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Sharp-2 Group-B Management

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BACKGROUND:
Sharp Corporation which is known as the next generation‟s product manufacturer has established their organization with this rare characteristic to provide new products in every possible step and sphere of life. They have the ability to come up with 20 new products in a year which is like 1 to 2 in every month. Sharp‟s president spends lots of time and effort looking for innovations for new products. Understanding consumers‟ mind and demand is more important for this company. Finance comes later as they are a real example of consumer oriented company. Technological innovations and the understanding about customers‟ mind makes them prepare for the future demand and also makes them to be successful fulfilling it. This is there actual leadership which is very rare among their competitors.

Kinkyu:
Sharp‟s products development and ideas come from their very organized senior level expertise. Sharp‟s “Kinkyu” or “emergency program” use a system to develop outstanding and challenging ideas and development or new products. They make continuous revision on the market and existing products and demand to form the new ideas. Products are divided into three categories high, middle and low-end products. Each has individual characteristics and set of features. In 1993 the 8 best selling electric appliance the renowned research centre Nikkei bring into being that 4 of them were Sharp products.

Sharp’s products:
In 1992 this company came out with the idea of LCD-View Cam. This was a video camera and was based on a the development of a very little reflection LCD display that was not trouble-free for their competitor to facsimile. The idea of view cam developed by the feedback the collect from every level. Top down approach worked well in case of this product. People from bottom suggested for a video camera featuring all the characteristics LCD-View Cam has.

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Sharp-2 Group-B Management
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Next comes the Awash in the same year 1992, a new type of washing machine that had a sensor to control positioning and it was also very hard-hitting to duplicate. The idea of Awash developed by an incident witnessed by president Tsuji of watching and old lady to use a step to reach into the machine and use a hook to pull the clothes out. That is where the idea of a low height washing machine came from. Sharp always put themselves in their customers‟ shoe to get the knowledge about future requirements. And this is the secret of being the “creation-intensive” successful company as the value creation. From the innovation Sharp‟s VIP refrigerator in the month of February and it shipped 80,000 units in 7 months. Market share of Sharp refrigerator raised by 1.1% by this time. VIP refrigerator was designed in a way so that the external size gets abridged without reducing the internal space. It was possible because of the use of silicon dioxide pellets in a vacuum environment to reduce the insulation width. And this technology made the competitor in little trouble. Lastly the wide-TV set with the lowest price in the market. It had IC technology but was comparatively easy to duplicate but with the cheapest price the got the market. This wide screen TV had increased the market share by 0.9% according to the Nikko Research Center. Wide-TV sets also used their effective method which is the top down strategy. The president encourages their people to be suggestive so that they can reach to their minds. Later on the ideas get investigated in the research and development group.

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Sharp-2 Group-B Management
Sharp’s Market Share:

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Products Electronic Calculators Home Phones Microwave Ovens Japanese word processors Color TVs Camcorders Refrigerators VCRs Plain paper copiers

Market Share 36.0% 22.0% 20.9% 20.2% 15.5% 15.2% 13.0% 12.0% 6.9%

Product Development System of Sharp:
Sharp is known as one of the most creative companies in Japan. Because of the ability to explore the market and concentrating on new technologies they come with new product ideas and innovation of very unique products in the market. They get the financial backup from the headquarter. When the outcomes r short term, the organizational impact is significant and the potential of sales is huge the usually get fund from headquarter. Each proposal gets investigated and pointed by a team with a chairperson. If the project gets high point it is judged as the valid one and submitted to the engineering meeting held monthly. Then the resource judgment gets done and the proposal gets its allocated budget. After a very flexible time of three years the group is supposed to repay the half of the investment on that project back to the headquarter. development of one kinkyu project generally takes one to one and half year time. So it is quite possible to repay within given time period.

Longer term projects are the responsibility of R&D group and get the funding from the corporate R&D group as it is a corporate-wide effort. In this case they use their own judgment and assessment. About 80% of the projects are

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Sharp-2 Group-B Management
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product development projects. And the remaining 20% are software development or service development for new business. The vital characteristics of kinkyu projects are the responsibility and power is given to the project head. And only the president can choose this person. All the team members are supposed to understand his corporate power and should abide by him. Like the other typical companies Sharp do not give the responsibility to the vice president or divisional manager rather make such person in charge that can understand and run the project well. The reason of their success is mainly the cultivation of creativeness and the philosophy of exploring the market to find the needs. In different era they target different market. Like in 1975 their target was the baby boomers. In 1984 and 1985 the baby boomers‟ families began to take over Sharp‟s products and their products did not work well that time. It required Sharp to come up with new concept and a new strategy. For this the company founded the research group who make the investigation. They appreciate unique ideas from anywhere possible. Their different approaches like on the field observation, top-down approach and other knowledge sharing concept are generously accepted into the organization. Practice of coming up with new project ideas and targeting different market with different product design and strategy is Sharp‟s unique character which have made them to be in the top list of the most creative company. The have the mentality to develop products according to the each scenario that gets viewed.

Problem Sharp faces:
The problem they had was their long distance communication. Product division was in Tochigi and the audio products division was in Hiroshima. They need a organization that can combine these two in making discussion and decision about audio-visual products. Some organization that can integrate products would help them to come out of this problem. Another problem they faced was about different perspective. In real life one

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Sharp-2 Group-B Management M A NM A GG M E MM ME NM T single person plays numeral role and each of the roles represents different window for self-expression. Tsuji about what the organization should be doing. To make the process perfect they need to observe each of the scene of a person‟s or a consumer‟s life which is not easy practically. The way how the new ideas should be done and the process is decided by the teams themselves. For this reason they set up a center how people spend their lives. It is hard to figure out people‟s priority by observing the field. They review the designs and revise them to be more customer oriented. There is many reasons to stimulate the organization to do new things and the organization units need to be responsible for doing them. There is less involvement of higher authority. To make themselves more focused and accurate they wanted to observe their customers 24 hours a day. 5|Page . what things they care more and their priority. The co-ordinate division and executives have this ability but what the company lack is a life style center which will show certain pattern. The creative life style planning group has two centers in Osaka and Makhuri. Overcoming problems: As the result of concluding to the solution the company has come up with the design center. So that they can understand more about their consumers‟ lives and demand. Europe and Japan to get suggestion from the consumers and understand the lifestyle. Third problem was the managing knowledge and clear conception of the senior managing director. They monitored housewives and customers. They also do the market survey in USA. Outstanding products came out from such study about consumer behavior. The dizzy perception makes the way complex of reaching the target. Observation does not work that well here. This design center is now considered as the brain of the company. Priority in life varies person to person.

