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Cultural Web Essay

It is observed in the recent years that most of the organizations in the market fail when it comes to executing the strategy that they had panned initially. There is a failure percentage of 80% – 90% when it comes to the implementation of the strategy; this has been reported by various sources (Chris Zook, 2010). The Chartered Institute of Internal Auditors (2012) states that for interior review to stay important, it ought to adjust to changing desires and keep up arrangement with the association’s targets. The internal audit methodology is crucial to staying applicable – assuming a vital part in attaining the harmony in the middle of expense and quality, while making genuine commitments to the association’s general administration, hazard administration, and interior controls.

This report will be focusing on the Strategic Management of one of the leading companies when it comes to pubs for lease. It was founded in the year of 1997 and has more than 4,300 pubs for lease nationwide (Punch, 2012). The strategic management is in regards with two sorts of reviews, those are the internal audits and the External audits. An efficient and organized methodology can be utilized to create the inner review audit arrangement, serving to empower the interior audit movement to attain its vision and mission (IIA, 2012). Any strategy that has to be successful is dependent on the organisation having a capability of internal strategy that is required by them for their survival in the market and the success that they gain.

Various authors (Ramachandran, 2011; Chong, 2011 and Ismail, 2011) states that Organisational Culture also known as the Hierarchical culture is an example of imparted values and convictions that help people comprehend association works and give them the standard to the conduct in associations. According to an interview posted on changeboard.com (2009) with the Group Director of Human Resources of Punch Taverns, Karren Caddick she states that Punch is a very simple and ‘down to earth’ business. She also adds saying that the company knows what exactly it wants to achieve and that they only hire employees who are passionate about the work that they do. Punch has a very open culture therefore making it very easy for the work to get done as the CEO of Punch Taverns is easily accessible to the staff, which in turn has kept the employee moral high and resulted in retaining of the staff.

We shall now talk about the organisational culture of Punch Taverns (2012).

That is: 1. Punch Taverns Purpose
To provide the partners with support and the knowledge that is required in order to run and manage the pub efficiently. It also provides a large range of business support that includes the marketing to the legal and the financial aspects.

2. Vision of Punch Taverns
Their vision is to become the UK’s most valued, trusted and one of the best quality providers leased company.

3. Values of Punch Taverns
Build a sustainable, profitable pub business.
Offering the partners with a great value in terms of business. Offers a flexible agreement on pub leases.
Freedom for the partners to exclude items on the agreement, if they wish to buy them from other sources. A choice of setting up the rent at a higher level for lower product prices.

The cultural web was introduced in the year of 1992 by Gerry Johnson and Kevan Scholes. This acts like a tool for organisations and give them a clear idea if they have to change their organisational culture (MindTools, 2014).

The Cultural Web consists of the six elements that are in the image above which helps in forming the Paradigm that Gerry Johnson and Kevan Scholes introduced.

Cultural Web


Partners (Anya and Jamie Slater) say that their expectations were matched and not just matched but also exceeded.

The employees working with Punch have a different opinion about it, they say that the overall management is good, but the mid- managers are not that supporting.

Due to less people opting to drink out, the consumption of alcohol went down and therefore Punch Taverns lost on to a lot of their revenue. This further led them towards less profits and therefore closing of some of their pubs.


Their symbol includes the saying “Investing in Partnership”, which actually says a lot about their commitment towards their partners.

They are considered to be the leading companies in the United Kingdom.

Their pubs are located in areas where there is a potential for business.

After the company got hit with the debts, they decided onto splitting up into Punch Taverns PLC and Spirits Pub Company PLC. This lowered their position in the market and therefore they lost on to their Brand Image.

Rituals and Routines

Regular board meetings.

Annual review of corporate strategies.

Company Risk Register.

An Audit and Risk Committee on the Board.

Daily departmental meetings.



The power distribution is Flat, and everybody is accessible.

The employees are empowered and they can talk to the CEO, whenever they have an issue.

Punch Taverns are very positing towards their employees. Also Punch Taverns give the freedom to their partners to choose the terms of partnership suiting their needs.

They also offer them support to the fullest till the business is set up and continue doing it even after the partnership deal has been passed.

Control Systems

Company in debt at the moment.

Trying to Restructure the whole of the organisation.

Recently split into Sprits Pub Company PLC and Punch Taverns PLC.

As Punch Taverns PLC are in debts most of the tenants are now worried about their money, and they think that Punch has all the control over their deposits.

Punch Taverns PLC at the moment has control over 22.6 million pounds of deposits of the tenants.


The organisational structure of Punch Taverns is down to earth and very human. They employ people who are passionate about their customer service skills.

It is open and informal culture and everybody is free to talk with everyone.

The CEO is easily accessible.

http://www.changeboard.com /content/ 2698/interview-with-karen-caddick-group-director-of-human-resources-punch-taverns/

Following green issues.
Focus on partnership.
Organisation is in Debt.
Bankrupt at the moment
Sold out Pubs.
The bondholders and the shareholders lost their trust in Punch.

Therefore we can assume that the condition that is of Punch at the moment is mainly because they ignored the threat, and just carried on building up the debt amount and now they have reached such a stage where the debt on them is a 2.3 billion pounds. Firstly this has forced them on splitting into Spirits, secondly they are into huge debts and don’t really have any idea of how they are going to get out of it and thirdly it resulted in selling out a lot of their properties. This has had a bad impact on the Brand Image and it will surely take them a long time to get over this situation and gain the trust of the people again.

If the situation of Punch taverns is related to the Miles and the Snow Model, we can assume that they are a the organisation that had a Analyser culture, that is because they had a steady growth in the market till the debt amount accumulated and really affected them, also as mentioned earlier they were open to changes but they did not actually implement that in their culture.

Corporate Resources

1. Physical Resources:

Punch Taverns PLC being in debts have sold out a huge amount of their pubs, mainly because those pubs were not doing good and Punch unnecessarily had to pay for the staff working there, this indirectly affected the overall profits that they made. Therefore they sold out the pubs and currently they just have 4100 pubs working under them in the whole of UK. In this way they invested the capital they got by selling the pubs and reduced their debts and also saved onto a lot of cost of employee salaries.

2. Financial Resources:

Due to the problems of debts that Punch Taverns are facing currently, the bondholders and the shareholders have lost their complete trust on in Punch taverns PLC, and Punch taverns is continuously trying to convince the bondholders/shareholders about their deposits and the money that they have invested in the company. This has led to many internal conflicts and Punch taverns now are left alone because on one side there are bondholders/ shareholders and the other side their plans of restructuring and getting out of the debts.

3. Human Resources:

As mentioned earlier Punch taverns PLC only hires employees who are passionate about their customer service skills, they try to retain as much as staff they can, because they will spend a lot of money on training a new staff member and in this condition of troubles that would really be a bad idea. Therefore they make sure that their employees are always satisfied with their jobs. Also to keep the company standards constant they have trainings for the employees of a frequent basis. To keep the employees updated with their position in the market and strategies to come out of this debts, they have Daily Departmental Meetings. This helps a lot as they are pen for suggestions and just by listening to the suggestions of the employees, they make the employee feel a part of the company.

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