Question

1. In what ways can a corporation’s structure and culture be internal strengths or weaknesses?
2. How might a firm’s management decide whether it should continue to invest in current known technology or in new, but untested technology? What factors might encourage or discourage such a shift?

Answer 1

Ans:- Coporation's structure gives an idea about how hierarchy is distributed, how information should flow and power is distributed at different levels. Corporation's culture gives an idea of how a company treats it's employees, it's cutomers and different stakeholders. So a corporation’s structure and culture can be it's internal strengths or weaknesses based on following facts:-

a. Too much difference of power between hierarchy can lead to dissatifaction among employees. Also if an organisation treats it's employees with respect, provide them adequate facility at workplace then it would lead to employee satisfaction which can further reduce attrition and increase productivity.

b. If organisation culture is customer first then it would lead to creation of loyal customers which can be source of persistent profit for the company. An organisation can also have a cluture to give back to society or, to protect environment. All these kind of culture helps the company to maintain goodwill among customers as well as it's employees.

An organisation can access it's technical needs and prevalent market standard in terms of technological advancement. Basis these facts an organisation can take a decision to invest in new technology. However investing in untested technology should first go through pilot stage and then after successful testing it should fully implemented across organisation.

There are various factors which can encourage or discourage the investment in technology:-

a. Persistent need to provide customer service at faster pace.

b. To increase production rate based on automation.

c. Lag time in implementing the processes.