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

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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 Solution is a well-known international brand in innovation market, established in 1938 by Lee Byung Chul, in South Korea. Total Productive Management And The Role Of Employee Involvement handle large number of product categories consisting of Semiconductors, Telecommunications, Digital Media, Digital Appliances and many more other electronic products. Historically, the business's core customers consist of the Original Devices Manufacturers (OEMs), which used to offer Company items withtheir own brand. Till early 1990s, the core competency of Corp depend on its low cost offerings than its rivals by manufacturing existing products at economies of scale. Its customer circle consists of Original Equipment Manufacturers (OEMs), who utilized to sell Total Productive Management And The Role Of Employee Involvement Case Study Solution items with their own brand. Organization was not merely known outside Korea. There were also no or little interest in constructing the trademark name globally. Marketing spending plan was controlled by production department with a focal point on offering low-cost products.During the 1997 Asian Financial Crisis the business almost got insolvent, but with the Vision of Chairman Lee it totally turn its fortune around and in 2002 was noted the top 25 most important company worldwide. When Kim was worked with as a Chief Marketing Officer in 2000 the business was not even noted. He rearranged Corporation as a worldwide brand and informed his divisional managers to comprehend marketing and its importance. Now their goal is to arrive 10 by 2005.

Problem Declaration

Enterprise's shift from a product based to a marketing company is not going as smoothly as planned.Overcoming the hesitation of divisional supervisors to integrate marketing efficiently is still a major challenge. Creating a consistent brand name identity across the entire world and using marketing techniques that best fits the local culture is no easy job. The M-net program analysis have actually been actually handy in identifying the high and less possible development areas, however allowance of resources appropriately is not well gotten amongst the managers. There is no consensus among the hierarchy relating to the very best fit future strategy.
Executive Summary
Situational Analysis

Total Productive Management And The Role Of Employee Involvement Case Study Analysis efforts for constructing its trademark name across the world was started after introducing the "new management effort" by Chairman Lee in 1993. The objective was to transform Corp from an inexpensive OEM to a high value-added item company. To make the vision of Corporation a reality, Chairman Lee appointed Yun as a vice chairman in 1997. Yun had a rather clear picture in his mind about how Corporation can transform from a low end to a high-end product service provider. He knew that transformation can only be done through placing Org as a business offering high-end products and this might just be done through high level of marketing.

In spite of having a clear vision about how to build Venture brand, with a possible assistance of its executives, Yun dealt with numerous marketing challenges in early years of its efforts.

One of the marketing obstacles for Yun was the perceptions of executives about the worth of marketing. They thought about marketing and selling as very same tools and thought that quality items do not required marketing for increasing sales. As their focus towards marketing was rather low in their previous organisation practices, and the current marketing requirement was too much high, the gap was too broader and to fill this gap with wrong understandings about marketing was quite challenging for Yun.

As mentioned above, marketing focus was extremely low in previous practices, therefore there were no appropriate marketing budget plans for each of the item on the portfolio. There was no marketing planning provided for the existing products. Together with it the product variety of the company was increasing with the ripening of brand-new product ideas by the R&D sector of Organization. Yun had an obstacle to carry out marketing preparation and to develop marketing budgets for existing as well as for new items from the very beginning, and this would take a substantial time.

A huge shift would be needed in existing marketing expenses to construct the Org brand. This would result in increased marketing expenditures for Company and could disrupt the administration relating to increased costs, as they were unwilling to marketing expenditures previously and an abrupt huge shiftwould make them interrupt.

Internal Analysis
SWOT Analysis

Org strengths lie in its big item portfolio. Corp has largest variety of patents in the industry with overall variety of 15499 patents approved in United States( USP). Large amount of R&D costs has actually made it possible for the business to grow its product portfolio at a greater rate than its rivals. Total Productive Management And The Role Of Employee Involvement Case Study Help spent about $13.079 billion on its R&D sector in 2016, which is 7.3% of its overall earnings.

Another strength of Total Productive Management And The Role Of Employee Involvement Case Study Help is its ability to establish innovative items at a constant rate. It major shows for the development and item creating of Corporation is that the business has gotten so many awards for its development and item design.

