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Deal and Kennedy's Cultural Framework: A Comparative Analysis of Google and Microsoft

Decent Essays

Google represents a company that has relied on innovation to drive success. Innovation is an essential part of the corporate culture (Nussbaum, 2011). The company has built its innovation capabilities on the eight pillars of innovation that help foster this practice and make it an integral part of the organizational culture (Wojcicki, n.d.).Gregersen and Dyer (2012) note that having innovative senior management is a critical component of having a strong innovative culture in an organization. The company fosters innovation by providing the resources (especially time) to its employees to pursue their own projects, trusting that these projects will be more creative than if the company directed the process centrally. This approach has delivered the company a stock price of $700 and an EPS of $31.92 (MSN Moneycentral, 2012).

In contrast, Microsoft has been unable to innovate. The company relies on two cash cow products for its success, and has otherwise failed to capture even industries where it should be strong, like mobile operating systems. In contrast, Google was able to become the dominant player in this business despite having no prior experience in operating systems. Microsoft's failure to innovate has become a talking point in the industry and a threat to the company, should either of its top products be threatened by a new entrant to the market (Foley, 2010). As a result, the company's stock price today is only around the same place it was ten years ago (MSN

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