hanover public systems
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HANOVER PUBLIC SYSTEMS
Bérénice ANDRECharles DAYGROUP 308
SUMMARY
I. OVERVIEW
II. BUSINESS FACTORS
III. STATEMENT
IV. DIFFERENT SOLUTIONS PROPOSED
V. CLASS DISCUSSION
OVERVIEW BIZ FACTORS STATEMENT SOLUTIONS CLASS RECO.
I. OVERVIEW1. Company’s Presentation
Hanover Public System (HPS)
• American Manufacturer of Industrial Electrical Equipment (elevators, lighting system, heating and cooling equipment and industrial fans)
• Important Dates : 1960 : Beginning of foreign manufacturing 1996 : Decline and money loss in Taiwan
OVERVIEW BIZ FACTORS STATEMENT SOLUTIONS CLASS RECO.
Hanover Public System (HPS)
• 8 wholly owned subsidiaries around the world+
• 4 large domestic Plants
The company have good financial results except… in Taiwan.
OVERVIEW BIZ FACTORS STATEMENT SOLUTIONS CLASS RECO.
I. OVERVIEW1. Company’s Presentation
Context : • Based in the city Taipei
(Taiwan)• Infusion of 3 million US $ from
the parent company
Still Bad Performance, loss of money
Consequences :• Yang Hsiao-Shih, President of
Taipei Plant was fired• James Fukuda became President
of Taipei Plant
OVERVIEW BIZ FACTORS STATEMENT SOLUTIONS CLASS RECO.
I. OVERVIEW2. Taiwan’s Case
• Howard Wolff: HPS President
• Yang Hsiao-shih: Previous Taiwan Plant President (Terminated)
• James Fukuda: New Taiwan Plant President (Second generation Japanese-American)
• M. Lo: Finance Director (Taiwan)
• T. Hu: Vice-President of Operations (Taiwan)
• H. Lee: Superintendent of Manufacturing (Taiwan)
OVERVIEW BIZ FACTORS STATEMENT SOLUTIONS CLASS RECO.
I. OVERVIEW2. Main Participants
a. Different Participants
I. OVERVIEW3. Main Participants
b. James Fukuda
• Nationality : Japanese-American
• Age : 38 years old
• Experience : Ex Vice-President of the Operations at the Oakland California
• Characteristic : Seen as a Brillant Manager
OVERVIEW BIZ FACTORS STATEMENT SOLUTIONS CLASS RECO.
I. OVERVIEW3. Main Participants
b. James Fukuda
Actions :
Before Arriving : Throw out useless stocks in order to offset liabilities
+1 Week : Shut down the heating and cooling manufacturing equipmentLay-off 18 workers and 12 reassignment
+1 Month :Reorganization of the management
OVERVIEW BIZ FACTORS STATEMENT SOLUTIONS CLASS RECO.
I. OVERVIEW3. Main Participants
b. James Fukuda
Consequences of M. Fukuda’s actions :
• Vice-President, M. Hu resignation
• Middle and Upper Level Managers sent a letter to the President M. Wolff
• M. Wolff starts wondering and doubting about Mr Fukuda
OVERVIEW BIZ FACTORS STATEMENT SOLUTIONS CLASS RECO.
I. OVERVIEW4. Exhibits
a. Dialogue
OVERVIEW BIZ FACTORS STATEMENT SOLUTIONS CLASS RECO.
I. OVERVIEW4. Exhibits
a. Dialogue
OVERVIEW BIZ FACTORS STATEMENT SOLUTIONS CLASS RECO.
I. OVERVIEW4. Exhibits
b. Exhibit 1 : Letter from M. Lo (Finance Director) to M. Wolff (President) complaining about M. Fukuda
1. Shut down the manufacturing of heat and cooling equipment due to very low prices set by competitors which are mainly Japanese
2. Unwise Reorganization Plan :- Sales were by equipment, M. Fukuda
wants them in one division.- Pressure exerced on employees who
aren’t sure about there future in the company
- Creation of a plan without consulting
3. Lack of Communication
OVERVIEW BIZ FACTORS STATEMENT SOLUTIONS CLASS RECO.
I. OVERVIEW4. Exhibits
b. Exhibit 2 : Present and Proposed Organizational Charts for HPS
RESIGNED
RESIGNED
Specialized Sales ForceOVERVIEW BIZ FACTORS STATEMENT SOLUTIONS CLASS RECO.
I. OVERVIEW4. Exhibits
b. Exhibit 2 : Present and Proposed Organizational Charts for HPS
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OVERVIEW BIZ FACTORS STATEMENT SOLUTIONS CLASS RECO.
I. OVERVIEW4. Exhibits
b. Exhibit 3 : HPS—Taiwan Balance Sheet (in thousands of US$)
OVERVIEW BIZ FACTORS STATEMENT SOLUTIONS CLASS RECO.
I. OVERVIEW4. Exhibits
b. Exhibit 4 : HPS—Taiwan Sales by Product Line, 1993-1998 (in thousands of US$)
OVERVIEW BIZ FACTORS STATEMENT SOLUTIONS CLASS RECO.