Unlike Apple and other rivals, Enterprise is focused on producing devices which can be easily integrated with any kind of open source Os (OS) and software application. This offers Org an edge over Apple devices.
Porter's 5 Forces Analysis
Enterprise's ability to produce high-end items at low expense of production is also one of the significant strength of Enterprise as it allows the company to record more market by supplying quality items with expense control.

Weak points

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


Opportunities for Corp depend on the growing Smart device market and the business's performance in the market. It can increase its market share and incomes from cellular phone as the company is quite effective in cell phone market. Enterprise currently runs in about 80 nations and the business has a chance to increase its geographical growth by moving towards more emerging markets outside Asia. Organization can move towards acquisitions to get patents. It would enable the business to increase its item portfolio with a boost in its wealth.


The vibrant industry environment of technology industry position an extreme danger on Org's survival and require the company to spend much of its incomes share on R&D in order to make it through in the long run. The market saturation in developed countries i.e. saturation of mobile business is likewise a huge danger for the company's growth in the presence of strong competitors like Apple.

4 P's of Marketing
Swot Analysis

Total Productive Management And The Role Of Employee Involvement Case Study Solution offers quality products and has a quite abundant portfolio which deals with various sectors. The majority of the products remain in the top three of their respective industries. LCD and mobile phones are the greatest items of Business, whereas DRAM is likewise not far behind in contrast of them. Following is the line of product of Business:

• Laptops.
• Smart phone.
• Ac system.
• Personal computers.
• Hard drives.
• Washer.
• Refrigerators.
• Video cameras.
• Microwaves.
• Flash memory.


Total Productive Management And The Role Of Employee Involvement Case Study Help utilizes both market competitive and market skimming rates strategies for its variety of products. In competitive pricing it changes the cost according to the competitors in order to gain advantage, whereas, it utilizes market skimming technique where the product has actually an added worth and by selling a couple of items it can reach break-even.


It has one of the best supply chain networks, with retail distributors, their own sole suppliers, E commerce channels like Amazon and so on. All its products are prompt provided to the selling place/ 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 utilizes to produce awareness about Organization items.

Value Chain Analysis.

It's an analytical framework for identifying organisation activities that include value or competitive advantage for the business.

Inbound Logistics.

It has one of the most effective and efficient supply chain network and has over 2700 suppliers throughout various markets worldwide. Almost 80% of which is based in Asia and the remaining around the globe. For its inbound logistics it owns various logistics firms as it subsidiaries. It takes care of its suppliers and develops an unified relationship with them and even lowered their payment cycles to enhance this relationship even more which includes value to their chain network.


Company's core competency is its mass producing it produces 90% of its items in-house. Divided into three various departments its operations are specifically IT & Mobile Communications, Gadget Solutions and Customer Electronics. It is preserving operation centers worldwide to even more include worth to its worth chain network.

Outbound Logistics.

Its outbound logistics system efficiency is one of the main factors Total Productive Management And The Role Of Employee Involvement Case Study Help has the ability to take on Apple. Venture's own Electronic Logitec system plays a major role in the outgoing logistics operations. It even performs the jobs of collection of payment, settling insurance claims, etc. on behalf of Corporation.

Marketing and Sales.

Bring in target customer attention towards the product is done through marketing and sales to communicate with them the value and competitive advantage the product offers. Total Productive Management And The Role Of Employee Involvement Case Study Solution marketing budget is constantly on the rise since they started their rearranging internationally and will continue to do so as they are constantly seeking to broaden and invest in high possible development markets. The budget plan is invested in events, print and media ads, public relations and so on.

Business Service. Org put their customers at the top and continually strive to deliver unmatchable customer care standards. As after sales service is ending up being very important to keep customers pleased and engaged, they even conduct surveys through 3rd parties to discover their consumer's feedback and execute it in the favorable way to reduce or if possible completely eliminate their customer concerns. By including a direct support line to contact them 24 hours they have even more increased the included worth 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 Help has diversified market segmentation, based upon its arrangement of wide variety of products to a great deal of customers. Business target customer segments can be divided into 3 categories i.e. Total Productive Management And The Role Of Employee Involvement Case Study Help IT and Mobile Communications, Venture Consumer Electronic Devices and Organization Gadget options.


