• Uncategorized

Business Report Texas Instrument Inc.


BusinessReport: Texas Instrument Inc.


Thisreport is based on knowledge management (KM) consortium yardstickthat will be carried out on Texas Instrument Inc. This study willfocus on how the company implements the knowledge managementinitiative, mobilize resources, develop a business case, measure andamend knowledge management programs. Knowledge is one of the leadingenablers for company’s success. Through implementing an effectiveKM, organizations can enhance their effectiveness and achieve acompetitive edge. Adopting KM initiatives has influenced the need toidentify crucial accomplishment factors. This study will also providean opportunity to classify and discuss success enablers thatrecognize the effectiveness of KM within firms to influence overallperformance. At the same time, organizations will gain a betterunderstanding of problems faced when implementing a successful KMprogram. Thus, the goal of this report will be to enable TexasInstrument Inc. compare their KM initiative and determine anyperformance gaps and opportunities for improvement.

BusinessReport: Texas Instrument Inc.

Constantand increased advancements in IT have transformed the globe into anew economic age. KM has received major evolution the in the currentcentury and has been a hot issue of discussion in numerous corporatecommunities(Theriou, Maditinos, &amp Theriou, 2011).With the capabilities to promote knowledge has become more and moreimportant in the present knowledgeable business world. The role foroperational and administration of organizations is essential. Thus,if understood and used efficiently, KM may be a useful tool fororganizations evolution and also attain competitive advantage(Theriou, Maditinos, &amp Theriou, 2011).This study will emphasize on Texas Instrument Inc. which has beenknown to successfully leverage the KM program in its processes foroptimal performance. The knowledge management challenges that arepresent at Texas Instrument may be perceived as typical. However,they tend to significantly affect the majority stakeholders, thecontent, technology, and the economy. The key challenges that existin its actual operations of its activities and decisions are based onthe convergence of its departments which has not been run smoothly.The production of each function has not been perfect. As such, theorganization hopes through knowledge management to reduce the time ofsharing of information so that resources can be efficiently used, andemployees can gain more knowledge and as a result, create more valuefor their customers.

KMIssues/Topics experienced by the Organization

TexasInstrument Inc. ventured into the business world to manufactureanalog, digital signal chips, and semiconductor technologies thatenable deliver personal and industrial electronics products withimproved performance, sound quality, increased mobility, superiorprecision and increased power efficiency. To implement knowledgemanagement, it is essential for companies to recognize the obstaclesand the critical variables that impact the realization of the KMprogram (Margilaj &amp Bello, 2015). Several issues encountered bythe TI have significantly affected its productivity and overallperformance. Texas Instruments Inc. has been experiencingdifficulties in its departments where operation and communicationflow has not been smooth. This is associated with informationtechnology, organizational culture, and organization structure. For asuccessful knowledge management initiative, these practices must bedeveloped and nurtured if they are already in place. Informationtechnology has undergone significant evolution and currently, IT canallow ease of access and retrieval of information through enhancingcooperation and communication among the employees.

TexasInstruments Inc. is famous for upholding the importance of internalcommunication and has deployed numerous structures to motivate theworkforce and create a conducive and transparent work environment(Texas Instruments, n.d). These programs include introducing andinternal newsletter where information and events about the operationsof the company are gathered and circulated to all staff. The companyalso developed an online channel called “heart to heart” thatallows its employees to share their opinions, views, makesuggestions, recommendations and raise complaints concerning anyfeature of the company. Despite the fact that Texas Instruments hasdirected its effort to efficient communication systems, it has beenweighed down by the responsibility of ensuring there exist bettercommunication structures which are presumed to be an addeddeliverable of the human resources function. Secondly, TI hassuccessfully adopted the matrix organization structure. The modelstructure is a cross-functional division that brings individuals fromdifferent departments together with the aim of attaining a particularobjective. A dual reporting structure is a resultant product whereemployees report to not only his/her immediate supervisor but also tothe manager in the cross functional division.

