Case I: CHEMCO CASE

Started in 1965, ChemCo is a leading manufacturer of car batteries in the U.K. market. Since then, it has
been under the charge of Mr. Jones, the founder-owner of the firm. In 1999, the company decided to go
for a diversification by expanding the product line. The new product was batteries for fork-lift trucks. At
the same time, Mr. Marek was appointed the Senior Vice President of marketing in the company.
However, soon after its successful diversification into fork-lift batteries, the sales in this segment began
dropping steadily. Mr. Marek wanted to introduce some radical changes in the advertising and branding
of the new business but the proposal was turned down by the old-fashioned Mr. Jones.

At this juncture in 2002, the firm is losing heavily in the fork-lift batteries business and its market share in
car batteries is also on a decline. Mr. Jones has asked Mr. Marek to show a turnaround in the company
within a year. What steps should Mr. Marek take to take the company out of its troubles?

Some of the facts on the case are:

ChemCo is a quality leader in the U.K. car batteries market.

Customer battery purchases in the automobile market are highly seasonal.

The fork-lift business was added to utilize idle capacity during periods of inactivity.

This is a low-growth industry (1% annual growth over the last two years)

Large customers are sophisticated and buy based on price and quality. Smaller customers buy solely on
price.

There is a Spanish competitor in the market who offers low priced batteries of inferior quality.

Situation Analysis:

Company

Established player in car batteries

Losing heavily in fork-lift truck batteries

Old fashioned owner resistance to change

Competition

Low priced competitors

Foreign competitors gaining market share

Customers

High quality product, but low end customers care more about price than quality
Problem Definition:

Mismanaged product diversification in a price sensitive market

Alternatives:

Alternative 1: Establish an Off-Brand for the fork-lift business

Alternative 2: Educate the customer market about product quality

Alternative 3: Exit the fork-lift battery business

Criteria for evaluation of alternatives:

Establishing the firm's quality image

Increase in market share

Increase in sales

Cost of the product

Evaluation of Alternatives:

Alternative 1

Protect firm's quality image in the automobile industry

Redesigned product to reduce the cost of manufacture

Low price to enable it to compete with Spanish producer

Alternative 2

Make use of the quality leadership in car batteries market

Offer reliability testing, extended warranties etc. to promote quality image

Set higher prices to extract surplus from these advantages

Alternative 3 and 4

A passive strategy, not proactive

Recommendations:??

Assignment 1

give recommendation of case study 1, should be hand written picture.

Case II: NAKAMURA LACQUER COMPANY

The Nakamura Lacquer Company (NLC) of Kyoto, Japan, employed several thousand men and produced
500,000 pieces of lacquer tableware annually, with its Chrysanthmum brand becoming Japan's best
known and bestselling brand. The annual profit from operations was $250,000.

The market for lacquerware in Japan seemed to have matured, with the production steady at 500,000
pieces a year. NLC did practically no business outside Japan.

In May 2000, (much to your chagrin!) the ambitious and dynamic, Mr. Nakamura (Chairman, NLC)
received two offers from American companies wishing to sell lacquer ware in America.

The first offer was from the National China Company. It was the largest manufacturer of good quality
dinnerware in the U.S., with their “Rose and Crown” brand accounting for almost 30% of total sales. They
were willing to give a firm order for three years for annual purchases of 400,000 sets of lacquer
dinnerware, delivered in Japan and at 5% more than what the Japanese jobbers paid. However,
Nakamura would have to forego the Chrysanthemum trademark to “Rose and Crown” and also
undertake not to sell lacquer ware to anyone else in the U.S.

The second offer was from Sammelback, Sammelback and Whittacker (henceforth SSW), Chicago, the
largest supplier of hotel and restaurant supplies in the U.S. They perceived a U.S. market of 600,000 sets
a year, expecting it to go up to 2 million in around 5 years. Since the Japanese government did not allow
overseas investment, SSW was willing to budget $1.5 million for the next two years towards introduction
and promotion. Nakamura would sell his “Chrysanthemum” brand but would have to give exclusive
representation to SSW for five years at standard commission rates and also forego his profit margin
toward paying back of the $ 1.5 million.

What should Mr. Nakamura do?:

Situational Analysis:

The Nakamura Lacquer Company: The Nakamura Lacquer Company based in Kyoto, Japan was one of the
many small handicraft shops making lacquerware for the daily table use of the Japanese people.