Their competitor like Matsushita and Sanyo target mass market where Sharp is more customer oriented and take care of the single possible needs with there continuous revision of product development. Future plan of Sharp: In November 1992 Sharp opened their multimedia development headquarter to celebrate their 80th anniversary with a view of futuristic international market player. Developing strategic alliance with other major company will give them the access to learn about different strategy and mold it according to their working style and approach so that they can achieve more efficiency.Sharp-2 Group-B Management M A NM A GG M E MM ME NM T From the previous stage they developed it toward more sense following and professional one. They believe multimedia product will merge the existing products categories and will meet next generation‟s products. As the Nikkei Sangyo‟s newspaper article noted that Sharp lacked in communication technology so such future projects like multimedia will be able to overcome this lap and fulfill the demand and hold a stronger position in the market compare to their competitors. After the meeting the top officer initiates action on the recommendation. 6|Page . Meeting with the sense leaders typically lasted two hours and includes five people from the company. Next level of consumer was the sense leader. Sophisticated behavior toward the needs continued more through the step or sense leading. At the bottom of the market there was no sense consumer or the mass market targeted production. In sense leader process the call the person who bought the product.

From then. Sharp has strong competitors like Sony. the Vice President or Division Mangers are insignificant than the Heads of Kinkyu project which can cause conflict inside Sharp. finding them is time consuming and difficult. however. Sharp targets the sense leaders. still.Sharp did not expand their business in the large markets like China. the profit margin of Sharp has decreased from 4. India and Russia. 7|Page .1%. Matsushita. Sharp is working towards full automation of its production line which is really expensive . Sharp continued its innovations derived from the company‟s ability to commercialize its technologies.4% in 1990 to 2. However. JVC and others in the market. Haruo Tsuji is the current President of Sharp Corporation whose leadership enrolled Sharp to be the most profitable organization in the technological ind ustry. Sharp is investing a large chunk of money in Research and development (R&D).Sharp-2 Group-B Management M A NM A GG M E MM ME NM T THEME Sharp is one of the leading creative companies of Japan which was established in 1912. there are some problems in Sharp regarding. the major development of products are very few in number.

C hi ne s e a nd R us s i a n fa c to r i e s to c o m p e te wi t h i ts c o m p e ti to r s a nd i nc r e a s e i ts p r o fi ts ? 8|Page .Sharp-2 Group-B Management M A NM A GG M E MM ME NM T MAIN ISSUE: Ho w c a n S ha r p uti li ze i ts Ind i a n .

3. They have continued innovations derived from the company‟s ability to commercialize its technologies. Justification: As Sharp use different methods to practice creativeness in the organization and be successful as they are very focused toward the need of their consumers. Most creative company in Japan: Sharp has undoubtedly recognized as one of the most creative companies in Japan. Justification: Incident described like getting idea about Awash washing machine while watching an old lady using step to reach the regular washing machine and using hook to pull out the clothes gave the idea of a new revolutionary washing machine shows their commitment toward the customer orientation. Justification: Sharps R&D team and new formed multimedia group and communication group are continuously coming with suitable technology and both developed and new type of products like View-Cam. 2. Keep pace with changing demand: They use modern technology to develop their product according to the demand.Sharp-2 Group-B Management M A NM A GG M E MM ME NM T MANAGEMENT BIASED SWOT ANALYSIS Strength: 1. To keep pace with the changing demand and habits Sharp is not falling behind to face and meet them. As they put them at customers‟ place they get the idea about different type of lifestyle as well as different types of demands derived from that. Always think from customers’ perspective by putting them in consumers’ shoes: Sharp observe the market and get the idea about it by putting themselves in their consumers‟ shoe. they have made their way to be in the top list of most creative companies. 9|Page .

6. Justification: The process and consideration each of the product development ideas goes through assures the accomplishment of the projects. It helps them to reach the target market the products are developed for. Small groups take form in order to take the responsibility and to understand the product idea and to design according to that. Justification: The process described shows that small group take care of different projects where there is a project head and other member are supposed to follow him. Through lots of investigation and engineering meeting that holds once in a month they allocate fund for such type of projects. 5. Make sure the succession of “Kinkyu” projects: They make sure that the products kinkyu projects are handling are profitable enough. This person is chosen based on the understanding and technological qualification that is needed for the product. Development of “Kinkyu” for each individual projects typically takes one to one and half year time to complete: Kinkyu projects of Sharp takes lesser time than other projects. 4. Generally these projects take one to one and half year to accomplish.Sharp-2 Group-B Management M A NM A GG M E MM ME NM T Justification: The kinkyu project is effective because of their short time accomplishment characteristic. 10 | P a g e . Very active R&D department Sharp‟s research and development group is the most active and efficient group as they deal with all the technical support and the required resources needed. But do it only then when they are sure about the succession of it. This is reasonable to meet the demand on the proper time when customers need it. 7. Different product design for each different product: Sharp prefer individual product design for every single product.

