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Culture

The Intel Company produces microprocessors that are used in computers. Very low market share of over 73% and continues to be praised due to the highly impressive culture. Do you consider that an impressive culture can be relied onto guarantee the foreseeable future success of any business? Justify your response with reference to Intel and/or different organisations you know.

(40 marks) An organisation’s culture refers to ‘the method we do things around here’ and is based on the ideals, attitudes and beliefs in the people who operate within this.

As such, lifestyle will undoubtedly influence the success of an enterprise. In particular, it is usually argued that an innovative tradition can lead to organization success since it enables corporations to share concepts more readily and thus improve and develop their organization strategy. Furthermore, in light of Handy’s watch of “discontinuous change being ever more within the business world, a modern culture will probably enable organization to be versatile enough to cope with challenges the fact that future keeps.

However , it is necessary to bear in mind that when a business possesses over 75% market share it benefits from economies of level which can be an important determinant of success, no matter culture. Perhaps more importantly, not every success foreign business owns an innovative traditions. A successful organization strategy can be underpinned by other organization cultures and so the type of market a business is at, and the distinct challenges it faces may determine what is considered the most suitable traditions for them.

Ground breaking cultures are necessary in firms who are involved in technological market segments, where growing new products and ideas may be key to success. The Intel firm operate a really innovative lifestyle which has cause huge dominance of the marketplace, capturing 75% market share following your production of microprocessors employed in computers. One more example exactly where innovation features lead to accomplishment is at Yahoo, where CEO Eric Schmidt commits to innovation, ensuring all staff are comfortable sharing ideas and viewpoints.

The relaxed feel throughout the company permits employees to be creative, which includes allowed Google to be one particular step ahead of competitors, which can be especially important employed in a technical industry. THE CAR use a identical culture where everyone is anticipated to help find alternatives. They have a network of fully commited associates with few hierarchical barriers, enabling every staff to tone of voice their judgment. This lifestyle has allowed THE CAR to promote new releases and find the product just right through a large number of brainstorming lessons.

These examples show just how innovation can cause success in technological sectors. Innovative lifestyle can be counted on to guarantee the future success of a organization, as the external environment is constantly changing. This can be related to Charles Handy’s theory of ‘discontinuous change’ which means that down the road change is definitely constant, and so an innovative traditions would probably guarantee a small business success.

Becoming highly impressive would mean that managers would have to be versatile and react to the continuously changing external environment, therefore adopting a modern culture means businesses would have to come up with concepts and techniques for the future in order for the business to keep competitive and successful. Progressive culture ought to equip firms with the ability to manage better with change. One example is Intel’s strategy of diversification where they use tactics such as job changing and controlled employee function changes to boost the efficiency of their teams.

This can be useful while the staff is adaptable to the outwardly changing environment, and can ensure future accomplishment of a organization as they would be able to react to any change in the business. Hence I think that an innovative culture can decide the future achievement of the organization, especially in a technological market as the external environment is constantly changing meaning a strong has to be flexible and prepared to react and respond whether it wishes to keep competitive and profitable.

When a business would not react to adjustments and taken care of there current strategies and plans in that case this could have negative effects on the business such as a declining market share due to opponents coming up with fresh innovative suggestions and hence a lesser profit. One of the ways in which we can see that an progressive culture may not be relied onto guarantee the accomplishment of a company is that there are other organisations that have a different cultural procedure that have been very successful.

I believe that the traditions within Sainsbury has substantially helped that to become probably the most successful retailers in The united kingdom. Tesco make use of a person and role traditions which I believe that have helped to contribute to the success of the firm, you will discover ‘six levels between the till operator as well as the CEO’ in Tesco and i also would feel that this would include helped lead to the success of the firm while employees would feel like an important asset in the firm and are therefore determined to work harder for the benefit of the business.

Also it is evident in Cadburys, the most important confectionary dealer in England who have take a position and job approach to their particular culture that the innovative traditions is unnecessary to guarantee the success of a firm. I think that the putting an focus on results and giving personnel specific roles within the organization has led to the success of Cadburys while there is a certain focus on reaching targets and working as a team which I believe can very motivate staff.

So it is apparent in a range of businesses that an progressive culture is definitely not the key to accomplishment in business, different different ethnic approaches such as task and role may have a significant contribution towards the achievement of an organisation. However , it could be argued that the size of Intel’s organisation supplies it using its main competitive edge. Intel has a business of 73% bringing with it particular benefits that are arguably more influential to its success than its innovative culture.

A firm of this size is likely to reap the benefits of economies of scale, propagating lower unit costs that can lead to higher profit margins. Larger profit margins permit greater re-investment into the organization, allowing Intel to continuously expand. Consequently , it seems obvious that even without its impressive culture, the sheer scale the firm would enable it to compete effectively. However , 1 cannot admit a large organization is certain future accomplishment as shown by the IBM monopoly that quickly shed majority business to Microsoft and today just operate within a business-to-business niche market.

Although organization “success is basically easy to evaluate through examining market share, revenue, profit and also other such measures, the factors that lead to these kinds of success are less easy to see. Elements such as a good business strategy, good leadership, a great competitive environment and lifestyle all contribute to a business’s success but being able to separate out which aspect contributes more to success is around impossible. Furthermore, being ble to evaluate how successful an innovative tradition versus a task or person culture is very difficult. Finally, the ‘best’ culture will vary according to industry plus the nature with the business framework itself. Some industries like the technology sector has developed its products at an rapid rate, inconceivable just twenty years ago. The nature of such a fast moving sector relies on quick and regular innovation which can be no doubt influenced by an innovative, network culture like the type we come across at Google and THE CAR.

Other industries such as retailing and grocery stores, however tend not to face these kinds of radical and constant have to develop their particular product providing, and elements such as good quality service and product quality may be crucial. As a result, a role and person based tradition are more likely to lead to success. However , in light of Handy’s “discontinuous changetheory, every businesses, irrespective of industry will certainly face a great ever changing external environment therefore although an innovate culture may not be the best option per se, having an element of innovation and flexibility is key to any business intending to flourish in the future.

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