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Operations Strategy at Galanz Case Study

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Galanz’s Competitive Strategy

Galanz is a company that is based in China. Its main business is the manufacture and sale of microwaves. The company faces a lot of competition from other established companies, such as LG, Panasonic, Toshiba, and Samsung, among others. The company has had a long way en route establishing itself as a competitive organization considering the major players in the industry are few, but well established organizations.

Initially, the company was only producing microwave ovens for sale in the domestic market. It used to purchase key components and production technology from Japan. The company then started its own Original Equipment Manufacturing (OEM) business. This attracted foreign brand owners to outsource their production to Galanz. The company then transformed into an Original Design Manufacturing firm.

The combination of OEM and ODM facilitated its brand being recognized in the overseas market. The other competitive strategy that the company applied is low cost production. It had cheap labour and land, both of which facilitated in lowering the production cost.

This was the major strategy that led to a large volume of sales as the company is able to offer its products at a relatively low price compared to the competitors (Thompson and Frank 552). In addition, the company had an R&D department that had undisputed capabilities of developing highly competitive and innovative products. Finally, the company has a brand name that is well recognised, both in China and abroad.

The competitive strategies of Galanz are successful for a number of reasons. First, the low cost production enables the company to sell its products at a low cost. Second, the R&D facilitates quality production. Third, its strong brand has won the loyalty of customers across the globe. The three aspects combined have contributed to a successful competitive strategy for Galanz.

Galanz’s Operation Strategies

The company also worked towards changing and improving its operational strategies in its bid to succeed in the global market. The aim was to make the operations more effective and efficient and lower the cost of operation. This would be effective in boosting the competitiveness of the company.

The operations manager was responsible for following up the company’s operation strategy. The operations manager makes decisions to manage the transformation process that converts inputs into finished goods or services that are ready for consumption. The manager also oversees the supply chain, which is also effective in ensuring a successful operation strategy. Initially, the company was buying magnetrons from its competitors.

However, the competitors cut their supply of magnetrons to Galanz as its growth continued to escalate, prompting Galanz to start its own manufacture of magnetrons. This was one of its operational strategies that propelled the company to succeed. The company then started its own OEM and later transformed it to an ODM. It could, therefore, be able to produce Galanz microwave ovens with its own brand, rather than purchasing some components from competitors.

The company had operations in the Original Brand Manufacturing firm in the domestic market. The company was able to develop and produce its own magnetrons with the Original Design Manufacturing. This ensured that the company was able to deal with the previous shortage of magnetrons. It also ensured constant supply of microwave ovens.

The operational strategy of Galanz was successful because the company was able to meet the market demand that was increasing as the company’s growth continued. Galanz was able to produce sufficient magnetrons enough for its microwave oven production. At home, the Original Brand Manufacturing (OBM) facilitated brand recognition in the domestic market. The operational strategy further helped in the production of quality microwave ovens.

The company’s operations manager has control over the quality of magnetrons. He or she is able to ensure the magnetrons are of the desired quality. Therefore, the end product is of desired quality as the whole production line is managed by the organization’s operations manager.

How Galanz operation strategies support its competitive strategies

For an organization to be successful in the market, the operation strategy should be able to support the competitive strategy. At Galanz, the operation strategy has been successful in supporting the competitive strategy of the company.

First, it is important to note that the major competitive strategy of the company is low cost production, which enables it to sell products at highly competitive prices compared to those of its close competitors. Secondly, its R&D has also been instrumental in increasing the competitiveness of the company by facilitating innovation.

Its operation strategy, on the other hand, has seen the formation of the OEM business and then transformation into the ODM. This has boosted the company’s production of magnetrons. The company also has its own OBM in China, which has helped in domestic brand recognition.

The ODM and the OBM have helped in further reduction of the production costs for Galanz. Producing its own magnetrons is much cheaper compared to purchasing them from other companies. Further, the production development of ODM has also facilitated R&D and innovation, consequently supporting its competitive strategy. OBM, on the other hand, helps in increasing brand recognition as a competitive strategy.

“ How the company should set priorities and utilize its resources and capabilities to gain competitive advantages in the marketplace”

The company has achieved breakthrough in the market by selling its products at low prices. This has led to some of its competitors withdrawing from the market following the stiff competition it provided them. It claimed that price wars were a defence of the company and the objective was to destroy its competitors. Galanz had succeeded in this strategy. However, the business world is said to be dynamic. An organization only survives in the long run following its ability to cope with the changes that occur daily.

The company started to experience challenges for its future growth and development after years of market domination by Galanz, both in China, as well as in the overseas countries. There are worries on whether its current low cost strategy will still be successful in the future. It is clear that there are some changes that have to be implemented to keep the company in the competition.

Galanz is supposed to take a competitive position in the market by setting its priorities right. First, the world is trending towards technology and most products over the past few years are produced based on technology. The future of business organizations is highly dependent on their ability to embrace technology and utilize it effectively. Galanz should prioritize its resources by investing in technology. In doing so, the company should also be keen not to deviate from its low cost strategy.

The differences between OEM/ODM versus OBM in terms of production, design, marketing, distribution, and customer service

The OEM and the ODM firms were the two business strategies that Galanz turned to after its supply of magnetrons was cut by its previous suppliers, who also happened to be the company’s major competitors. Therefore, the OEM and the ODM production were aimed at producing magnetrons for the manufacture of microwave ovens for sale in the overseas market (Bonaglia 38). The two production modes produce and design the magnetrons, but the branding and distribution is done by another company.

The two modes helped the company to produce magnetrons at a low cost that facilitated its low cost strategy in the global market. In terms of design, the OEM and ODM helped the company design its own brand that helps it switch to a business direction of, “Created in China”, rather than “made in China.” The OEM and ODM further marketed and distributed the company’s products in the international market.

The OBM model was targeted to the domestic market. It produced and designed its own brand, instead of outsourcing to the competitor companies. The OBM further marketed and distributed its products in China. The customer services it offered were all meant for the domestic market. The aim of OBM was to strengthen the brand in the domestic market. Galanz was successful in using the models in that each of them specialized in its market targets, thus they produced efficiently to satisfy the market needs.

Galanz’s strategy of introducing OBM in international market

Currently, the OBM is purely targeted at the domestic market. It is aimed at strengthening the company’s brand in the domestic market and winning its competitive advantage in China. An original brand manufacturer refers to a company that sells a product that has been produced by another company or that includes a component of another company as its own brand.

This is a strategy that is seen as able to add an extrinsic value to the product (Bonaglia 39). In the case of Galanz, the brand has already established itself in the international market. Therefore, the company does not need to introduce its OBM in the international market.

Galanz should continue with its OEM and ODM business strategies. The two businesses have proven to be successful in the international market. They have facilitated the growth and development of Galanz and its competitiveness. It should be noted that business strategy is a factor that facilities the success of the organization. Facility strategy, on the other hand, considers the amount of capacity, among other factors.