And sense leader process makes very specific comment about the product so it gets easy to take necessary steps to make the customization or develop products next time. They never mind having suggestions and ideas from different sources even if from lower level employees or customers‟ feedback or reaction. Justification: A barrier free environment gives the access to the employees to explore their mind and think about new ideas as they are very much appreciated about it. It enhances their knowledge and gives suggestion about current product development and future products. Justification: The reason these are counted as one of the strength is because top-down approach helps to get various ideas which may not be seen from the top level managements. Involvement of top to bottom level employees using “top-down approach” and “sense leader”: Sharp has introduced a very unique process to get more possible ideas inside the organization. 11 | P a g e . 9. 8. Free flow of sharing knowledge and ideas: Both the inside and outside culture of this organization appreciate a barrier free flow of knowledge.Sharp-2 Group-B Management Justification: M A NM A GG M E MM ME NM T R&D department of Sharp makes all the process goes through via them. On the field observation and knowledge seeking are practiced It is the culture of the company to focus the scenario wherever possible and investigate and understand customers‟ want. “Sense leader” refers to the approach where Sharp‟s employees find out a sharp product user and organize a meeting where the consumer gives the feedback. Justification: On the field observation makes the way to get closer with the scenario where the demand can be seen. They make necessary research and come up with an appropriate suggestion or way when a new type of product is suggested from any of the sources. 10. They have brought this approach called “topdown” where lower level employers are allowed to share their ideas and perspective and top level management welcomed this.

Haruo Tsuji. This is very time consuming and resource overwhelming project that Sharp has taken into their hands. communication and the uses of other variable resources increases and causes lower profit margin for the management. Market research becomes expensive as Sharp needs to understand each consumer’s mind: Consumer had their own mode of expression which caused Sharp to invest more for extensive market research. president of Sharp Corporations. Not so as many major developments as desired: Sharp may have a large number of products that are being revised or sold in a given year. But as we all know. most expenses in a market research are not meant with full purpose due to the mere arrangement of such investigations. This created a considerable amount of pressure on valuable time and finances: Every industry. needs to cut costs to increase profit and prosper in the market.Sharp-2 Group-B Management Weaknesses M A NM A GG M E MM ME NM T 1. meaning only about 15 -20 per year. 12 | P a g e . Sharp only manages to cover 3-5 products per quarter. 3. Justification: When different sectors are situated at different places. Sharp has the line-up of at least 20 products in a given year. But this achievement becomes difficult when various production lines of the company are situated at different places. costs such as mainly transport. Their visual products division was in Tochigi and audio in Hiroshima. But. technical or not. Justification: Sharp is having a hard time trying to know what is on the consumers‟ mind and what they exactly want. 2. Justification: As per Sharp‟s projected goals set by Mr. through the introduction of kinkyu projects. but the major developments are not so many in number.

Sony’s lightweight handycam Snap was taking over the market: When Sony‟s handycam Snap was launched into the market. they make it known to everyone who is reading it.1% of sales in 1992.1%: Sharp‟s refrigerator VIP was becoming a market phenomenon from the beginning of its incision into the market.1% mark was greater than that what Sharp profited in the year 1987 and 1988. Opportunities 1.Sharp-2 Group-B Management M A NM A GG M E MM ME NM T 4. surpassing the expected sales. 5. Overall operating profits were 2. In 1993. Justification: Although the 2. This was a very bad news for the management of the Sharp Corporation. lighter and easier to be held in only one hand than that of Sharp‟s ViewCam at that time in the market. it created a mindset in the consumers‟ mind that they must avoid Sharp‟s specified product lines. Sharp increased its market share of refrigerators 1. Sharp was facing heavy competition from Sony. and a threat. this is down from the 4. Justification: The competition was mainly because Sony‟s Snap was smaller in size. Sharp share was constantly increasing. Nikkei Sangyo’s newspaper article said Sharp’s current weakness was in communication technology: Whenever a local or national newspaper or other media publishes something about a company.4% profit margin of 1990: Profits were decreasing by the day for Sharp Corporation and became less than half by two year‟s time. 6. 13 | P a g e . Justification: So when Nikkei published an article concerning the weakness of communication technology in Sharp. the decrement of this from only two years pushed Sharp into a vulnerable position with the threat of further downfall. This ultimately means financial loss for the company.

Large new markets in China and India opened up new opportunities with huge potentials: Developing countries like Pakistan and Latin American countries send invitations to Sharp to set up factories. 2. 4. Justification: Competitors of Sharp tried to introduce the kinkyu progression in their companies and they failed at it. Justification: Developing countries like Pakistan and Latin American countries were the emerging markets that were growing at the staggering rate of 610% per year in demand. But this kept Sharp ahead of their competitors. Sharp avoids bureaucracy as much as possible to maintain pace and keep up with the kinkyu project goals: By avoiding the bureaucracy in the organization. The search for sense leaders was difficult. Sharp manages t keep pace with the ongoing kinkyu projects to meet the required demand in the market.Sharp-2 Group-B Management Justification: M A NM A GG M E MM ME NM T With the introduction of the newest method of reducing the outside space of the fridge without cutting the space inside was an instant hit with the customers. In a 14 | P a g e . 3. yet kept Sharp ahead of their competitors: The search for the sense leaders was becoming a very frustrating method to comply with in order to keep up and keep themselves ahead of Sharp‟s competitors to gain profit and maintain pace. Bangladesh is relieved from such patent right and all other kinds of related bureaucracies which slows down the production and manufacturing of critical life saving machines. „who did you get this suggestion from?‟ This could become a burden for the company if a suitable alternative is not figured out soon. This also incuded VIP refrigerators and Awash washing machines introduced new methods to cut heat and allow low cost productions by reducing outside space with silicon dioxide. Justification: Sharp was trying to track down the sense leaders in the market one by one by complying with the traditional method of asking someone. One of the reasons for their failure was to maintain bureaucracy which Sharp avoids by all cost.

