...Question 3 Should Galanz have evolved from an OEM to being an OBM? No. Galanz should remain as an OEM even though it has the technical capability to create and produce its magnetron and innovative oven features. This is because of the following. 1. Its manufacturing and production planning system is not structured to compete as an OBM. Galanz is currently trying to use assembly line to produce variety of products. Current diversification into branded ovens is disrupting Galanz’s production capacity and production efficiency. 2. Low brand awareness by overseas consumers for Galanz branded ovens and the need to set up sales and service centers in their target markets. They do not have the infrastructure and competence in these aspects. 3. Trade restrictions on Galanz OBM microwave ovens for being unreasonably low priced as compared to other high end ovens and monopolizing some markets like Argentina for example. 4. Galanz will be competing with its OEM customers in some OBM markets. They risk losing some customers or experience a reduction in orders as they look for substitutes. 5. Galanz organizational structure is not decentralized and this limits their ability to meet the changing needs of its diverse OBM customers. 6. OBM requires technical and management skills, work attitudes and efficiency of labor but this is currently not available with the cheap labor being used for its OEM business. Is Galanz structured to compete as an OEM? Why or Why not...
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...CASE ANALYSIS REPORT ON Operations strategy at Galanz MGT 546 Operations and Service Management Case Summary This paper is all about one of the leading electronic appliance manufacturer of china, the Galanz group. The case tells about the phase development of a manufacturing company. How a down feather producing company entered into production of the microwave oven and how they become the leader in national and international market. The company was found in 1978 as the down feather producing company. The original name of Galanz was Guizhou Down Product Factory and their main objective was to produce down product to supply in the international market and earn foreign currency. But the drastic change in the company was brought by the decrease in the revenue of the company because of the quota system and the industrial revolution played major role in the transitional phase of the company. They are the leading manufacturer by covering microwave oven market 50% of total market share by 2003. The case also explains about the competitive and operation strategy that Galanz used to achieve meteoric growth. The initial competitive strategy of the company was cost leadership, and they followed it. The cost leadership benefit was available to this company because of the factors of production available at low cost. Not only that the company adopted in innovative style of production in operation and due to which was able to gain exponential growth. Case Analysis Q.1...
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...TEAM CASE 1: OPERATION STRATEGY AT GALANZ 1. What were the order winners/qualifiers for Galanz in the microwave oven business during the early stage of its development? Order winners are "those competitive characteristics that cause a firm's customers to choose that firm's goods and services over those of its competitors. Order winners can be considered to be competitive advantages for the firm” (APICS Dictionary, 2008). Order qualifiers are "those competitive characteristics that a firm must exhibit to be a viable competitor in the marketplace" (APICS Dictionary, 2008). In the case of Galanz, the large production scale and cost-leadership strategy are considered to be the order winners for the company; the qualified products with affordable price are the order qualifiers. This classification of winner and order qualifiers is on the basis of development that had been done in the company during the early stage of development. During the early stage, due to lack of technology and technicians at the home market, the company “did not have any competitive edge in production technology but only an abundant supply of cheap labor and land. Offering a low price thus was the only way to compete in the market” (4). To deal with winning orders, the company previously implemented the low-price strategy that was based on selling products at low cost in comparison with the competitors. As a result, the company had successfully achieved cost reduction that led them to achieve the large...
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...CFD ANALYSIS AND SIMULATION OF SHOCKWAVE GENERATION Dr. S. P. Vendan #1, K. A. Mohamed Isqhak*2, R. Prabakaran *3, N.Sugajen*4 and M.Pravinkumar*5 #1 Associate Professor, Department of Mechanical Engineering, PSG College of Technology, Coimbatore-641004. 1 spvendann@yahoo.com * IV Year BE Mechanical Engineering, Department of Mechanical Engineering, PSG College of Technology, Coimbatore-641004. 2 mailmepravin@gmail.com 3 prbkrn1991@gmail.com Abstract. This paper involves computational fluid dynamics analysis and simulation of a shock wave generating equipment. Shock waves are produced by suddenly exposing a high pressure region to a low pressure region. This involves in the design of an arrangement that acts as a valve which separates high pressure region and low pressure region such that the valve opens suddenly (i.e., in the order of milliseconds) and thus producing shock waves. The instantaneous rise in pressure and temperature of a medium can be used in a variety of industrial applications Key words: Shock waves, Shock tubes, CFD, Pneumatic Valve 1 Introduction The ability of shock waves to instantaneously increase the pressure and temperature in a medium of propagation enables their use for many novel industrial applications[1]. In some sense the presence of a shockwave propagating in an enclosed medium can be similar to a furnace where, in addition to temperature, even pressure can go up instantaneously and remain at elevated levels for a short time and...