Facility strategy would, therefore, consider the capacity of Galanz to manufacture microwave ovens. The company manufactures microwave ovens and then sells them to the international market through the brand name of another company (Bonaglia 38). However, the selling company always refers to the manufacturing company, which is Galanz in this case.

The ODM mode allows a firm to make products, but the products are branded and sold by a different firm. With any of the two models, the original manufacturing company will always get credit for the manufacture. Therefore, the brand name for Galanz under ODM or OEM will be maintained and there is no need to change the models.

Advantages and disadvantages of technology in Galanz’s success

Galanz started to invest in R&D in the year 1995 with the aim of facilitating new design and development in the organization. It focused on new technologies to improve and boost its marketability. Galanz realised a number of advantages out of the technology. New technology helped Galanz cut down the cost of production.

This was beneficial in that it helped the company produce at lower costs. Secondly, the new technology helped Galanz produce more differentiated products. This added to the quality of its products, as well as the marketability and competitiveness of the organization. Quality control systems should be put in place to ensure quality production.

The systems should be developed on technological knowledge. The products that a company makes should satisfy customer needs fully. Factors that add up to constitute quality include availability, field service, quality of design, and quality of conformance. Third, the company started to receive more orders for its products as a result of the new technologies (Panneerselvam 60).

However, the technology did not come without any disadvantages. For instance, the company had to spend a significant amount of its fortunes to invest in the R&D. It was approximated that the company spent about 3% of its annual revenues to invest in the new technologies. This reduced its income in the short-run.

How technology affected Galanz

Technology affected Galanz in that the total sales in the long-run increased following an increase in demand for its products. The technology also helped Galanz localize the design of its products to suit its target market. Technology played the role of increasing and improving the quality of its production and lowering the cost of production, leading to the success of Galanz.

The challenges that faced Galanz and how it overcame the challenges

The road to success for Galanz was not an easy one. Galanz encountered several challenges on its way to its current position. First, the company was initially not producing its own magnetrons. Instead, it was buying them directly from its competitors, such as LG and Panasonic. The supplier companies cut the supply of magnetrons because of fearing the threat that Galanz was setting in terms of competition. In dealing with this challenge, Galanz established an OEM with the aim of manufacturing its own magnetrons.

Galanz was initially named as Guizhou down Product Factory and it was in the business of producing down leather products and selling them to abroad markets. On joining the microwave market, the company faced a challenge in that there were already established companies in the market. The microwaves at the moment were expensive and unaffordable to many people.

In addition, the technology for producing microwave ovens, as well as the technical expertise was not available in China. This presented a big obstacle for the company in its bid to start the microwave business. Liang Senior went a step further to ensure that the production of microwaves took place in China, instead of importing the microwaves by bringing in the technology and expertise needed for the job. This saw enabled him set up a factory in China.

Mr. Liang’s achievements that lead his company to greater success

The current success by Galanz can be traced to the contributions of Liang Senior, who is the Vice Chairman and CEO of the company. In fact, the credit for the company’s success can be given to him. He made a number of achievements in securing this success. The first achievement by Mr. Liang was to start up the microwave ovens manufacturing company in China. Initially, there was no technology and technical expertise in China to manufacture microwaves.

Mr. Liang purchased the equipment for this manufacture and brought in people who had the expertise to carry out the manufacture. This was the first and the most important achievement. Mr Liang carried out the initial project planning and scheduling. He did all the necessary controls to ensure that the equipment was installed successfully. Among the scheduling activities he carried out were bringing in experts and assigning them tasks, as well as developing a work breakdown structure for them.

Another achievement by Mr. Liang was his successful efforts to sign a contract with overseas companies to outsource the designing and branding of magnetrons. There was no technology for such production in China at the time the company was entering the microwave ovens market.

Mr. Liang outsourced this production, a step that was very successful in starting up the growth of Galanz. He also created an Original Equipment Manufacturing model whereby the company would be manufacturing its own magnetrons, instead of outsourcing the production.

Suggestions

Galanz can be considered a successful company since the entry of Mr Liang Senior. The company has been able to establish a low cost strategy that has seen it edge out most of its rivals, even forcing some to leave the market completely. However, there is a chance that the organization can still improve and achieve greater success in the future. However, the company has to be in a good position to face the future market challenges, some of which it is already encountering.

In terms of strategy, the organization should hold on to its low cost strategy. However, it should adopt a differentiation strategy and market focus strategy at the same time. Under differentiation, Galanz should be producing microwaves that have improved features compared to those of its competitors.

On market focus strategy, the company should be focusing on different markets and their requirements. In turn, Galanz should produce microwave ovens that meet the market demands of the different focus markets to be able to penetrate more markets (Christensen, Antony, and Roth 218).

In terms of management, the Mr Liang should ensure that the operations managers have the full control of the company’s production activities. This will enable them to track and realise any default that may compromise the quality of the microwave ovens in time. The managers should also be highly skilled and have the relevant knowledge to enable them cope with the market conditions now and in the future. The management structure should be flat to facilitate communication across the organization.

Capacity planning should also be considered by Mr Liang in his bid to achieve greater success for the organization. The organization should position itself such that it will be able to produce enough microwaves to meet the increasing demand (Christensen, Antony, and Roth 218).

This will be important in preventing the customers from walking away to rival companies. The operational diagram should be made as effective as possible and less hierarchical to increase production efficiency. The customer service at the organization is good. However, it can still be improved to enhance customer satisfaction further. To do this, Mr Liang can increase the number of customer representatives in the organization and ensure that they have sufficient knowledge to address all the issues raised by the customers.

Works Cited

Bonaglia, Federico. Meeting the Challenge of Private Sector Development: Evidence from the Mekong Sub-Region . Paris: OECD, 2006. Print.

Christensen, Clayton M, Scott D. Anthony, and Erik A. Roth. Seeing What’s Next: Using the Theories of Innovation to Predict Industry Change . Boston, MA: Harvard Business School Publishing Corporation, 2004. Print.

Panneerselvam, Ranganathan. Production and Operations Management . New Delhi: PHI Learning Pvt. Limited, 2012. Print

Thompson, John L, and Frank Martin. Strategic Management: Awareness & Change . Hampshire, UK: Cengage Learning EMEA, 2010. Print.

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Operations strategy at galanz description.

Starting from a humble beginning of being a manufacturer of down feather products owned by Shunde Township, Galanz Enterprises Group Co. Ltd. (Galanz) had transformed itself into a world class manufacturer of microwave ovens producing about 50 per cent of the global output in 2003. This case describes the competitive and operational strategies that Galanz used to achieve such a meteoric growth. The company started out with a clear competitive strategy based on cost leadership. It designed and implemented operations system to help achieve lower cost through economy of scale, the transfer of production capacity from developed countries and full utilization of the available production capacity.The case aims to: 1. introduce students to the concepts of order winner, order qualifiers, operations priorities/objectives. 2. show how operations priorities should reflect customer requirements and affect the way a company wants to compete. 3. demonstrate how a company can gain competitive advantages through low cost strategy and how to support business strategy using operations strategy and capabilities. 4. show students how a company can build multiple capabilities over time and how a company's strategy and operational capabilities can change over time. 5. provide students with the opportunity to analyze trade-offs involved in making strategic, operational and marketing decisions as a business expands from the domestic to the global market and from OEM to ODM and OBM. 6. challenge students to develop coherent action plans that address future growth objectives. 7. help understand the tremendous opportunities and challenges of managing operations and supply chain activities in China.

