Total Productive Management And The Role Of Employee Involvement Harvard Case Study Analysis

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Total Productive Management And The Role Of Employee Involvement Case Study Solution & Analysis


Total Productive Management And The Role Of Employee Involvement Case Study Help is a well-known worldwide brand name in technology market, established in 1938 by Lee Byung Chul, in South Korea. Total Productive Management And The Role Of Employee Involvement deals in a great deal of item classifications consisting of Semiconductors, Telecommunications, Digital Media, Digital Appliances and much more other electronic products. Historically, the business's core clients consist of the Original Equipment Manufacturers (OEMs), which utilized to sell Company products withtheir own trademark name. Till early 1990s, the core proficiency of Enterprise depend on its low cost offerings than its competitors by making existing items at economies of scale. Its consumer circle includes Original Equipment Manufacturers (OEMs), who utilized to offer Total Productive Management And The Role Of Employee Involvement Case Study Solution products with their own brand. Organization was not merely understood outside Korea. There were also no or little interest in developing the brand name worldwide. Marketing spending plan was managed by production department with a prime focus on providing cheap products.During the 1997 Asian Financial Crisis the company almost got bankrupt, but with the Vision of Chairman Lee it entirely turn its fortune around and in 2002 was listed the leading 25 most valuable business on the planet. When Kim was employed as a Chief Marketing Officer in 2000 the business was not even listed. He repositioned Corp as a global brand and educated his divisional managers to comprehend marketing and its importance. Now their objective is to reach the top 10 by 2005.

Problem Statement

Venture's shift from an item based to a marketing company is not going as smoothly as planned.Overcoming the hesitation of divisional managers to integrate marketing successfully is still a major challenge. Creating a consistent brand name identity throughout the whole world and utilizing marketing methods that finest fits the regional culture is no simple task.
Executive Summary
Situational Analysis

Total Productive Management And The Role Of Employee Involvement Case Study Solution efforts for constructing its trademark name throughout the world was begun after presenting the "brand-new management effort" by Chairman Lee in 1993. The goal was to change Enterprise from an inexpensive OEM to a high value-added item supplier. To make the vision of Venture a truth, Chairman Lee appointed Yun as a vice chairman in 1997. Yun had a quite clear picture in his mind about how Venture can transform from a low end to a luxury product company. He understood that transformation can only be done through placing Venture as a business using high-end items and this could only be done through high level of marketing.

In spite of having a clear vision about how to construct Business brand name, with a possible support of its executives, Yun faced a number of marketing difficulties in early years of its efforts.

One of the marketing difficulties for Yun was the understandings of executives about the worth of marketing. They considered marketing and selling as same tools and believed that quality items do not needed marketing for increasing sales. As their focus towards marketing was rather low in their previous service practices, and the current marketing requirement was too much high, the gap was too broader and to fill this space with wrong perceptions about marketing was quite tough for Yun.

As stated above, marketing focus was extremely low in previous practices, for that reason there were no appropriate marketing budgets for each of the item on the portfolio. There was no marketing planning done for the existing items. In addition to it the item variety of the company was increasing with the ripening of brand-new item ideas by the R&D sector of Business. Yun had an obstacle to carry out marketing planning and to develop marketing budget plans for existing along with for new items from the very beginning, and this would take a big time.

A substantial shift would be needed in present marketing expenses to develop the Total Productive Management And The Role Of Employee Involvement Case Study Help brand name. This would result in increased marketing expenditures for Company and could disturb the administration regarding increased expenses, as they hesitated to marketing expenditures formerly and an unexpected huge shiftwould make them disrupt. This might result in declining executive assistance for worldwide marketing. In this scenario, Yun deals with an obstacle for validating increased marketing costs by showing the long term worth of substantial marketing expenses.

Internal Analysis
SWOT Analysis

Total Productive Management And The Role Of Employee Involvement Case Study Help strengths lie in its huge product portfolio. Company has largest number of patents in the industry with total number of 15499 patents given in US( USP).

Another strength of Total Productive Management And The Role Of Employee Involvement Case Study Solution is its capability to establish innovative products at a continuous rate. It significant proves for the innovation and product creating of Corporation is that the company has received many awards for its development and product style.