Mr. Nakamura- the personality: In 1948, a young Mr. Nakamura took over his family business. He saw an
opportunity to cater to a new market of America, i.e. GI's of the Occupation Army who had begun
to buy lacquer ware as souvenirs. However, he realized that the traditional handicraft methods were
inadequate. He was an innovator and introduced simple methods of processing and inspection using
machines. Four years later, when the Occupation Army left in 1952, Nakamura employed several
thousand men, and produced 500,000 pieces of lacquers tableware each year for the Japanese mass
consumer market. The profit from operations was $250,000.

The Brand: Nakamura named his brand “Chrysanthemum” after the national flower of Japan, which
showed his patriotic fervor. The brand became Japan's best known and best selling brand, being
synonymous with good quality, middle class and dependability.
The Market: The market for lacquerware in Japan seems to have matured, with the production steady at
500,000 pieces a year. Nakamura did practically no business outside of Japan. However, early in 1960,
when the American interest in Japanese products began to grow, Nakamura received two offers

The Rose and Crown offer: The first offer was from Mr. Phil Rose, V.P Marketing at the National China
Company. They were the largest manufacturer of good quality dinnerware in the U.S., with their “Rose
and Crown” brand accounting for almost 30% of total sales. They were willing to give a firm order for
three eyes for annual purchases of 400,000 sets of lacquer dinnerware, delivered in Japan and at 5%
more than what the Japanese jobbers paid. However, Nakamura would have to forego the
Chrysanthemum trademark to “Rose and Crown” and also undertaken to sell lacquer ware to anyone
else the U.S. The offer promised returns of $720,000 over three years (with net returns of $83,000), but
with little potential for the U.S. market on the Chrysanthemum brand beyond that period.

The Semmelback offer: The second offer was from Mr. Walter Sammelback of Sammelback, Sammelback
and Whittacker, Chicago, the largest supplier of hotel and restaurant supplies in the U.S. They perceived
a U.S. market of 600,000 sets a year, expecting it to go up to 2 million in around 5 years. Since the
Japanese government did not allow overseas investment, Sammelback was willing to budget $1.5
million. Although the offer implied negative returns of $467,000 over the first five years, the offer had
the potential to give a $1 million profit if sales picked up as anticipated.

Meeting the order: To meet the numbers requirement of the orders, Nakamura would either have to
expand capacity or cut down on the domestic market. If he chose to expand capacity, the danger was of
idle capacity in case the U.S. market did not respond. If he cut down on the domestic market, the danger
was of losing out on a well-established market. Nakamura could also source part of the supply from
other vendors. However, this option would not find favor with either of the American buyers since they
had approached only Nakamura, realizing that he was the best person to meet the order.

Decision problem: Whether to accept any of the two offers and if yes, which one of the two and under
what terms of conditions?

Objectives:

Short Term:

To expand into the U.S. market.

To maintain and build upon their reputation of the “Chrysanthemum” brand

Long term:

To increase profit volumes by tapping the U.S. market and as a result, increasing scale of operations.

To increase its share in the U.S. lacquerware market.

Criteria: (In descending order of priority):

Profit Maximization criterion: The most important criterion in the long run is profit maximization.

Risk criterion: Since the demand in the U.S. market is not as much as in Japan.

Brand identity criterion: Nakamura has painstakingly built up a brand name in Japan. It is desirable for
him to compete in the U.S. market under the same brand name

Flexibility criterion: The chosen option should offer Nakamura flexibility in maneuvering the terms and
conditions to his advantage. Additionally, Nakamura should have bargaining power at the time of
renewal of the contract.

Short term returns: Nakamura should receive some returns on the investment he makes on the new
offers. However, this criterion may be compromised in favor of profit maximization in the long run.?

Options:

Reject both: React both the offers and concentrate on the domestic market

Accept RC offer: Accept the Rose and Crown offer and supply the offer by cutting down on supplies to
the domestic market or through capacity expansion or both

Accept SSW: offer; accept the SSW offer and meet it through cutting down on supply to the domestic
market or through capacity expansion or both. Negotiate term of supply.M

Evaluation of Options:

Reject both: This option would not meet the primary criterion of profit maximization. Further, the
objective of growth would also not be met. Hence, this option is rejected.

Accept RC offer: The RC offer would assure net returns of $283,000 over the next three yeas. It also
assures regular returns of $240,000 per year. However, Nakamura would have no presence in the U.S.
with its Chrysanthemum brand name The RC offer would entail capacity expansion, as it would not be
possible to siphon of 275,000 pieces from the domestic market over three years without adversely
affecting operations there. At the end of three years, Nakamura would have little bargaining power
with RC as it would have an excess capacity of 275,000 pieces and excess labor which it would want to
utilize. In this sense the offer is risky. Further, the offer is not flexible. Long-term profit maximization is
uncertain in this case a condition that can be controlled in the SSW offer. Hence, this offer is rejected.

