Essay
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Theranosandchipotle.docxBusiness Lessons from Theranos and Chipotle By Manar Alsous
Two high-flying companies, Theranos, a company that was claiming to be able to almost magically do all sorts of medical tests on a single drop of human blood. (Adam Rogers). And Chipotle a fast-food chain, that claims "The Line is a Moment of Truth" “If you think about that amazing beautiful food line of real safe cooked food for our guests, it’s really the front line.” Both of the companies have their own investors, however, each of them has their own management culture that reaches it to where they are now. Theranos was collapsed after about 10 years due to many reasons. First, the company has a culture of silencing and secrecy; startup culture considers the kind of “ fake it till you make it” hustling that Holmes deployed, Elizabeth Holme was not clear with the investors with the result of the inventor. Second, Holmes has a lack of experience not only in technology and science but also in the management. All she had was an idea, for this, she should hire professional experts in medical and technology who give her the right advice. But she did not. furthermore, She did not have any medical technology Ph.D.’s that she trusted in her management that could give her intelligent advice.” (Neil Jurkiewicz, Winter 2019)Moreover, some of her ideas were rejects by the professor she hired in Theranos because those ideas were impossible to achieve. Third, Elizabeth did not create cooperative teamwork in Theranos; She and her partner Balawi were inflexible and not adapted bosses, for instance, Balawi fired qualified people which caused a high turnover rate created a toxic and unhealthy workplace for Theranos. Also, the essential problem found in Theranos was with the board of directors; most of the board members in 2014 may have had experience in politics or the military but a little knowledge of medical technology. Besides, there were also a lot of problems with the lower-level employees as many had described the company management as a “ South American dictatorship or a drug cartel.” In addition, Theranos was prevented by the Federal to test the device until the development gets done, however, Elizabeth asserted to test it.
Unlike Theranos, Chipotle has a culture of integrity, effective communication, and cooperative team work in the company. that lead to its flourishing. In late October 2015, Chipotle had faced a problem of food poisoning that caused sickness of 80 students in Bosten. Immediately, Chipotle CEO Steve Ells did smart steps to rescue Chipotle's reputation. So he apologized and promise to fix the problem, and he cooperates with federal authorities. Moreover, the company announced a plan that will make sure it never happens again. Also, clearly, Chipotle's website has been updated and now has food safety front and center. In addition to solving problems, Chipotle focuses on keeping its prosperity by growing the employees; it encourages and supports its employees to learn and empower themselves with education, so their tuition costs 100% covered up by Chipotle. “ You cannot grow a company unless you grow the people,” says Marissa Andrada, Chief People Officer at Chipotle ( Comparably). Chipotle emphasizes on “ Leading with Compassion to a Winning Culture.” So, when the management shows concern about the employees, the employees will have a sense of belonging to the company as a result will do their best to work as a team for the company's prosperity.
We do not learn a lesson from successful people only, but also we must learn from others' mistakes.
Work Cited
https://www.wired.com/story/theranos-diagnostics-business/ (Links to an external site.) by ADAM ROGERS (Links to an external site.) SCIENCE (Links to an external site.) 03.15.2018
https://www.theguardian.com/technology/2018/mar/14/theranos-founder-elizabeth-holmes-fraud-charge (Links to an external site.) Julia Carrie Wong
https://www.prnewsonline.com/chipotle-theranos-differ-on-crisis-management-results-similar-though/Chipotle & Theranos Differ on Crisis Management, Results Similar Though12/21/2015 By BY Katie Paine, CEO, Paine Publishing (Links to an external site.)