Unlike Apple and other competitors, Organization is concentrated on producing devices which can be easily integrated with any type of open source Operating System (OS) and software. This offers Organization an edge over Apple gadgets.
Porter's 5 Forces Analysis
Org's ability to produce high-end items at low cost of production is also one of the major strength of Corp as it makes it possible for the company to catch more market by providing quality products with cost control.

Weak points

Business's weak points are concealed in the business's reliance on outsourcing software application for its gadgets due to company's inability in establishing software application, unlike Sony. Total Productive Management And The Role Of Employee Involvement Case Study Analysis also has low profit margins as compare to Apple due to big difference in the rates of Apple and Organization with a much lesser distinction in quality.


Opportunities for Business lie in the growing Smartphone market and the company's performance in the market. It can increase its market share and incomes from mobile phone as the business is rather effective in smart phone market. Company currently runs in about 80 countries and the business has a chance to increase its geographical growth by moving towards more emerging markets outside Asia. Corporation can move towards acquisitions to obtain patents. It would allow the company to increase its item portfolio with a boost in its wealth.


The dynamic industry environment of technology industry posture a severe threat on Enterprise's survival and require the company to invest much of its earnings share on R&D in order to survive in the long run. The marketplace saturation in industrialized countries i.e. saturation of mobile business is likewise a huge danger for the company's growth in the existence of strong rivals like Apple.

4 P's of Marketing
Swot Analysis

Company uses quality items and has a rather abundant portfolio which caters to various sectors. LCD and mobile phones are the greatest products of Corporation, whereas DRAM is likewise not far behind in comparison of them.

• Laptops.
• Cellphone.
• A/c unit.
• Desktop computer.
• Disk drives.
• Washing machines.
• Refrigerators.
• Cams.
• Microwaves.
• Flash memory.


Total Productive Management And The Role Of Employee Involvement Case Study Analysis uses both market competitive and market skimming prices techniques for its wide range of items. In competitive rates it adjusts the cost according to the competition in order to acquire benefit, whereas, it uses market skimming method where the item has actually an included value and by offering a couple of items it can reach break-even.


It has one of the very best supply chain networks, with retail suppliers, their own sole suppliers, E commerce channels like Amazon etc. All its items are prompt supplied to the selling location/ provided to the clients directly in case of online order.

Vrio Analysis
It utilizes both offline & online channels of promo to market their items. Paid product advertisements, social promo and digital ads are uses to create awareness about Business items.

Worth Chain Analysis.

It's an analytical framework for recognizing company activities that include worth or competitive advantage for the company.

Inbound Logistics.

It has among the most efficient and efficient supply chain network and has over 2700 suppliers throughout numerous industries around the globe. Nearly 80% of which is based in Asia and the remaining around the world. For its inbound logistics it owns numerous logistics companies as it subsidiaries. It looks after its providers and creates an unified relationship with them and even minimized their payment cycles to increase this relationship further which includes worth to their chain network.


Org's core competency is its mass producing it produces 90% of its products in-house. Divided into three different divisions its operations are namely IT & Mobile Communications, Gadget Solutions and Consumer Electronics. It is preserving operation centers worldwide to even more add value to its worth chain network.

Outbound Logistics.

Its outgoing logistics system efficiency is among the primary factors Total Productive Management And The Role Of Employee Involvement Case Study Help has the ability to take on Apple. Company's own Electronic Logitec system plays a major function in the outgoing logistics operations. It even carries out the tasks of collection of payment, settling insurance claims, etc. on behalf of Corporation.

Marketing and Sales.

Drawing in target client attention towards the item is done through marketing and sales to communicate with them the value and competitive advantage the item uses. Total Productive Management And The Role Of Employee Involvement Case Study Help marketing budget is continuously rising given that they started their rearranging globally and will continue to do so as they are continually looking to broaden and invest in high potential development markets. The budget is invested in events, print and media advertisements, public relations etc.

Business Service. Corp put their clients at the top and continually aim to deliver unmatchable customer service requirements. As after sales service is ending up being very crucial to keep customers pleased and engaged, they even carry out surveys through 3rd parties to discover their customer's feedback and implement it in the favorable way to minimize or if possible totally eliminate their consumer problems. By adding a direct assistance line to contact them 24 hours they have actually even more increased the included value of Total Productive Management And The Role Of Employee Involvement Case Study Solution service.


