...Acknowledgement: We would like to thank seminar participants at the University of Tokyo and the 22nd Nikkei conference on firm behavior for their helpful comments. Remaining errors are ours. Financial supports from the Graduate School of International Management at Aoyama Gakuin University are greatly appreciated. ABSTRACT This article examines the industry diversification of the largest Japanese manufacturers in 1973-98. Results show that 118 sample firms steadily increased diversification, a trend continued from earlier periods. Nevertheless, the relatedness of their constituent businesses gauged based on the Input-Output table remained high and stable throughout the study period. Econometric analysis reveals that firms pursuing the “constrained diversification” exploiting inter-business links centered on the core industry segment tend to achieve a higher profitability than firms engaged in the “linked diversification” exploiting links distant from the core. JEL classification: L23; L25; L29 Keywords: Diversification; Industry relatedness; Coherence; Japanese firm 1. Introduction In the last decade, corporate diversification across industries has attracted a great deal of attention by economists and management scholars. Research on the diversification discount, such as Berger and Ofek (1995) and Lang and Stulz (1994), shows that diversified U.S. firms trade at a substantial...
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...Summary ………………………………………………….. 5 3. Problem Analysis………………………………………………… 13 4. Conclusion…………………………………………………………. 18 References……………………………………………………………… 18 Introduction JCR Drillsol PVT.LTD JCR is a large scale manufacturing company who’s objective is to provide unique and unprecedented solutions in every arena of the Drilling, Mining and Construction Industry. JCR’s variety of specialized RIGs finds its application in every possible arena of the drilling industry, making them one of the most competitive services in the business. JCR Drillsol, products include highly efficient and heavy-duty RIGs for a wide range of drilling applications ranging from RC, DTH, Tractor mounted and Wagon Drills, Pumping and Testing Units to Drag Bits, Mud Pumps and Mini Truck Mounted Drills. Our technology also designs other drilling solutions such as DTH Hammers, RC Hammers, RC Drill Rods, Tricone and O-Dex Bits. Problems faced in the industry Various problems faced by the industry are: * Material Wastage and Cost Factor A major problem faced by JCR Drillsol is the wastage of materials and cost factor. The Product output per unit input of raw materials became lower. It also occurred due to heavy inventory. It also occurred due to bad process design and layout. The other factor, which leads to material wastage, was bad quality from process and design. Hypothesis: Lean Manufacturing can be used to eliminate the wastage of materials...
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... Individual case analysis report Mahmud Safari (21295746) 1 Individual Case Analysis Report LEGO (A): The Crisis Mahmud Safari 21295746 Assignment 1: Individual case analysis report Mahmud Safari (21295746) 2 Table Of Contents 1.0Introduction 2.0 Analysis of General Environment 2.1 Economic 2.2 Socio-‐Cultural 2.3 Global 2.4 Technological 2.5 Political/Legal 2.6 Demographic 3.0 Analysis of the Industry Environment ...
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...refers to any type of economic activity in which goods or services are supplied in exchange for some payment” (J. Morrison 2010) and in this case Fords European vehicle sales market has been saturated through less demand for its products. Ford said European car sales across the industry were the lowest in 20 years (BBC News, 2012). The main losses are being sustained within Europe in which Ford operates in 51 different European markets. Ford`s strategy is likely to be offshoring manufacturing of the Transit Van, meaning the closure of its South Hampton Factory with immediate redundancies of 500 employees with closing parts of the Dagenham Plant which will push redundancies to 1400. Although is this likely to be the answer? What will be the effect upon the microeconomic factors? Especially the level of job losses of stakeholders, including suppliers and employees, further down the chain. Is it ethnical of Ford to simply offshore production to a cheaper labour area such as Turkey or is this just a simple case of how Britain’s Manufacturing industry is further declining? Will this damage Fords brand image? More critically, will demand fall for Fords products in Europe during this crucial time in an industry where competition is fierce? This would outweigh any potential saving anticipated by Ford, potentially leaving Ford in more of a financially adverse position than they are currently facing. Offshoring “Offshoring requires careful...