Total Productive Management And The Role Of Employee Involvement Case Study Solution geographic segmentation is based upon 2 requirements i.e. area and density. Corporation serves about 80 countries worldwide with its items provided to Urban along with Rural areas of the country. The Business is also growing its worldwide presence and the business's flexibility in locating its plants encourages worldwide growth of Enterprise.


The demographic division of Total Productive Management And The Role Of Employee Involvement Case Study Help is based upon gender, age, life-cycle phase and occupation. Organization produces items that can be used by both women and males. The target customers for Org IT and mobile interaction items have an age range of 18-65 with bulk at a young or newly married life process stage. They are mostly specialists, students and workers. Apart from it, Corporation Customer Electronics are targeted to a customer segment with an age series of 25-65. They are mainly experts and employees. However Total Productive Management And The Role Of Employee Involvement Case Study Solution Device Solutions are targeted at trainees, staff members and professionals with an age series of 25-65.


The psychographic segmentation of Total Productive Management And The Role Of Employee Involvement Case Study Analysis s based upon the social class and the life style of the customer. Organization target consumers on the basis of social class are primarily upper middle, middle and working class clients, as Corporation sell items like cell phones very little cheaper i.e. Motorola along with very little expensive i.e. Apple. It offers quality products to middle level customers at a somewhat high rate than others targeting the exact same sector.


Total Productive Management And The Role Of Employee Involvement Case Study Solution bulk target clients have distinct behavioural characteristics. It has customers with an ambitious, stylish and identified personality with moderate level of commitment towards the brand. Its consumers have some degree of shift towards other distinguished brand names i.e. Apple. Most of Org consumers want quality in addition to expense control. They are brought in towards Enterprise since of its moderate prices with a level of quality.

Quantitative analysis.

Sales of Enterprise has actually 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 actually likewise lowered its financial obligation from 15 billion $ to 4.6 billion $. Digital media is the biggest selling classification of Corp with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales. Earnings/ sales are increasing but net revenue is not increasing accordingly due to the fact that of the high overhead cost. New growths and employing's were the primary factor of the boost in the overhead costs, with china presently not offering any earnings to Venture, however there is so much capacity in the current market with 75 % yet to be explored.

Qualitative analysis.

Yes, this choice is based on the objective of Kim to target the more youthful audience and create a global brand image of the business. Whereas, the core strength of the company is presently making but long gone are those days when good products were selling themselves. In the current age marketing is really essential and business can not be successful without it. Kim has currently started to enhance the marketing activities of Corp and very soon it will become one of its core strength like manufacturing if not better.



Venture operates styles, produces and sell a vast portfolio of consumer electronic devices. It operates in an exceptionally competitive environment and has actually successfully placed itself as the maker of quality products. So, the answer is yes.


As, said earlier that Total Productive Management And The Role Of Employee Involvement Case Study Solution operates in a highly competitive environment, which suggests all the business have comparable products. So, the answer for rarity is no.


Due to the nature of the industry, it is very easy for rivals to comprehend the functionality of the items and easily make their own models. Yes, Enterprise is only behind IBM in signing up brand-new patents every year, but the benefit is really short-term in this market.


Chairman Lee has completely turn-around Organization, from going practically bankrupt during the Asian monetary crisis of 1997 to the leading 25 business in the world. Certainly yes there is proper organization in the company and the results promote themselves.

External Ecological Analysis

PESTLE Analysis


Being an international brand spread practically in every nation worldwide, bulk of the environments like U.S.A., Europe, China and so on, are extremely conductive for its operations. It faces some political pressures in less industrialized countries where law and order scenario is not great. Latin American, African and some Asian nations fall in this category, where political instability do have an effect on Total Productive Management And The Role Of Employee Involvement Case Study Solution operations.


Buying power of clients is essential for business like Org to prosper and grow. Emerging markets like India, middle-eastern countries and so on supply development opportunities, whereas, due to economic crisis even the customers of developed countries suffer severely. Hence it is extremely important for the business to watch on the continuous financial situation of the country prior to entering the market.


Multinational business need to deal with numerous social and cultural concerns throughout its operations in a foreign country. Corporation has actually also faced many concerns however have actually adopted to the local environments of most of the countries remarkably well. It has actually tailored its items, practices, policies etc. appropriately in order to achieve success.