Accept SSW offer: The SSW offer does not assure a firm order or any returns for the period of contract.
Although, in its present form the offer is risky if the market in the U.S. does not pick up as expected,
the offer is flexible. If Nakamura were to exhibit caution initially by supplying only 300,000 instead of
the anticipated 600,000 pieces, it could siphon off the 175,000 required from the domestic market. If
demand exists in the U.S., the capacity can be expanded. With this offer, risk is minimized. Further, it
would be competing on its own brand name. Distribution would be taken care of and long-term profit
maximization criterion would be satisfied as this option has the potential of $1 million in profits per
year. At the time of renewal of the contract, Nakamura would have immense bargaining power.
Recommendations??

CASE III:
The language barrier Tourism and hospitality is a diverse sector comprised of workers from
varied cultures, backgrounds, ages, and languages. This is one of the reasons our industry is so
unique. But with this diversity, comes its challenges. In the case of a large hotel, where a
housekeeping department is comprised of workers from all over the world, training can
sometimes be a challenge to due language barriers. And although many corporate properties
have developed strong training programs, it’s not always fully understood by each person in the
room. Knowing this, what types of tools, methods, and practices can an employer use to ensure
proper training has been provided?
1. Make a list of different training techniques you can use when trying to overcome a
language barrier? To overcome language barriers while training employees within the
workplace, there are a few things which we can do:

 Speak slowly and clearly.

Articulate each word carefully, so that our accent does not confuse the listener. Speaking clearly
does not mean speaking very loudly, but simply to emphasize every word.

 Use Simple Language with Coworkers

Be clear and use simple words and say what needs to be said. Do not elaborate unnecessarily – 
too much talk can confuse the message.

 Speaks to the point.

In teaching, we should just say what should be said like what, how, when, why and how long the
training task takes.

 Repeat yourself
Repetition is the key to memory. Even those who hear something once in their native language
may not always remember what you’ve said. We should repeat our words it annoying for you to
repeat yourself, in some cases it is necessary to ensure everyone is on the same page.

 Visualising in combination with speaking

Pictorial instructions in training can be used as back up prompts for oral instructions.

 Wisely usage of gestures

We can use our body to indicate tasks –  we can demonstrate verbs visually, such as screw,
hammer, cut, lift, wash, clean, stop, go etc.

 Give handouts
Give our trainees something to take away with them that summarizes the training we have
covered. This gives them the opportunity to review the material and study it in their own time.
They may also be able to have someone translate any parts they failed to understand in the
training room.
 2. At the end of the training, what methods can you use to determine whether or not the
worker understood?
Post training activities can be the techniques for determining whether or not the worker understood in
respect to overcome language barriers after training. Which includes many like Post-training quizzes,
one-to-one discussions, employee surveys, participant case studies, role playing, team building activities
and official certification exams are some ways to measure training effectiveness. Refer to techniques for
checking and overcoming language understanding through the use of visualization, applying proven
examples can be good tools to know worker understanding.

3. How effective are visual aids when it comes to training and why?
It is recommended to do practicing with visual aids in the room where training is taking place. Because
every individual has the tendency to forget. In particular, proper use of visual aids helps to retain more
concept permanently. While words can be abstract and hard to retain, visuals tend to be more concrete
and easier to recall.

Visual aids can be a great help in keeping trainees engaged. It creates the environment of interest also
provide direct experience to the learner.

Plus, when information is presented visually, it’s a lot more engaging! The use of visuals aids while
training employees stimulates their thinking and improves learning also. An effective use of visual aids
substitutes monotonous learning environments.

Workers develop and increase personal understanding of the areas of learning when they find visual aids
sessions useful and relevant also when it has some direct relation to the content taught.

4. When developing a training plan for an employee who has English as a second
language, what types of things should you consider when putting your training plan
together?
While developing a training plan for my employee whose native language is not English I will support all
my training and communication with explicit visual cues.

Will not use too many (or too sophisticated) words, will Include pictures and videos

Will ensure that desired behavior is clearly indicated in the video/picture by an easily recognizable sign,
such a green checkmark, red X or a STOP sign.

Whenever possible, will provide training summary in employee's native language.

Also will avoid generalizations and will focus my training specifically on the equipment, practice, or
procedure at hand. This will avoid confusion and minimize unnecessary fatigue on my trainees.