II. BUSINESS FACTORS1. Communication Problem
• Fukuda doesn’t have any experience in Taiwan and ignore the culture
• He took decisions before arriving on the field
Lack of consideration for his collaborators
• Once in Taiwan, he put in place measures without consulting the Taiwanese Managers
NO DIALOG WITH THE EMPLOYEES
OVERVIEW BIZ FACTORS STATEMENT SOLUTIONS CLASS RECO.
II. BUSINESS FACTORS2. Intercultural Differences
FUKUDA• Fukuda has an individualistic vision and culture• He is only focused on the success of the subsidiary and forget
the workers• He wants to solve problems too fastly
CHINESE• The Chinese are attached to the group and solidarity• They want more cooperation• They see M. Fukuda as an impostor (Chinese don’t like Japanese)
OVERVIEW BIZ FACTORS STATEMENT SOLUTIONS CLASS RECO.
II. BUSINESS FACTORS3. Asian Vs Western Management
Ba sic Va lue s
M a na g e m e nt StyleO rg a niza tio n
Asian
Asian
AsianAsian
W esterns
W esterns
W esternsW esterns
Ind ivid ua lLe g a lC o nfro nta tio nAna lytic
Sho rt Te rmC o ntro lC o nflic tO ne Pro d uc t/Se rvic e fo c use d
Ra tio na lityStruc ture dDire c tiveDo in t
Fo rm a lFra g m e nte dHie ra rc h ia lC o m p e titive
G ro upTrustC o m p ro m iseFlu id
Lo ng te rmHum a n Re so urc eC o lla b o ra tiveC usto m e rfo c use d
Re la tio nsh ip sFle xib leAd a p tiveUnd e rsta nd ing
In fo rm a lG e ne ra listIn te g ra te dC o -o p e ra tive
OVERVIEW BIZ FACTORS STATEMENT SOLUTIONS CLASS RECO.
II. BUSINESS FACTORS4. SWOT
STRENGHTS WEAKNESSES- Important international
company (with subsidiaries)- Important annual sales- Specialized employees- Ability of the company to invest- M. Lo’s influence and
knowledge on the field (Taiwan)
- Loss of money in Taiwan- Resignation of M. Hu and Lee- Bad work atmosphere- Fukuda is narrow-minded- Some positions are still empty- Western culture VS Asian
culture
OPPORTUNITIES THREATS- Bankruptcy of the competitors- Good Sales = Diminution of
inventory- Arrival of a new Management- Elevator’s Market
- Fukuda’s lack of knowledge and experience in China
- Employees’ discontent- Sales still decrease- Harder price competition- Closing of HPS Taiwan
OVERVIEW BIZ FACTORS STATEMENT SOLUTIONS CLASS RECO.
III. STATEMENT
• Critical financial situation due to a decrease of sales
• Bad Morale of the workers who are discontent about the situation
• Intercultural Problem about the Management Style
OVERVIEW BIZ FACTORS STATEMENT SOLUTIONS CLASS RECO.
IV. DIFFERENT SOLUTIONS PROPOSED1. Status-Quo
Meaning : Continue with Fukuda’s ideas (close the heating and cooling equipment, follow the reoganization plan)
- Limit the loss- Well structured organization- Increase of assets
- Sales not specialized- Workers still angry- Takes time
OVERVIEW BIZ FACTORS STATEMENT SOLUTIONS CLASS RECO.
IV. DIFFERENT SOLUTIONS PROPOSED2. Re-open heating and cooling equipment
Meaning : Go against Fukuda’s policy and give a chance to the heating and cooling equipment department
OVERVIEW BIZ FACTORS STATEMENT SOLUTIONS CLASS RECO.
- Employees are not fired- Employees’ morale good- Competition possible against Japanese
- Loss of money - Margin will have to be ridiculous- Fukuda will be angry
IV. DIFFERENT SOLUTIONS PROPOSED3. Slow down Fukuda’s actions
Meaning : Slow down Fukuda’s policy, take the time to communicate with the employees about the gravity of the company’s situation, and help them with a re-insertion job plan
OVERVIEW BIZ FACTORS STATEMENT SOLUTIONS CLASS RECO.
- Employees will have more time to find another job- Employees’ morale won’t be too bad- Fukuda will have what he expected- Managers will be able to advice
- Loss of money - Some workers will still complain
IV. DIFFERENT SOLUTIONS PROPOSED4. Dismiss Fukuda
Meaning : Dismiss Fukuda and replace him by a confirmed Chinese/Taiwanese Manager
OVERVIEW BIZ FACTORS STATEMENT SOLUTIONS CLASS RECO.
- Employees will be more respectful- Employees will listen more easily- Manager will know how to react with the workers - More efficiency
- Fukuda will be annoyed- Might go against the Headquarters point of view- Might cause a loss of control- Loss of a brillant manager
IV. DIFFERENT SOLUTIONS PROPOSED5. Close HPS Taiwan
Meaning : Close the Taiwan Subsidiary Firm
OVERVIEW BIZ FACTORS STATEMENT SOLUTIONS CLASS RECO.
- Restart from zero- No more loss of money- No more debts
- Cost a lot of money- Unemployment- No more possibility to create a new subsidiary in Taiwan in the future
IV. CLASS DISCUSSION
Please share with us your point of view and recommendations
OVERVIEW BIZ FACTORS STATEMENT SOLUTIONS CLASS RECO.