6. Justification: Although the 2. and Matsushita was number three.1% mark was greater than that what Sharp profited in the year 1987 and 1988.Sharp-2 Group-B Management M A NM A GG M E MM ME NM T country like Japan where people everywhere and is stricken with the endless cycle of innovation. communication and the uses of other variable resources increases and causes lower profit margin for the management. 2 in video camera market and projecting a 40% by half of 1994: The major competitors in the video camera market were Sony. and now the Zaurus 15 | P a g e .9% bought by first time purchasers of such products: Although ViewCam faced heavy competition from Sony‟s Snap. we have grown up from the calculator business to the electronic organizer. Sony was currently number one. costs such as mainly transport. Justification: When they think about the computer market. When different sectors are situated at different places. 5. Justification: The reason these are counted as one of the opportunities is because top-down approach helps to get various ideas which may not be seen from the top level managements. it was stilled very much popular with the first time users of the product. Sharp surpassed Matsushita in market share in 1993 to become number. Sharp introduced personal notebook Zaurus for $500 whereas Apple’s Newton was heavier with a little more functions priced at $800: According to Sharp‟s president Mr. The ViewCam created the all-in-one display/camera/recorder with 60. Sharp was going to link many small products with the network. Sharp was number two. JVC and Matsushita. the decrement of this from only two years pushed Sharp into a vulnerable position with the threat of further downfall. JVC admitted that they lost share in 1993. electronic manufacturer. 7. This is where Sharp managed to gain the majority of share in this portion of the market. And sense leader process makes very specific comment about the product so it gets easy to take necessary steps to make the customization or develop products next time. Multimedia was becoming an important area. Tsuji.

Justification: The reason these are counted as one of the opportunities is because topdown approach helps to get various ideas which may not be seen from the top level managements. but in the future we see the integration of pictures. Sharp is always extending feelers for potential cooperation. The wide-TV introduced at the lowest price in market by applying IC technology was easy to duplicate by competitors: The introduction of low priced wide-TV in the market was very much vulnerable to piracy and other forms of threats because Sharp acknowledged it themselves that the product was easy to duplicate. This has not been a success yet. 8. The wide-screen TV is another.Sharp-2 Group-B Management M A NM A GG M E MM ME NM T or Apple Newton. They can send their child's picture to the grandparents. According to Sharp. This can also be used for advertising. communication and the uses of other variable resources increases and causes lower profit margin for the management. Users can take a picture and send it through a telephone line to another ViewCam. Those will be central to technological innovations in the future. voice and data communications. Research in second generation flash memory is in development in integration with world famous microprocessor company Intel: Flash memory has potential. Threats 1. Intel was the best imaginable partner. Justification: Sharp was hinting the future of telecommunication through the introduction of ViewCam teleport with the likes of e-mail and other forms of data transfer that is available today. displaying news announcements on the screen as they occur. 9. ViewCam teleport allowed user to send pictures a telephone line to another ViewCam: A bottom-up example of Sharp was the ViewCam Teleport. Sharp were then expanding production and developing the second generation flash memory with Intel. Justification: When different sectors are situated at different places. This is strategic cooperation with the world famous microprocessor company. costs such as mainly transport. And sense leader process makes very specific comment about the product so it gets easy to take necessary steps to 16 | P a g e .

consumers don‟t realize that they prefer Sharp‟s models. is an example. That has become the world standard for infrared communications. Justification: Sharp have developed a printer that communicates with the Zaurus by infrared used for data transfer of pictures. In the PHS market. Sharp have developed the ability to send a digital facsimile through telephone. 2.Sharp-2 Group-B Management M A NM A GG M E MM ME NM T make the customization or develop products next time. It 17 | P a g e . 3. But market was soon taken over by Toshiba: This can be transferred to another using infrared communication. Sharp also have an infrared communication link for PCs using Windows. The use of NTT’s brand name in their personal handy phone makes Sharp less of an important brand: We also have miniaturization technology that allows us to develop very light-weight and portable products. These are examples of bottom up approaches. We are one of many suppliers of this product OEM to NTT. personal handy phone. there are 43 models being produced by 29 vendors. Because it has NTT‟s brand name. Our models weigh about half as much as other models at 200 grams. Vulnerability of a product in the market is always faced with cheap replacements or alternatives. Justification: Sharp‟s two models account for between 60 and 70 percent of the market. Sharp was first to make a home copier with facsimile option. The smallest cellular phone is 95 grams. Our PHS. Sharp‟s is the preferred PHS.

Therefore. VCRs. Sharp enjoys higher market share for its electrical gazettes. However. Sharp did not operate its expedition in India. however. attitude and behavior. Refrigerators. Furthermore. it cannot enjoy higher marginal profit. It was seen that whatever Sharp build. Sharp needs to maintain its image and technical competence in those markets with fine quality products followed by relatively cheaper price. Also. 2) Sharp has strong competitors like Sony. Japan and other Asian countries. 18 | P a g e . It continued its innovations derived from the company‟s ability to commercialize its technologies. However. India and Russia Sharp is clearly recognized as one of the world‟s leading technological based company. The top management of Sharp is continuously working to overcome these issue and secure any sorts of competitive advantage which can be available by creating distinct products through the Sharp‟s innovative Research and Development department. Matsushita. Sharp consists of large collection of electrical devices. Also. it falls behind in profitability as its rivals follows Sharp‟s footsteps and launch alternative products for each of Sharp‟s electrical machines. due to its competitors. Chinese and Russian people with lower incomes and different tastes. Sharp invests a large amount of money for Research and Development programs which are literally very expensive.3 billion people.S. Matsushita. meeting their requirements and come up with the right products for them. Air Conditioners and many more. Sharp requires producing products which are suitable for Indian. it cannot acquire competitive advantage in any of its products due to strong competitors like Sony. still sometimes. Sharp needs to target their local needs. and JVC. to capitalize these markets. China and India are the new emerging nations with growth rate of 6-10 % per year. Although. Sharp is successful in expanding its overseas position in Europe. JVC and others in the market. their opponents take very negligible time to come with substitutes. starting from color TVs.Sharp-2 Group-B Management M A NM A GG M E MM ME NM T MANAGEMENT’S PERSPECTIVE 1) Sharp did not expand their business in the large markets like China. U. China and Russia where they can target a large market of more than 2.