Total Productive Management And The Role Of Employee Involvement Case Study Analysis has diversified market division, based upon its arrangement of wide range of products to large number of customers. Corporation target consumer segments can be divided into 3 categories i.e. Total Productive Management And The Role Of Employee Involvement Case Study Analysis IT and Mobile Communications, Business Customer Electronic Devices and Business Device options.


Total Productive Management And The Role Of Employee Involvement Case Study Analysis geographical division is based upon two criteria i.e. area and density. Corp serves about 80 countries worldwide with its items offered to Urban as well as Backwoods of the nation. The Organization is likewise growing its international presence and the company's flexibility in locating its plants motivates international expansion of Enterprise.


Enterprise produces items that can be utilized by both males and women. The target consumers for Enterprise IT and mobile communication items have an age variety of 18-65 with majority at a young or recently married life cycle phase. Apart from it, Venture Customer Electronics are targeted to a customer sector with an age range of 25-65.


The psychographic segmentation of Total Productive Management And The Role Of Employee Involvement Case Study Help s based upon the social class and the lifestyle of the consumer. Corporation target consumers on the basis of social class are mainly upper middle, middle and working class clients, as Organization sell items like cellular phone very little less expensive i.e. Motorola in addition to not much expensive i.e. Apple. It offers quality items to middle level consumers at a slightly high price than others targeting the same segment.


Total Productive Management And The Role Of Employee Involvement Case Study Analysis majority target clients have special behavioural qualities. It has clients with an enthusiastic, fashionable and figured out character with moderate level of loyalty towards the brand name. Its consumers have some degree of shift towards other prominent brands i.e. Apple. Most of Corp consumers want quality as well as expense control. Because of its moderate prices with a degree of quality, they are attracted towards Company.

Quantitative analysis.

Sales of Enterprise has increased remarkably from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net profit of.48 billion $ to 5.9 billion $. It has likewise minimized its financial obligation from 15 billion $ to 4.6 billion $. Digital media is the largest selling classification of Corporation with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales. Earnings/ sales are increasing but net earnings is not increasing accordingly since of the high overhead expense. New expansions and hiring's were the main factor of the increase in the overhead expenses, with china presently not supplying any earnings to Org, but there is so much potential in the current market with 75 % yet to be explored.

Qualitative analysis.

Whereas, the core strength of the company is currently producing however long gone are those days when great products were selling themselves. Kim has already begun to enhance the marketing activities of Company and very quickly it will become one of its core strength like manufacturing if not better.



Enterprise runs styles, produces and sell a large portfolio of customer electronics. It runs in an exceptionally competitive environment and has actually successfully positioned itself as the maker of quality products. So, the response is yes.


As, said earlier that Total Productive Management And The Role Of Employee Involvement Case Study Help operates in an extremely competitive environment, which suggests all the companies have similar items. The response for rarity is no.


Due to the nature of the market, it is extremely simple for competitors to understand the performance of the products and quickly make their own designs. Yes, Company is just behind IBM in registering new patents annually, however the benefit is very short term in this industry.


Chairman Lee has totally turn-around Corp, from going almost bankrupt during the Asian financial crisis of 1997 to the top 25 business in the world. Certainly yes there appertains company in the business and the results speak for themselves.

External Ecological Analysis

PESTLE Analysis


Being an international brand name spread nearly in every nation worldwide, majority of the environments like USA, Europe, China and so on, are very conductive for its operations. However, it deals with some political pressures in less developed countries where order scenario is not good. Latin American, African and some Asian nations fall in this classification, where political instability do have an effect on Total Productive Management And The Role Of Employee Involvement Case Study Help operations.


Buying power of customers is vital for companies like Enterprise to grow and succeed. Emerging markets like India, middle-eastern countries and so on supply growth opportunities, whereas, due to recession even the clients of industrialized countries suffer badly. It is very essential for the company to keep an eye on the ongoing economic circumstance of the country before entering the market.


International companies have to face numerous social and cultural concerns during its operations in a foreign nation. Org has likewise dealt with numerous issues however have embraced to the local environments of most of the countries extremely well. It has tailored its items, practices, policies etc. appropriately in order to succeed.