Case Description Operations Strategy at Galanz

Strategic managment tools used in case study analysis of operations strategy at galanz, step 1. problem identification in operations strategy at galanz case study, step 2. external environment analysis - pestel / pest / step analysis of operations strategy at galanz case study, step 3. industry specific / porter five forces analysis of operations strategy at galanz case study, step 4. evaluating alternatives / swot analysis of operations strategy at galanz case study, step 5. porter value chain analysis / vrio / vrin analysis operations strategy at galanz case study, step 6. recommendations operations strategy at galanz case study, step 7. basis of recommendations for operations strategy at galanz case study, quality & on time delivery.

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Case Analysis of Operations Strategy at Galanz

Operations Strategy at Galanz is a Harvard Business (HBR) Case Study on Strategy & Execution , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Operations Strategy at Galanz is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Operations Strategy at Galanz case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Operations Strategy at Galanz will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.

Case Study Solutions Background Work

Operations Strategy at Galanz case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Strategy & Execution, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of Operations Strategy at Galanz, is to not only build a competitive position of the organization but also to sustain it over a period of time.

Strategic Management Tools Used in Case Study Solution

The Operations Strategy at Galanz case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

Texas Business School Approach to Strategy & Execution Solutions

In the Texas Business School, Operations Strategy at Galanz case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis. We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – Operations Strategy at Galanz

Step 1 – Problem Identification of Operations Strategy at Galanz - Harvard Business School Case Study

The first step to solve HBR Operations Strategy at Galanz case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Galanz Operations is facing right now. Even though the problem statement is essentially – “Strategy & Execution” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Galanz Operations, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.

Step 2 – External Environment Analysis

Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Operations Strategy at Galanz. The external environment analysis of Operations Strategy at Galanz will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Operations Strategy at Galanz case study. PESTEL analysis of " Operations Strategy at Galanz" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Operations Strategy at Galanz macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for Operations Strategy at Galanz

To do comprehensive PESTEL analysis of case study – Operations Strategy at Galanz , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact Operations Strategy at Galanz

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Government policies have significant impact on the business environment of any country. The firm in “ Operations Strategy at Galanz ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which Galanz Operations is operating, firms are required to store customer data within the premises of the country. Galanz Operations needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Operations Strategy at Galanz has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, Galanz Operations in case study Operations Strategy at Galanz" should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Galanz Operations in case study “ Operations Strategy at Galanz ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, Galanz Operations in case study “ Operations Strategy at Galanz ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ Operations Strategy at Galanz ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Galanz Operations can compete against other competitors.

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Operations Strategy at Galanz case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – Galanz Operations needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact Operations Strategy at Galanz

Social factors that impact operations strategy at galanz, technological factors that impact operations strategy at galanz, environmental factors that impact operations strategy at galanz, legal factors that impact operations strategy at galanz, step 3 – industry specific analysis, what is porter five forces analysis, step 4 – swot analysis / internal environment analysis, step 5 – porter value chain / vrio / vrin analysis, step 6 – evaluating alternatives & recommendations, step 7 – basis for recommendations, references :: operations strategy at galanz case study solution.

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Case Solution Analysis for Operations Strategy at Galanz 1

On January 4, 2004, Liang Zhaoxian, the vice-chairman and chief executive officer (CEO) of Galanz Enterprises Group Co. Ltd. (Galanz), had just returned to his office after signing a contract to outsource part of the production of Galanz’s designed and branded magnetrons1 to a Japanese manufacturer. Galanz had previously relied on the magnetrons designed and branded by its suppliers during its earlier years of development as a microwave oven manufacturer for many foreign brands.

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Within the strategic management framework, companies should evaluate the conditions in their internal and external environment correctly when setting targets. Companies can use various strategic management tools to gain a competitive advantage. In this project, Arzum company, which is one of the market leaders of the small household appliances sector in Turkey, are examined. The competitive situation in the sector are determined by using the Five Forces Analysis, and the strengths and weaknesses, opportunities, and threats of the company will be determined through the SWOT analysis. After that, the strategic alternatives for the company are evaluated by matching the factors determined in the SWOT analysis in the SWOT matrix. Finally, whether the strategy determined using the space matrix is suitable for the company is analyzed.

Amitava Chattopadhyay

Mebratu Abebaw Kelkay

Yenho Thomas Chung

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OPERATIONS STRATEGY AT GALANZ Harvard Case Solution & Analysis

Home >> Harvard Case Study Analysis Solutions >> OPERATIONS STRATEGY AT GALANZ

OPERATIONS STRATEGY AT GALANZ Case Solution 

INTRODUCTION:

The reason and purpose of this case study is to analyze and comprehensively appraise the existing business model, strategies and operations as an external consultant to the management of the Galanz Company. Moreover, thepurposeof this study of the business practices and strategies of the management of the company is to identify the strengths, weaknesses, opportunities and challenges of the management of the company and the business itself and propose a feasible and effective business strategy, production policy and the priority criteria for the management of the organization in order to increase the performance and position of the organization in the domestic and attractive global markets where the business currently operates or wishes to expand itself to. In addition, doing this will require going through existing business capabilities and operations along with the day to day tactics and strategy of the business. Upon completely familiarizing with the workings of the organization, a feasible set of alternatives and solutions will have to be presented so that the management restructures the business in the above mentioned areas to operate more efficiently and effectively in the markets.

PROBLEM STATEMENT:

The most critical problem and issue for the management of the organization is the low and almost non-existent brand recognition of the products of the company in the international markets where it operates, despite being the most dominant exporter of the products in the industry and the international markets. The other critical issues for the management of the company are the in-efficient production and control of the production operations of the company and the manufacturing capacity issues or the magnetron material that is critical for the operations and production process of the organization.

The analysis of the organization will include the indebt study and researching the policies and strategies of the management of the organization along with the operations and business practices of the organization. This will enable us to identify the strengths, opportunities, barriers and challenges of the organization and in term allow reorganizing and restructuring these on the basis of interests of the company to increase its performance and position in the global as well as the domestic markets where the business operates.

SWOT ANALYSIS:

There are several strengths of the business that serve as a motivating factor for the management of the organization and the most important among them is the market share and historical performance of the business as it is well established in both the local and international markets in terms of the market share of the company. The other strengths for the management of the organization are the adequate resources of the management of the organization are the adequate business resource in terms of the human resource as well as the infrastructure that the business has.The past business strategy based on the low cost and differentiation model has also assisted and served the business well to achieve the market and industry presence to where it is today.