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...如何解答格兰仕老总的困惑？ 微波炉市场在我国八十年开形成雏形，当时竞争和需求都很小，市场主要由外资品牌 东芝、LG、惠而浦等控制。外资厂商的优势是技术稳定和成熟，但是他们缺乏对中国市场 快速发展的环境的理解。而格兰仕起步时除了拥有充足而低廉的劳劢力和工地供给外，幵 没有仸何竞争优势。通过外包生产和技术转移，格兰仕逐渐形成了自身的实力，利用 3 班 倒的连续丌间断生产，拉低产品的成本，在市场上丌断迚行价格戓来夺取市场仹额。格兰 仕因为销量激增而导致磁控管短缺，而磁控管这个微波炉的核心部件需要从国外供应商比 如东芝，松下处购入。但是格兰仕在微波炉市场的快速增长已经对东芝，松下等供应商产 生了威胁。因此东芝，松下等为了保持自己的市场仹额决定削减甚至停止供应磁控管给格 兰仕。格兰仕也因此建立自己的研发中心研发相兲核心组件。随着格兰仕产量以及销量的 迚一步扩大，格兰仕丌得丌外包部分微波炉的生产给其它 OEM 厂商。 在早期格兰仕凭借低价承揽了国外厂商的 OEM 生产，但产品技术和核心部件均来自 日本厂商。在做大做强后格兰仕开始给大的 OEM 客户提供 ODM 服务，同时也收到了更 多来自在发中国家的中小企业的订单。之后格兰仕开始尝试对应海外目标市场迚行本地化 设计。在向 OBM 转型中，格兰仕也面临了一系列的问题：在 2003 年以前格兰仕作为 OEM 厂商，自身品牌幵丌为海外消费者所知；同时迚军海外也不东芝，松下等外资品牌 产生了激烈的竞争；因为低价策略冲击了当地品牌，格兰仕还面临倾销指控。格兰仕在外 海市场自己建立戒者不合作伙伴协作建立销售和服务网络的丼劢也使得它的 OEM 客户警 觉得开始削减 OEM 订单。因而格兰仕尽可能的丌去伤害到 OEM 客户的利益，同时继续 扩大自己 OBM 产品的销售。但在激烈的市场环境中，格兰仕继续解决以下困惑： 1. 企业机构如何调整？ 格兰仕从一个 20 人的公司成长到 10000 名雇员的企业，陈旧的公司架构已经丌 能满足企业的成长和在快速变化的市场中生存发展的需要了。所以在解决产品线和是 否在海外市场扩张的困惑前，首先应该做的是重塑企业结构，让信息和管理层决策能 够更加快速准确地在丌同层级间上下传递。 我的建议是将公共部门如财务，IT，法务等整合到一起作为商业服务部，负责整 个集团包括工厂、研发中心以及销售公司的招聘，会计活劢等等公共业务。另一方面， 由于销售数据，工厂生产数据等等都是汇总到一个组织，更加能够高效的完成所有数 据的汇总和分析，更加快捷的反应各产品生产和销售的情冴。管理委员会汇集了总经 理，副总经理，厂长，销售总监以及商业服务部部门的负责人。在管理委员会内部成 员间可以彼此之间更加快捷的沟通交流信息，更加完整和明确的理解企业的戓略、策 略和规划。 2. 低价策略是否有效？ 低价策略在市场丌成熟的初期是非常有效的，因为当消费者面临高价格的其他品 牌时，为了拥有一个微波炉，消费者会将价位放在第一位，品牌、设计、功能等排后。 但是在一个日渐成熟的市场里，消费者愿意为了外观，新潮的功能等等支付产品溢价， 因此格兰仕的生产和销售的策略就需要对此迚行转型。 因此对低价策略是否有效，应该分成成熟市场和非成熟市场两种情冴来解答。对 于非成熟市场，价格因素依然是“订单赢得要素”。因此保持对象与业化原则，批量 生产降低成本，以低价继续占领非成熟市场；对于成熟市场，价格已经成为次要因素， 顾客愿意为了产品的外观、功能性等支付产品溢价。成熟市场可以是国内富裕家庭， 也可能是海外市场中的发达国家。这时候生产模式也应该向工艺与业化转变。然而工...