Will give my trainees frequent breaks – because they're not only learning something new, they're
learning something in a second language.
Speak slowly, loudly, and clearly will be the part of my training plan as Deliver the training in these way
will confirm understanding of the topic.

5. What is the KEY takeaway your group has learned from this case study?
After answering the above questions what I learned is that it is the responsibility of the trainer
to first prepare himself to make their audience understand well effective as English is not their
first language. It is on a trainer how well he is in balancing between two languages. One in
which he will give the training i.e. English and second that is his audience native language.
Because the understanding of this will give him better outcomes to have success in his career or
also make employees to be beneficial for their organization too. The more trainer do to achieve
measurable outcomes, an easier it will be to quantify our worker’s understanding.

Case study 4
Engaging Senior Management Proper training is one of the most important tools in maintaining a
successful OHS program. Without training, all the company’s policies & procedures are just words on
paper. Unfortunately, not everyone feels the same way. Safety training can often be viewed as a burden
to the employer, and in many cases, will only be done because they have to do it. How often have you
heard the phrase, “we just don’t have time to do it”? On the list of priorities, it’s often near the bottom,
but when it comes to cutbacks, it’s always near the top. Getting everyone to do the training can
sometimes feel daunting, and getting all the managers engaged is not always easy. In this case study,
your group will discuss the different challenges you’ve faced within your industries with when it comes
to safety training.

1. Make a list of the different challenges you’ve experienced to promoting safety training, and
determine if there are any commonalities amongst your group?

Challenge No. 1: Fitting safety training into work commitments

This is probably one of the biggest challenges, when staff are told they need to complete a health and
safety course. Even when everyone is motivated to develop their knowledge and skills we all know the
practicalities of losing some working days or hours, can put people under great pressure. Workloads will
increase and productivity can suffer if your workforce has to attend safety training.

Challenge No. 2: Preparing the trainers

Fitting into everyone’s work schedule is just the first challenge when it comes to in-person training. We
also must ensure that those providing training materials are adequately prepared to do so.

For these technical job duties, human-to-human training is essential for preparing our employees to
work efficiently and at the highest performance level. But unless the trainer is not equipped with good
demonstration, training can leave the trainee feeling stressed, inadequate, and frustrated.

Challenge No. 3: Coordinating all employee’s schedules

Providing comprehensive safety training requires a great deal of coordination. Everyone is busy. For
example, when we want to train on new procedure or about new equipment we want participation of all
company’s direct manager, the head of the department, HR, teammates, and other relevant partners
within the organization, but they’re busy approaching a wide range of other business work. That’s a lot
of moving parts. Too often, important information and introductions related to training get postponed or
forgotten due to an inability to find a time that works for everyone.

Challenge No. 4: Lack of employee engagement

This is among the most straightforward issue of the employee that incorporate in safety training
challenges. If our employees aren’t engaged in their training, they won’t get much out of it.

Individual employees have different motivations when it comes to learning about safety at work. They
believe this is the least concern issue which they need to think about, no one is reactive against having
safety training. They also don’t think that they will be able to retain new information better and actually
in result they will do something active, instead of passive after having a training session.

Challenge No. 5: A dispersed workforce

A steady rise in remote work and a decentralized workforce has led to new challenges in training and
development. With a geographically dispersed workforce, safety training can be quite hard. Like, if we
have a group of managers and team leaders who need to get involve in Safety training at once but they
are located at different sites or work different shift patterns, getting them all trained is potentially a big
challenge for us and this can also be have higher than budgeted cost and time implications.

Challenge No. 6: Costs, costs, and costs

Facilitation, equipment, venue hire, and the cost of employees’ time (those hours add up!) all make
training an expensive undertaking.

Training budgets tend to be small, while training demands are always steep this further contributes as a
challenge in training of safety issues.

2. Discuss the different methods we’ve used in engaging management towards safety training,
and share your top 5 strategies?

Addressing health and safety provides opportunities to improve business efficiency, as well as safeguard
workers. Therefore, the approaches of getting management behind our safety plan include:

 Reduced costs and reduced risks

 Lower employee absence

 Lower turnover rates

 Fewer incidents, accidents, breakdowns and process failures

 Better business continuity

 Increased productivity

 Improved standing thereby a better reputation among suppliers, clients and other partners.
These are the top concern points for engaging management towards safety training and for sure
conducting of safety training is indeed helpful for manager to have efficiency and effectiveness at their
workplace.

3. In what ways should Senior Management be involved in your safety program?

Senior Management should be involve in a way that they feel responsible for establishing and
maintaining safety management system. They should provide the leadership, vision, and resources
needed to implement an effective safety and health program.

