Komatsu Case

Topics: Bulldozer, Marketing, Excavator Pages: 2 (774 words) Published: October 1, 2012
Konm Komatsu Case sorularının Cevapları
1-Komatsu was able to evolve from a 169 million Dollar company with low-quality products to become a real challenge to Caterpillar by taking vital series of actions. First action was taken by Kawai’s father by initiating a Total Quality Control(TQC) program in 1961. In this context, Kawai’s strategy was to acquaire and develop advanced technology, to raise quality and to increase efficiency to the level necessary to “catch up with and surpass Cat”. In order to stimulate the company around his challenge and to focus management on his strategic priorities,kawai introduced a style of management which he called “management by policy”. His first policy was “Project A” sought to raise the quality of Komatsu’s middle-sized bull dozers to Cat’s level. Building on this base, Kawai instituted a new system of control, the “Plan,Do,Check,Act”(PDCA) cycle. I think that Mr Kawai performed very well since his Project A enabled Komatsu to double its warranty period within two years while cutting claims rates by two-thirds. Additionally, Project A triggered an increase in sales that raised Komatsu’s market share from 50% to 65% by 1970. In response to the economic stagnation that Japan in 1965, Kawai targeted a “cost down program” at slashig costs. In 1966, Mr Kawai made wise decisions and launched his five year “World A” campaing sought to make Komatsu internatioally competitive in cost and quality, thus reducing Komatsu’s potentially dangerous reliance on domestic sales. Beside of it, Mr Kawai launched projects B,c,d to improve reliability and durability in large bulldozers and shovels,payloaders, and hydraulic excavators, respectively. Finally, success of Kawai is proven at annual report of Cat in 1982, which opened with a Picture of Komatsu buldozer and warning that Cat wouldnt be able to compete against its Japenese rival at prevailing Exchange and wage rates. 2-When Mr Nogawa became CEO, it was the beginning of an era of falling...
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