W.L. Gore: Examining Competitive Strategy, Structure, and Management

This case study delves into the competitive strategy of W.L. Gore & Associates, highlighting its distinctive features such as the lattice structure, absence of traditional hierarchy, and emphasis on teamwork and individual accountability. The analysis covers Gore's management approach, including its fundamental beliefs, guiding principles, bottom-up approach, and divisional structure. It examines the advantages of Gore's organizational structure, such as a flexible environment, enhanced communication, and increased productivity, while also addressing potential disadvantages like accountability challenges and difficulties in compensation management. The study concludes by reflecting on the unique aspects of Gore's strategy and its impact on the company's success. Desklib provides access to this case study along with a wealth of other solved assignments and study resources for students.

RUNNING HEAD: Competitive Strategy of W.L Gore 0
W.L GORE
Competitive Strategy
(Student Name)
9/17/2018

Competitive Strategy of W.L Gore 1
Table of Contents
Introduction................................................................................................................................2
Distinctive Features....................................................................................................................3
Management Approach..............................................................................................................5
Advantages and Disadvantages..................................................................................................6
Advantages.............................................................................................................................6
Disadvantages.........................................................................................................................8
Approach adopt by Other Companies......................................................................................10
Conclusion................................................................................................................................13
References................................................................................................................................15

Competitive Strategy of W.L Gore 2
Introduction
Innovation plays a vital role in the business world. It is the important work that every
organization has to go through to ensure the longevity of the company (Hakansson and
Waluszewski, 2008). In the fluctuating environment, the organizations need to be prepared
and ready for any type of changes occur which could be economic, societal and political
changes (Prajogo, 2016). W.L is the best example of an organization that has had to go
through many transitions over the last fifty years.
W.L Gore &Associates is a company which has adopted certain new strategies to grow the
business and able to compete in the market for over long years. It is the major pioneering and
productive company in the business world (Grant, 2016). The company is having the
population of 8500 associated with the revenue of $2.5 billion. The company is located in 24
countries in global. It is highly Technology Company which is having more than 1000
different fluoropolymer products. It has a wide variety of company structure which brings
together a network of other company and external look of being represent as a well put
together organization (Harder and Townsend, 2017). The organization is divided into four
divisions that have a separate mission and targets but do work together occasionally. The four
division of the company is unique enough that creates a multitude of opportunity over
investment and they can handle the swing of the industries (Center, 2016).
In the following context, there will be a detailed discussion on the activities and
organizational structure of the company that made the company distinct from other
companies that create a great impact on the organization positively and negatively. There are
different approaches which are mostly used by the company which is based on identifiable
principles and the way other companies should also adopt the management and organization
of W.L Gore.

Competitive Strategy of W.L Gore 3
Distinctive Features
The major distinctive feature of Gore organization as well as management is the structure of
the company that eliminates the hierarchy and bureaucracy which suppress adaptation and
creativeness. The company has adopted the ‘lattice structure’ that is known for a complicated
arrangement. There were no titles, ladder, or the conventional structure in the organization
(Kerr, 2014). The company of Gore has only a sufficeint titles in the company. The main
purpose behind the less number of the title was because it was essential by the laws of
incorporation. In the ‘lactic structure’, the individual uses a straight line of communication
without any hierarchy barriers (Gronning, 2016). The structure does not include any
intermediary for communication which delivers a chance to the associate to work out their
own problems. The associates have no static or allocated authority that is a key asset because
some of the people among the company cannot handle that other will state them the way to
do a particular task. There are some points that made the distinctive features of W.L George’s
organization and management which are explained below (Maxwell, 2016):
 Autonomy of Scaling
The management of George organization is based on the task force model that was something
used in his former company DuPont. The team of the organization was small and cross-
functional which have a clear goal and outside of any formal hierarchy (Bolman and Deal,
2015).
 Sponsors
In the organization of George, there is the absence of boss and managers. In the place of
them, they have sponsors and leaders. Every individual in the organization has allocated one