This differentiation approach of the management of the organization has been implemented through the policy of increased research and development of the business in order to increase the quality and look for ways to reduce the price of the product simultaneously.....................

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Operations Strategy at Galanz

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Stephen (Chi Hung) Ng, Barbara Li, Xiande Zhao, Xuejun Xu, Yang Lei Ivey Publishing ( 910D05-PDF-ENG ) August 05, 2010

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Core Principles:

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• Open-Ended Questions: Instead of spoon-feeding answers, instructors pose open-ended questions that stimulate critical thinking and analysis.
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• Develops Critical Thinking Skills: Grappling with complex business problems and analyzing diverse perspectives strengthens critical thinking abilities.
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Key Components of a Harvard Case Study Solution

Comprehensive Understanding of the Case

• Summary of the Case : Provide a concise summary that outlines the key issues, stakeholders, and objectives. This sets the stage for deeper analysis.
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Detailed Analysis

• Qualitative Analysis : Evaluate qualitative factors such as organizational culture, leadership styles, and market conditions. This helps in understanding the non-quantifiable aspects that impact the business scenario.
• Quantitative Analysis : Use data and financial metrics to analyze the business performance. This includes profit margins, cost structures, revenue streams, and other relevant financial indicators.
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Strategic Alternatives

• Generation of Alternatives : Develop multiple strategic alternatives to address the identified problem. Each alternative should be feasible and align with the company’s goals and resources.
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Recommended Solution

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Reflection and Learning

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• Future Implications : Discuss the broader implications of the case study for the industry and future business scenarios.

Checklist for a Great Harvard Case Study Solution

Comprehensive Understanding

• Clearly summarized the case
• Identified the main problem and stakeholders
• Understood the broader business context
• Conducted qualitative analysis (organizational culture, market conditions, etc.)
• Performed quantitative analysis (financial metrics, data analysis)
• Completed a SWOT analysis
• Generated multiple feasible alternatives
• Evaluated alternatives based on relevant criteria
• Supported evaluations with data and logical reasoning
• Selected the most viable alternative with a strong justification
• Developed a detailed and practical implementation plan
• Created a contingency plan to manage potential risks
• Reflected on the case study process
• Identified key lessons learned
• Discussed future implications for the industry and business practices

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Operations Strategy at Galanz Case Study Solution

Posted by John Berg on Feb-16-2018

Introduction

Operations Strategy at Galanz Case Study is included in the Harvard Business Review Case Study. Therefore, it is necessary to touch HBR fundamentals before starting the Operations Strategy at Galanz case analysis. HBR will help you assess which piece of information is relevant. Harvard Business review will also help you solve your case. Thus, HBR fundamentals assist in easily comprehending the case study description and brainstorming the Operations Strategy at Galanz case analysis. Also, a major benefit of HBR is that it widens your approach. HBR also brings new ideas into the picture which would help you in your Operations Strategy at Galanz case analysis.

To write an effective Harvard Business Case Solution, a deep Operations Strategy at Galanz case analysis is essential. A proper analysis requires deep investigative reading. You should have a strong grasp of the concepts discussed and be able to identify the central problem in the given HBR case study. It is very important to read the HBR case study thoroughly as at times identifying the key problem becomes challenging. Thus by underlining every single detail which you think relevant, you will be quickly able to solve the HBR case study as is addressed in Harvard Business Case Solution.

Problem Identification

The first step in solving the HBR Case Study is to identify the problem. A problem can be regarded as a difference between the actual situation and the desired situation. This means that to identify a problem, you must know where it is intended to be. To do a Operations Strategy at Galanz case study analysis and a financial analysis, you need to have a clear understanding of where the problem currently is about the perceived problem.

For effective and efficient problem identification,

• A multi-source and multi-method approach should be adopted.
• The problem identified should be thoroughly reviewed and evaluated before continuing with the case study solution.
• The problem should be backed by sufficient evidence to make sure a wrong problem isn't being worked upon.

Problem identification, if done well, will form a strong foundation for your Operations Strategy at Galanz Case Study. Effective problem identification is clear, objective, and specific. An ambiguous problem will result in vague solutions being discovered. It is also well-informed and timely. It should be noted that the right amount of time should be spent on this part. Spending too much time will leave lesser time for the rest of the process.

Operations Strategy at Galanz Case Analysis

Once you have completed the first step which was problem identification, you move on to developing a case study answers. This is the second step which will include evaluation and analysis of the given company. For this step, tools like SWOT analysis, Porter's five forces analysis for Operations Strategy at Galanz, etc. can be used. Porter’s five forces analysis for Operations Strategy at Galanz analyses a company’s substitutes, buyer and supplier power, rivalry, etc.

To do an effective HBR case study analysis, you need to explore the following areas:

1. Company history:

The Operations Strategy at Galanz case study consists of the history of the company given at the start. Reading it thoroughly will provide you with an understanding of the company's aims and objectives. You will keep these in mind as any Harvard Business Case Solutions you provide will need to be aligned with these.

2. Company growth trends:

This will help you obtain an understanding of the company's current stage in the business cycle and will give you an idea of what the scope of the solution should be.

3. Company culture:

Work culture in a company tells a lot about the workforce itself. You can understand this by going through the instances involving employees that the HBR case study provides. This will be helpful in understanding if the proposed case study solution will be accepted by the workforce and whether it will consist of the prevailing culture in the company.

Operations Strategy at Galanz Financial Analysis

The third step of solving the Operations Strategy at Galanz Case Study is Operations Strategy at Galanz Financial Analysis. You can go about it in a similar way as is done for a finance and accounting case study. For solving any Operations Strategy at Galanz case, Financial Analysis is of extreme importance. You should place extra focus on conducting Operations Strategy at Galanz financial analysis as it is an integral part of the Operations Strategy at Galanz Case Study Solution. It will help you evaluate the position of Operations Strategy at Galanz regarding stability, profitability and liquidity accurately. On the basis of this, you will be able to recommend an appropriate plan of action. To conduct a Operations Strategy at Galanz financial analysis in excel,

• Past year financial statements need to be extracted.
• Liquidity and profitability ratios to be calculated from the current financial statements.
• Ratios are compared with the past year Operations Strategy at Galanz calculations
• Company’s financial position is evaluated.

Another way how you can do the Operations Strategy at Galanz financial analysis is through financial modelling. Financial Analysis through financial modelling is done by:

• Using the current financial statement to produce forecasted financial statements.
• A set of assumptions are made to grow revenue and expenses.
• Value of the company is derived.

Financial Analysis is critical in many aspects:

• Decision Making and Strategy Devising to achieve targeted goals- to determine the future course of action.
• Getting credit from suppliers depending on the leverage position- creditors will be confident to supply on credit if less company debt.
• Influence on Investment Decisions- buying and selling of stock by investors.

