Prepare a 300- to 600-word memo below addressing each of the following.
Problem 1: Propose sales force and distribution strategies for the new range of phones in China and in Europe.
Problem 2: Propose a research and development strategy and product design strategy for the mobile phone range.
Problem 3: Use the Internet or library resources to conduct supplementary research on the cell phone market in Europe and in China.
BACKGROUND:
Konicron Electronics was founded in 1979 and is headquartered in Naperville, Illinois. It is a medium-sized consumer electronics company that manufactures
• compact disk players and recorders
• high-definition, plasma, and other television sets
• mobile (cellular) phones
Konicron has various manufacturing facilities (two in the United States and one each in China, Mexico, and New Zealand). It recently opened a software development facility in Bangalore, India.
A global presence
Konicron has sales offices around the world. In the United States, its offices are located in
• Chicago
• Houston
• Miami
• New York
• Los Angeles
Its overseas offices are located in
• Bombay, India
• Shanghai, China
• Hanover, Germany
• Toronto, Canada
As an international company, Konicron is concerned about political, economic, and currency fluctuation risks. By globally diversifying its manufacturing, software development, and marketing operations, Konicron has successfully mitigated these risks.
Company structure:
Konicron's core competency is low costs and flexibility. Toward this goal, middle and upper-level management work in an interdisciplinary function.
Rather than a traditional department structure, Konicron is organized in cross-functional teams. These teams consist of members from the marketing, sales, product engineering, production, and finance departments.
Managers rotate between product development, manufacturing, and marketing operations across various business units. As a result, Konicron is able to integrate new ideas and experiences.
Financial status:
Over the past 10 years, Konicron has provided remarkable value to its stakeholders. Sales have grown from a modest $250 million annually to approximately $6.2 billion in 2003. Profits have steadily increased from approximately 2 percent to approximately 12 percent. Today, Konicron trades at $117 a share, compared to $7 in 1992.
Industry praise:
What makes Konicron such a successful company? Industry analysts attribute this to two factors:
• A focus on value addition
• A management philosophy of activity integration
Konicron's management practices have earned glowing reviews from business trade journals and publications.