Galanz

Topics: Microwave oven, Strategic management, Management Pages: 3 (1093 words) Published: April 21, 2015
1. Describe the nature of operations management at Galanz in terms of their (1) operations decisions, and, (2) operational objectives. How has the importance of the objectives changed over the years? Considering the development of Chinese economy, Galanz decided to introduce microwave oven into Chinese market from 1991. At the beginning, Galanz had to import equipment and technology from overseas, because they lacked of associated technology and technical expertise at home (p436). Compare with the high price of foreign brands, Galanz chose to set the low price to gain the market share with western courtiers’ competitors. They controlled the cost lower than their competitors, because they had “an abundant supply of cheap labor and land” (p436). During the development of Galanz, it gained more market share by low price strategy. In order to be the top in this industry not only domestically, but also overseas, Galanz recently focuses on the flexibility, diversity, and the quality of products. They invest the innovation of products for various customers’ needs. Besides, they choose to outsourced part of its magnetron production as a long-term solution to narrow its production gap (p442). The leadership has realized that Galanz should not only rely on low cost labor, but also on workers’ technical and management skills, work attitudes and efficiency (p442). Since the lack of technology, Galanz chose to import equipment at the beginning, and rely on the low price strategy to get a position in Chinese market. They were forced to research and develop new technology and equipment, because the large production gap and the suppliers refuse to provide enough equipment for Galanz. After the success of innovation, Galanz started to enter the overseas market. The change of operation objective is the direction of development of Galanz in the future.

2. What were the order winners/order qualifiers for Galanz in the microwave oven business during the early stage of its...
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