Komatsu Case Study Essay

1 ) How was Komatsu able to evolve coming from a $169 million company with lower-quality products to become a real challenge to Caterpillar by early eighties? How will you evaluate Mister. Kawai’s performance?

The long lasting vision of “catch up and go beyond CAT” became available different merchandise offerings as well as the extension from the Komatsu market. Initiating Total Quality Control (TQC) helped to develop a means to00 acquire and develop modern technology. Project A also sought to raise the quality to match CAT’s levels, which marked the beginning of the Plan Check Act (PDAC) cycle.

Kawai’s performance and policies to create Komatsu internationally competitive in cost and quality prospects me to think he did a great job in his role. The company was gaining sales and increasing cost and quality, actually making CAT anxious about contending with Komatsu. 2 . So why did efficiency deteriorate thus rapidly inside the mid-1980s?

What grade would you give to Mister. Nogawa’s term as CEO? 1982 marked the beginning of an era of dropping demand, around the world price wars, a rapid rising yen, and heightened trade frictions through the entire industry. Nogawa also focused more upon cost reducing and intense sales tactics than this individual did about internationalization or perhaps the stagnating construction industry. I actually don’t believe Nogawa was a great CEO because he disregarded focusing on bettering the company and instead tried to minimize too guy costs risking quality and holding the business enterprise back during his term as CEO.

3. Just how appropriately would Mr. Tanaka deal with the down sides he inherited? What is your evaluation of his brief tenure as CEO?

I believe Tanaka dealt with the difficulties pretty well with a strategy to get away from overall expansion and centering on profits. Though his approach was well planned, Tanaka lacked the leadership that could have made him more successful. This individual did well in terms of profit, although failed to compete on business against FELINE, as was the norm of his precursors.

Katada properly took impose and could return to very good performance and connect his strategy with his management design. Katada’s new vision pertaining to the company, which include new firm goals and culture, damaged the entire organization but as a result of his long term commitment with Komatsu, employees were acknowledging and trusting of the alterations he made. Katada changed with all the times plus the industry, placing Komatsu back into competition with CAT.

Katada focused on energetic participation with all employees instead of a top-down savoir approach. Employees, at all amounts, were motivated to bring ideas to management and become actively mixed up in vision, route, and overall success of the company.