Competitive Strategy of W.L Gore 4
or more sponsors. The role of the sponsors is to guide and help that made the employees
succeed. It is done by mentoring, giving feedback and connecting with others (Merrill, 2015).
 Concept of CEO
The company WL Gore & Associates does not have a concept of CEO. The CEO is not
appointed by the board, rather selected by peers. They have a belief that the appropriate
decision is not taken by the senior leaders rather most impactful decision at Gore that are
made by the small team.
 Concept of Leaders
The leaders of the company have a position of authority because the leaders have followers.
Leaders advise the associates of consequences of an action rather than to be there as
managers or supervisors. It makes the associate be more responsible for their individual
compensation, which works as a major strength.
 Policy of Organization
The organization has a belief that all individuals in the organization will be given the same
benefits as the other employees because the company has a firm position which is based on
non-discriminatory standards of the workforce hiring. (Slintak and Tuckova, 2016).
 Pay Structure
The company does not believe I cutting pay and layoff which has been played an as high
degree of the tool of being nonmotivating for employees morale. The organization adopted
the system of temporary transfers and voluntary layoffs.
 Direct Communication and Relationship

Competitive Strategy of W.L Gore 5
Direct communication and Relationship is one of the core values of Gore. It encourages the
associates to form relationships with people inside and outside the unit of organization,
vendors, suppliers, and customers (Salovaara and Bathurst, 2018).
Management Approach
Bill gore created a company that believes in guiding principles and beliefs which helped them
in taking better decision making in all the activities they were involved with. Due to the
principles and beliefs, only bill gore was able to create a big organization and gave them
worldwide recognition. The distinctive feature of Gore in organization and management
represents a reliable management to the great extent which is grounded on following
recognizable values and beliefs. (Smith, Lewis and Tushman, 2016):
 Fundamental beliefs
It is the basic beliefs that WL Gore had in his system that every individual is responsible and
accountable what all work he does in the company and everyone should work what is right
for the business. W.L Gore has a broader thinking perspective which helps in decision
making and company has a long-term vision in doing everything due to which company
doesn't have to sacrifice its short-term goals.
 Guiding principles
Every employee put their best foot forward in achieving the targets as it helps the
organization to grow at a faster pace and have the strong market control against the
competitors. And if any employee had done a certain mistake, employees would be trained
and guided for the future reference so that same mistakes are not repeated and everyone could
have some leading out of it.

Competitive Strategy of W.L Gore 6
 Bottom of approach
The Gore does not follow the concept of the company of manager rather a company of
teams. Through the lattice system, the leadership of employee teams from the bottom up
seem to be working for them. Without the hierarchal structure of leadership, the company has
earned $2.5 billion in the year.
 Management by wandering around
The team and associates of the organization are in continuous communicating with teams of
others and projects of company which are apparent at all level.
 Divisional structure
The organization has a divisional structure by product or services which are structured into
four division, fabrics, medical, and industrial and electronic, each with recognized leaders.
There is a specific business unit with the divisions and each division are based on different
group of products. This type of tactic is majorly used when the products of the business differ
substantially. It reduces the requirement of top management such as the structure of Gore and
requires a skilled workforce (Coppin, 2017).
 Lattice structure
It is also recognized as individual accountability structure which is free from traditional
supervision. All associates become front-runners which are grounded on the ability to earn
the respect of their peers and to attract groups. It is based on interconnection among
individuals of the organization. The associates in the organization are accountable for their
own assignment and meet commitments (Shipper, Manz and Stewart, 2014).

Competitive Strategy of W.L Gore 7
Advantages and Disadvantages
Advantages
The organizational structure of the Gore plays an important role in the business and in the life
of associates. There are certain advantages to adopting organizational structure and
management in the organization. The advantages are explained in below points (Vince and
Pedler):
Flexible environment
In the Gore structure, the organization has no power play. There are no bosses or manager in
the company with the absence of a chain of command which create a flexible environment for
the associates to work more efficiently and effectively.
Resolution of Issues and Problems
In the organization of Gore, the communication channel is more open for the associates. The
associates do not need to follow hierarchies, which help in the resolution of issues and
problems of the associates prominently and effectively.
Sponsors
The associates in the organization do not have a manager or supervisors instance the
associates have sponsors, who help them to guide in the company. This approach helps the
associates to work in an efficient way and appropriate monitoring of performance could be
done, as the department work in teams.
Enhance Leadership Quality