AtTI, the matrix organization comprised of operating and strategicroles. Strategic assignments were developed to cut across divisionsand team boundaries as well as products, thereby creating a structurewhere managers have dual responsibilities. This structure has provento create conflicts as it fails to show the clear lines of authorityin the manager-subordinate work relationship. In the real sense, inthe first instance, the manager is responsible for ongoing activitiesin a particular department and in another case the same manager isin charge of a strategic assignment that could engage managers fromother departments. The third issue is concerned with theorganizational culture regarding talent management. The semiconductorindustry is subjected to a series of recession patterns now and thengiven the reckless spending behaviors of individuals in the USleading to a collapsed economy. Texas Instruments Inc. may encountera significant challenge if they do not initiate measures to ensurethat the right workforce remains in the organization.

Descriptionof the Organization

TexasInstruments Inc. was established more than eight decades ago with itsheadquarters Dallas, Texas. Popularly known as TI, the companyfeatures in electronics, and semiconductors industry and is renownedfor manufacturing and commercializing computer technology,electronics, and semiconductor (Texas Instruments, n.d).Their digitaland analog, embedded processing and wireless innovations applied inpersonal and organizational daily activities in several differentways, and they range from digital communications, entertainment,medical services, automotive applications, etc. Its product offeringof a wide range of sophisticated and quality technologies sought tomeet the customers’ unlimited signal processing needs which haveenabled them to build the world’s most innovative electronics.

Today,TI has tremendously grown to new heights and is one of the leadingmarket dominators in the semiconductor industry. As such, it boastsof an outstanding coverage in the major foreign markets and has thebest geographical presence in the semiconductor industry. Some of itsmanufacturing plants and branches are situated in Europe, Asia,Japan, and Malaysia (Texas Instruments, n.d). With an extensivepresence in more than 25 states, the company has acquired staffpopulation of around 30,000 who assist in providing products andservices to their broad base of customers (Ian et al., 2011). Giventhe large numbers of employees, numerous human resources issues arelikely to emanate mainly during policy implementation processes andcommunication procedures. They may have an efficient system in placeto handle such a situation. However, they may be required to querythemselves whether it is sufficient to get them to the next level.

TIis renowned for its emphasis on its core values that centers highlyon ethical behavior and employee diversity. The company initiated theinclusiveness program that fosters and values diversity and is viewedas the heart of TI values across its branches globally. The company’sstrategy focuses on maintaining a low-cost position in the market,which is one of the reasons why Texas Inc. has a bigger market share(TI, 2008). Technological innovation is also another key strategy forTexas Instruments. TI heavily invests its resources to research anddevelopment programs and strategically looks for opportunities toleverage technology to provide products and services with increasedconvenience, in unique approaches and affordable cost (TexasInstruments, n.d). Additionally, TI supports and promotes teamworkand empowerment. This strategy serves as a great resource for thecompany so as to avoid cases of having obsolete products andservices.

Externaland internal analysis of the organization


TexasInstrument Inc. has incorporated a decentralized functional workdivisions where roles and responsibilities are properly assigned onthe grounds of employees’ technical capabilities and skill set. Theboard of directors is composed of ten persons including the chairman,the president and the company CEO (Texas Instruments, n.d). The CEO’semployed in the company are directly held responsible for theirspecific department activities. Texas Instruments Inc. is acutelyaware that its customers rely on the enterprise to assist in productinnovation and distribute them to the market. Thus, TI focuses onflawless implementation plans to offer a broad range ofdifferentiated products, deliver software, and to provide support. Assuch, the company gets the customers to be involved in its activitiesin a manner that allows them to learn about their requirements so asto develop new, innovative, and improved products for future use intheir day to day operations. The corporate culture of TI states theneed to change the world by producing one chip at a time. It seeks tocreate an analog and embedded processing of products for powerelectronics across all industries. It has incorporated the values ofintegrity, assurance and invention throughout its history to buildand help the world a safer, smarter, fun, greener and healthierplace. Looking at the functions of the human resources at TI, it iscentered on human resources planning and talent management.Similarly, the company has incorporated a proper balanced trainingand development facilities for its employees. Development programsare usually based on individual performance and capabilities.Employee relations and communication network was one fundamentalaspect that ensured proper communication flow within the company.Concerning financial analysis, Texas Instruments Inc. has a soundfinancial background and its performance is exceptionally aboveaverage. This is attributed to the fact that its products account for85% of its revenues (BBC News, 2011). Even with the recent creditcrunch experienced worldwide, there is close to none informationabout the layoffs and retentions.


