Intuit's New CEO Steve Bennett in Many Essay
- Length: 9 pages
- Sources: 5
- Subject: Business
- Type: Essay
- Paper: #20158568
Excerpt from Essay :
Intuit's New CEO: Steve Bennett
In many ways, Intuit was a classic entrepreneurial success story. Seventeen years after its founding, the company reached $1 billion in sales, was solidly profitable, and its stock price was 40 times FY 2000 earnings. Evaluate the state of Intuit's development prior to Bennett's arrival in early 2000 using the frameworks described in Models of Organizational Growth and Evolution (stages of organizational growth; pyramid of organizational development, the eight hurdles model). What hurdles have they successfully cleared? Where have they stumbled?
Evaluation of the state of Intuit prior to the arrival of Steve Bennett can be in the form of the organizational development and evolution models. This would determine the level or degree of success in relation to the strategies and objectives of the company. The first model to apply in the examination of the situation of Intuit within the economy is the stages of organizational growth.
Stages of Organizational Growth
This model of evaluation involves the application of three stages of organizational growth. The first stage is the Chaos or chaotic scenario in the development of the business organization. It is a situation when there are unclear policies and procedures in relation to the movement or growth of the business. During this stage, there are shifting priorities, lack of clear direction, goals, and objectives. In the development and growth of the Intuit Company, the first stage represents the point at which the founder or the owner was planning to start the business. The company had minimum funds to facilitate its operations and expand its production. This scenario was the foundation of the organization on the run to the rapid development and growth (Bonham, 2008).
The second stage of organizational development is the stability era. During this stage of organizational development, the company clearly outlines its priorities, goals, objectives, and strategies. In relation to the growth and development of Intuit prior to the arrival of Bennett, the company manages to obtain enough funds to stabilize its operations and production levels. The company decides to operate on clear objectives, specific market segmentation, and satisfaction of the needs of clients or consumers. This allows the organization to increase its revenues while minimizing the cost of production. This is the ideal scenario for rapid growth and development within the market and the industry (Bonham, 2008). The experience of stability by Intuit Company is the main reason behind the development or transformation of the industry to the multi-dollar organization. The company manages to maintain its employees over long time thus development of culture that can clearly associate with the organization. Stability and culture operate closely to drive the company towards transformation.
Stage three of the organizational development is the high performance period. During this stage, the organization highlights on how to improve performances or service and product deliveries in relation to the consumers. Intuit Company decides to carry out extensive market research to determine the needs and preferences of the consumers. This allows the organization to control a large share of the market. The company enhances its performances through the culture, knowledge of the market and commitment to the mission, objectives, and vision of the organization. Intuit Company experiences high performance stage by application of top management benefits from the founder or chairperson of the organization. This management benefits transfers to the lower ranks thus enhances the chance of the organization to grow and develop rapidly. The Company in context (Intuit Company) understands the importance of high performance concerning rapid growth and development (Bonham, 2008).
Pyramid Organizational Development
Organizational development represents the opportunity by which the firm or organization plans and implement relevant changes in the entire capacity of the business with the aim of increasing its effectiveness and profitability levels. This involves have the priority of the organization as one body thus planning for future growth of the company. The pyramid of organizational development model involves the use of six key levels or stages crucial to the long-term success of the company. The six levels represent key stages and issues the company must implement or oversee in the process of growth and development (Blythe, 2005).
The first level of the pyramid of organizational development is the identification and illustration of the viable market to operate or conduct business operations (Blythe, 2005). The success of an organization depends on how effectively and efficiently it identifies the market or audience to deal with. Intuit Company clearly identifies its audience and conduct extensive research on how effectively to serve the needs of consumers. This level of the pyramid of organizational development by Intuit Company offers the crucial competitive advantage thus illustration of the way to the top (rapid economic and financial growth and development).
The second level of pyramid or organizational development is the products identification (Blythe, 2005). The products in the market must satisfy the needs of the audience or market coverage. The product of the Intuit Company (Quicken Software) controls large share of the market because of its capacity to satisfy the needs of consumers. Intuit Company focuses on satisfaction of the needs of the market or consumers. This is through extensive market research thus the company clearly understands the needs of consumers and how effectively and efficiently to serve them in order to maximize the profit levels.
The third, crucial aspect of the pyramid of organizational development is the available resources to facilitate the operations of the company (Blythe, 2005). Resources available at the disposal of the company determine the level of success in relation to rapid growth and development. Intuit Company decides to solicit finds necessary for the development of the organization during initial stages of growth. This revolves around personal wealth, generation of funds through promotions, and contributions from other parties. The company acquires enough resources to execute its plan hence experiences the rapid growth and development prior to the arrival of Bennett.
Operational Systems represent the fourth, crucial element of the pyramid of the organizational development (Blythe, 2005). This element determines the capacity of the organization to offer enough support to its daily operations such as attending to their consumers. Intuit Company applies effective, operational systems to obtain competitive advantage over other players within the market. Customer care programs work effectively towards attraction of new audience while maintaining the actual clients of the organization. This strategy allows the organization to experience rapid growth and development.
Another important element for success is the management system (Blythe, 2005). Intuit Company enjoys the benefits of effective and efficient management system. The management system of the company functions towards planning and execution of strategies to the long-term growth and development within the market structure. The management system by the owner of the organization offers the crucial aspects necessary for rapid growth and development.
The last essential element is the culture (Blythe, 2005). Culture operates toward development and growth of the organization. Intuit Company notes the importance of culture in relation to development thus applies the culture of the organization in addressing the needs of consumers. This allows the company to maximize its profits while expanding its market coverage thus the rapid growth and development prior to the arrival of Bennett.
The eight hurdles model
In the process of development of the business entity, it is crucial to overcome the presence of eight hurdles. The first hurdle represents the need to identify strategic direction and enhancing the focus on the main objective. Intuit Company excels in passing the first hurdle since the main strategy of the company is to serve the needs of the consumers through effective and efficient means. This allows the company to obtain competitive advantage over other competitors within the market. The second hurdle involves positioning of services and products within the expanded market. The first product of the company (Quicken) controls large market share because of effective positioning within the competitive market. Intuit Company excels in overcoming this hurdle towards achieving the rapid growth and development. The third hurdle or challenge to the organization is to maintain the audience or market targets. Intuit Company excels in overcoming this hurdle by conducting extensive market research. The aim of the research is to identify how effectively and efficiently to address the needs of consumers. This allows the organization to apply its culture in maintaining their increasing consumers (Mosley, 2011).
The fourth hurdle towards development is the construction of the management team to oversee operational activities of the company. Intuit Company overcomes this hurdle by adoption of the management team under the direction of the Chief Executive Officer (CEO). The company also identifies crucial board of the director to run the activities in relation to the development of the company. The fifth hurdle represents the development of effective infrastructures. This acts towards enhancement of the activities within the context of the company. Intuit Company tries to overcome this hurdle through application of networking services to enhance its interactions with the consumers. The sixth hurdle is the construction of effective and efficient financial capability. At the initial stages of the…