Innovation and management of change - Essay Example

The Fragmented Culture is one of the cultures identified on the Goffee-Jones Matrix as shown in Figure 1. In the 1990s, the company had a poor level of internal communication between the management and the employees. This lack of cooperation between the management and the workers shows that the level of sociability in the organization is very low. This also a feature of the Fragmented culture identified in the Goffee-Jones Matrix. This culture is identified by distinct goals of the leadership in Whirlpool.

The expenditure on Research and Development department and Marketing was less than 4% of the total sales revenue for Whirlpool. The management thought that every strategy of brand management had been tried on the products of Whirlpool but not in a sustained or integrated way. The reason for the decreasing rate of actual sales increase was the lack of cooperation of the strategies and inappropriate expenditure. The company had the focus on excellence in operations and distribution of the products.

This focus led to focus on tasks rather than what the consumers wants. High level of focus on tasks shows that the company has low sociability. The company was not able to analyze the needs and wants of the customers which caused the downward trend in the actual sales figures. This shows that the employees and the management could not think together which shows the organization has low level of solidarity. The anticipated rise in sales from 1990 to1996 was very high but actually only 13% sales could be lifted.

Although the company was able to manufacture products at costs and quality that were competitive in white goods market, but the company was not able to centre the design and product specifications according to the needs and wants of the customers. The decision to go global and to become the first white goods manufacturer in the US to step in global trade was taken by an Executive Committee which comprised of the top managers of