Question

A company such as Intel has a complex design and manufacturing process. This should lead Intel management to be concerned with scale of production and learning curves.

When do you think managers should be more concerned with large-scale production runs, and when do you think they should be most concerned with practices that would foster or hinder the hiring, training, and retention of key employees?

Describe a firm you think has been highly innovative. Which of the four types of innovation— radical, incremental, disruptive, or architectural— did it use? Did the firm use different types over time?

Answer 1

1. Managers should be more concerned about large scale production when the economies of scale has the below disadvantages-
   1. Danger of over-production- When demand is not properly estimated the company lands up in producing more goods than required. Prices fall as a result causing depression in the economy.
   2. Demerits of factory system- The evils of the factory system such as over-crowding, density, pollution, bad habits of drinking and gambling etc. influence other employees.
   3. Less managerial supervision- A large scale production results in multiple divisions/departments which results in less supervision on employees.
   4. Class struggle- large scale production results in class struggle between laborers and capitalists.
   5. Dependence on foreign markets- Large scale production generally depends on foreign markets which are not stable and this is risky to the business.

2. Managers should be most concerned with practices that would foster or hinder the hiring, training, and retention of key employees in the below contexts-

1. Hiring- when the company is moving towards building goodwill and reputation, the company considers hiring talented employees who are asset to the business. They should portray a high level of honesty and integrity; large-scale production requires more number of employees. Thus, managers should consider hiring potential employees.
2. Training – Companies change to meet the fast paced environment. This adaptability must be in the process, workforce and customer experience. Thus, managers should be considered about training for employees when there is a shift to the new trend so that the employees adapt themselves to the growing business needs.
3. Retention of key employees- The key employees are retained by the employers so that there is concentration of highly talented people in the organization. Managers should be concerned with their salary and benefits (that meets industry standards), recognition of work, appreciation, etc. so that they do not switch over to the competitor.

3. Let us consider Apple Inc., which is a highly innovative company. The innovative model used by Apple is the innovative quadrant model. The innovative model uses the degree of improvement vs. magnitude of impact.

Quadrant 1 – Radical Disruptive innovation

A totally new product and create a new market for the new product. The marketing is the technology push. Example, LaserWriter.

Quadrant 2- Incremental Disruptive Innovation

The approach is offering old technology to a new market. Example of Apple product is iPod Touch.

Quadrant 3- Radical Sustainable Innovation

This offers a new technology to an existing market. Example, iPod, iPhone, etc

Quadrant 4- Incremental Sustainable Innovation.

These products are not technologically challenging however they meet the needs of the next generation consumers in the already established markets that are valued by the consumers. Example, Apple TV.