Thus, it is a snapshot of the company and helps analysts assess whether the company's performance has improved or deteriorated. It also gives an insight about its expected performance in future- whether it will be going concern or not. Operations Strategy at Galanz Financial analysis can, therefore, give you a broader image of the company.

Operations Strategy at Galanz NPV

Operations Strategy at Galanz's calculations of ratios only are not sufficient to gauge the company performance for investment decisions. Instead, investment appraisal methods should also be considered. Operations Strategy at Galanz NPV calculation is a very important one as NPV helps determine whether the investment will lead to a positive value or a negative value. It is the best tool for decision making.

There are many benefits of using NPV:

• It takes into account the future value of money, thereby giving reliable results.
• It considers the cost of capital in its calculations.
• It gives the return in dollar terms simplifying decision making.

The formula that you will use to calculate Operations Strategy at Galanz NPV will be as follows:

Present Value of Future Cash Flows minus Initial Investment

Present Value of Future cash flows will be calculated as follows:

PV of CF= CF1/(1+r)^1 + CF2/(1+r)^2 + CF3/(1+r)^3 + …CFn/(1+r)^n

where CF = cash flows r = cost of capital n = total number of years.

Cash flows can be uniform or multiple. You can discount them by Operations Strategy at Galanz WACC as the discount rate to arrive at the present value figure. You can then use the resulting figure to make your investment decision. The decision criteria would be as follows:

• If Present Value of Cash Flows is greater than Initial Investment, you can accept the project.
• If Present Value of Cash Flows is less than Initial Investment, you can reject the project.

Thus, calculation of Operations Strategy at Galanz NPV will give you an insight into the value generated if you invest in Operations Strategy at Galanz. It is a very reliable tool to assess the feasibility of an investment as it helps determine whether the cash flows generated will help yield a positive return or not.

However, it would be better if you take various aspects under consideration. Thus, apart from Operations Strategy at Galanz’s NPV, you should also consider other capital budgeting techniques like Operations Strategy at Galanz’s IRR to evaluate and fine-tune your investment decisions.

Operations Strategy at Galanz DCF

Once you are done with calculating the Operations Strategy at Galanz NPV for your finance and accounting case study, you can proceed to the next step, which involves calculating the Operations Strategy at Galanz DCF. Discounted cash flow (DCF) is a Operations Strategy at Galanz valuation method used to estimate the value of an investment based on its future cash flows. For a better presentation of your finance case solution, it is recommended to use Operations Strategy at Galanz excel for the DCF analysis.

To calculate the Operations Strategy at Galanz DCF analysis, the following steps are required:

• Calculate the expected future cash inflows and outflows.
• Set-off inflows and outflows to obtain the net cash flows.
• Find the present value of expected future net cash flows using a discount rate, which is usually the weighted-average cost of capital (WACC).
• If the value calculated through Operations Strategy at Galanz DCF is higher than the current cost of the investment, the opportunity should be considered
• If the current cost of the investment is higher than the value calculated through DCF, the opportunity should be rejected

Operations Strategy at Galanz DCF can also be calculated using the following formula:

DCF= CF1/(1+r)^1 + CF2/(1+r)^2 + CF3/(1+r)^3 + …CFn/(1+r)^n

In the formula:

• CF= Cash flows
• R= discount rate (WACC)

Operations Strategy at Galanz WACC

When making different Operations Strategy at Galanz's calculations, Operations Strategy at Galanz WACC calculation is of great significance. WACC calculation is done by the capital composition of the company. The formula will be as follows:

Weighted Average Cost of Capital = % of Debt * Cost of Debt * (1- tax rate) + % of equity * Cost of Equity

You can compute the debt and equity percentage from the balance sheet figures. For the cost of equity, you can use the CAPM model. Cost of debt is usually given. However, if it isn't mentioned, you can calculate it through market weighted average debt. Operations Strategy at Galanz’s WACC will indicate the rate the company should earn to pay its capital suppliers. Operations Strategy at Galanz WACC can be analysed in two ways:

• From the company's perspective, it can be analysed as the cost to be paid to the capital providers also known as Cost of Capital
• From an investor' perspective, if the expected return on the investment exceeds Operations Strategy at Galanz WACC, the investor will go ahead with the investment as a positive value would be generated.

Operations Strategy at Galanz IRR

After calculating the Operations Strategy at Galanz WACC, it is necessary to calculate the Operations Strategy at Galanz IRR as well, as WACC alone does not say much about the company’s overall situation. Operations Strategy at Galanz IRR will add meaning to the finance solution that you are working on. The internal rate of return is a tool used in investment appraisal to calculate the profitability of prospective investments. IRR calculations are dependent on the same formula as Operations Strategy at Galanz NPV.

There are two ways to calculate the Operations Strategy at Galanz IRR.

• By using a Operations Strategy at Galanz Excel Spreadsheet: There are in-built formulae for calculating IRR.

IRR= R + [NPVa / (NPVa - NPVb) x (Rb - Ra)]

In this formula:

• Ra= lower discount rate chosen
• Rb= higher discount rate chosen
• NPVa= NPV at Ra
• NPVb= NPV at Rb

Operations Strategy at Galanz IRR impacts your finance case solution in the following ways:

• If IRR>WACC, accept the alternative
• If IRR<WACC, reject the alternative

Operations Strategy at Galanz Excel Spreadsheet

All your Operations Strategy at Galanz calculations should be done in a Operations Strategy at Galanz xls Spreadsheet. A Operations Strategy at Galanz excel spreadsheet is the best way to present your finance case solution. The Operations Strategy at Galanz Calculations should be presented in Operations Strategy at Galanz excel in such a way that the analysis and results can be distinguished to the viewers. The point of Operations Strategy at Galanz excel is to present large amounts of data in clear and consumable ways. Presenting your data is also going to make sure that you don't have misinterpretations of the data.

To make your Operations Strategy at Galanz calculations sheet more meaningful, you should:

• Think about the order of the Operations Strategy at Galanz xls worksheets in your finance case solution
• Use more Operations Strategy at Galanz xls worksheets and tables as will divide the data that you are looking at in sections.
• Choose clarity overlooks
• Keep your timeline consistent
• Organise the information flow
• Clarify your sources

The following tips and bits should be kept in mind while preparing your finance case solution in a Operations Strategy at Galanz xls spreadsheet:

• Avoid using fixed numbers in formulae
• Avoid hiding data
• Useless and meaningful colours, such as highlighting negative numbers in red
• Label column and rows
• Correct your alignment
• Keep formulae readable
• Strategically freeze header column and row

Operations Strategy at Galanz Ratio analysis

After you have your Operations Strategy at Galanz calculations in a Operations Strategy at Galanz xls spreadsheet, you can move on to the next step which is ratio analysis. Ratio analysis is an analysis of information in the form of figures contained in the financial statements of a company. It will help you evaluate various aspects of a company's operating and financial performance which can be done in Operations Strategy at Galanz Excel.