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...Asia Pacific J Manage (2008) 25:667–683 DOI 10.1007/s10490-007-9073-0 A strategic analysis of surging Chinese manufacturers: The case of Galanz Gloria L. Ge & Daniel Z. Ding Published online: 10 November 2007 # Springer Science + Business Media, LLC 2007 Abstract Recent years have witnessed the surging of Chinese manufacturers, as China has become the world’s factory floor. This paper presents a case study of one of the most successful manufacturers in China, the Galanz Group, now the world’s largest microwave manufacturer. Based on theories of multinational corporations from emerging economies, the paper examines the process of Galanz’s integration into the global market. The company has developed unique competitive strategies that have made it a great success within China and in overseas markets. The Galanz model suggests strong strategic implications for both Chinese firms and incumbent multinational corporations. Keywords Chinese manufacturers . Strategic analysis . Internationalization . Galanz In the last two decades, China has maintained an average annual growth rate above 7%. China is rising as one of the world’s largest economies and trading powers. As China becomes the world’s manufacturing floor, the competitiveness of Chinese manufacturers and their impacts have emerged as a hot topic. China’s manufacturing output now ranks third in the world only behind the United States and Japan, after overtaking Germany in 2003 (China Daily 2005). Many Chinese manufacturers...
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...Explore how motivation theory has developed over time and assess how motivation can influence business performance Weiyang Mai (Amigo) Table of Contents 1. Introduction 1 1.1 General introduction of Motivation 1 1.2 The definition of Motivation 1 1.3 The benefit of Motivation on the workplace 3 1.4 The development of the theories of motivation 4 2. The introduction of Galanz company 8 3. Motivation in Galanz company 9 4. Conclusion 15 5. List of reference 18 Introduction 1.1 General introduction of Motivation A company is a human body, so employees are like its blood. Employees are the most important asset in the creative economy. Enterprises create a kind of environment to keep the excellent talents which it's the most sensible initiative can carry out. Thus, enterprises must know the skills of employees' motivation and concentrate on motivating employees. It's the required courses about that if enterprise wants to become a successful company. Moreover, how to motivate staff in the workplace is a hot topic to discuss. 1.2 The definition of Motivation Firstly, to put it simply motivation is generalized as "enthusiasm for doing something" (Cambridge dictionary online, 2011). Moreover, Mullins (2005: 471) declares that motivation means "the direction and persistence of action." And identifies three common characteristics of motivation: (1) "individual phenomenon”, (2) “intentional” and...
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...Galanz Enterprises Group Co. Ltd Executive Report September 2011 Executive Summary This executive report is to aid the Board of Directors of Galanz in examining the company’s market position. We will make a series of recommendations in order to direct the company towards greater future success. During the early years of development (1991 – 2000) Galanz order wining factors (OWF) which contributed directly and significantly to customers choosing their products over competitors’ products included: 1. Low cost/ value for money 2. R & D capacity and production 3. Innovation During this same time the order qualifying factors (OQF) which were the minimum things required in meeting customer expectations, were: 1. Own Magnetron Product capacity 2. Blue print brought from world leader- microwave oven technology 3. Production capacity—three shifts; 24/7-365 Galanz has progressed through three distinct phases of business development in getting to where it is today. These are: Phase 1 Galanz started off as an original brand Manufacturer (OBM) manufacturing and selling own-branded microwave ovens in the domestic Chinese market. Production technology and key component parts were purchased from Japan. Phase 2 Galanz then incorporated contract manufacturing into its business operations undertaking original equipment manufacturing (OEM) of component parts for foreign microwave manufacturers and exporting them to their respective markets Phase...