Their role and responsibility include:

 Make worker safety and health a core organizational value.

 Are fully committed to eliminating hazards, protecting workers, and continuously improving
workplace safety and health.

 Establishing safety performance goals that are in line with other company goals and help set a
direction for improvement.

 Communicate their commitment to a safety and health program

 Provide sufficient resources to implement and maintain the safety and health program.

 Overseeing Safety management system performance.

 Modifying policies and goals as necessary.

 Visibly demonstrate and communicate their safety and health commitment to workers and
others. Set an example through their own actions.

4. What are the benefits of having Senior Management involved in the safety program?
Senior Management involvement in safety programs is associated with good safety performance. This
includes making a personal contribution to work health and safety consultation and frequent contact
between workers, management and supervisors. By being involved in safety program supervisors would
know about the risks that happen in the company since part of their responsibility is to ensure a safe
environment for everyone under them. Also by having managers own involvement they can get
feedback directly from employees which will be very helpful in letting them understand how participants
are reacting to the training. Also

5. If senior management thinks safety training is a waste of time, what key points could you
present to convince them otherwise?

Beyond the obvious reasons – regulation and moral responsibility – there are plenty of points for
convincing management to invest more time and thought in a well-planned workplace safety training
program. Here are a few:

 Financial Benefits, safety training saves money.

  Lower insurance premiums

 Less productivity loss due to illness or injury

 Helps avoid indirect costs, such as administration of return-to-work programs, job

accommodations.

 Higher employee satisfaction

 Reduced worker compensation for medical leave due to work-related injuries and illnesses

 Protection from liability lawsuits

 Future incident prevention.

 Reputation Benefits a safety program can prevent financial stress caused by job-related
accidents.

6. What is the KEY takeaway your group has learned from this case study?

Workplace safety is important for every worker since everyone wants to work in a secure and safe
environment. Hazards are pervasive to every organization or in all types of industries, hence it is
essential for an organization to make provisions for safety training for their workers and to update the
safety programs and norms on a regular basis. Health and safety is the major area in a workplace and a
company must be obliged to ensure the protection and safety of its employees. Regardless of the fact
that company is either big or small.

It is recommend in my opinion that companies must conduct a regular safety training seminar. Regular
safety training is important in building a safe, healthy, and productive work environment for everyone in
the company. Conducting health and safety training will ultimately benefit the company and its
reputation.

Case study 5

The new & young worker

When it comes to New and Young Worker Training, employers are required to orientate and train all
workers “before” work begins, on safe work procedures, and hazards related to the job. But the term
“new worker” isn’t as obvious as it seems. In this case study, we will define what it is to be a new or
young worker and the training required.
 1. Until what age are you considered a young worker, under Pakistan Regulation?

Workers between the ages of 14 and less than 18 years will not be engaged in hazardous
working conditions and other working environments that adversely affect their physical and
moral development. The Occupational Health and Safety Regulation defines a "young worker"
as any worker under age 25.

2. If an employee - who has worked for a company for many years – is relocated to a different
department, are they, by WSBC definition, considered a new worker, and should they have to undergo
safety orientation and safe work procedure training again, and why?

If the hazards in the new department is different from the previous department in which the employee
was working then definitely that employee must undergo safety orientation and safe work procedure
training again as the definition of new worker its self say a "new worker" includes those who are new to
the workplace or location, or facing new hazards.

3. If you leave a company, and a few months later get re-hired for the exact same job position, are you
considered a new worker, and what type of training should follow?

There will not be need of any training required if the job nature i.e the sort of work an employee was
doing previously remain same. But if there is any slight change occur for the job position we are going
back then brief training regarding to the procedure will be required.

4. As a group, discuss the importance of young worker training, and list how and why it differs from
the mature worker’s needs?

It is important to train young employees because they can bring fresh perspective and a
different way of thinking to our business as compare to mature employee who has earn enough
experience to deal with any circumstances. Most young workers are eager to learn, build their
experience and apply their skills in the workforce as oppose to older employee. Younger
employees show great enthusiasm which is good for team building, productivity and workplace
moral.

5. When putting together a training plan for new or young workers, what topics should be included in
the training?

 Handling of personal protective equipment

 Guidance for emergency procedure

 Stand for right

 Sexual Harassment

 Policy, Procedure and compliance

6. What is the KEY takeaway your group has learned from this case study?
It is important to train employee related to safe work procedure when it comes to New and Young
worker as it improves their moral and they can be productive in more efficient and effective way. If
young employee include hazards related to their job it become essential to provide them training for the
smooth operations of their jobs.