Sharp came up with a new concept and strategy which increased its revenue and made it market leader. Then. Before. performance and styling. However. the children of Baby boomers started taking over the family which declined Sharp‟s sell. The objective is to identify the person who recommended products to others.1%. however. Sharp used Dentsu. Hahuhodo or McCann Erickson advertising companies to monitor consumers and to talk about products.Sharp-2 Group-B Management M A NM A GG M E MM ME NM T 3) The profit margin of Sharp has decreased from 4. Sharp‟s is trying to locate such people. although their profits were the highest in the industry. However. however.4% in 1990 to 2. By the way. and having meeting with them to discuss about the products in presence of company‟s employees. Sharp‟s identified different roles that people played.4% to 2. finding them is time consuming and difficult. in 1991. 4) Sharp targets the sense leaders. it was observed that. next comes the consumers who are also the sense leaders. It is important to make products to meet the needs of these people to maintain Sharp‟s profitability. The important aspect of sense leader is their philosophical concept which can be found through interviews and meeting. the baby boomers became the target of Sharp‟s new life strategy. This is 21st century where it is vital to know about young people (under 20) and their philosophy. finding a concept that fits these people is very complicated. Sharp‟s sell declined from 4. The life -style center works on concept. Sharp was not coming up with pure new innovation which resist to acquire higher competitive advantage through Skimming pricing strategy. Also. It also deals with pricing. finding these people is time consuming and difficult 19 | P a g e . In 1975. To sustain its fame. another group of customers are called sense followers and the last groups of patrons are named as no-sense consumers. in 1984-1985. Sharp itself targeted sense leaders who influenced others to buy new products. Sharp is clearly recognized as one of the world‟s leading innovative based company.1%. However. Sharp wised to come up with ideas which will improve its profitability. Therefore. those companies used to charge a large quantity of money for their work. Sharp considered the most sophisticated people in the market are professionals.

Those products are basically divided into high. however. This additional power of project Head is unique. The Head of the project has corporate power which can be understand by everyone. middle and low-end products. 6) The Vice President or Division Mangers are insignificant than the Heads of Kinkyu project which can cause conflict inside Sharp. the major development of products are very few in number. Sharp has a large number of products that are being revised or sold in a given year. it can create conflict of interest between the Top Management (Vice President or Division Managers) and the Project Head. For doing so. The President of Sharp selects the members and their Head. 80% of the projects are product development projects and the remaining 20% are for software development or service development for new business. Sharp intended to channel all their efforts into creating next-generation of outstanding new products by developing and exploiting key devices. company has products which has alternatives made by their competitors. After the decision for the assignment is done. Sharp invests large amount of money in Research and Development programs. still. however the major develop ment are not so many in number. Therefore. 20 | P a g e . Kinkyu projects are successful for Sharp due to their philosophy of cultivating new markets with the creation of new products. in most cases. so their profit margin for each of their products are low and these does not compensate their investment on R&D cost. however.Sharp-2 Group-B Management M A NM A GG M E MM ME NM T 5) Sharp is investing a large chunk of money in Research and development (R&D) programs. They each have a different set of features that are required. surprisingly the Head of such assignments has more priority and importance than the Vice President or Division Managers of the organization. the R&D departments are unable to come up with new and distinct products which cannot be substituted easily by competitors. then Sharp developed its internal recruiting for Kinkyu project memebers called “Star 21”. Kinkyu projects are assignments which create driving force to make something new happen.

Sharp has a large number of products that are being revised or sold in a given year. VCRs. Those products are basically divided into high. Refrigerators. It continued its innovations derived from the company‟s ability to commercialize its technologies. and these can reduce its competitiveness as Sharp is facing significant competition from its opponents like Sony. Air Conditioners and many more.Sharp-2 Group-B Management M A NM A GG M E MM ME NM T 7) Sharp is working towards full automation of its production line which is really expensive Sharp is clearly recognized as one of the world‟s leading technological based company. Sharp consists of large collection of electrical devices. Matsushita. JVC and others. Sharp is working towards full automation of its production using a wide variety of automated equipment and robots. 21 | P a g e . They each have a different set of features that are required. starting from color TVs. however the major development are not so many in number.In many of Sharp‟s production division. middle and low-end products. Full automation is very expensive.

Sharp-2 Group-B Management M A NM A GG M E MM ME NM T Sharp did not expand their business in the large markets like China. However. China and India are the new emerging nations with growth rate of 6-10 % per year.S. Indian and Russian customersand then come up with the right products for them.3 billion people. Japan and other Asian countries. a) b) Sharp needs to target the local needs of Chinese. U. China and Russia where they can target a large market of more than 2. Sharp did not operate its expedition in India. Sharp is successful in expanding its overseas position in Europe. It continued its innovations derived from the company‟s ability to commercialize its technologies. To do so 22 | P a g e . Also. India and Russia Sharp is clearly recognized as one of the world‟s leading technological based company.

However. due to its competitors. still sometimes. Sharp invests a large amount of money for Research and Development programs which are literally very expensive. and JVC. 23 | P a g e .Sharp-2 Group-B Management M A NM A GG M E MM ME NM T Problem-2 Sharp has strong competitors like Sony. starting from color TVs. it cannot acquire competitive advantage in any of its products due to strong competitors like Sony. however. Sharp enjoys higher market share for its electrical gazettes. Matsushita. Although. it falls behind in profitability as its rivals follows Sharp‟s footsteps and launch alternative products for each of Sharp‟s electrical machines. -- Sharp consists of large collection of electrical devices. VCRs. Matsushita. JVC and others in the market. it cannot enjoy higher marginal profit. meet requirements Also. Refrigerators. Air Conditioners and many more.

with fringe benefits and rewards. 24 | P a g e . the competitors will lose effectiveness for particular period of time. to be competitive. Sharp used to have engineers and managers who together come up with new product innovation. Therefore. thus Sharp with new products will increase profitability and market share. R&D department needs to get rearranged with employees specialized in psychology and philosophy. managers and engineers will play their vital role as well. in return they expect good amount of compensation. Also. however. new R&D employees can come with products which will provide competitive edge to Sharp. Matsushita. due to extreme competitions with other technological companies. This way. their profits for their products are very negligible due to extreme competitions between Sharp. JVC) Every managerial and technical employees work very hard for their organization. Sharp can influence the intellectual engineers and managers of rivalry organization to switch their jobs and work under Sharp. however. Therefore. JVC and others. Matsushita. Justification: Sharp has a huge collection of products to offer to their customers. It is believed that. reorganizing the R&D department by employing employees with psychology and philosophy majors and appointing genius engineers and managers from competitors firm can help Sharp to outperform each of their every business rivals.Sharp-2 Group-B Management Recommendation: M A NM A GG M E MM ME NM T a) Reorganize the Research and Development (R&D) Department In R&D department. b) Hire experienced engineers and managers from competitors (Sony.