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...& Operations Analysis Policy & Strategy Atlanta Module-Summer 2012 ECCO Vertical Integration Cow to Shoe • • • • Ecco value chain is actually rawhide to shoe Purchases raw hides and transforms into leather used in shoe production Owns tanneries in Netherlands, Indonesia and Thailand Processes 3,500 raw hides a day equalling 1 million cows per year ECCO Value Chain What is the future of ECCO's leather manufacturing? Full Scale Bench marking Prototype Ramp-up Laboratory Production Product Development (R&D) Design Leather Manufacturing Shoe Production Distributing Raw hides Tannery Operations Post Tannery Operations Finishing Operations Discontinue-"blow it up" Sell it ECCO Value Chain What is the future of ECCO's leather manufacturing? Full Scale Bench marking Prototype Ramp-up Laboratory Production Raw Material Procurement Product Development (R&D) Design Shoe Production Distributing But let's stop to reconsider......... ECCO Value Chain What is the future of ECCO's leather manufacturing? Full Scale Bench marking Prototype Ramp-up Laboratory Production Raw Material Procurement Product Development (R&D) Design Shoe Production Distributing Leather manufacturing Value Add Global top five leather producer Leather centre developing leading technology Supplies automotive and furniture industry Quality Materials Resources Leather Manufacturing Strategy ...
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...University of Central Missouri Submitted to Ms. M. Joleen Byerline Department of Industrial Management UNIVERSITY OF CENTRAL MISSOURI Abstract The prime objective of this paper is to find out the lean manufacturing adaptation hurdles in SMEs. In this study, a few SMEs are consider for experimental study and we can understand the overall idea about the ideology of SMEs functioning. Lean manufacturing is based on the principle of getting the same result with less human interference as well as less machine and material involvement. The scope of lean implementation is not only restricted to automotive industry but also has recognition in manufacturing industries in US. The in information in this study is collect from the professionals who have implemented and those who did not implemented the lean manufacturing tools in business. The research speaks some of the barriers, which came across while adopting manufacturing technique. Keywords: SMEs, Lean-manufacturing implementation, General view about Lean, Productivity. TABLE OF CONTENTS 1.0 INTRODUCTION 1.1 Introduction………………………………………………………… 4 1.2 Statement of Problem………………………………………………. 5 1.3 Purpose of Study……………………………………………………. 5 1.4 Research Questions………………………………………………….. 6 1.6 Hypothesis……………………………………………………………...
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...US Automobile Industry US automobile industry started booming after the recession and became an important part of the US economy. Low interest rate, cheap gas price, and new technologies of car influence buyers to get a new car. The US automobile industry consists of almost 200 companies and their annual revenue is about 280 billion (Automobile Manufacturing, n.d.). Last year US automobile industry sold record 17.5 million cars and trucks, which is a 5.7% increase from 2014 fiscal year (Spector, Bennett, & Stoll, 2016). The top four US automobile manufacturers are General motors, Toyota, Ford, and Chrysler, who account for about 70% of the total automobile sales. US based automakers face rivalry problems with foreign companies such as Toyota, Honda, and Nissan because of their cheap labor cost and no union problem. However, these companies also have their assembly lines in US, and hold around 45% of the US auto industry. US automakers are also taking advantage of NAFTA by assembling autoes in Mexico and Canada with lower labor costs (Automobile Manufacturing, n.d.). Usually 75% of the materials account for the selling price of a US made car. US companies have also increased importation of parts from abroad which helps them increase their profitability. Features like extended warranty, extended service plan, safety features, and fuel efficiency help attract consumers and increase sales. US retail sales have increased 7.00% in 2015 (Automobile Manufacturing, n.d.). Adapting...
