickly-possibly gaining the first mover advantage. Nokia didn't have a good enough innovative culture so didn't have good enough products. In 2007, the company supplied 40% of the worlds mobile phones but by 2014, this had dropped below 10%. However, Innovation is expensive, time consuming and you could spend a lot of money on it but there is no guarantee that you will produce good products.

Another reason why positive culture within a business leads to success is that it helps to motivate employees. Firms that tend to have good culture is John Lewis partnership who share profits with workers so the workers become owners in one sense. They have a customer focuses culture.in Google the workers can use 20% of their work time to work on their own projects and create their own ideas. This led to projects like gmail, which now has over 900 million active users. The advantages of motivated employees are increased productivity, better customer service, and less labour turnover. Mcgreggor's theory X and Y state that there are two types of managers. Theory Y managers believe in the carrot option to create a positive environment. Theory X managers believe that workers need a stick option and need a