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...1. The success of Galanz is mainly the result of adopting different competitive strategy and operations strategy under different internal and external situation. From the perspective of competitive strategy, first Mr. Liang took the overall cost leadership strategy. As he well understood the competitive edge of his company was offering cheap labor and cheap land, he offered a very low price to the customers. By doing that, Galanz beat the competitors away as they could not make big profit and Galanz gained a big market share within a short period of time. At the same time, Galanz escalated its production capacity through free production line transfer and provided necessary training to the operators by its clients. The most important thing was Galanz had the right to use the excessive capacity for producing its own product. By doing this, Galanz fully utilized the production facilities and resources and produced the products in a lower cost with better quality. Ultimate, Galanz could further lower the product price and attract more clients and gain more market shares. This price cutting cycle helped Galanz building a strong financial and operation foundation. The most important achievement was Galanz became the overall cost leadership. Once Mr. Liang had the solid foundation, he tried to differentiate his product from others. He tried to develop his OBM business with cheaper and better quality as the brand image focusing domestic market. Meanwhile, he kept his OEM business focusing...
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...Galanz Group had its beginning as a manufacturer of down feather products owned by Shunde Township, before transforming into a world class manufacturer of microwave ovens producing about 50 per cent of the global output in 2003. Using different competitive and operational strategies, Galanz was able to achieve tremendous growth to become the unchallenged King of Microwave Oven in China and even in the world. 1- What were the order winners/qualifiers for Galanz in the microwave oven business during the stage of its development? The terms order winners and order qualifiers were coined by Terry Hill, professor at the London Business School, and refer to the process of how internal operational capabilities are converted to criteria that may lead to competitive advantage and market success. « Order qualifiers are those competitive characteristics that a firm must exhibit to be a viable competitor in the market place. Orders winners are those competitive characteristics that cause a firm's customers to choose that firm's goods and services over those of its competitors. » In the first stage, Galanz transferred all its resources of its original business to its new project microwave oven, retreated from its original business, and concentrated all its resources on this new point. It had to import the associated technology and equipement from overseas and searched for technical expertise to overcome the business challenges. Indeed the evolution of consumption patterns of China...
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...escenario competitivo ha cambiado. Campeones provenientes de mercados emergentes han conquistado posiciones de liderazgo en una amplia gama de sectores globales, y lo han hecho no por la vía de derrotar a los gigantes establecidos en su propio juego, sino cambiando las reglas para crear un juego nuevo. En cemento, ya no es Europa la que encabeza la lista, sino una agresiva multinacional –Cemex– con oficinas centrales en Monterrey, México. El fabricante de electrodomésticos de más rápido crecimiento del mundo –Haier– proviene no de Japón o Europa, sino de Qingdao en China. Otra empresa 43 noviembre 2006 Ruelas_mexico.indd 125 23/10/06 22:59:15 FOCO HBR L ECCION ES DE LOS NUE VO S CA M PE ON E S GLOBA LES emergente china –Galanz– lidera el mercado mundial de hornos microondas. La mayor cervecera del mundo por volumen –InBev– es un joint venture entre una cervecera belga y una brasileña. La mayor empresa de acero del mundo –Mittal Steel– comenzó hace menos de 30 años como una pequeña miniacería en Indonesia. A primera vista, el explosivo avance de estos y otros campeones emergentes se ubica en algún punto entre lo...
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...expansion and global strategy require a leap of faith. Set an organizational commitment to global expansion and a long term development plan focusing on international business induced to be totally involved in the project. Globalization gets a huge impact on national economies throughout the world. And China takes profits of this because it has made that leap. For instance China’s annual economic growth rate for the last 3 decades is over 9%. By adopting its open-door policy and started its economic reform in 1978, and entered the WTO in 2001, China showed to the world and to companies that it get a strategy of global thinking. Some Chinese companies as Galanz were helped by global perspectives to become really successful. Indeed to start its business, Galanz imported a production line, key factor for successful start. Then Galanz cooperated with Multinational Companies through 3 stages of development: OEM (Oriental equipment manufacturing) which allows to acquire new equipment at low cost and upgrade its...