Theexternal environment will focus on the market, social, technological,and environmental factors. For TI to reach its market orientationgoals, it has to build a sound relationship with its customers. TIhas developed an effective marketing strategy that is meant to reachthe client by satisfying his/her needs and expectations. Byunderstanding the market surveys, the company has successfully madeviable marketing decisions and implemented long-term strategies. Thesocial factors include the changes in social trends, culturaldifferences, and distribution ratio. Where the Texas Instruments Inc.factories and customers are situated, has unpredictable constitutinglevels based on the social environment of the countries in which itoperates, which comprise of differing transportation systems, healthconditions, fluctuation exchange rates, and security exposures. Whileevaluating several factors influencing TI activities, it is evidentthat Texas Instruments has a high focus on research and developmentprograms and facilities and has hugely invested its time andresources to the technological advancements and innovations so as togain a competitive advantage over its rival companies. Technologyplays an important role as it helps to market products efficiently.Texas Instrument’s key competitors include microchip companies,Cypress semiconductor, integrated device technology companies, andSamsung.

Intoday`s ever-changing and competitive industry, product costs anddifferentiation are the fundamental pillars of any industry ascustomers demand quality and affordable costs. With production ofhigh-quality products, TI`s brand image speaks volume given theirsophisticated competitive edge. This has created a positive niche forthe company. As such, market forecasts expect great things from theglobal semiconductor sector which estimates industry revenues to growby more than 4% (Jean, 2015). Regarding environmental aspects TexasInstruments Inc. has reestablished its manufacturing plants whileinitiating it with several different lines in each function. Giventhe fact that most firms are now resorting to produce eco-friendlyproducts, TI is focused on manufacturing lead-free products. In thecontext of talent management, several factors can be recommended toensure that it is not an issue. Thus, to reduce the attrition rate,TI’s management should demonstrate interest and appreciation to itsworkforce. Employees do appreciate the fact that they are recognizedwhen they performed a better job. When the company is affected by theeconomic downturn and employees volunteer to work extra hours and themanagement shows appreciation to employees, it makes them feel like acause for change and their involvement can make a huge difference.

Presentation,Explanation, and Discussion of Research into KM Topic

Anyorganization strives to be a competitive player in the market. Assuch, they heavily invest vast sums of money in developingsophisticated technologies. Since its inception in 1930, TexasInstrument Inc. has owned production facilities and acquired numeroustechnological inventions to its credit. While concentrating oncommunication, organization culture, and structure, one can evaluatehow KM programs and performance becomes affected. Organizations arecompletely aware of the significance of communication, and some maydirect efforts to ensure that their major stakeholders view them in apositive light. In spite of the highly regarded value ofcommunication, organization fails to identify and address the role ofinternal communication systems in equal measures to the communicationwith the external environment. Incorporating matrix structure isdeemed as a complicated affair as well as being costly (Nordmeyer,n.d). However, the model allows strategic considerations to behandled directly and to be formally represented in organizationalstructure. In the event of economic slowdowns, most companies handlethe situations through laying-off some of its employees. Determiningthe most suitable strategy is essential. However, for the business togrow, the company needs to define, capture and nurture the rightcaliber of talent. Also, to ensure an efficient flow of the rightskills, the best practices to establish critical talent management isnecessary.

Strategiesin place in Similar Organizations to address these Problems

TexasInstrument Inc. receives major competition from peer companiesincluding Intel Corporation, and Samsung. Intel Corp. does not applyhierarchical structure and instead, uses the matrix organization andcross-functional division to adapt to the ever-changing and dynamicbusiness environment. Intel has adopted frequent external amendmentsand high interdependence strategy across departments to allowefficient coordination and communication processing for horizontaland vertical processes(Eppinger &amp Browning, 2012).Concerning communication, Samsung has incorporated an integratedcommunication system. Samsung strives to restore the value that isbeneficial to its stakeholders. Likewise, the management effectivelycommunicates with its employees and focuses on best interests forviable decision making. Concerning talent management, Samsungintroduced an open management in their personnel management which hasgiven the employees the autonomy and enhanced their creativity andreduced obstacles in its operations to improve efficiency andcompetitiveness (Jung, 2014).