With a yearly expenditure of 2.4 billion dollars in Research & Development, and with constant ingenious item launches, Total Productive Management And The Role Of Employee Involvement Case Study Analysis is among the leading ingenious companies of the world. With a clear objective to be ahead of the rest when it pertains to technological improvements, Org has actually risen to the no 25 of the leading effective business of the world.


Each country has their own laws and policies, being a multinational business Org have to strictly follow those laws in their jurisdictions. Failure to do so, will lead to major legal repercussions. So, it has to study or employ a local law professional prior to starting its operations in a particular country.


With the increasing awareness amongst customers about the ethical & ecological offenses of business, Corporation needs to make sure that it follows all the safety standards. Environmental damages, ethical misconducts are not appropriate and in some countries the repercussions can be very extreme. On the other hand it needs to do some Business Social Obligation practices to reveal the locals that it appreciates their environment and individuals.

Porter's Five Forces

Threat of Substitution

Hazard of substitution for Corporation's each product category is rather significant. Running in an extremely dynamic market lead the company to face a high threat of substitution. Elements for high hazard of substitution for Total Productive Management And The Role Of Employee Involvement Case Study Help Mobile phone consist of the presence of high variety of suppliers and Market saturation in industrialized nations, that make the cost of switching for consumers practically zero. Substitution threats for Org visual display screen depend on the altering life style of clients. Consumers can switch to viewing visuals at home towards outdoor activities. Together with it, Venture printing options products are threatened by the increasing attraction of consumers towards cloud storage.

Rivalry Amongst Existing Companies:

The rivaly among Business and its close competitors is intense. The significant reason behind this is the technique of market saturation in numerous number of item classifications, requiring Corp to introduce more ingenious functions in existing items and brand-new innovative items to keep its development. The significant rivals for Total Productive Management And The Role Of Employee Involvement Case Study Solution samrtphones include Apple, Motorola, LG, Nokia, Huawei, OPPO etc.

Total Productive Management And The Role Of Employee Involvement Case Study Solution has a huge supply chain consisting of about 2700 suppliers throughout the world.( Enterprise Sustainability Report, 2016) Provider's bargaining power for Company is low as Enterprise runs economies of scale and its orders are of possible size and worth. These substantial orders make it possible for Corp to work out costs with its suppliers. Due to incapability of Org to build its own software application, it has to outsource its software application development to Google, which becomes a potential supplier of software application for Venture, resulting in high bargaining power of Google. In most of Total Productive Management And The Role Of Employee Involvement Case Study Help has a power to negotiate rates, but it supply significant costs to its providers to construct a strong supply chain and to have strong relationships with its providers.

Bargaining Power of Purchasers:

Market saturation in most of the item categories likewise make the bargaining power of buyers more extreme in for Org. In spite of igh bargaining power Enterprise is quite capable of offering its products at a higher cost than much of its rivals, due to high end quality item and a reasonable brand name image.

Hazard of New Entrants:

Threat of new entrants for Business is quite low. One of the major aspect for low danger of brand-new entrants is the high competition in the industry. The requirement of big quantity of capital to go into in the market is likewise one of the possible barrier to entry. Together with it, requirement of substantial know-how and research study and development expenditures for survival in the industry likewise make new entrants unwilling to go into in the marketplace. Market saturation is also among the barrier of entry in innovation industry. High bargaining power of providers require the gamers in the industry to charge as low rates as possible and this can only be accomplished by production performance. Brand-new firms, in bulk cases, do not have the production efficiency, for this reason increasing the dangers for entrance in the innovation industry.

Competitive Analysis

Company's high product diversity offers it differentiation from its rivals. It is among the three leading brand names by market share. Unlikely to its close rivals including Sony, Intel and Nokia, who focus majority on a single item category with Sony concentrating on consumer electronics, Nokia on mobile phone and Intel on chips, Org had a substantial R&D spending on all of its product classifications which enable the company to earn potential earnings from sales of nearly all of its items. (See Exhibition) However, due to the wide item variety the business faces high number of rivals.

