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Hanover Public Systems

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Hanover Public Systems faces critical issues at its Taiwan plant due to decreasing sales, employee discontent, and cultural clashes with the new president, James Fukuda. Fukuda's individualistic Western management style does not consider Taiwanese culture or consult employees. This has led to resignations, low morale, and financial losses. Several solutions are proposed: maintain the status quo; slow down changes; replace Fukuda; or close the plant, each with benefits and drawbacks to consider.

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HANOVER PUBLIC SYSTEMS B辿r辿nice ANDRE Charles DAY GROUP 308
SUMMARY I. OVERVIEW II. BUSINESS FACTORS III. STATEMENT IV. DIFFERENT SOLUTIONS PROPOSED V. CLASS DISCUSSION OVERVIEW BIZ FACTORS STATEMENT SOLUTIONS CLASS RECO.
I. OVERVIEW 1. Companys 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. OVERVIEW 1. Companys 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 OVERVIEW BIZ FACTORS STATEMENT SOLUTIONS CLASS RECO. I. OVERVIEW 2. Taiwans 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. OVERVIEW 2. Main Participants a. Different Participants
I. OVERVIEW 3. 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. OVERVIEW 3. 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 equipment Lay-off 18 workers and 12 reassignment +1 Month : Reorganization of the management OVERVIEW BIZ FACTORS STATEMENT SOLUTIONS CLASS RECO.
I. OVERVIEW 3. Main Participants b. James Fukuda Consequences of M. Fukudas 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. OVERVIEW 4. Exhibits a. Dialogue OVERVIEW BIZ FACTORS STATEMENT SOLUTIONS CLASS RECO.
I. OVERVIEW 4. Exhibits a. Dialogue OVERVIEW BIZ FACTORS STATEMENT SOLUTIONS CLASS RECO.
I. OVERVIEW 4. 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 arent 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. OVERVIEW 4. Exhibits b. Exhibit 2 : Present and Proposed Organizational Charts for HPS RESIGNED RESIGNED SpecializedSales Force OVERVIEW BIZ FACTORS STATEMENT SOLUTIONS CLASS RECO.
I. OVERVIEW 4. Exhibits b. Exhibit 2 : Present and Proposed Organizational Charts for HPS ? ? ? ? ? ? OVERVIEW BIZ FACTORS STATEMENT SOLUTIONS CLASS RECO.
I. OVERVIEW 4. Exhibits b. Exhibit 3 : HPSTaiwan Balance Sheet (in thousands of US$) OVERVIEW BIZ FACTORS STATEMENT SOLUTIONS CLASS RECO.
I. OVERVIEW 4. Exhibits b. Exhibit 4 : HPSTaiwan Sales by Product Line, 1993-1998 (in thousands of US$) OVERVIEW BIZ FACTORS STATEMENT SOLUTIONS CLASS RECO.
II. BUSINESS FACTORS 1. Communication Problem Fukuda doesnt 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 FACTORS 2. 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 dont like Japanese) OVERVIEW BIZ FACTORS STATEMENT SOLUTIONS CLASS RECO.
II. BUSINESS FACTORS 3. Asian Vs Western Management Basic Values Management StyleOrganization Asian Asian AsianAsian Westerns Westerns WesternsWesterns Individual Legal Confrontation Analytic Short Term Control Conflict One Product/ Service focused Rationality Structured Directive Doint Formal Fragmented Hierarchial Competitive Group Trust Compromise Fluid Long term Human Resource Collaborative Customer focused Relationships Flexible Adaptive Understanding Informal Generalist Integrated Co-operative OVERVIEW BIZ FACTORS STATEMENT SOLUTIONS CLASS RECO.
II. BUSINESS FACTORS 4. SWOT STRENGHTS WEAKNESSES - Important international company (with subsidiaries) - Important annual sales - Specialized employees - Ability of the company to invest - M. Los 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 - Elevators Market - Fukudas 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 PROPOSED 1. Status-Quo Meaning : Continue with Fukudas 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 PROPOSED 2. Re-open heating and cooling equipment Meaning : Go against Fukudas 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 PROPOSED 3. Slow down Fukudas actions Meaning : Slow down Fukudas policy, take the time to communicate with the employees about the gravity of the companys 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 wont 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 PROPOSED 4. 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 PROPOSED 5. 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.

