Red Bull: Corporate Motivation and Culture Essay

It is clearly that the company is experiencing some growth; however, the management needs to find a solution to solve the arising issue where their employees are lacking of motivation in their job. However, the executive team’s decision to raise pay rates for its customer service staff and the vested profit-sharing plan does not improve the employees’ work performance or customers’ satisfaction.

Red Bull is the pioneer in the energy drink category worldwide. Founded in 1984 by Dietrich Mateschitz in Austria, the product was formally launched in 1987. Mateschitz originally became aware of products called “tonic drinks”, which enjoyed wide popularity in Asia. He brought this effective product in Austria and developed a unique marketing strategy. The drink mainly targets young students and urban professionals. It is exclusively produced in Austria and then distributed around the world via a network of local subsidiaries and external importers and distributors.

There are as many different methods of motivating employees today as there are companies operating in the global business environment. Still, some strategies are prevalent across all organizations striving to improve employee motivation. The best employee motivation efforts will focus on what the employees deem to be important. It may be that employees within the same department of the same organization will have different motivators. Many organizations today find that flexibility in job design and reward systems has resulted in employees ' increased longevity with the company, improved productivity, and better morale.

Pink provides a well laid out case highlighting the gap between what science knows and what organizations do. Showcasing the mid-century work of Harry Harlow and Edward Deci , Pink explains how human motivation seems to run counter to what most scientists and citizens believe. For decades, we have believed that we know what motivates people: rewards. Rewards are supposed to intensify interest and enhance performance. But Harlow and Deci found different results. Deci wrote, “When money is used as an external reward for some activity, the subjects lose intrinsic interest for the activity.” Like a shot of espresso, rewards can give you a jolt of energy, but the boost wears out, moreover, it can erode a person’s longer-term motivation to engage in the task. As we continue to incentivize our staff and students,

Chapter 12 of our textbook is titled “Motivating Employees,” and it encompasses much of what was in Drive. An extrinsic reward is defined as the “payoff, such as money, a person receives from others for performing a particular task.” Extrinsic rewards are what drive the old economy and still influence management techniques within organizations today. These rewards have many benefits but are becoming more and more obsolete in the twenty-first century workforce. The textbook defines intrinsic rewards as the “satisfaction, such as a feeling of accomplishment, a person receives from performing the particular task itself.” Offering only extrinsic rewards is what Pink refers to as “carrots and sticks.” These rewards work well for routine tasks. However, these rewards often stifle creativity (as seen in the candlestick experiment). Modern jobs are increasingly relying on creativity and innovation. Managers can use this knowledge by acknowledging the importance of intrinsic rewards when dealing with employees engaged in more complex

In 1982, Dietrich Mateschitz got an idea of functional drinks. He joined with Chaleo Yoovidhya, Thai businessman, in 1984 and founded the Red Bull, which today is 49 percent owned by Mateschitz, other 49 percent by Yoovidhya and 2 percent by his son Chalerm. Red Bull was first released into the Austrian market in 1987, which was the completely new product category, energy drink. (Red Bull, 2011)

The success of any business depends on the productivity and satisfaction of its employees. Employees need to be motivated to work. Motivation can be defined as the inner force that drives individuals to accomplish personal and organizational goals. Motivation can be either intrinsic or extrinsic. For an individual to be motivated in a work situation there must be a need, which the individual would have to perceive a possibility of satisfying through some reward. Intrinsic motivation stems from motivations that are inherent and arise from performing the task of the job itself, which the individual gets a feeling of either positive or negative motivation as a result of

A direct link exists between employee motivation and product/service quality. When employees are aware of the company’s goals and objectives, and know the significant role they play, they will provide higher quality products and services. Implementing a model to reward employees for meeting company goals is one

Red bull is not the leading energy drink provider, but is number two with 36 percent of the Australian energy drink market (2010,popular energy drinks), the red bull company sold over 5 billion cans in 2012 and have sold over 35 billion since it started in 1987.

Red Bull receives a lot of publicity throughout the media, mainly to do with health issues. This causes controversy over the drink, and is considered a weakness. The media often report that Red Bull is unhealthy and damages your body. The media often targets parents, telling them that it is harmful for teenagers and children. This being Red Bulls target market has a very negative impact on the company.

Keeping employees motivated in addition to creating incentives and/or additional ways for employees to receive more compensation will create better performance overall within an organization. Contrary if company B gives their employees incentives to perform, without any motivational tactics they probably will not have as many top performances as company A, in addition the company may only seek short term rewards verses have long term success. Lack of motivation for employees within an organization, can cause long term damage for the company’s success. Different things motivate everyone; therefore there should be a system in place to keep employees motivated for the long term success of the company. In the MBM textbook under the concept of incentives, compensation, and motivation, there are a couple of different views of how it should be applied within an organization. We will discuss The Social Role of Profit, Personal Profit and Losses, and the way Market-Based Management view how incentives, compensation, and motivation should be applied and the things that effectively drive employees’ actions while at work.

The extreme sports market is one of the fastest growing sports industries in the world, and many companies attempt to capture this emerging market in order to branch out into new industries to attract more consumers. Although many companies have attempted to capture this market, no company has been able to match the success of the energy drink powerhouse, Red Bull. Red Bull was founded in Austria in 1984, and since then has grown rapidly, while also inventing new marketing strategies along the way. According to Forbes, Red Bull is the “76th worldwide most valuable brand”, which is estimated to be worth 7.2 billion dollars. “The brand that gives you wings sold 5.6 billion cans, up 4%, across 170 countries in 2014” (Badenhausen, 2015). On

A study completed by the University of Michigan revealed that as employee motivation improved, the a company’s stock reached higher subsequent returns the following year, spanning times both good and bad. As an example, in 2002 the Standard & Poor 's 500 returned negative 22%. Yet the study found that for every five points added onto a firm 's Employee Motivation Index--how the study kept score--it returned an additional 2% in stock price the following year (Serchuk, D. n.d.). Costco subscribes to this type of belief in that a satisfied employee that enjoys higher wages, potential for bonuses, job security and full appreciation for their work is not only recognized by management, but taken into consideration when promotions for other positions are considered.

The original formula for Red Bull was developed in 1964; however, the Red Bull company was not founded until 1984 after a merger between Dietrich Mateschitz, marketing guru, and Chaleo Yoovidhya, the owner of the Red Bull formula. Categorized as an energy drink, Red Bull was initially designed to “treat jet lag and boost energy for truck drivers” (Hollensen, 2012). In today's era, Red Bull is commonly used as an energy drink; like coffee, and as a mixer in alcoholic drinks, like Red Bull Wings and the Jägerbomb. This aligns with the company's focus on the younger generations of partygoers and post-secondary students.

Red Bull has been able to create and sustain a competitive advantage in the sports drink industry by setting a goal and expanding from it. Red Bull was launched in hopes of capitalizing on extreme sports such as snowboarding and