To conduct a ratio analysis that covers all financial aspects, divide the analysis as follows:

• Liquidity Ratios: Liquidity ratios gauge a company's ability to pay off its short-term debt. These include the current ratio, quick ratio, and working capital ratio.
• Solvency ratios: Solvency ratios match a company's debt levels with its assets, equity, and earnings. These include the debt-equity ratio, debt-assets ratio, and interest coverage ratio.
• Profitability Ratios: These show how effectively a company can generate profits through its operations. Profit margin, return on assets, return on equity, return on capital employed, and gross margin ratio is examples of profitability ratios.
• Efficiency ratios: Efficiency ratios analyse how efficiently a company uses its assets and liabilities to boost sales and increase profits.
• Coverage Ratios: These ratios measure a company's ability to make the interest payments and other obligations associated with its debts. Examples include times interest earned ratio and debt-service coverage ratio.
• Market Prospect Ratios: These include dividend yield, P/E ratio, earnings per share, and dividend payout ratio.

Operations Strategy at Galanz Valuation

Operations Strategy at Galanz Valuation is a very fundamental requirement if you want to work out your Harvard Business Case Solution. Operations Strategy at Galanz Valuation includes a critical analysis of the company's capital structure – the composition of debt and equity in it, and the fair value of its assets. Common approaches to Operations Strategy at Galanz valuation include

• DDM is an appropriate method if dividends are being paid to shareholders and the dividends paid are in line with the earnings of the company.
• FCFF is used when the company has a combination of debt and equity financing.
• FCFE, on the other hand, shows the cash flow available to equity holders only.

These three methods explained above are very commonly used to calculate the value of the firm. Investment decisions are undertaken by the value derived.

Operations Strategy at Galanz calculations for projected cash flows and growth rates are taken under consideration to come up with the value of firm and value of equity. These figures are used to determine the net worth of the business. Net worth is a very important concept when solving any finance and accounting case study as it gives a deep insight into the company's potential to perform in future.

Alternative Solutions

After doing your case study analysis, you move to the next step, which is identifying alternative solutions. These will be other possibilities of Harvard Business case solutions that you can choose from. For this, you must look at the Operations Strategy at Galanz case analysis in different ways and find a new perspective that you haven't thought of before.

Once you have listed or mapped alternatives, be open to their possibilities. Work on those that:

• need additional information
• are new solutions
• can be combined or eliminated

After listing possible options, evaluate them without prejudice, and check if enough resources are available for implementation and if the company workforce would accept it.

For ease of deciding the best Operations Strategy at Galanz case solution, you can rate them on numerous aspects, such as:

• Feasibility
• Suitability
• Flexibility

Implementation

Once you have read the Operations Strategy at Galanz HBR case study and have started working your way towards Operations Strategy at Galanz Case Solution, you need to be clear about different financial concepts. Your Mondavi case answers should reflect your understanding of the Operations Strategy at Galanz Case Study.

You should be clear about the advantages, disadvantages and method of each financial analysis technique. Knowing formulas is also very essential or else you will mess up with your analysis. Therefore, you need to be mindful of the financial analysis method you are implementing to write your Operations Strategy at Galanz case study solution. It should closely align with the business structure and the financials as mentioned in the Operations Strategy at Galanz case memo.

You can also refer to Operations Strategy at Galanz Harvard case to have a better understanding and a clearer picture so that you implement the best strategy. There are a number of benefits if you keep a wide range of financial analysis tools at your fingertips.

• Your Operations Strategy at Galanz HBR Case Solution would be quite accurate
• You will have an option to choose from different methods, thus helping you choose the best strategy.

Recommendation and Action Plan

Once you have successfully worked out your financial analysis using the most appropriate method and come up with Operations Strategy at Galanz HBR Case Solution, you need to give the final finishing by adding a recommendation and an action plan to be followed. The recommendation can be based on the current financial analysis. When making a recommendation,

• You need to make sure that it is not generic and it will help in increasing company value
• It is in line with the case study analysis you have conducted
• The Operations Strategy at Galanz calculations you have done support what you are recommending
• It should be clear, concise and free of complexities

Also, adding an action plan for your recommendation further strengthens your Operations Strategy at Galanz HBR case study argument. Thus, your action plan should be consistent with the recommendation you are giving to support your Operations Strategy at Galanz financial analysis. It is essential to have all these three things correlated to have a better coherence in your argument presented in your case study analysis and solution which will be a part of Operations Strategy at Galanz Case Answer.

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Operations Strategy at Galanz

• Harvard Case Studies

Operations Strategy at Galanz Case Study Solution & Analysis

In most courses studied at Harvard Business schools, students are provided with a case study. Major HBR cases concerns on a whole industry, a whole organization or some part of organization; profitable or non-profitable organizations. Student’s role is to analyze the case and diagnose the situation, identify the problem and then give appropriate recommendations and steps to be taken.

To make a detailed case analysis, student should follow these steps:

STEP 1: Reading Up Harvard Case Study Method Guide:

Case study method guide is provided to students which determine the aspects of problem needed to be considered while analyzing a case study. It is very important to have a thorough reading and understanding of guidelines provided. However, poor guide reading will lead to misunderstanding of case and failure of analyses. It is recommended to read guidelines before and after reading the case to understand what is asked and how the questions are to be answered. Therefore, in-depth understanding f case guidelines is very important.

Harvard Case Study Solutions

STEP 2: Reading The Operations Strategy at Galanz Harvard Case Study:

To have a complete understanding of the case, one should focus on case reading. It is said that case should be read two times. Initially, fast reading without taking notes and underlines should be done. Initial reading is to get a rough idea of what information is provided for the analyses. Then, a very careful reading should be done at second time reading of the case. This time, highlighting the important point and mark the necessary information provided in the case. In addition, the quantitative data in case, and its relations with other quantitative or qualitative variables should be given more importance. Also, manipulating different data and combining with other information available will give a new insight. However, all of the information provided is not reliable and relevant.

When having a fast reading, following points should be noted:

• Nature of organization
• Nature if industry in which organization operates.
• External environment that is effecting organization
• Problems being faced by management
• Identification of communication strategies.
• Any relevant strategy that can be added.
• Control and out-of-control situations.

When reading the case for second time, following points should be considered:

• Decisions needed to be made and the responsible Person to make decision.
• Objectives of the organization and key players in this case.
• The compatibility of objectives. if not, their reconciliations and necessary redefinition.
• Sources and constraints of organization from meeting its objectives.

After reading the case and guidelines thoroughly, reader should go forward and start the analyses of the case.

STEP 3: Doing The Case Analysis Of Operations Strategy at Galanz:

To make an appropriate case analyses, firstly, reader should mark the important problems that are happening in the organization. There may be multiple problems that can be faced by any organization. Secondly, after identifying problems in the company, identify the most concerned and important problem that needed to be focused.

