Contemporary Organization Responding to a Significant Change: Micron Technologies
In today's fast-paced and global community, most organizations are faced with constant change. Research contemporary organizations that are currently responding to a significant change within the industry, such as disruptive technology; state, government, or industry regulations; environmental constraints; judicial or legislative rulings; etc.
Choose one organization from your research that has recently responded to major change, or is currently responding to change. Write a paper (1,250-1,500 words) discussing how well the organization is responding to the change dynamics. Include the following:
Describe the organization and the change to which it is responding.
Discuss the degree to which the change has been disruptive and how the organization has responded to the dynamics created by this change.
Evaluate the strategies the organization used in its change plan and determine the level of success the organization experienced with the strategies.
Determine the effect the change had on stakeholders, and to what degree stakeholders have resisted. Assess how well stakeholder resistance was addressed.
Evaluate the overall implications the change had on interdepartmental collaboration.
In your opinion, how well did the leaders of the organization respond and prepare for the change? What worked and what did not work with the strategies they implemented?
What modifications would you suggest the leaders of the organization make in order to better address the change dynamics? What additional strategies would you recommend to assist the organization through this change?
Prepare this assignment according to the guidelines found in the APA Style Guide, located in the Student Success Center. An abstract is not required.
Contemporary Organization Evaluation: Micron
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Contemporary Organization Evaluation: Micron
Micron Technologies is one of the leading semiconductors companies that focuses on the manufacture and sale of storage and memory products. The company is headquartered in Boise, Idaho, and is listed as MU on the Nasdaq stock exchange. In 2022, Micron Technologies reported an annual revenue of US$ 30.8 billion, which makes it the fourth-largest semiconductor company in the world. The company owns more than 51,000 product patents and operates in 17 countries as of September 2022. Micron employs approximately 48,000 people and has 11 manufacturing sites and 15 customer labs. In addition to the US market, a key portion of the company’s operations are based in China. This paper explores the company’s response to the recent decision by the Chinese Government to ban the company from selling its chips for use in major infrastructural projects in the country.
In May 2023, the Cyberspace Administration of China (CAC) issued a directive to operators of vital domestic infrastructure in the country dictating that they should stop the purchase of chips manufactured by Micron. To this end, CAC concluded that the use of Micron chips in vital Chinese infrastructure was a danger to the country’s national security. Partly, analysts have attributed the CAC decision to the ongoing trade tension between the United States and China (Chu, 2023). The announcement that the Micron chip would be banned from the Chinese domestic market followed a review of the security laws in China (Olcott & Sevastopulo, 2023). The broad definition of critical infrastructure meant that the company cannot market its chips to operators in Chinese main sectors including telecommunication, transport, finance, and a range of other sectors.
Notably, the change has been significantly disruptive for the company given that the Chinese market accounts for roughly 15 percent of Micron’s revenue. In addition, the company supplies its chips to other distributors who market the chips to companies based in China. Trefis Team (2023) estimated that Micron generates roughly a quarter of its revenues from China if indirect sales through distributors are considered. In addition to revenue loss, it is essential to consider the reputational impact following the ban. In the directive, CAC indicated that Micron products were banned in the country due to the associated risk to national security. Consequently, some of the players in the private sector may opt out of purchasing Micron’s products despite the ban being only applied to vital public infrastructure. Notably, the change was highly disruptive owing to the changing dynamics of the industry. China has been making significant investments toward developing its capacity in semiconductor production contributing to an increasing supply that is not accompanied by an increase in demand from key markets.
The company has responded to the change through the implementation of several aggressive strategies that are intended to enhance the company’s ability to generate revenue. One of the key responses that the company took was the implementation of the market expansion strategy through foreign domestic investment in India. In June 2023, the company announced that it had plans to set up an assembly and a testing facility in Gujarat, India (Micron Technology, 2023). The facility will enable the company to assemble and text chips intended to meet Indian domestic demand while serving the international markets. In an investment worth US$ 825 million, the company expects the facility to be operating by the end of 2024. Notably, the project is a collaboration with the Indian government and the company expects it to replace some of the lost revenues from the Chinese ban given the rising India’s economic might.
In addition, the company has taken steps to pursue product differentiation to bolster its position in the market. To this end, Micron has diverted a significant aspect of its focus to enhancing the quality and uniqueness of its products to ensure that the company gains a competitive advantage that would allow it to become the dominant player in the various market segments it operates. On June 21, 2023, Micron announced the release of a mobile flash storage that contains features that are beyond the competition in several NAND benchmarks (Micron Technology, 2023). The new storage solution will allow select smartphone manufacturers to create smartphones that have faster speed and unmatched performance at low power. The company has already sent samples to major vendors and selected customers, intending to start high-volume production in the next quarter (Micron Technology, 2023). Thus, Micron has responded to the Chinese ban by investing in the research and development of high-quality and performing pr...