Flat Management Structure at Valve Corporation
Case
Teaching Notes
Abstract
This case study provides insight into a company that adopts an innovative business model involving a flat management structure, in response to extremely competitive and volatile environmental pressures. The founders of Valve Corporation, an American video game development and distribution company, were determined to learn from their prior experience at Microsoft and their knowledge about other competitors in the field. They developed their business model to ensure that closeness to the customer and creativity of employees were aligned and central to business activity. Their flat management structure has ensured the success of Valve for almost 20 years, overseeing the launch of multiple generations of products and taking advantage of major technological advancements and evolving customer preferences and activity in this market.
This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
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