Recommendationsto improve the Organization`s KM Problems

Concerningcommunication networks at TI, it would be highly recommended for thecompany to determine an appropriate desired culture. The cultureadopted must be able to support the goals of the firm at the sametime it should not be considered as a one-off program instead, itshould be a continuous initiative. The company must thus be able toidentify proper principles, core values, and practices for itsemployees to embrace which will later be accepted as the culture ofTexas Instrument. The other element would be to identify and applythe available communication resources. TI has an establishedcommunication networks comprising newsletters, online channel, and anopen forum. TI should understand that incorporating memos andperformance appraisal are useful tools in communication. They help inconveying aspirations and can be used as a feedback mechanism for theworkforce to air their views and opinions. Open forums can also beextended to incorporate non-verbal tools as it will help to extractparticular feelings among the employees. Most organizations findmatrix organization to be an intricate process and managing one isnot easy. Thus, TI must create a suitable balancing act within theenvironment that is constantly changing. For a robust matrixstructure, it requires the management to be power-driven andegoistic. Another aspect is to revolve the workforce within thematrix structure (Flander, 2016). When a person has undertaken anassignment on one side, he/she will be more amenable to matrixorganization and likely to deal with sensitiveness in a better way.


Thesedays, KM is considered to be the key foundation to achieve acompetitive edge. From TI’s perspective, communication culture,organization culture, and talent management have a positive influenceon knowledge management effectiveness. As such, it is possible todetermine the correlation between KM and business’s performancewhich demonstrates a strong constructive relationship between KM andperformance, profitability and market share of the firm. Uponidentifying the key critical factors i.e. communication channels,culture and structure were essential to gauge the status of knowledgemanagement application and categorize those functions that needimprovement.


BBCNews. (2011).TexasInstruments to buy National Semiconductor. April5, 2011. Retrieved from http://www.bbc.com/news/business-12969523

Eppinger,S. D., &amp Browning, T. R. (2012). Designstructure matrix methods and applications.MIT Press.

Flander,J. D. (2016). Strategy Execution Thought Leader. Matrix Structures:11 Tips To Survive Any Matrix Structure! Retrieved fromhttps://jeroen-de-flander.com/matrix-structure/

Ian,K. &ampTom, G. &amp Joseph, G. &ampDiane, A. &amp Nick, T.(2011). TexasInstruments Bets Sales Army Can Spur National`s Growth,Bloomberg Businessweek. Bloomberg. OCLC 42637019. Retrieved fromhttp://www.bloomberg.com/businessweek/news/2011-04-05/texas-instruments-bets-sales-army-can-spur-national-s-growth.htmlApril6, 2011.

Jean,S. (2015). Dallas News. Analysts see strong 2015 semiconductorperformance, including Texas Instruments. Retrieved fromhttp://www.dallasnews.com/business/business/2015/01/07/analysts-see-strong-2015-semiconductor-performance-including-texas-instruments

Jung,S. C. (2014). The Analysis of Strategic Management of SamsungElectronics Company through the Generic Value Chain Model.

Margilaj,E. &amp Bello, K. (2015). Critical Factors of Knowledge Managementin Albania Business Organizations.

Nordmeyer,B. (n.d). Disadvantages of Organizations With the Matrix Approach.Retrieved fromhttp://smallbusiness.chron.com/disadvantages-organizations-matrix-approach-22115.html

TexasInstruments. (n.d). About TI. Retrieved fromhttp://www.ti.com/corp/docs/company/home.html

TexasInstrument website history page (2008), Texas Instruments, accessedSeptember 6, 2008. Retrieved fromhttp://www.ti.com/corp/docs/company/history/interactivetimeline.shtml

Theriou,N., Maditinos, D., &amp Theriou, G. (2011). Knowledge ManagementEnabler Factors and Firm Performance: An Empirical research of theGreek medium and large firms. EuropeanResearch Studies,14(2),97.