The second article by Bunkley tells us how General Motors (G.M.) is embarking on a new strategy to enable it harness innovative technology through investing in startups that are promising. Following in the footsteps of other huge companies such as Procter & Gamble, Intel and Google, G.M. has formed its own venture capital firm. The company has committed $100 million to this new venture which shall be headed by its vice president for global product planning. G.M. is seeking to lift itself out of its huge debt to the federal government while simultaneously creating a competitive advantage over its competitors.
For both organizations we can see adaptability being the key force for change (Palmer, Dunford and Akin 63). Microsoft seeks to gain brand positioning in the mobile computing sector, especially after successful launches in the industry by its main competitors, Google and Apple. The restructure emphasizes the division’s strategic importance by placing in under the Microsoft CEO. Conversely, G.M.’s new venture firm provides the company with a richer source for innovation and also diversifies its investment portfolio. The two organizations could leverage this restructuring with their unique organizational learning curve as sustained advantage. It is difficult to predict success for either because G.M. is still recovering from the financial crisis while Microsoft is entering, probably, this decade’s most competitive