Organizational Design Micron vs. Sandisk
INTRODUCTION
In this paper we conduct a comparative diagnosis between two leading Semiconductor-Memory Chip companies, Micron Technology, Inc., our target company, and its competitor SanDisk. Both companies have similar product offerings, brand recognition, worldwide operations, new technologies and endless opportunities, yet one is much more successful than the other. Whereas SanDisk can boast about its profit margins and market cap, Micron continues to get further buried in debt, face flat revenues and falling profit margins. Throughout our analysis we will uncover the similarities and differences in these two companies to decipher what is causing these two seemingly similar companies to have such different financial standings. We will begin our analysis with company backgrounds followed by SWOT & TOWS for both companies, after which we will use the Burton, Obel and DeSanctis’ model to analyze the characteristics of each company. Upon discovering Micron’s misfits we will make recommendations to bring about positive changes in the company and discuss forces that may hinder the implementation of our suggested recommendations.
Background
Micron Micron, a top competitor in the Semiconductor-Memory Chip Industry, was founded in 1978 by twins Joe and Ward Parkinson and colleague Doug Pitman in the basement of a dentist’s office. Certainly what can be regarded to as humble beginnings, has now transformed into a company at the forefront of the semiconductor field, going public in 1984. Micron has a Market Capitalization of $5 B. It makes DRAM (Dynamic Random Access Memory), NAND Flash and other memory technologies. The company sells to customers in networking and storage, consumer electronics, and mobile telecommunications, but the bulk of its sales are in the computer market. Intel and Hewlett-Packard are its leading customers. Micron’s mission statement is “Be the most efficient and innovative global provider of semiconductor solutions.” Mark Durcan, the
In this paper we conduct a comparative diagnosis between two leading Semiconductor-Memory Chip companies, Micron Technology, Inc., our target company, and its competitor SanDisk. Both companies have similar product offerings, brand recognition, worldwide operations, new technologies and endless opportunities, yet one is much more successful than the other. Whereas SanDisk can boast about its profit margins and market cap, Micron continues to get further buried in debt, face flat revenues and falling profit margins. Throughout our analysis we will uncover the similarities and differences in these two companies to decipher what is causing these two seemingly similar companies to have such different financial standings. We will begin our analysis with company backgrounds followed by SWOT & TOWS for both companies, after which we will use the Burton, Obel and DeSanctis’ model to analyze the characteristics of each company. Upon discovering Micron’s misfits we will make recommendations to bring about positive changes in the company and discuss forces that may hinder the implementation of our suggested recommendations.
Background
Micron Micron, a top competitor in the Semiconductor-Memory Chip Industry, was founded in 1978 by twins Joe and Ward Parkinson and colleague Doug Pitman in the basement of a dentist’s office. Certainly what can be regarded to as humble beginnings, has now transformed into a company at the forefront of the semiconductor field, going public in 1984. Micron has a Market Capitalization of $5 B. It makes DRAM (Dynamic Random Access Memory), NAND Flash and other memory technologies. The company sells to customers in networking and storage, consumer electronics, and mobile telecommunications, but the bulk of its sales are in the computer market. Intel and Hewlett-Packard are its leading customers. Micron’s mission statement is “Be the most efficient and innovative global provider of semiconductor solutions.” Mark Durcan, the