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...Strategy and Global Business Policy - GE Wind Strategy Study - Date turned in: 05.01.2014 For: BI Norwegian Business School-Fudan University MBA Programme 05.01.2014 Content Table of Contents Content ............................................................................................................................ i Introduction .................................................................................................................. ii 1. Industry Analysis ................................................................................................ 1 2. Competitive Analysis ......................................................................................... 4 3. Value chain analysis ........................................................................................... 7 4. Strategy core analysis ........................................................................................ 8 5. Advantages and disadvantages ...................................................................... 9 6. Conclusion .......................................................................................................... 10 7. Reference ............................................................................................................ 11 ...
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...Airbus vs. Boeing Airbus and Boeing both compete in the highly competitive industry of manufacturing commercial aircraft. Over the years they have each controlled the market at differing times due to competitive advantages – an ability to create value through a company’s strategies and operations that its competitors cannot (ref – Strategic Management textbook , pg 22) Boeing, formed in 1916 by William Boeing and George Westervelt, dominated the industry until the 1970’s, when Airbus was organized through a collaboration between Britain, France and West Germany. Airbus began manufacturing the A-300 series which enabled them to capture 10% of the market share by 1975 (ref article), no small feat considering they were competing against the giant Boeing. Airbus’s ability to compete with Boeing and gain market share will be analyzed using the following business models: PESTEL Analysis, SWOT Analysis, Porter’s Five Forces, VRINE Analysis and Porter’s Model of Competitive Advantage. PESTEL ANALYSIS Political – Airbus was a product of a merger between three European countries; Britain, France and West Germany. In the 1970’s the political climates of all three were relatively stable. The three countries worked together in order to compete with the US. They did have to adhere to international trading policies and agreements (NAFTA, GATT). Economic – As they were competing largely in the US market, Airbus needed to constantly...
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...|Simpson Manufacturing Co | |Memo: Simpson Manufacturing Ratio Analysis | |Ratios Utilize Dec. 31, 2012 Data | | | | | |9/1/2013 | |Simpson Manufacturing Co | |To: |Karen Colonias | |From: | | |CC: | | |Date: |9/1/2013 | |Re: ...
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...1. “Value chain analysis (VCA) is a process where a firm identifies its primary and support activities that add value to its final product and then analyze these activities to reduce costs or increase differentiation.” 2. “Value chain represents the internal activities a firm engages in when transforming inputs into outputs.” Understanding the tool VCA is a strategy tool used to analyze internal firm activities. Its goal is to recognize, which activities are the most valuable (i.e. are the source of cost or differentiation advantage) to the firm and which ones could be improved to provide competitive advantage. In other words, by looking into internal activities, the analysis reveals where a firm’s competitive advantages or disadvantages are. The firm that competes through differentiation advantage will try to perform its activities better than competitors would do. If it competes through cost advantage, it will try to perform internal activities at lower costs than competitors would do. When a company is capable of producing goods at lower costs than the market price or to provide superior products, it earns profits. M. Porter introduced the generic value chain model in 1985. Value chain represents all the internal activities a firm engages in to produce goods and services. VC is formed of primary activities that add value to the final product directly and support activities that add value indirectly. Below you can see the Porter’s VC model. Primary Activities | ...
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...And China High Voltage Load Switch Loss Industry 2015 Market Analysis Survey Research Growth and Forecast Report A new research report on the international High Voltage Load Switch Loss industry, with a key focus on the China market, has been recently added to the research report database. The report, titled “Global And China High Voltage Load Switch Loss Industry 2015 Market Research Report”, is a detailed analysis of the key elements of the High Voltage Load Switch Loss industry chain based on expert data gathered pertaining to report’s review period. A detailed forecast of the High Voltage Load Switch Loss industry’s future state during the years 2020-2015 is formed based on historical data, prominent trends of the past, and development trends observed in the industry so far. The section of competitive analysis of the report presents a snapshot of the High Voltage Load Switch Loss industry landscape in key countries and regions across the globe, with a keen focus on Chinese regions. Of the key High Voltage Load Switch Loss international and Chinese manufacturers, details such as product types manufactured, production capacities, production values, gross margins, product production global share, company contact information, product pictures, manufacturing processes, product cost structures, etc. are included. The report also studies the new projects in the High Voltage Load Switch Loss marketplace, and presents SWOT analysis, investments feasibility and returns feasibility...