Firstly, the introduction is written. After having a clear idea of what is defined in the case, we deliver it to the reader. It is better to start the introduction from any historical or social context. The challenging diagnosis for Operations Strategy at Galanz and the management of information is needed to be provided. However, introduction should not be longer than 6-7 lines in a paragraph. As the most important objective is to convey the most important message for to the reader.

After introduction, problem statement is defined. In the problem statement, the company’s most important problem and constraints to solve these problems should be define clearly. However, the problem should be concisely define in no more than a paragraph. After defining the problems and constraints, analysis of the case study is begin.

STEP 4: SWOT Analysis of the Operations Strategy at Galanz HBR Case Solution:

SWOT analysis helps the business to identify its strengths and weaknesses, as well as understanding of opportunity that can be availed and the threat that the company is facing. SWOT for Operations Strategy at Galanz is a powerful tool of analysis as it provide a thought to uncover and exploit the opportunities that can be used to increase and enhance company’s operations. In addition, it also identifies the weaknesses of the organization that will help to be eliminated and manage the threats that would catch the attention of the management.

This strategy helps the company to make any strategy that would differentiate the company from competitors, so that the organization can compete successfully in the industry. The strengths and weaknesses are obtained from internal organization. Whereas, the opportunities and threats are generally related from external environment of organization. Moreover, it is also called Internal-External Analysis.

In the strengths, management should identify the following points exists in the organization:

• Advantages of the organization
• Activities of the company better than competitors.
• Unique resources and low cost resources company have.
• Activities and resources market sees as the company’s strength.
• Unique selling proposition of the company.

WEAKNESSES:

• Improvement that could be done.
• Activities that can be avoided for Operations Strategy at Galanz.
• Activities that can be determined as your weakness in the market.
• Factors that can reduce the sales.
• Competitor’s activities that can be seen as your weakness.

OPPORTUNITIES:

• Good opportunities that can be spotted.
• Interesting trends of industry.
• Change in technology and market strategies
• Government policy changes that is related to the company’s field
• Changes in social patterns and lifestyles.
• Local events.

Following points can be identified as a threat to company:

• Company’s facing obstacles.
• Activities of competitors.
• Product and services quality standards
• Threat from changing technologies
• Financial/cash flow problems
• Weakness that threaten the business.

Following points should be considered when applying SWOT to the analysis:

• Precise and verifiable phrases should be sued.
• Prioritize the points under each head, so that management can identify which step has to be taken first.
• Apply the analyses at proposed level. Clear yourself first that on what basis you have to apply SWOT matrix.
• Make sure that points identified should carry itself with strategy formulation process.
• Use particular terms (like USP, Core Competencies Analyses etc.) to get a comprehensive picture of analyses.

STEP 5: PESTEL/ PEST Analysis of Operations Strategy at Galanz Case Solution:

Pest analyses is a widely used tool to analyze the Political, Economic, Socio-cultural, Technological, Environmental and legal situations which can provide great and new opportunities to the company as well as these factors can also threat the company, to be dangerous in future.

Pest analysis is very important and informative.  It is used for the purpose of identifying business opportunities and advance threat warning. Moreover, it also helps to the extent to which change is useful for the company and also guide the direction for the change. In addition, it also helps to avoid activities and actions that will be harmful for the company in future, including projects and strategies.

To analyze the business objective and its opportunities and threats, following steps should be followed:

• Brainstorm and assumption the changes that should be made to organization. Answer the necessary questions that are related to specific needs of organization
• Analyze the opportunities that would be happen due to the change.
• Analyze the threats and issues that would be caused due to change.
• Perform cost benefit analyses and take the appropriate action.

Pest analysis

PEST FACTORS:

• Next political elections and changes that will happen in the country due to these elections
• Strong and powerful political person, his point of view on business policies and their effect on the organization.
• Strength of property rights and law rules. And its ratio with corruption and organized crimes. Changes in these situation and its effects.
• Change in Legislation and taxation effects on the company
• Trend of regulations and deregulations. Effects of change in business regulations
• Timescale of legislative change.
• Other political factors likely to change for Operations Strategy at Galanz.

ECONOMICAL:

• Position and current economy trend i.e. growing, stagnant or declining.
• Exchange rates fluctuations and its relation with company.
• Change in Level of customer’s disposable income and its effect.
• Fluctuation in unemployment rate and its effect on hiring of skilled employees
• Access to credit and loans. And its effects on company
• Effect of globalization on economic environment
• Considerations on other economic factors

SOCIO-CULTURAL:

• Change in population growth rate and age factors, and its impacts on organization.
• Effect on organization due to Change in attitudes and generational shifts.
• Standards of health, education and social mobility levels. Its changes and effects on company.
• Employment patterns, job market trend and attitude towards work according to different age groups.

case study solutions

• Social attitudes and social trends, change in socio culture an dits effects.
• Religious believers and life styles and its effects on organization
• Other socio culture factors and its impacts.

TECHNOLOGICAL:

• Any new technology that company is using
• Any new technology in market that could affect the work, organization or industry
• Access of competitors to the new technologies and its impact on their product development/better services.
• Research areas of government and education institutes in which the company can make any efforts
• Changes in infra-structure and its effects on work flow
• Existing technology that can facilitate the company
• Other technological factors and their impacts on company and industry

These headings and analyses would help the company to consider these factors and make a “big picture” of company’s characteristics. This will help the manager to take the decision and drawing conclusion about the forces that would create a big impact on company and its resources.

STEP 6: Porter’s Five Forces/ Strategic Analysis Of The Operations Strategy at Galanz Case Study:

To analyze the structure of a company and its corporate strategy, Porter’s five forces model is used. In this model, five forces have been identified which play an important part in shaping the market and industry. These forces are used to measure competition intensity and profitability of an industry and market.

porter’s five forces model

These forces refers to micro environment and the company ability to serve its customers and make a profit. These five forces includes three forces from horizontal competition and two forces from vertical competition. The five forces are discussed below:

• THREAT OF NEW ENTRANTS:
• as the industry have high profits, many new entrants will try to enter into the market. However, the new entrants will eventually cause decrease in overall industry profits. Therefore, it is necessary to block the new entrants in the industry. following factors is describing the level of threat to new entrants:
• Barriers to entry that includes copy rights and patents.
• High capital requirement
• Government restricted policies
• Switching cost
• Access to suppliers and distributions
• Customer loyalty to established brands.
• THREAT OF SUBSTITUTES:
• this describes the threat to company. If the goods and services are not up to the standard, consumers can use substitutes and alternatives that do not need any extra effort and do not make a major difference. For example, using Aquafina in substitution of tap water, Pepsi in alternative of Coca Cola. The potential factors that made customer shift to substitutes are as follows:
• Price performance of substitute
• Switching costs of buyer
• Products substitute available in the market
• Reduction of quality
• Close substitution are available
• DEGREE OF INDUSTRY RIVALRY:
• the lesser money and resources are required to enter into any industry, the higher there will be new competitors and be an effective competitor. It will also weaken the company’s position. Following are the potential factors that will influence the company’s competition:
• Competitive advantage
• Continuous innovation
• Sustainable position in competitive advantage
• Level of advertising
• Competitive strategy
• BARGAINING POWER OF BUYERS:
• it deals with the ability of customers to take down the prices. It mainly consists the importance of a customer and the level of cost if a customer will switch from one product to another. The buyer power is high if there are too many alternatives available. And the buyer power is low if there are lesser options of alternatives and switching. Following factors will influence the buying power of customers:
• Bargaining leverage
• Switching cost of a buyer
• Buyer price sensitivity
• Competitive advantage of company’s product
• BARGAINING POWER OF SUPPLIERS:
• this refers to the supplier’s ability of increasing and decreasing prices. If there are few alternatives o supplier available, this will threat the company and it would have to purchase its raw material in supplier’s terms. However, if there are many suppliers alternative, suppliers have low bargaining power and company do not have to face high switching cost. The potential factors that effects bargaining power of suppliers are the following:
• Input differentiation
• Impact of cost on differentiation
• Strength of distribution centers
• Input substitute’s availability.

