L. Gore’s competitivestrategy. Assess the fitness of the firm’s organizational structure andcontrols to help the company achieve its strategic objectives. Can you identifyany problem areas that may develop as the company faces oncoming competitiveforces? CompetitiveStrategy. W.L.
Gore has a competitive strategy to formquality, high-value, and differentiated products. Gore’s unique diversificationstrategy allows the company to use four divisions to serve entirely differentindustries. This will also help to protect against any botches in any oneindustry and allows multiple investment paths for W.L. Gore. However, thedistinct level of diversification allows for the core competencies andorganizational boundaries to be shared so that its goals are meet and tobenefit the operational and corporate relatedness of the company.
OrganizationalStructure. W.L. Gore hasa joint relationship between strategy and structure when it comes to how theyoperate. This relationship between the two has made W.L. Gore who they aretoday. Their past results show that over years that Gore’s differentiationstrategy sets them apart from any other company and allows for endlessopportunities.
Yet his strategy calls for a decentralized decision-makingresponsibility and authority so that the structure can stay strong and flourishso that the company can enhance its competitiveness against rivals. Thesecharacters improve the ability to take advantage of opportunities created byevolving markets. In order to encourage creativity and continue the search fornew products and sources of differentiation, many jobs should not be highlyspecialized or structured.
The lack of specialization allows workers to have anumber of tasks in their job descriptions. Few formal rules and procedurescharacterize this structure. Low formalization, decentralization ofdecision-making authority and responsibility, and low specialization of worktasks combine to create a structure in which people interact frequently toexchange ideas about how to further differentiate current products whiledeveloping ideas for new products so that it can be differentiated in thefuture. The company does not use job descriptions, direct reports, orassignments to direct workforce activities.
W. L. Gore’s undefined, complex,and flexible internal working relationship acts as an important role infacilitating the integration and teamwork required to implement itsinnovation-based strategy. W.L.Gore’s flat lattice structure, cross-functional product development teams, andshared values support internal innovation and product differentiation. W.L.
Gore achieves effective integration of these functions involved in internalinnovation efforts without formal structural elements. Resource allocation,activity coordination, and communication throughout the organization adoptcreating and strategic behavior. Continuously distributing knowledge capitaland promoting internal innovations takes W.L. Gore into new markets and createsnew value for the firm.
The level of self-rule, innovativeness, and risk-takingwithin the firm suggest that the company sustains an entrepreneurial mindset asanother source of internal innovation and growth. The company’s collaborative,cross-functional product development teams maintain powerful new productdevelopment processes that will adapt to its unique core competencies and tothe needs of the market and easily commercialize new products. One of thecompany’s guiding principles is for its associates to make and keep their own commitmentsas If they were taking an oath. Along with this combination of freedom (dabbletime) and resources (raw materials) produces viable new products. Allows forinnovation to be an effective growth strategy and for a continuous flow ofknowledge and technology that is required. And the analysis above offersevidence of W.
L. Gore’s knowledge-sharing capabilities. OrganizationalControls. When properlydesigned the organizational controls of a company should improve firmperformance and provide insights on organizational goals and objectives.However, the firm should effectively use its financial and strategic controlsto positively reach its complete competitive advantages. The case provides nocontent on financial performance but reports that W.
L. Gore has been profitableevery year since the beginning and has approximately $3 billion in revenues.The measure of the firm’s performance against industry standards, previousoutcomes, competitors performance, and target levels are primarily objectiveand rely on the financial controls of the firm. It’s imperative for the firm toact swiftly on results that are expected or has fallen short. Lastly, whenverifying that firms are using appropriate strategies to exploit theircompetitive advantages and existing conditions in the external environment afirm using its strategic controls to there advantage. We have gathered thatW.L.
Gore is confident in their strategy to focus on high-value markets and useits resources to search for new opportunities. Though we can assume theymonitor its ongoing operational activities but are primarily focused on thenext breakthrough product. Along with highly focused on learning and growth andon examining the fit between what the firm might do and what it can do.