Competitive Strategy of W.L Gore 8
The company provide training to the associates to enhance the leadership quality and
establish a cooperative education program that gives a natural feeling of leadership among
associates. It helps in to boost the confidence level among the associates.
Motivation
The supportive environment encourages associates to work and contribute to the creativity of
the individual which improve the efficiency of the associates and motivate the employees to
contribute towards the growth of the business organization.
Innovative Ideas
The company of Gore encourages the associates to share original or innovative ideas and the
associates are allowed to put themselves in a place where they achieve.
Professional environment
The concept of a small working team adopted by the Gore Company provides a more
professional environment in the organization. The team was recognized to produce a finish
goods and which was to complete to given task that involved teamwork. The performance
level of associates was at high quality and it also enhances their ability to become a prolific
leader.
Increase productivity
The organizational structure of Gore provides a free environment to the associates in the
working process. It gives more bureaucracy that allows the associates to increase the
productivity of work more efficiently.
Boost Confidence level

Competitive Strategy of W.L Gore 9
In the organization structure of the Gore, the associates had decided, what they need to work
on and established their own target to achieve the desired goal. Which help to boost up the
confidence level among the associates.
Disadvantages
There are also some disadvantages of approach which is used by the Gore. These points are
explained below (Chao, 2018):
Hold Accountability
There is the absence of a leadership role on the organization structure of Gore. Therefore,
some of the problems occur which hold by the associates that would directly affect the
performance of their job.
Lack to form Compensation
The management would not able to manage the amount given to the associates as a reward or
bonus equitably because the performance is by team moreover; there is the absence of
hierarchy structure. It would be tough for the management to decide the amount given to the
associates.
The absence of job title
The absence of job title in the structure of an organization creates an absence of knowledge
among the associates, about their role and responsibilities in the organization.
The absence of Boss or Manager

Competitive Strategy of W.L Gore 10
When the orientation of associates is from a structured environment then it would be difficult
for the associates to distinguishing with whom they need to share their issues occur during
the working environment and with whom the associates are accountable.
Impact on performance
The organizational performance of the Gore is totally based on teamwork, therefore; there
would be the possibility of lack of coordination among the associates and the one with low
skills generate direct impact on the performance of the team.
Absence of Guidance
In the organization of Gore, the associates themselves needed to work on and if any issue
occurs during the work, the only person they responded to is the other worker or themselves.
There are no leaders that can provide guidance to the associates while occurring the issues.
Lack in establishing performance standards
The evaluation of performance is an essential element for the development of associates in
traditional organization thus, lattice structure in the organization lagging in the important
steps to form standards of performance of the associates.
Adjustment Issues
In the organizational structure of Gore, every associate treated as supervisor therefore, the
employees with a background of mechanistic model, which consist of having supervisor
would not be used to Gore’s organizational structure and must take time to adjust.

Competitive Strategy of W.L Gore 11
Approach adopt by Other Companies
Yes, it can be transferable to other companies if they are ready to make changes in their
current system and start working or adapting to the approaches which W.L. Gores have.
The organizational culture of the organization is based on teamwork. In the team-based
environment, teams are organized which grab the opportunities and develop the leaders. The
organization adopted certain major principles to enabling the corporate culture. These are
explained in below points (Ransbotham and Kiron, 2017):
 Freedom
The organizational structure of Gore provides freedom to their associates to achieve their
own objective and goals in a possible way. The ideas of the associates are encouraged by the
organization and focus on the mistake with a view as a part of the creative process. The other
companies need to give freedom to their associates as the freedom is defined as being
empowered to motivate each other to enhance the knowledge, scope of responsibility and
skills which help the associates to work more efficiently in the organization.
 Fairness
Fairness is associated with freedom, in the organization of Gore, every individual sincerely
tries to be impartial with each other with the suppliers, with the customers and another
individual with whom the organization is doing business. The organization structure enhances
the quality of fairness among the associates. Other companies should adopt such an
environment in their own company which increases the coordination among the associates of
the company.