STEP 7: VRIO Analysis of Operations Strategy at Galanz:

Vrio analysis for Operations Strategy at Galanz case study identified the four main attributes which helps the organization to gain a competitive advantages. The author of this theory suggests that firm must be valuable, rare, imperfectly imitable and perfectly non sustainable. Therefore there must be some resources and capabilities in an organization that can facilitate the competitive advantage to company. The four components of VRIO analysis are described below: VALUABLE: the company must have some resources or strategies that can exploit opportunities and defend the company from major threats. If the company holds some value then answer is yes. Resources are also valuable if they provide customer satisfaction and increase customer value. This value may create by increasing differentiation in existing product or decrease its price. Is these conditions are not met, company may lead to competitive disadvantage. Therefore, it is necessary to continually review the Operations Strategy at Galanz company’s activities and resources values. RARE: the resources of the Operations Strategy at Galanz company that are not used by any other company are known as rare. Rare and valuable resources grant much competitive advantages to the firm. However, when more than one few companies uses the same resources and provide competitive parity are also known as rare resources. Even, the competitive parity is not desired position, but the company should not lose its valuable resources, even they are common. COSTLY TO IMITATE : the resources are costly to imitate, if other organizations cannot imitate it. However, imitation is done in two ways. One is duplicating that is direct imitation and the other one is substituting that is indirect imitation.  Any firm who has valuable and rare resources, and these resources are costly to imitate, have achieved their competitive advantage. However, resources should also be perfectly non sustainable. The reasons that resource imitation is costly are historical conditions, casual ambiguity and social complexity. ORGANIZED TO CAPTURE VALUE : resources, itself, cannot provide advantages to organization until it is organized and exploit to do so. A firm (like Operations Strategy at Galanz)  must organize its management systems, processes, policies and strategies to fully utilize the resource’s potential to be valuable, rare and costly to imitate.

STEP 8: Generating Alternatives For Operations Strategy at Galanz Case Solution:

After completing the analyses of the company, its opportunities and threats, it is important to generate a solution of the problem and the alternatives a company can apply in order to solve its problems. To generate the alternative of problem, following things must to be kept in mind:

• Realistic solution should be identified that can be operated in the company, with all its constraints and opportunities.
• as the problem and its solution cannot occur at the same time, it should be described as mutually exclusive
• it is not possible for a company to not to take any action, therefore, the alternative of doing nothing is not viable.
• Student should provide more than one decent solution. Providing two undesirable alternatives to make the other one attractive is not acceptable.

Once the alternatives have been generated, student should evaluate the options and select the appropriate and viable solution for the company.

STEP 9: Selection Of Alternatives For Operations Strategy at Galanz Case Solution:

It is very important to select the alternatives and then evaluate the best one as the company have limited choices and constraints. Therefore to select the best alternative, there are many factors that is needed to be kept in mind. The criteria’s on which business decisions are to be selected areas under:

• Improve profitability
• Increase sales, market shares, return on investments
• Customer satisfaction
• Brand image
• Corporate mission, vision and strategy
• Resources and capabilities

Alternatives should be measures that which alternative will perform better than other one and the valid reasons. In addition, alternatives should be related to the problem statements and issues described in the case study.

STEP 10: Evaluation Of Alternatives For Operations Strategy at Galanz Case Solution:

If the selected alternative is fulfilling the above criteria, the decision should be taken straightforwardly. Best alternative should be selected must be the best when evaluating it on the decision criteria. Another method used to evaluate the alternatives are the list of pros and cons of each alternative and one who has more pros than cons and can be workable under organizational constraints.

STEP 11: Recommendations For Operations Strategy at Galanz Case Study (Solution):

There should be only one recommendation to enhance the company’s operations and its growth or solving its problems. The decision that is being taken should be justified and viable for solving the problems.

OPERATIONS STRATEGY AT GALANZ Case Solution & Answer

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OPERATIONS STRATEGY AT GALANZ Case Solution

WEAKNESSES:

There are several weaknesses among the business strategy, policy and the practices of the management of the organization that act as barriers in the performance and reputation of the business in the markets where it operates. The most critical among them is the lack of effective production policy and the business strategy of the management of the organization.

The management of the company currently pursues its operations and activities in the market on the basis of a three pronged strategy and they are ODM, OEM and OBM. Although the organization has been able to achieve immense market share in the international markets however, it has failed to secure and promote the brand awareness among the end users and the customers in those markets. Another weakness that the management of the organization is facing respect to the business is the failure of the company to meet the required demand of Magneto. Moreover, the management of the organization has to outsource the supply of this material in order to sustain the production activities of the company and this has increased the costs of the business.

OPPORTUNITIES:

There are several opportunities for the management to cash on to and promote the interests and benefits of the business. The most important opportunity for the management of the organization is to revise and adopt a singular strategy that is efficient and effective in sustaining and growing the market share and growth of the organization. The other opportunities for the management of the organization and the business are as follows. • Expansion in the product base and variety of the business. • Promotion of customer support services and after sales services in the local market/OBM market of the company. • Opportunity to establish its own distribution lines and channels in the international markets.

There are several threats for the management of the organization that act as barriers in the market dominance and growth of the business. It is essential that these threats and challenges of the business are effectively countered by the management of the organization for the long term benefits and interests of the business. The most critical threats of the business for the management of the organization are discussed below. • Strong market reputation and brand awareness of the rivals and competitors in the markets and the industry. • The increased influence of the multinational stores like Walmart that purchase the products of the company.

GALANZ BUSINESS AND OPERATIONAL STRATEGY:

BUSINESS AND GROWTH STRATEGY:

The business strategy of the management of the company is based on low cost and differentiation strategy and this strategy of the management has been extremely useful in gaining the market share in both the international and the domestic markets of the country.This low cost strategy of the management of the organization has enabled the business to enjoy total market dominance in the home country while it has also enabled the business to compete with multinational global giants of the industry effectively…………

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