AMD Dresden: Copy Inexactly - Case Study Example

AMD Dresden: Copy Inexactly! “Copy Exactly” would not have worked at Dresden. The fundamental reason for that would be the cultural difference between the Germans and the Americans. Work in AMD at Dresden was based on the principle of incremental improvement. Besides the cultural differences between Germany and USA, cultural differences between various American states including California, Texas and Sunnyvale were also a matter of big concern. In addition to that, AMD’s success in Dresden was phenomenal.

Everything was going perfect. In such circumstances, application of Copy Exactly was a potential threat to the stable and successful management methods and organizational structures in AMD, Dresden. Application of Copy Exactly might as well bring some benefits for AMD because of the success of the American microelectronics industry. By applying Copy Exactly, AMD would have an opportunity to further its technological expertise and make it equivalent to the American microelectronics industry. The experiences thus gained were conducive for the success of AMD’s Journey to Excellence (JTE) processes.

Processes that got established at Dresden were not quite advanced until AMD resolved to upgrade its ways with the influence of American ways. AMD’s act of sending its employees to America was an attempt to upgrade the processes and conventional practices in place at Dresden. One thing that I particularly like about AMD’s management approach is the fact that managers provided their subordinates with a lot of confidence, room and freedom. For most employees, AMD was like a school where they could identify their own hidden talents and capabilities that they would never have been able to do had the management been any stricter.

AMD allowed its workforce to grow. Employees were assigned tasks and were told to make optimum use of resources and not take anything that does not match their thinking. Management at AMD placed a lot of emphasis on training of employees and inculcating organizational norms and values in them. The employees are sufficiently trained before they are assigned responsibilities. Every individual is made clear about the organizational objectives and the role he/she is expected to play in their achievement from day one.

AMD’s success at Dresden could fundamentally be attributed to the technological and industrial history of Dresden. Besides, the point in time when AMD established business in Dresden was very fortunate because a lot of people were jobless and AMD could benefit from the years of experience of the newly recruited workforce. While establishing a new fad somewhere besides Dresden in the future, AMD may retain its micro culture with careful planning and thoughtful strategy, but it would not be able to resist the impact of the micro culture.

The governor of Saxony, Prof. Kurt Biedenkopf assumed a very important role in attracting external investors to Dresden. A lot of microelectronics companies had resolved to establish in Dresden just because of the motivational and convincing appeals of Biedenkopf. Besides, the breakdown of East German industry encouraged many experienced managers to work in civil service. All these facts, events and incidents proved every fortunate for AMD in Dresden. Thus, much of AMD’s success in Dresden could be attributed to its good luck.

AMD may not be equally lucky while establishing a new fad somewhere else.