| dc.description.abstract | The business of Group Corporation A centers around manufacturing of key technological products. Through reacting to market and customer demands, it has gradually been expanding its product lines. Beginning from 2000, it started to diversify. Apart from internal growth, it also expanded through acquisition, merger and strategic alliances. By 2018, it has a total of 12 factories, and achieved a 20 times growth in revenue. With the phenomenal growth, it is now faced with a set of operational difficulties, including excessive annual capital expenditure, slow pay-off, diluted earnings per share that is under five for many years.
This study attempts to look into the issues, and propose solution to tackle the problems. It includes customer orientation and resilient organization redesign to cope with internal and external changes. As a senior manager participating in the operations of the company, the researcher took the relevant managerial concepts as foundations, coupled with personal experience and insights, in addition to managerial interviews, to arrive at the recommendations. The proposal aims at enhancing internal collaboration and cost reductions, includes four aspects:
(1) organizational structure: empowerment of the operational units; better information exchange of these units to lower wrong decisions; and central coordination of staff functions by the headquarters.
(2) transfer pricing: setting up of an efficient mechanism in transfer pricing in cases of transactions among internal units, such that new strategic units are protected, while others are free to follow the market.
(3) information sharing and technology exchange: establishing of an information sharing mechanism to facilitate technology assimilations; transforming from hierarchical structure to project structure.
(4) performance appraisal and reward system: restructuring the performance appraisal and reward systems to achieve motivation towards goals, coupled with periodical satisfaction survey on shared resources and headquarters services.
This proposal is expected to enhance sharing of resources and operational efficiencies, to achieve overall profits. | en_US |