W.L.

Gore &
Associates,INC

Presented By: Hamna Hasan

Mariyum Shahid
Class : MBA-4B
Date : 20/5/11
Founder Background

Wilbert.L.Gore was born in Meridian , Idaho near

Boise, in 1912.
 He got married in 1935 to Genevieve(called
Vieve by everyone)
 He received :
 Bachelor of Science degree in Chemical Engineering
in 1933.
 Masters of Science degree in Physical Chemistry in
1935.
 Start professional career at American Smelting &
Refining in 1936 and move to Du Pont in 1945.
Company’s Background

 Formed by Wilbert L. Gore & wife

Vieve in 1958
 Development of Teflon was his
primary focus & new products
derived from PTFE.
 He died backpacking and his son
Bob took over in 1986
 Vieve remain as only the officer,
secretary-treasurer.
The Operating Company
 The titles of President & Secretary treasurer
were used because of Laws of Incorporation.

 Gore didn’t have a corporate –wide mission

statement or code of ethics statement.

 One Associate stated that ;

“ The company beliefs that its 4 basic operating
principles covers ethical practices required of
people in business and It will not tolerate illegal
practices.”
 Expansion Policy :
“ Get big by stay small .”

 By 1991 company have 44 plants worldwide &

with over 5300 associates.

 27 in USA & 17 overseas : Scotland, Germany,

France , Japan ,& India.
Products
Company had 7 division of Products that are :
1. Electronic
2. Medical
3. Waterproof fabrics
4. Fibers
5. Industrial filtration
6. Industrial seal coatings
7. Microfiltration
Electronic

 Electronic products were

extensively used in Defense
System microwave
communication & industrial
robotics.

 Gore wire & cables were used in

Space shuttle Columbia & in
moon vehicle shuttle .

 Gore make possible world

fastest computer.
Medical

 Gore Tex artificial arteries used to

replaced human damaged arteries

 Gore Tex vascular grafts

come in many sizes to restore
circulation to all areas of the
body.

 It also help people with Kidney

Diseases.
Waterproof Fabric

 Gore-Tex fabrics was

waterproof, and windproof
,yet breathable.

 The PTFE membrane

blocked wind & water but
allowed sweat to escaped.

 Gore-Tex was also used by

military personnel. Wet suits,
parkas, pants, headgear,
gloves & boots.
Fiber Product
 NASA’s spacesuit outer protective
layer was woven from Gore-Tex
fibers.

 They are impervious to sunlight,

chemical, heat and cold.

Industrial filtration

 Gore-Tex filter bags reduced air

pollution and recovered valuable
solids from gases and liquids
Industrial Seals Division
 Produced joint sealant, a flexible
cord of porous PTFE that could
be applied as a gasket to most
complex shapes.

 It prevent leakage of corrosive

chemicals at even extreme
temperature and pressure.
Microfiltration

 Gore-Tex microfiltration products were used in

medical devices, pharmaceutical manufacturing,
and chemical processing.

 These membranes removed bacteria and other

microorganisms from air or liquids , making them
sterile.
Financial Information
 W.L.Gore was a closely held private corporation.

 80% stock was held by Gore family and Veteran

associates, 10% by current associates and 10% by others.

 Gore’s return on asset and equity ranked it among the top

5 % of major companies.

 It had 27 straight years of profitability and positive return

on equity.
Organization Structure
Bill Gore avoid forming company in thick layers
of formal “ management and promote individual
creativity.

 Sponsor Program:
Sponsor’s role is to take a personal interest in the
associates contributions, problems, and goals
 1. Starting Sponsor
 2. Advocate Sponsor
 3. Compensation Sponsor
Lattice Organization
 Direct lines of communication-person to person-
with no intermediary.
 No fixed or assigned authority.
 Sponsors, not bosses.
 Natural leadership as evidenced by the willingness
of others to follow.
 Objectives set by those who must “make them
happen.”
 Tasks and functions organized through
commitments
ORGANIZATION CULTURE
4 guiding principles :
 Fairness
 Freedom
 Commitment
 Discretion (waterline principle)

Organizational structure
 v small
 President, secretary treasure, associates (all other members of co.)
 TABOO WORDS like Employees subordinates managers

 LEADERS
LEADERS ADVICE THE ASSOCIATES OF THE
CONSECONQUENCES OF ACTIONS THAT THEY
HAVE DONE OR PROPOSE TO DO…. 
KINDS OF LEADERSHIP AND THEIR
ROLES
1 .EXPERT
Recognized by team (having special knowledge ROLE -guide in special areas
2 .COMMITMENT SEEKER
The team look for coordination of individual activities to achieve objectives of
the team ROLE-persuade team members to make the commitments
necessary for success
3 .COMMITMENT SEEKING
good grasp of hw team objectives fits into broader organizational objectives
ROLE-proposes objective and activities and seeks and team consensus
4.COMPNSATION SPONSOR
May participate in compensation committee and report changes in
compensation of other associates ROLE-evaluate relative contributions of
team members in consultation with other sponsors 
Cont….

5. PRODUCT SPECIALIST

6 .PLANT LEADERS

7. BUSINESS LAEDERS
8. FUNCTIONAL LEADERS
9. CORPORATE LEADERRS

10. INTRAPRENEURING
OTHER ASPECTS:
 NO RESERVEED PARKING
 COMON LUNCH ROOM
 SITE SELECTION
 ADJUSTMENT PROBLEM DUE TO UNSTRUCTURED
ORGANIZATION

FOR NEW ASSOCIATES

 As a result disorder occurs like absenteeism stealing
unionization
 But still bill gore before his death estimate that in spite of
unmanaged and unstructured system THE PROFIT PR
ASSOCIATE IS DOUBLED THAT OF DU PONT
ASSOCIATE DEVELOPMENT
 IN house training opportunities
 Technical
 Engineering
 Leadership
 Company operative programs
 Training through universities and other outside
providers
COMPENSATION
 Salary,
 Bonus, 15% of company’s profit distributed twice a year
 Associate’s stock option program (ASOP) equal to 15%
of annual income of associates company’s stock were
bought and put to (ASOP) retirement fund so that
associates become owner
 Salaries review twice a year by compensation committee
 Avoiding lay off strategy by temporary transfer within
plant and voluntary lay offs
 Pay depend upon the magnitude of contribution
RESEARCH AND DEVELOPMENT
 NO FORMAL RESEARCH AND DEVELOPMENT
DEPARTMENT
 ASSOCIATES ENCOURAGED TO THINK
EXPERIMENT AND FOLLOW A POTENTIALLY
PROFITABLE IDEA TO ITS CONCLUSION

The creativity, the number of patents applied

and innovative products are triple that of DU-
PONT

Company held over 150 patents

MARKETING STRATEGY
 1 Marketing of product held around Product champion
 2 Responsible for marketing a product through
commitments and sales per chain of command team
members set their unified goals and try to achieve
them
 3 Sales person compensated on salary system not on
commission basis
COOPERATIVE ADVERTISING STRATEGY
 Target the industrial customer
 Secure position of market leader in no. of products
from waterproof gloves to vascular grafts
Conclusion

A LATTICE structure and short hierarchical

organization can also be successful and become
market leader without having a proper
management structure
THANKS

QUESTIONS