We are MSc Global Supply Chain Management Students at Brunel University, updating the blog for the purpose of group discussions in Operations and Project Management (MG5579) module.
Nice to see your blog up and running:) I look forward to seeing active engagement of all members of the team and following your dialogue around the general area of operations and project management. To give your blog a stronger identity, perhaps it could be a good idea to choose a name for it!
Last week, Honda announced to cut 800 jobs in their Swindon factory due to the sales decline in the EU. However! BBC reported this evening that Land Rover will create 800 jobs to meet increasing demand from CHINA. I may not be only person who is realizing the shift of consumption power.. At the same time, HONDA no longer attracts EU market?
In China things happen differently.Not because there is no economic downturn, but for the rich part of chinese have strong purchasing power, and they always purchase something extermely expensive to show their social and individual status. Land Rover is the sympol of success,that is why it continue increasig its market in China.
For Honda, I think sales will be better as the economic weather change.
Interesting point Tamami! What is your (and other members of the group) view on the role of operations as a core function within Honda and Land Rover in relation to such shift in the market? Get prepared for our discussion on the different roles of operations in relation to corporate strategy in our next lecture.
Hi Tamami Once, I have seen some people use cash buy the latest model of Land Rover on the International Motor Show in Beijing, LOL. As the Chinese middle class continues to grow, China will import more luxury cars from abroad.In effect,Leilei's opinion is right,most people think price reflect its value and individual status.
Hi, Lei Lei, Ruoqi Thank you for your comments. Yes, it is true that Chinese purchasing power is relentless and it drives the economy!
Beside this, what do you think about the “role of operation” ?. The marketing operation of HONDA was not critical enough to foresee the market trends, which results in the sudden layoff. Followed this, I think that Land Rover was intentionally emphasised on “800”, demonstrating the high perception on responsibility of supporting the local economy. ( I guess ) Anyway, this issue showed the clear contrast between winner and loser….. Honda needs restructure their market strategy!!!
my view is that Honda's ability in meeting the typical key performance indicators in operations management (speed, quality, flexibility, dependability, costs) is not the source of its problems. Perhaps the lack of appropriate response to declining demand in Europe (recession) and China could be blamed for this.
I do agree with Tamami, that they need to rethink their marketing strategy. In China it has limited control of the circumstances; therefore it need to ask the question: why has Land Rover been able to increase sales in every other major market? Looking at the models that JLR have increased their sales in so much, its very similar to the models which Honda manufactures in the EU and China.
My conclusion is that operations is not the problem but rather responsiveness to market trends; both foreseen and unforeseen. If Honda can be sharper in their response to their macro and micro environments, it has a better chance of drafting a more effective marketing strategy. Yet still, marketing has to communicate with the operations function so that it could also respond appropriately.
Notice that although JLR is increasing its manufacturing capabilities around the world, it is still serving a lot of that demand from its UK factories in the mean time, until other sites are ready. If Honda could have found new geographical markets to serve, it may not have needed to downsize at a plant which it has already invested in.
What should Honda do now? and what will be the impact on operations? Should operations be the driver, supporter or implementer of its business strategy?
A. The cause of this challenge is that the bank was not able to grasp the change of customers’ requirement timely according to the rapid economic change such as an increasing overseas transaction etc.
B. Possible Solution First, identify the weakness in their current customer service system and study how they can be reconstructed taking into consideration of their customer requirement to improve the responsiveness. New system should be consists of two pillars, one is the global standard and the other is local standard so that the bank can continue to provide customer-tailored and intensive service for their local customers. When the implementation of new scheme, the priority is the employee training as they handle thousands of transaction which can be the source of their revenue.
The most important is, the bank increasing the flexibility (VARIETY of service) without losing the responsiveness.
Hi, Upeksha
ReplyDeleteThank you for your arrangement for opeing our blog. Let's make it interested one!
Nice to see your blog up and running:) I look forward to seeing active engagement of all members of the team and following your dialogue around the general area of operations and project management. To give your blog a stronger identity, perhaps it could be a good idea to choose a name for it!
