Aveneu Park, Starling, Australia

Consider Few formal rules and procedures characterize this structure.

Consider W.L. Gore’s competitive
strategy. Assess the fitness of the firm’s organizational structure and
controls to help the company achieve its strategic objectives. Can you identify
any problem areas that may develop as the company faces oncoming competitive
forces? 

 

Competitive
Strategy.  W.L. Gore has a competitive strategy to form
quality, high-value, and differentiated products. Gore’s unique diversification
strategy allows the company to use four divisions to serve entirely different
industries. This will also help to protect against any botches in any one
industry and allows multiple investment paths for W.L. Gore. However, the
distinct level of diversification allows for the core competencies and
organizational boundaries to be shared so that its goals are meet and to
benefit the operational and corporate relatedness of the company.

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Organizational
Structure. W.L. Gore has
a joint relationship between strategy and structure when it comes to how they
operate. This relationship between the two has made W.L. Gore who they are
today. Their past results show that over years that Gore’s differentiation
strategy sets them apart from any other company and allows for endless
opportunities. Yet his strategy calls for a decentralized decision-making
responsibility and authority so that the structure can stay strong and flourish
so that the company can enhance its competitiveness against rivals. These
characters improve the ability to take advantage of opportunities created by
evolving markets. In order to encourage creativity and continue the search for
new products and sources of differentiation, many jobs should not be highly
specialized or structured. The lack of specialization allows workers to have a
number of tasks in their job descriptions. Few formal rules and procedures
characterize this structure. Low formalization, decentralization of
decision-making authority and responsibility, and low specialization of work
tasks combine to create a structure in which people interact frequently to
exchange ideas about how to further differentiate current products while
developing ideas for new products so that it can be differentiated in the
future. The company does not use job descriptions, direct reports, or
assignments to direct workforce activities. W. L. Gore’s undefined, complex,
and flexible internal working relationship acts as an important role in
facilitating the integration and teamwork required to implement its
innovation-based strategy.

 

W.L.
Gore’s flat lattice structure, cross-functional product development teams, and
shared values support internal innovation and product differentiation. W.L.
Gore achieves effective integration of these functions involved in internal
innovation efforts without formal structural elements. Resource allocation,
activity coordination, and communication throughout the organization adopt
creating and strategic behavior. Continuously distributing knowledge capital
and promoting internal innovations takes W.L. Gore into new markets and creates
new value for the firm. The level of self-rule, innovativeness, and risk-taking
within the firm suggest that the company sustains an entrepreneurial mindset as
another source of internal innovation and growth. The company’s collaborative,
cross-functional product development teams maintain powerful new product
development processes that will adapt to its unique core competencies and to
the needs of the market and easily commercialize new products. One of the
company’s guiding principles is for its associates to make and keep their own commitments
as If they were taking an oath. Along with this combination of freedom (dabble
time) and resources (raw materials) produces viable new products. Allows for
innovation to be an effective growth strategy and for a continuous flow of
knowledge and technology that is required. And the analysis above offers
evidence of W.L. Gore’s knowledge-sharing capabilities.

 

Organizational
Controls. When properly
designed the organizational controls of a company should improve firm
performance and provide insights on organizational goals and objectives.
However, the firm should effectively use its financial and strategic controls
to positively reach its complete competitive advantages. The case provides no
content on financial performance but reports that W.L. Gore has been profitable
every year since the beginning and has approximately $3 billion in revenues.
The measure of the firm’s performance against industry standards, previous
outcomes, competitors performance, and target levels are primarily objective
and rely on the financial controls of the firm. It’s imperative for the firm to
act swiftly on results that are expected or has fallen short. Lastly, when
verifying that firms are using appropriate strategies to exploit their
competitive advantages and existing conditions in the external environment a
firm using its strategic controls to there advantage. We have gathered that
W.L. Gore is confident in their strategy to focus on high-value markets and use
its resources to search for new opportunities. Though we can assume they
monitor its ongoing operational activities but are primarily focused on the
next breakthrough product. Along with highly focused on learning and growth and
on examining the fit between what the firm might do and what it can do.

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