Organisational Culture

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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 thus innovate and develop their business strategy. Furthermore, in light of Handy’s view of “discontinuous change” being ever more present in the business world, an innovative culture is likely to enable business to be flexible enough to cope with challenges that the future holds. However, it is important to bear in mind that when a business possesses over 75% market share that it benefits from economies of scale which can be an important determinant of success, regardless of culture. Perhaps more importantly, not every success international business possesses an innovative culture. A successful business strategy can be underpinned by other business cultures and thus the type of industry a business is in, and the different challenges it faces may determine what is the most suitable culture for them.

Innovative cultures are essential in companies who are involved in technological markets, where developing new products and ideas can be key to success. The Intel corporation operate a very innovative culture which has lead to huge dominance of the market, capturing 75% market share after the production of microprocessors used in computers. Another example where innovation has lead to success is at Google, where CEO Eric...
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