The business ranks first in 4 product classifications i.e. DRAM Chips, LCD Displays, Big Screen TVs and Microwave ovens, in terms of global market share, among 8 different product classifications. Business was the international leader in manufacturing DRAM, SRAM and NAND flash chips. Org profits from chips was less than Intel but its incomes from chips was growing much faster than Intel and has grown close to the income levels of Intel, as provided in the case Exhibit 2.

Along with the chips Company mobile market was likewise growing at a high rate than its rivals i.e. Motorola and Nokia. Corporation's mobile phone's sales development was 51% as compare to Motorola with just 4% and Nokia with zero sales development. The major reson behind Organization's high development despite of greater prices than Nokia and Motorola was the company's high-end quality cellular phone.

Company was likewise reaping the benefits from increasing market share of luxury LCDs as given in case Exhibit 3. The significant reason, making the business enable to get the chance is its mass production at low expense. Sony was the most significant rival for Total Productive Management And The Role Of Employee Involvement Case Study Help in LCD market, nevertheless, it had actually also started joint endeavor with Corporation in 2003 for LCD making, reducing the competitors for Business.

Porter's Competitive Method

Low Cost Leadership method of porter is fully implemented by Organization the way they achieve economies of scale by reinforcing their core competencies of production. They always bring something new and ingenious whether it's an item or a service.


Alternative Solution 1

The Chief Marketing Officer (CMO) of Total Productive Management And The Role Of Employee Involvement Case Study Solution would develop a new brand image by targeting the more youthful generation of the specific country. As, specifically smart phones of Enterprise are popular amongst the younger market.


1. It is the very best technique to build Consumer Lifetime Value (CLV) by developing a long-term relationship with consumers. Develop commitment through delivering worth and reap the benefits for long-lasting, as research study has revealed it is more affordable to maintain existing customers than to draw in brand-new ones.
2. Another pro of this alternative is that word of mouth spread more quickly amongst younger people and which in turn will generate new clients for my products.


1. Old consumers who were related to Venture before may not like this brand-new image the company is attempting to portray.
2 It will incur further costs to rearrange some items and it may not even bring success as the trends change really rapidly amongst the younger market.

Alternative service 2.

It would be done by arranging training workshops throughout which significance of marketing will be taught and numbers will be offered. Marketing environment should be produced internally initially as genuine marketing starts inside the corporation.


1. Its pro will be that all the marketing technique supporters will come out and also the opposite ones.


2. Its con can produce a really unhealthy environment in the workplace, as individuals frequently resist modification because they fear it.

Identify the very best alternative

First alternative is the best as it clearly has more pros since as soon as a Client Lifetime Value is constructed the business will make money from it till that client is alive and has buying power too. Plus, our target consumers are the more youthful generation which are bound to live longer than the existing aging individuals. Business's primary objective is to develop commitment among its clients and make them bought it from them and even buy their different products.

Execution Strategy

• Targeting more youthful generation through social marketing, producing a relate to them like Pepsi finish with music. And set the expectations realistic and achievable.
• A team including best marketing and sales specialists need to be assemble, and both views need to be considered prior to securing the resources required to carry out the strategy.
• Thorough communication of the strategy should be done as it is extremely important for everybody to be on the very same page to make it work.
• Tasks and timelines should be build and communicated accordingly to each person accountable.
• The supervisor should use a dashboard which shows the development of all the tasks which have been done or about to be done and by whom.
• The supervisor must keep an eye on and keep a constant examine the private and total efficiency.
• Everyone should want to adapt midway due to the fact that any brand-new pattern or policy may come in due to which all the things currently prepared have to be changed. It's much better to have contingency strategies currently prepared.
• At the end of the campaign the manager must interact the results and if effective must celebrate with the team.

Spending plan

This change the budget allocation of different countries and lots of managers were dissatisfied and argued but the analysis done by the program was precise and showed figures like North America and Russia development possible merited a 35% allotment while they were getting 45%. It truly helped to relatively disperse the resources and record more customers by spending more on advertisements on the high development potential areas of the world.

Its continuous financial investment in R&D and ingenious practices have actually moved them to brand-new heights however for them its' just the start and they desire to be among the leading 3 brand names in the world. Their marketing efforts must be directed towards younger market amid the internal arguments about marketing and must create Client Life time Value as it will not just give them advantages now however will continue to reap it till the customer lifetime. As the cost of keeping the client is much less expensive than drawing in a brand-new one.