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...Permanganate Industry 2015 Market Survey Study Analysis and Overview : Industry Trend, Size, Share, Growth and Forecast Global industry for Sodium Permanganate is a distinctive study encompassing a detailed study of the industry pertaining to an important set of industry verticals. The report, titled Global Sodium Permanganate Industry 2015, is the result of data gathered from industry experts and a mix of primary and secondary research methodologies. The report studies the international Sodium Permanganate industry chain in detail, with focus on key product types, applications, development trends, production methodologies, technological developments, leading countries and companies supplying Sodium Permanganate, and a detailed study of competitive landscape of the marketplace. Browse Complete Report with TOC @ http://www.qyresearchreports.com/report/global-sodium-permanganate-industry-2015-market-research-report.htm Based on a close study of trends, and developments observed in the Sodium Permanganate industry over the review period, the report forecasts industry’s overall progress on fronts such as production capacities, product costs, prices, profits, gross margins and production values over the period 2014-2020. The report studies the international Sodium Permanganate industry starting from scratch – with the basic definition of Sodium Permanganate, moving up with the study of elements forming the international Sodium Permanganate industry, the structure of industry chain...
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...1. How to define its industry? A：There are 4 approaches to define Segway’s industry. Descriptions are as follow： * Input/Output based The primary tool used within this approach is the SIC code. Four digit SIC codes are the common method and widely used and understood. SIC codes provide sub-classifications up to 7 digits. * NAICS Codes for Segway： NAICS Codes | Name | Classification Level | 31-33 | Manufacturing | Sector | 335 | Electrical Equipment, Appliance, and Component Manufacturing | Subsector | 3353 | Electrical Equipment Manufacturing | Industry Group | 33531 | Electrical Equipment Manufacturing | Industry | 335312 | Motor and Generator Manufacturing | U.S. Detail Industry | * Strengths： provides an inexpensive, accessible and widely used pool of comparable data. * Limitations： SIC codes focus on the primary activity of organization, it becomes difficult to determine the classification of multi-product organizations. Defining one industry by only primary activity may lead to an incomplete definition. * Customer/Market based Using “Strategic Market Segmentation”, industry participants are defined as those that serve the same market segment. This segment is defined by using the parameters of end-use, geographic location, product technology, customer size and common buying factors. * Strengths： This closeness between customers & business may provide organizations a consistency with changes in customer trends. * Limitations： ...
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...Environmental Analysis The PESTEL model and mega trend analysis are used to complete the environmental analysis. Economically, The Cosmetic and Beauty Products Manufacturing industry produces goods in two separate product lines which are nondiscretionary and premium goods. The nondiscretionary products line contains everyday essential goods including shampoos and deodorants that are in demand even when prices increase or disposable income decreases. The fact that these nondiscretionary products contribute majority of the industry revenue supports steady industry profitability. The most influential dimension of PESTEL analysis is technology. Research and Development has significantly influencing this industry. The introduction of new products has boosted demand, and the promises of younger looking skin and healthier hair have kept industry companies profitable. Companies invest in product development not only for bringing in new products, but also for advocating prestigious brand and sustaining market share. Overall, as the technology, revenue, and demand steadily growing as indicated in PESTEL analysis, so is the industry profitability. The mega trend of the industry is product innovation and reformulation. Research and development is an increasingly important investment for operators. In order to be beneficial from product development, companies also need to invest in marketing to promote and explain their products. Besides, environmental concern is growing reflected...
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