4% to 2. finding a concept that fits these people is very complicated. philosophical and software knowledge Sharp has to target the needs of young consumers who have a diversified mind. India and China has a large segment of middle-class families who can afford and will buy Sharp‟s creations. inexpensive management and technological employees and also can use local suppliers that provide quality raw materials with minimal cost. Sharp wised to come up with ideas which will improve its profitability.05 billion people. This is 21 st century where it is vital to know about young people (under 20) and their philosophy.1%. to catch their attention. Sharp is clearly recognized as one of the world‟s leading innovative based company.4% in 1990 to 2. in China and India. logical or ethical and IT friendly. it was observed that. That is why. Moreover. however. products need to be attractive. to fulfill their needs. Also. Also. To sustain its fame. b) Sharp can introduce their factories in Southeast Asia and China Sharp did not operate its expedition in India and China where they can target a large market of more than 2. It is important to make products to meet the needs of these people to maintain Sharp‟s profitability. Sharp was not coming up with pure new innovation which resist to acquire higher competitive advantage through Skimming pricing strategy. In 1991. The production cost of those factories will be very low. 25 | P a g e . China and India are the new emerging nations with growth rate of 6-10 % per year. Sharp‟s sell declined from 4. Sharp appointed Psychologists.Sharp-2 Group-B Management M A NM A GG M E MM ME NM T Problem-3 The profit margin of Sharp has decreased from 4.1%. Recommendation: a) Product planning group needs psychological. Also. Sharp will get skilled labor force with cheap wages. philosophy majors and software engineers to work side by side with technical engineers and managers and produce products which will enlighten young generation to use Sharp‟s creation. although their profits were the highest in the industry.

Sharp invests large amount of money in Research and 26 | P a g e . still. if Sharp can create products according to their requirements. the Chinese and Indian market is very huge. the major development of products are very few in number. however the major development are not so many in number. then Sharp will reach the peak of its business.Sharp-2 Group-B Management M A NM A GG M E MM ME NM T Justification: To fulfill the desires of the young customers. Also. middle and low-end products. Sharp has a large number of products that are being revised or sold in a given year. innovation with proper management is not enough. Problem-4 Sharp is investing a large chunk of money in Research and development (R&D). Those products are basically divided into high. philosophy majors and software engineers. that is why product planning group needs to be diversified and this will increase their profit margin. They each have a different set of features that are required. they need something extra which will and can be provided by the newly hired Psychologists.

R&D department needs to get rearranged with employees specialized in psychology and philosophy. however. new R&D employees can come with products which will provide competitive edge to Sharp. the R&D department is not functioning as it should be. The engineers are the prime target of termination as they are one who will make fresh products. so the top management can terminate the employees from the R&D department who were insignificant in their work. Performance of each and every employee needs to be monitored.Sharp-2 Group-B Management M A NM A GG M E MM ME NM T Development programs. and therefore terminations of such workers are required. therefore. Therefore. Employee performance is very crucial for organization such Sharp. company has products which has alternatives made by their competitors. Justification: As R&D department of Sharp is not effective as expected. Recommendation: a) Reorganize the Research and Development (R&D) Department In R&D department. the R&D are unable to create new dimensions of products. as Sharp is an innovation based company. employees are not performing well. It is believed that. It was observed. in most cases. managers and engineers will play their vital role as well. that is employing workers with majors in philosophy and psychology. 27 | P a g e . the R&D departments are unable to come up with new and distinct products which cannot be substituted easily by competitors. b) Terminate the employment of workers with poor performance It was observed that. Also. so their profit margin for each of their products are low and these does not compensate their investment on R&D cost. promotion and termination needs to be given referring to performance. so it wants maximum output from its employees. however. so change is mandatory. Sharp used to have engineers and managers who together come up with new product innovation.

there can a conflict of interest between Project Head and the Vice President or Divisional Managers as the top management is insignificant than the leader of the Kinkyu Project. This additional power of project Head is unique. as it seems. surprisingly the Head of such assignments has more priority and importance than the Vice President or Division Managers of the organization. surprisingly the Head of such 28 | P a g e . it can create conflict of interest between the Top Management (Vice President or Division Managers) and the Project Head. The Head of the project has corporate power which can be understand by everyone. President can make the divisional managers understand why the project head needs to have so much power. 80% of the projects are product development projects and the remaining 20% are for software development or service development for new business. This meeting was arranged. Recommendation: A meeting can be arranged by the President with the Vice President or division Managers In that meeting. The Head of the project has corporate power which can be understand by everyone. however. President discusses about the Kinkyu projects and its progresses. Justification The President of Sharp selects the members and their Head.Sharp-2 Group-B Management M A NM A GG M E MM ME NM T Problem-5 The Vice President or Division Mangers are insignificant than the Heads of Kinkyu project which can cause conflict inside Sharp. The President of Sharp selects the members and their Head. Kinkyu projects are assignments which create driving force to make something new happen. As referred to the extra power of the Project Head.

