Showing papers in "Asian Case Research Journal in 2004"
TL;DR: The case of Pennar Industries Limited (Pennar) as mentioned in this paper, one of the top ten producers of cold rolled steel strips in India, had 650 workers and 630 staff (non-unionized workers, supervisors, and managers) in 1997.
Abstract: Pennar Industries Limited (Pennar), one of the top ten producers of cold rolled steel strips in India, had 650 workers and 630 staff (non-unionized workers, supervisors, and managers) in 1997. Although over-manned and inefficient, the company had been profitable in the domestic market protected by government licensing and high import tariffs. As real competition, unleashed by globalization, began to bite in 1998, the company bought out 142 workers and 224 staff through a Voluntary Retirement Scheme (VRS). The severance compensation offered was very generous. In spite of reducing the workforce and improving productivity, Pennar ran into heavy losses by 2000. The management decided to downsize further, but it had no money to match the 1998 severance package. The surplus workers would have to go with the statutory compensation and staff without any compensation at all. The unions rejected the VRS for workers outright when they learned that it offered just one-third of the compensation given in 1998. They wanted at least two months' pay. The negotiations went on without any change of heart on either side. Each Head of Department drew up a list of their workers and staff to be retrenched and called the redundant staff one by one and told them to resign and leave without expecting any compensation. Many resigned and left but some resisted and abused the managers verbally, but there were no cases of violence or litigation. The new VRS for workers was formally announced on April 20, 2001. None came forward. They stuck to their demand for eight weeks' pay as compensation. Gradually, however, the workers' resistance weakened and they accepted the VRS and left peacefully. This case is useful for examining the human resource management issues and process for downsizing.
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TL;DR: The case of Computime as discussed by the authors outlines the obstacles and decisions facing the CEO, Bernard AuYang, as he attempted to navigate the organization through this turbulent time and highlighted how he drew the restructuring plan and sought support from the cautious board members and other organization members who were resisting change.
Abstract: Computime Ltd, a China-based family business, was forced to restructure and rationalize its chain of command due to rapid growth. By 2003, Computime had been able to leverage the low cost and manufacturing prowess of China-based businesses to become one of the world's largest Original Equipment Manufacturers (OEM). Yet, the company was facing growing pains, as its simple organizational structure began to run into coordination and control problems. This case outlines the obstacles and decisions facing the CEO, Bernard AuYang as he attempted to navigate the organization through this turbulent time. Bernard was hoping to keep the company on its growth trajectory and he was convinced that Computime's functional organization structure must be transformed into a multidivisional structure with decentralized business units. In this manner the institutional structure within the organization would be better aligned with the more rational institutional environment that the organization was facing. This case illustrates the obstacles which the CEO must overcome to make see his goals to fruition. Specifically, it emphasizes how he drew the restructuring plan and sought support from the cautious board members and other organization members who were resisting change. It also looks at issues of leadership and human resource management during organizational change.
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TL;DR: Amal Products Ltd (APL) as mentioned in this paper was a company situated in the southern part of Gujarat manufacturing intermediate dyes and specialty chemicals, mainly for the textile market, which incurred losses due to the recession in the textile industry and fierce competition from Chinese manufacturers as well as local manufacturers who sold their products at much lower rates than APL.
Abstract: Amal Products Ltd (APL) was a company situated in the southern part of Gujarat manufacturing intermediate dyes and specialty chemicals, mainly for the textile market. The company incurred losses in 1998 due to the recession in the textile industry and fierce competition from Chinese manufacturers as well as local manufacturers who sold their products at much lower rates than APL. In response to the competition APL went for cost reduction and offered voluntary retirement scheme (VRS) to its employees as one of the measures to reduce cost. 51 out of 264 employees opted for VRS. The case explains the process of VRS adopted by the company and how it helped to save costs. It highlights the role of the human resource department in the successful implementation of VRS and the role of line managers. It explains how a VRS should be handled so that the survivors remain productive. It also mentions the role of various stakeholders in the implementation of VRS. The company has reported profits in 2002.
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TL;DR: In this paper, Matsushita and Sony were based in Japan, both manufacture consumer electronics, and both were similar to each other in size and brand reputation, and they faced the same problem: escalating manufacturing costs in Japan were eroding Japan's traditional advantages in manufacturing, especially when its neighbor China was emerging as the "workshop of the world" with low cost advantage.
Abstract: Both Matsushita and Sony were based in Japan, both manufacture consumer electronics, and both were similar to each other in size and brand reputation Both of them were also facing the same problem: escalating manufacturing costs in Japan were eroding Japan's traditional advantages in manufacturing, especially when its neighbor China was emerging as the "workshop of the world" with low cost advantage These two players, however, selected totally different manufacturing strategies While Matsushita aggressively moved its manufacturing business to China, Sony suddenly shifted some of its production back to Japan Matsushita's and Sony's supply-chain rebuilding strategies were diametric opposites with the same objectives — to improve their competitiveness by optimizing their critical success factors across their supply chains Today's competition is not really company versus company, but supply chain versus supply chain Managers and executives should realize that what they had done before for single firms is now being examined from the perspective of a chain of firms The contemporary issues in Matsushita and Sony provide an extremely interesting lesson about how to establish competitive advantage by using effective supply chain management and how an advantage can be eroded by using incorrect supply chain management
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TL;DR: This case unfolds the whole episode with relevant background and raises debatable ethical issues that are universally relevant for business in today's environments.
Abstract: Assam, a state in Northeast India, has been experiencing the problem of militancy for over two decades. Tea was a major industry in the state and due to its pivotal position, militants had been excessively harassing it. Tata Tea Limited (TTL), a subsidiary of a 125-year old and well respected conglomerate, the House of Tatas, was one of the largest players in the tea industry in the region. The company had never succumbed to militants' pressure of parting with money but had acted as a responsible corporate citizen by involving itself in substantial community development initiatives. Under one such initiative — the Special Medical Assistance Scheme — a leader of a militant outfit has been treated for pregnancy and accompanying life-threatening health problem in a hospital in Mumbai. After childbirth and treatment, when she was about to board a flight to Delhi, the Assam government with the help of Mumbai police arrested her on a tip off. The arrest led to the controversial allegation that TTL had been funding terrorists in Assam. Based on press and published reports, this case unfolds the whole episode with relevant background and raises debatable ethical issues that are universally relevant for business in today's environments.
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