With a yearly expenditure of 2.4 billion dollars in Research & Advancement, and with constant ingenious item launches, Total Productive Management And The Role Of Employee Involvement Case Study Analysis is among the top innovative companies of the world. With a clear objective to be ahead of the rest when it concerns technological advancements, Corp has risen to the no 25 of the top successful companies of the world.


Each country has their own laws and policies, being a multinational company Corporation have to strictly follow those laws in their jurisdictions. Failure to do so, will lead to serious legal consequences. It has to study or work with a regional law expert before beginning its operations in a particular country.


With the increasing awareness among customers about the ethical & ecological violations of business, Company needs to make sure that it follows all the security standards. Ecological damages, ethical misbehaviors are not acceptable and in some nations the consequences can be very extreme. On the other hand it needs to do some Business Social Duty practices to reveal the locals that it cares about their environment and individuals.

Porter's 5 Forces

Risk of Alternative

Threat of substitution for Venture's each item category is quite considerable. Elements for high risk of alternative for Total Productive Management And The Role Of Employee Involvement Case Study Analysis Mobile phone include the existence of high number of suppliers and Market saturation in developed nations, which make the expense of switching for consumers practically no. Along with it, Corp printing solutions products are threatened by the increasing tourist attraction of clients towards cloud storage.

Competition Amongst Existing Companies:

The rivaly amongst Enterprise and its close rivals is intense. The major factor behind this is the technique of market saturation in different variety of item classifications, requiring Org to introduce more innovative functions in existing items and brand-new ingenious items to preserve its development. Other aspect for the extreme rivalry amongst the rivals is the little product distinction amongst the products. The popular players in the technology industry are rather knowledgeable about the significance of R&D costs for their survival and are running into a race of marketing and R&D costs, to record the market. The significant competitors for Total Productive Management And The Role Of Employee Involvement Case Study Solution samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO and so on. High competitors rivalry leads to the fluctuating market shares which can be seen in Display F.

Bargaining Power of Providers:

Total Productive Management And The Role Of Employee Involvement Case Study Analysis has a large supply chain consisting of about 2700 providers throughout the world.( Enterprise Sustainability Report, 2016) Supplier's bargaining power for Company is low as Venture runs economies of scale and its orders are of possible size and worth. These huge orders enable Corporation to work out costs with its providers. Nevertheless, due to incapability of Total Productive Management And The Role Of Employee Involvement Case Study Solution to build its own software application, it needs to outsource its software application development to Google, which ends up being a potential supplier of software for Org, leading to high bargaining power of Google. Although, in most of cases Org has a power to work out rates, but it offer considerable rates to its providers to build a strong supply chain and to have strong relationships with its suppliers.

Bargaining Power of Buyers:

Bargaining power of purchasers for different variety of item categories of Enterprise is intense. One of the aspect leading to the intense bargaining power is the schedule of a great deal of competitors in practically each item classification i.e. rivals of Organization Smartphone, with a very little differentiation. The high accessibility of suppliers of Smartphones with minimum distinction, make the changing cost for purchasers practically absolutely no, thus increasing the bargaining power of purchasers. Market saturation in most of the product categories likewise make the bargaining power of buyers more extreme in for Total Productive Management And The Role Of Employee Involvement Case Study Analysis. In spite of igh bargaining power Business is quite efficient in selling its items at a greater rate than much of its rivals, due to luxury quality product and a reasonable brand image.

Threat of New Entrants:

Threat of new entrants for Total Productive Management And The Role Of Employee Involvement Case Study Help is quite low. Along with it, requirement of huge proficiency and research study and advancement expenses for survival in the industry also make new entrants reluctant to enter in the market. Market saturation is also one of the barrier of entry in innovation industry.

Competitive Analysis

Corp's high product diversification supplies it differentiation from its rivals. Unlikely to its close competitors consisting of Sony, Intel and Nokia, who focus bulk on a single product category with Sony focusing on consumer electronic devices, Nokia on cell phones and Intel on chips, Total Productive Management And The Role Of Employee Involvement Case Study Analysis had a substantial R&D costs on all of its product classifications which enable the business to make possible earnings from sales of nearly all of its products.

The business ranks first in 4 product categories i.e. DRAM Chips, LCD Displays, Big Screen Televisions and Microwave, in terms of global market share, amongst 8 various item classifications. Venture was the global leader in making DRAM, SRAM and NAND flash chips. Although, Corp revenues from chips was less than Intel however its profits from chips was growing faster than Intel and has grown near to the revenue levels of Intel, as given up the case Exhibit 2.