if it performs fill automation. Problem-6 Sharp is working towards full automation of its production line which is really expensive Sharp is clearly recognized as one of the world‟s leading technological based company. Recommendation: Sharp can transfer some of its production plants in Asian countries where manufacturi Full automation in production line is very expensive. so Sharp can transfer its producti Sharp will get skilled labor force with cheap wages. and Taiwan). China. inexpensive management and technological employees and also can use local suppliers that provide quality raw materials with minimal cost. The production cost of those factories will be very low. then Sharp has to invest large quantity of money. full automation can cause unrest to the employees of Sharp as many of production workers will lose jobs. Also. Sharp consists of large collection of electrical devices. 29 | P a g e . and that is why meeting between the top management and the President will be helpful to reduce or remove any sort of conflicts among Sharp‟s employees. cheap raw materials thus less production costs. Sharp is working towards full automation of its production using a wide variety of automated equipment and robots.Sharp-2 Group-B Management M A NM A GG M E MM ME NM T assignments has more priority and importance than the Vice President or Division Managers of the organization. Refrigerators. where. Justification Sharp is suffering from high competition. thus full automation needs to postpone. Air Conditioners and many more. This is because. Sharp can transfer its production plants in Asian countries (India. starting from color TVs. In many of Sharp‟s production division. the President wanted them to work independently. VCRs. It continued its innovations derived from the company‟s ability to commerciali ze its technologies. Malaysia. they have cheap labor.

30 | P a g e . India and Russia Sharp is clearly recognized as one of the world‟s leading technological based company. Sharp needs to target the local needs of Chinese. with initial introduction of fewer products on the markets. To do so How to implement? Market research on these two countries is very important at first.Sharp-2 Group-B Management M A NM A GG M E MM ME NM T - Sharp did not expand their business in the large markets like China. It continued its innovations derived from the company‟s ability to commercialize its technologies. Indian and Russian customersand then come up with the right products for them.

When will it be implemented? As soon as possible. Indian and Russian customersand then come up with the right products for them.Sharp-2 Group-B Management Where to implement? M A NM A GG M E MM ME NM T The growth towards the new markets with cost effective products. China and India are the new emerging nations with growth rate of 6-10 % per year. Matsushita. Recommendation: Reorganize the Research and Development (R&D) Department It is believed that. managers and engineers will play their vital role as well. However. China and Russia where they can target a large market of more than 2.3 billion people. new R&D employees can come with products which will provide competitive edge to Sharp. Also. JVC and others in the market. Sharp did not operate its expedition in India. Who will implement? Sales and production division has to be active here to supply the market according to the demand. 31 | P a g e . Also. Sharp needs to target the local needs of Chinese. because Sharp‟s competitors in Japan are always active for hunting new market possibilities. To do so Problem-2 Sharp has strong competitors like Sony.

in return they expect good amount of compensation. JVC) and reorganize the Research and Development (R&D) Department. Matsushita. Although. due to extreme competitions with other technological companies. Hire experienced engineers and managers from competitors (Sony. Sharp used to have engineers and managers who together come up with new product innovation. Sharp consists of large collection of electrical devices. 32 | P a g e . still sometimes. Matsushita. JVC) Every managerial and technical employees work very hard for their organization. R&D department needs to get rearranged with employees specialized in psychology and philosophy. VCRs. In R&D department. Air Conditioners and many more. however. when hiring of competitors‟ take place. it falls behind in profitability as its rivals follows Sharp‟s footsteps and launch alternative products for each of Sharp‟s electrical machines.Sharp-2 Group-B Management M A NM A GG M E MM ME NM T How to implement? Hire experienced engineers and managers from competitors (Sony. with fringe benefits and rewards. Where to implement? The implementation will take place in the R&D dept. Refrigerators. starting from color TVs. Sharp enjoys higher market share for its electrical gazettes.

Haruo Tsuji. plays the role here with the experience of Mr. managers and engineers will play their vital role as well. JVC and others. new R&D employees can come with products which will provide competitive edge to Sharp. When to implement? It can be implemented whenever the R&D sector is requiring new applicants. Sharp can influence the intellectual engineers and managers of rivalry organization to switch their jobs and work under Sharp. 33 | P a g e . the competitors will lose effectiveness for particular period of time. however. Sharp has a huge collection of products to offer to their customers.Sharp-2 Group-B Management Who will implement? M A NM A GG M E MM ME NM T The HR dept. their profits for their products are very negligible due to extreme competitions between Sharp. thus Sharp with new products will increase profitability and market share. Also. This way. It is believed that. Matsushita.

although their profits were the highest in the industry. Moreover. Where to implement it? The product planning groups where design and concept are essential. Sharp was not coming up with pure new innovation which resist to acquire higher competitive advantage through Skimming pricing strategy. philosophy majors and software engineers to work side by side with technical engineers and managers and produce products which will enlighten young generation to use Sharp‟s creation. Sharp‟s sell declined from 4. In 1991. The production cost of those factories will be very low. it was observed that. to fulfill their needs.1%.1%. How to implement? Product planning group needs psychological. inexpensive management and technological employees and also can use local suppliers that provide quality raw materials with minimal cost. Recommendation: Product planning group needs psychological. Sharp is clearly recognized as one of the world‟s leading innovative based company. logical or ethical and IT friendly. Sharp can introduce their factories in Southeast Asia and China Sharp did not operate its expedition in India and China where they can target a large market of more than 2. Sharp appointed psychologists. Sharp wised to come up with ideas which will improve its profitability. That is why. This is 21st century where it is vital to know about young people (under 20) and their philosophy.05 billion people. Also. India and China has a 34 | P a g e . To sustain its fame. Sharp will get skilled labor force with cheap wages. philosophical and software knowledge Sharp has to target the needs of young consumers who have a diversified mind.Sharp-2 Group-B Management Problem-3 M A NM A GG M E MM ME NM T The profit margin of Sharp has decreased from 4. Also. It is important to make products to meet the needs of these people to maintain Sharp‟s profitability. in China and India. to catch their attention. philosophical and software knowledge in addition to Sharp‟s introduction of their factories in Southeast Asia and China.4% to 2. finding a concept that fits these people is very complicated. however.4% in 1990 to 2. products need to be attractive.

that makes company difficult to operate. is largely responsible for implementation with collaboration of heads from product developments and company high officials. 35 | P a g e . the Chinese and Indian market is very huge. China and India are the new emerging nations with growth rate of 6-10 % per year. they need something extra which will and can be provided by the newly hired Psychologists. Also. When will it be implemented? As soon as possible.05 billion people.Sharp-2 Group-B Management M A NM A GG M E MM ME NM T large segment of middle-class families who can afford and will buy Sharp‟s creations. philosophy majors and software engineers. else Sharp will soon start making less and less profits. Sharp did not operate its expedition in India and China where they can target a large market of more than 2. Who will implement it? HR dept. if Sharp can create products according to their requirements. Sharp has to target the needs of young consumers who have a diversified mind . innovation with proper management is not enough. To fulfill the desires of the young customers. that is why product planning group needs to be diversified and this will increase their profit margin. then Sharp will reach the peak of its business. Also.