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...UNIV E R S I D A D A L A S P E R U A N A S Dirección Universitaria de Educación a Distancia - DUED Maestría en Administración y Dirección de Empresas TRABAJO de INVESTIGACION No.1 Semana: Ciclo: Curso: Docente Alumno: Código: Unidad Descentralizada: Segunda IV LOGÍSTICA DEL COMERCIO INTERNACIONAL Mg ALBERTO HOLGADO YÁBAR AUGUSTO BERNUY ALVA 2011206198 Trabajo Primera semana (Individual) 1. Elaborar una monografía de aplicación de los temas de la primera semana utilizando los libros de la biblioteca digital (mínimo tres citas por cada libro) y los videos. 2. Prepara un resumen de 500 palabras de uno de los libros. El trabajo debe tener tres citas de cada uno de los cinco libros, ustedes eligen el tema. Caso "Orquestación estratégica" Orquestación estratégica: la clave para la agilidad en el escenario global Por Alejandro Ruelas-Gossi y Donald N. Sull Harvard Business Review America Latina 2006 Harvard Business School Publishing Corporation. Alejandro Ruelas‐Gossí (alejandro.ruelas‐gossi@uai.cl) es profesor de estrategia y director de la Adolfo Ibáñez School of Management, en Miami, Florida. Fue autor del artículo “Innovar en mercados emergentes: el paradigma de la T grande”(HBR América Latina, Febrero 2004). Donaid N. Sull (dsull@london.edu) es profesor asociado de prácticas de gestión en London Bus iness School. Prof. Donald SullProfesor de Prácticas de Gestión, Autoridad Mundial en Agilidad Estratégica Donald Sull es Profesor de Prácticas de Gestión en Estrategia...
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...competitive advantage, customers’ needs, business environment and opportunity. Galanz’s most important objective was cost as it only had abundant supply of land and labor. Since it used cost leadership, it helped to lead the market by eliminating its competitors during the early stages of business. It helped not only to capture Chinese domestic market but also helped to attract foreign market as well. Galanz expanded their business in overseas market through OEM so they prioritized delivery as they had to provide various equipments and components efficiently. They also focused on quality because in order to capture foreign market and develop a long term relation with foreign companies, quality was very important. As they expanded their business through OEM, OBM and ODM, it further facilitated them to operate with more ease in the market. They didn’t have to rely on other companies for various designs and components. A micro oven’s major component was magnetron so they had to rely on it through its suppliers. The suppliers decided to reduce the supply of magnetron which prompted Galanz to initiate a major investment in magnetron R&D in 1997. Then they transformed into ODM which was very successful. They focused in innovation so as to remain competitive not only in microwave oven but also in other different components that they supplied to other companies. The importance of Galanz’s operation objectives have changed over the years in the following ways: During 1990’s, early stages...
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...ETM / IEL Working Paper Disruptive Innovation in Emerging Markets: Strategies Used in India and China Ruan Y., Hang C.C., Subramanian A.M. No. 01/12 Division of Engineering & Technology Management (D-ETM) Institute of Engineering Leadership (IEL) Faculty of Engineering 1 Disruptive Innovation in Emerging Markets: Strategies Used in India and China Ruan Y., Hang C.C., Annapoornima M.S. Abstract The appropriate type of innovation which can meet the needs of the mass population in the bottom of pyramid (BOP) has not been studied much in the literature. Based on the theory of disruptive innovation, we offer 11 cases from India and China – the two biggest emerging markets to show that disruptive innovation could be an appropriate, feasible, and powerful innovation force to the companies and the economies involved. We also examined the R&D strategies used in these cases based on the framework proposed by Yu & Hang (2011) and found that 3 out of the 4 strategies commonly used in the cases from developed markets were also applied in the cases from emerging markets. In addition, we have identified 3 unique strategies which emerged from the cases from India and China, namely frugal engineering, modularization, and drastic manufacturing cost reduction. Based on the frequency of the usage of these strategies, we drew practical implications for local companies and multinational companies. Our study also provides critical insights to policy makers...
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