ReplyDeleteLast week, Honda announced to cut 800 jobs in their Swindon factory due to the sales decline in the EU. However! BBC reported this evening that Land Rover will create 800 jobs to meet increasing demand from CHINA. I may not be only person who is realizing the shift of consumption power.. At the same time, HONDA no longer attracts EU market?
ReplyDeletehttp://www.bbc.co.uk/news/business-21003670
Hi,Tamami.
DeleteIn China things happen differently.Not because there is no economic downturn, but for the rich part of chinese have strong purchasing power, and they always purchase something extermely expensive to show their social and individual status. Land Rover is the sympol of success,that is why it continue increasig its market in China.
For Honda, I think sales will be better as the economic weather change.
Interesting point Tamami! What is your (and other members of the group) view on the role of operations as a core function within Honda and Land Rover in relation to such shift in the market? Get prepared for our discussion on the different roles of operations in relation to corporate strategy in our next lecture.
DeleteHi Tamami
DeleteOnce, I have seen some people use cash buy the latest model of Land Rover on the International Motor Show in Beijing, LOL.
As the Chinese middle class continues to grow, China will import more luxury cars from abroad.In effect,Leilei's opinion is right,most people think price reflect its value and individual status.
Upeksha:
ReplyDeleteThanks a lot to creat our group.
I really want to learn from you all~
Hi, Lei Lei, Ruoqi
ReplyDeleteThank you for your comments. Yes, it is true that Chinese purchasing power is relentless and it drives the economy!
Beside this, what do you think about the “role of operation” ?. The marketing operation of HONDA was not critical enough to foresee the market trends, which results in the sudden layoff. Followed this, I think that Land Rover was intentionally emphasised on “800”, demonstrating the high perception on responsibility of supporting the local economy. ( I guess ) Anyway, this issue showed the clear contrast between winner and loser….. Honda needs restructure their market strategy!!!
Hi everyone, thanks for you comments so far
ReplyDeletemy view is that Honda's ability in meeting the typical key performance indicators in operations management (speed, quality, flexibility, dependability, costs) is not the source of its problems. Perhaps the lack of appropriate response to declining demand in Europe (recession) and China could be blamed for this.
http://www.ft.com/cms/s/0/b9cfcae2-2191-11e2-b5d2-00144feabdc0.html#axzz2IM3VVAud
I do agree with Tamami, that they need to rethink their marketing strategy. In China it has limited control of the circumstances; therefore it need to ask the question: why has Land Rover been able to increase sales in every other major market? Looking at the models that JLR have increased their sales in so much, its very similar to the models which Honda manufactures in the EU and China.
My conclusion is that operations is not the problem but rather responsiveness to market trends; both foreseen and unforeseen. If Honda can be sharper in their response to their macro and micro environments, it has a better chance of drafting a more effective marketing strategy. Yet still, marketing has to communicate with the operations function so that it could also respond appropriately.
Notice that although JLR is increasing its manufacturing capabilities around the world, it is still serving a lot of that demand from its UK factories in the mean time, until other sites are ready. If Honda could have found new geographical markets to serve, it may not have needed to downsize at a plant which it has already invested in.
What should Honda do now? and what will be the impact on operations? Should operations be the driver, supporter or implementer of its business strategy?
HI, Annete,
DeleteThank you for your insight opinion.
I also uploaded my comment on the question of BANK Operation which we were given on the last lecture. Please have a look!
Hi, Upeksha,
ReplyDeleteThank you for upload the queestion!
A. The cause of this challenge is that the bank was not able to grasp the change of customers’ requirement timely according to the rapid economic change such as an increasing overseas transaction etc.
B. Possible Solution
First, identify the weakness in their current customer service system and study how they can be reconstructed taking into consideration of their customer requirement to improve the responsiveness. New system should be consists of two pillars, one is the global standard and the other is local standard so that the bank can continue to provide customer-tailored and intensive service for their local customers. When the implementation of new scheme, the priority is the employee training as they handle thousands of transaction which can be the source of their revenue.
The most important is, the bank increasing the flexibility (VARIETY of service) without losing the responsiveness.