Together with the chips Company mobile market was also growing at a high rate than its competitors i.e. Motorola and Nokia. Org's cellular phone's sales development was 51% as compare to Motorola with just 4% and Nokia with no sales development. The major reson behind Venture's high growth despite of greater costs than Nokia and Motorola was the company's high-end quality cellular phone.

Organization was also profiting from increasing market share of high end LCDs as given in case Exhibit 3. The major factor, making the company allow to obtain the opportunity 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 Solution in LCD market, nevertheless, it had actually also begun joint endeavor with Company in 2003 for LCD manufacturing, lessening the competitors for Organization.

Porter's Competitive Method

Low Expense Leadership strategy of porter is completely carried out by Org the method they accomplish economies of scale by enhancing their core competencies of production. Even to the point that their rival SONY decided to form an alliance with them to manufacture for them, due to the fact that they were unable to take on them on low expense. Distinction is another technique well implemented by Venture by continuous financial investment in the R&D and staying ahead of the competitors. They constantly bring something ingenious and brand-new 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 Analysis would create a new brand image by targeting the younger generation of the specific nation. As, especially mobile phones of Org are popular among the more youthful demographic.


1. It is the best strategy to build Client Lifetime Worth (CLV) by producing a long-term relationship with clients. Construct commitment through delivering value and reap the benefits for long-lasting, as research study has revealed it is much cheaper to retain current customers than to attract brand-new ones.
2. Another pro of this option is that word of mouth spread faster among more youthful people and which in turn will generate brand-new clients for my items.


1. Old clients who were connected with Organization before might not like this brand-new image the business is trying to depict.
2 It will incur more costs to reposition some products and it may not even bring success as the patterns alter very rapidly among the younger demographic.

Alternative solution 2.

Corporation has actually made manufacturing its core competency for the many part of their service and due to which its supervisors are not scared to completely get out of their convenience zone. It would be done by organizing training workshops throughout which significance of marketing will be taught and numbers will be given. Failure to get the passing scores will get demoted. Marketing environment ought to be developed internally initially as genuine marketing begins inside the corporation.


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


2. Its con can develop a really unhealthy environment in the office, as people typically resist modification because they fear it.

Determine the best option

Very first alternative is the best as it clearly has more pros because as soon as a Customer Life time Worth is built the business will benefit from it till that customer is alive and has acquiring power too. Plus, our target customers are the younger generation which are bound to live longer than the present aging individuals. Nonetheless, Enterprise's primary objective is to produce commitment among its clients and make them bought it from them and even buy their various products as well.

Application Plan

• Targeting younger generation through social marketing, creating a link with them like Pepsi finish with music. And set the expectations attainable and practical.
• A group consisting of finest marketing and sales experts ought to be assemble, and both views ought to be considered before protecting the resources required to implement the plan.
• Thorough interaction of the strategy need to be done as it is extremely essential for everyone to be on the very same page to make it work.
• Jobs and timelines need to be construct and communicated accordingly to each individual responsible.
• The supervisor must utilize a dashboard which shows the development of all the tasks which have been done or about to be done and by whom.
• The supervisor ought to keep track of and keep a constant look at the specific and general efficiency.
Because any brand-new pattern or policy might come in due to which all the things currently planned have to be changed, • Everybody should be prepared to adapt midway. It's better to have contingency strategies currently prepared.
• At the end of the project the manager ought to interact the results and if effective ought to celebrate with the group.

Budget plan

This change the budget allowance of various countries and lots of supervisors were unhappy and argued however the analysis done by the program was accurate and showed figures like North America and Russia growth prospective warranted a 35% allotment while they were getting 45%. It actually helped to relatively distribute the resources and capture more clients by investing more on advertisements on the high growth potential regions of the world.

Its constant financial investment in R&D and ingenious practices have actually propelled them to new heights but for them its' only the start and they want to be amongst the leading 3 brand names in the world. Their marketing efforts need to be directed towards more youthful market in the middle of the internal arguments about marketing and ought to develop Client Life time Value as it will not just provide them advantages now but will continue to gain it till the consumer lifetime. As the cost of keeping the consumer is much more affordable than attracting a new one.