16111286

You read ‘Kyocera Case Study’ in category ‘Free Case study samples’ The components with the management system happen to be as follows: ¢ Amoebas ” These parts are profit centers with and average of 40 members.

One particular official leader/motivator and very little or no other formal structure. The amoebas scored performance on the basis of on an hourly basis efficiency each month. This was determine by dividing net income before labor and taxes by the total labor several hours. ¢ Hans ” They are smaller doing work groups that are under the Amoebas and do not include responsibilities as a profit middle. ¢ Upper Management Reporting Structure ” The upper managing in each company or perhaps division might attend several meetings created to update from the top down and provide status information above the bottom up. Organization or Division Level Reporting Structure ” The very top managers via each company or section would go to Kyoto or later Tokyo to update the headquarters level managing personnel for the status of projects inside their respective agencies. Corporate Philosophy/Culture ¢ Dr . Inamori’s Morals ” The beliefs which have been important through this analysis are the ones that were imported into the corporate philosophy together the potential to affect the success or effectiveness of the business. For example , Doctor

Inamori’s belief that a person should never quit when chasing answers to technical challenges is certainly amazing. However , if a project turns into unprofitable, it is sometimes smart to make a decision to slice the failures. Wisdom is the key to understanding when to surrender. Dr . Inamori’s belief in Respect for the Divine and Love People serves as the motivation backdrop towards the culture by Kyocera and has helped to make the business a success. (There is much more to pay on Inamori’s influence but it will surely be protected in the areas to follow. ¢ Centralized Management ” Kyocera’s management system was very central in 1990 and the organization was outgrowing the convenience of such a program. With eighty companies and countless divisions, the old method of management meetings for revealing purposes was becoming unproductive and uncontrollable. ¢ Difficulty Resolution ” Problem image resolution for copy pricing and also other issues was handled throughout the management system. Not any “final decisions were forced on any organization, but the organizations were expected to agreed and resolve problems between themselves.

The problem was increased up the sequence of control until it reached Inamori him self. The information offered above and additional information in the the case research itself present enough history for a person to analyze the strongest and weakest points of the firm. Using this info one can do an examination and produce recommendations for improvement. Important Attributes of the Kyocera Corporation You will of the Kyocera Corporation listed here are important to the analysis of possible problems facing the corporation now and in the future. Continuous Growth ” As Kyocera continues to grow problems will area that are a direct result the size and complexity from the corporation. The whole organization will not be able to report progress a manager meeting not much different from the way it has been carried out for the last 62 or so years. The confirming matrix will have to be re-vamped to permit more responsibility at the division or organization management level with supreme accountability for quarterly profits at that level as well. Likewise, costing and transfer costs issues need to be handled together between businesses.

Too much autonomy can be as bad for the organization while too little. An equilibrium of electric power and decision making needs to be reinforced with a group approach to producing each company or split as successful as possible. ¢ Diversification ” One characteristic that is a consequence of Dr . Inamori’s risk taking philosophy may be the diversification within the supplement line. The products will be high-tech enough to be a great fit in the organization, but different enough the fact that different partitions and businesses that make up Kyocera don’t conclude competing against one another in a manner that is bad for the company as a whole. Kyocera is definitely an International Company ” Value is a good reason how come this is an important characteristic of the company. Staying international allows Kyocera to be given labor cost savings associated with manufacturing in some countries, while making sales in countries that will bring in the most revenue. Being worldwide also provides Kyocera usage of markets in differing countries without as many distribution headaches as various other manufacturers. ¢ Minimization of Corporate Bureaucracy ” Kyocera focuses on lessening bureaucracy.

This eliminates expenses associated with red and provides the Amoebas the flexibility to manufacture on the lowest cost. ¢ Measurement System ” The measurement method is good in a few respects and bad in others. Development targets are set in house by the same group that is attempting to make the goal a real possibility. This is an issue due to the deficiency of standardization and potential for poor targeting. ¢ Never Stop Mentality ” Dr . Inamori’s “never provide up philosophy is both a power and a weakness.

It really is good for maintenance the focus of groups, but at the same time may encourage risky decision-making. Strategic Cost Issues , Early in it’s existence, Kyocera was centered on keeping product sales, general, and administrative bills below market standards. Yet , the supervision reporting practice and beliefs, as well as not enough standardization of costing strategies within sections or firms may work against the company in regards to cost. , Retraining costs with the recurrent break-up of Amoebas is actually a concern. Purchasing parts in market prices on the open market which have been also of Kyocera-owned companies is a issue. , The price tag on monthly credit reporting meetings is usually minor, although may be an evergrowing expense panoramic (for all divisions and companies) while the organization grows. Kyocera’s Natural Strengths Quality of Leadership: Kyocera acquired strong head in Doctor Inamori. His philosophical prospect and decision making abilities set the develop for success at the company.