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Hanover Public Systems

  • 1. HANOVER PUBLIC SYSTEMS B辿r辿nice ANDRE Charles DAY GROUP 308
  • 2. SUMMARY I. OVERVIEW II. BUSINESS FACTORS III. STATEMENT IV. DIFFERENT SOLUTIONS PROPOSED V. CLASS DISCUSSION OVERVIEW BIZ FACTORS STATEMENT SOLUTIONS CLASS RECO.
  • 3. I. OVERVIEW 1. Companys 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.
  • 4. 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. OVERVIEW 1. Companys Presentation
  • 5. 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 OVERVIEW BIZ FACTORS STATEMENT SOLUTIONS CLASS RECO. I. OVERVIEW 2. Taiwans Case
  • 6. 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. OVERVIEW 2. Main Participants a. Different Participants
  • 7. I. OVERVIEW 3. 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.
  • 8. I. OVERVIEW 3. 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 equipment Lay-off 18 workers and 12 reassignment +1 Month : Reorganization of the management OVERVIEW BIZ FACTORS STATEMENT SOLUTIONS CLASS RECO.
  • 9. I. OVERVIEW 3. Main Participants b. James Fukuda Consequences of M. Fukudas 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.
  • 10. I. OVERVIEW 4. Exhibits a. Dialogue OVERVIEW BIZ FACTORS STATEMENT SOLUTIONS CLASS RECO.
  • 11. I. OVERVIEW 4. Exhibits a. Dialogue OVERVIEW BIZ FACTORS STATEMENT SOLUTIONS CLASS RECO.
  • 12. I. OVERVIEW 4. 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 arent sure about there future in the company - Creation of a plan without consulting 3. Lack of Communication OVERVIEW BIZ FACTORS STATEMENT SOLUTIONS CLASS RECO.
  • 13. I. OVERVIEW 4. Exhibits b. Exhibit 2 : Present and Proposed Organizational Charts for HPS RESIGNED RESIGNED SpecializedSales Force OVERVIEW BIZ FACTORS STATEMENT SOLUTIONS CLASS RECO.
  • 14. I. OVERVIEW 4. Exhibits b. Exhibit 2 : Present and Proposed Organizational Charts for HPS ? ? ? ? ? ? OVERVIEW BIZ FACTORS STATEMENT SOLUTIONS CLASS RECO.
  • 15. I. OVERVIEW 4. Exhibits b. Exhibit 3 : HPSTaiwan Balance Sheet (in thousands of US$) OVERVIEW BIZ FACTORS STATEMENT SOLUTIONS CLASS RECO.
  • 16. I. OVERVIEW 4. Exhibits b. Exhibit 4 : HPSTaiwan Sales by Product Line, 1993-1998 (in thousands of US$) OVERVIEW BIZ FACTORS STATEMENT SOLUTIONS CLASS RECO.
  • 17. II. BUSINESS FACTORS 1. Communication Problem Fukuda doesnt 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.
  • 18. II. BUSINESS FACTORS 2. 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 dont like Japanese) OVERVIEW BIZ FACTORS STATEMENT SOLUTIONS CLASS RECO.
  • 19. II. BUSINESS FACTORS 3. Asian Vs Western Management Basic Values Management StyleOrganization Asian Asian AsianAsian Westerns Westerns WesternsWesterns Individual Legal Confrontation Analytic Short Term Control Conflict One Product/ Service focused Rationality Structured Directive Doint Formal Fragmented Hierarchial Competitive Group Trust Compromise Fluid Long term Human Resource Collaborative Customer focused Relationships Flexible Adaptive Understanding Informal Generalist Integrated Co-operative OVERVIEW BIZ FACTORS STATEMENT SOLUTIONS CLASS RECO.
  • 20. II. BUSINESS FACTORS 4. SWOT STRENGHTS WEAKNESSES - Important international company (with subsidiaries) - Important annual sales - Specialized employees - Ability of the company to invest - M. Los 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 - Elevators Market - Fukudas 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.
  • 21. 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.
  • 22. IV. DIFFERENT SOLUTIONS PROPOSED 1. Status-Quo Meaning : Continue with Fukudas 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.
  • 23. IV. DIFFERENT SOLUTIONS PROPOSED 2. Re-open heating and cooling equipment Meaning : Go against Fukudas 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
  • 24. IV. DIFFERENT SOLUTIONS PROPOSED 3. Slow down Fukudas actions Meaning : Slow down Fukudas policy, take the time to communicate with the employees about the gravity of the companys 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 wont be too bad - Fukuda will have what he expected - Managers will be able to advice - Loss of money - Some workers will still complain
  • 25. IV. DIFFERENT SOLUTIONS PROPOSED 4. 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
  • 26. IV. DIFFERENT SOLUTIONS PROPOSED 5. 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
  • 27. IV. CLASS DISCUSSION Please share with us your point of view and recommendations OVERVIEW BIZ FACTORS STATEMENT SOLUTIONS CLASS RECO.