Essay on Organisational Culture

Words: 1355
Pages: 6

The Intel Corporation produces microprocessors that are used in computers. It has a market share of over 75% and has been praised for its highly innovative culture. Do you think that an innovative culture can be relied on to guarantee the future success of a business? Justify your answer with reference to Intel and/or other organisations you know. (40 marks)

An organisation’s culture refers to ‘the way we do things around here’ and is determined by the values, attitudes and beliefs of the people who work within it. As such, culture will undoubtedly influence the success of a business. In particular, it can be argued that an innovative culture can lead to business success because it enables companies to share ideas more freely and
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Hence I think that an innovative culture can determine the future success of the business, especially in a technological industry as the external environment is constantly changing meaning a firm has to be flexible and prepared to react and respond if it wishes to remain competitive and profitable. If a business did not react to changes and maintained there current strategies and plans then this could have negative effects on the business such as a declining market share due to competitors coming up with new innovative ideas and hence a lower profit.

One way in which we can see that an innovative culture cannot be relied on to guarantee the success of a firm is that there are other organisations that have a different cultural approach that have been very successful. I believe that the culture within Tesco has significantly helped it to become one of the most successful retailers in Britain. Tesco use a person and role culture which I believe have helped to contribute to the success of the firm, there are ‘six levels between the till operator and the CEO’ in Tesco and I would think that this would have helped lead to the success of the firm as employees would feel like an important asset of the firm and are therefore motivated to work harder for the benefit of the business. Also it is evident in Cadburys, the biggest confectionary retailer in