This kind of leadership can not be taught, but is natural in an individual. Technical Expertise: The company’s technological expertise is a result of their give attention to individuality and specialization. It will help the company in the area of new product expansion. Diversified Production: The products will be high-tech enough to be a very good fit in the corporation, but diverse enough the fact that different sections and companies that make up Kyocera don’t conclude competing against one another in a way that is detrimental to the company as a whole.

Reputation: Kyocera’s reputation intended for quality and achieving the job done will help all of them retain received market share. Tenaciousness: Tenacious rivals in business always fair better than those who quit easily. The spirit of tenacity in Kyocera makes them the respect of their customers Working Environment Positive Behaviour: The positive environment at Kyocera helps keep expertise with employee retention and that fosters a laid-back imaginative environment. Autonomy: The autonomy of the Amoebas fosters creativity and not enough bureaucracy costs.

International Position: Being intercontinental allows Kyocera to take advantage of labor savings connected with manufacturing in some countries, while selling products in countries that will bring in the the majority of profit. Getting international also gives Kyocera access to markets in varying countries with out as many syndication headaches since other companies. Areas of Weak point Some Portions of the Corporate Framework Centralized Administration: The corporation achievement too large to take care of the current administration reporting composition.

The intricacy will gradual decision-making and stay costly. Autonomy: Retraining costs with the recurrent break-up of Amoebas can be described as concern. Merchandise Overlap between Companies or perhaps Divisions: Repetitiveness in product lines is high priced due to the repeated support buildings. Measurement Program: Top-down establishing of goals for Amoebas would be appropriate. This would guarantee some standardization among anticipations placed on employees. Transfer-pricing: Kyocera to Kyocera pricing should be lower than available market-prices.

This could help sibling organizations be more competitive. Added Analysis Threats from New Competitors: Kyocera will have to be conscious of new competition at all times in the high-tech industry. Each section or organization in the corporation must be aware of who players are within their market. It could hard for virtually any one niche player for being threat to Kyocera as a whole since they are extremely diversified. Rivalry among competition: Kyocera has to be careful to make certain this does not occur within its very own corporate umbrella.

There is no immediate rivalry of outside competitors that is obvious in cases like this. Substitute Products: Kyocera does a good job of battling this kind of by taking on tasks that nobody otherwise wants or perhaps has the tenaciousness to take on. Suppliers Electric power: In many cases this kind of firm is definitely their own provider. It is unlucky that sister divisions or perhaps companies will not work deeper together and be a powerhouse together. Buyer or Client Power: Ditto the comments over. Also the buyers via outside get their purchasing power/threat to Kyocera limited by Kyocera’s diversification.

Value Creation: Incoming and telephone logistics are strengths in Kyocera because of their international occurrence. They provide their own marketing funnel through salaried sales specialists and have the item base to back up using outside channels when ever possible. Marketing, pricing, and so forth are handled by the person divisions and companies. Services activities along with the various other column which makes up 1% of product sales on the product organization list. This line does present value towards the customers and the company for the tune of $27 million. Current and Future Opportunities

Re-alignment from the reporting structure: By re-aligning the revealing structure Kyocera can save cost and increase communications inside the corporation. High-Tech changes in the Macroenvironment: New in order to be 1st in the area of marketing communications are approaching available with the net, cable, and wireless marketing communications areas. Transfer-pricing changes: Kyocera to Kyocera pricing ought to be lower than available market-prices. This could help sister organizations be more competitive. Price Reduction: Management costs could be reduced simply by realigning the reporting composition.

Product Terme conseillé among Corporations or Sections: By merging operations pertaining to overlapping catalog Kyocera can save support costs. Potential Threats Current Great changes in the Macroenvironment: Technological alter does not stand still. New communications products and technologies make old ones obsolete daily. Corporate Expansion: Communications and repetitive costs may become issues. Repetitive businesses as a result of mergers and acquisitions should be assessed and taken care of appropriately. This might mean dismantling some companies to save money.

Action Items to be considered Change the Management Reporting Composition: The managing reporting structure change may improve communications and help decrease administrative bills Combine Support Operations several Companies in the Same Product Group: Repeated support buildings cost money. By simply combining support operations bills could be decreased. Establish new corporate transfer-pricing guidelines. Business Guidelines for transfer-pricing may help make some of the business units more competitive.

Decrease the autonomy with the Amoebas: Amoebas do not need to always be doing their own costing and profit or production target setting. Recommendations Establish new corporate transfer-pricing guidelines base on sound judgement and principles: Concentrate on competitiveness and supply special pricing to sibling business units which will make them more competitive. Focus on cost reduction in the administrative expense area: Implement conference-calling, eliminate as much travel as it can be, and combine support functions for multiple units to generate cost savings.

Decrease the autonomy from the Amoebas: The amoeba level is too low on the managing structure making decisions on development targets and profitability. Move costing up to a higher level and allow input about production and profit focuses on from the amoebas, but set accountability with the next standard of management up. Bibliography Kyocera Corporation, Nancy Rothbard, Harvard Business School, Publishing Division. 1991. File #9-491-078,. Revisioned July 1993.