Sharp has a large number of products that are being revised or sold in a given year. Where to implement it? Implementation is carried out in the R&D sector. Sharp can terminate the employment of workers with poor performance. the R&D are unable to create new dimensions of products. Sharp used to have engineers and managers who together come up with new product innovation. middle and low-end products. 36 | P a g e . the major development of products are very few in number. Sharp used to have engineers and managers who together come up with new product innovation. managers and engineers will play their vital role as well. d) Terminate the employment of workers with poor performance It was observed that. Also. Here. so change is mandatory. that is employing workers with majors in philosophy and psychology. Those products are basically divided into high. new R&D employees can come with products which will provide competitive edge to Sharp. so it wants maximum output from its employees. employees are not performing well. It was observed.Sharp-2 Group-B Management Problem-4 M A NM A GG M E MM ME NM T Sharp is investing a large chunk of money in Research and development (R&D). Employee performance is very crucial for organization such Sharp. It is believed that. and therefore terminations of such workers are required. R&D department needs to get rearranged with employees specialized in psychology and philosophy. In R&D department. as Sharp is an innovation based company. How to implement it? There are employees in every organization who does not perform well. the R&D department is not functioning as it should be. so the top management can terminate the employees from the R&D department who were insignificant in their work. however the major development are not so many in number. Recommendation: c) Reorganize the Research and Development (R&D) Department In R&D department. therefore. As R&D department of Sharp is not effective as expected. however. still.

37 | P a g e . Problem-5 The Vice President or Division Mangers are insignificant than the Heads of Kinkyu project which can cause conflict inside Sharp. How to implement it? Meetings can be arranged by the President with the Vice President or division Managers to ensure entrustment among the top management of the company. so action must be effective immediately. middle and low-end products. promotion and termination needs to be given referring to performance. President discusses about the Kinkyu projects and its progresses. Performance of each and every employee needs to be monitored. When to implement it? Poor performance brings down any company anywhere in the world. 80% of the projects are product development projects and the remaining 20% are for software development or service development for new business. Head of such assignments has more priority and importance than the Vice President or Division Managers of the organization. Those products are basically divided into high. and that is why meeting between the top management and the President will be helpful to reduce or remove any sort of conflicts among Sharp‟s employees. Recommendation: A meeting can be arranged by the President with the Vice President or division Managers In that meeting. the President wanted them to work independently. Poor performance cannot be tolerated. The President of Sharp selects the members and their Head. The engineers are the prime target of termination as they are one who will make fresh products.Sharp-2 Group-B Management Who will implement it? M A NM A GG M E MM ME NM T Personnel who are responsible for hiring and firing (HR dept. Kinkyu projects are assignments which create driving force to make something new happen.) . surprisingly this is because. The Head of the project has corporate power which can be understa nd by everyone.

however. quarterly. Refrigerators. Sharp invests large amount of money in Research and Development programs. This additional power of project Head is unique. however. there can a conflict of interest between Project Head and the Vice President or Divisional Managers as the top management is insignificant than the leader of the Kinkyu Project.Sharp-2 Group-B Management Where to implement it? M A NM A GG M E MM ME NM T This can be implemented with the top executives of the company. The President of Sharp selects the members and their Head. it can create conflict of interest between the Top Management (Vice President or Division Managers) and the Project Head. starting from color TVs. as it seems. As referred to the extra power of the Project Head. Sharp consists of large collection of electrical devices. This meeting was arranged. company has products which has alternatives made by their competitors. Problem-6 Sharp is working towards full automation of its production line which is really expensive Sharp is clearly recognized as one of the world‟s leading technological based company. VCRs. in most cases. It continued its innovations derived from the company‟s ability to commercialize its technologies. etc) to ensure company standard of highest quality. President can make the divisional managers understand why the project head needs to have so much power. Who will implement it? Implementation is carried out by the company president and head. the R&D departments are unable to come up with new and distinct products which cannot be substituted easily by competitors. Therefore. They each have a different set of features that are required. so their profit margin for each of their products are low and these does not compensate their investment on R&D cost. 38 | P a g e . surprisingly the Head of such assignments has more priority and importance than the Vice President or Division Managers of the organization. The Head of the project has corporate power which can be understa nd by everyone. Air Conditioners and many more. When to implement it? On a regular basis (monthly.

Sharp is clearly recognized as one of the world‟s leading technological based company. thus full automation needs to postpone. if it performs fill automation. cheap raw materials thus less production costs. etc. Recommendation: Sharp can transfer some of its production plants in Asian countries where manufacturing is cheaper Full automation in production line is very expensive. U. The production cost of those factories will be very low. It continued its innovations derived from the company‟s ability to commercialize its technologies. where. 39 | P a g e . India. Sharp will still work in Japan for the progress of new and advanced products which will be marketed in Japan. starting from color TVs. Sharp is working towards full automation of its production using a wide variety of automated equipment and robots. When to implement it? Implementation can be done whenever the market research concerning the new places has been completed. Pakistan. How to implement it? Outsourcing the production plants in developing countries is much cheaper than converting to full automation systems. In many of Sharp‟s production division. so Sharp can transfer its production plants in India. Sharp will get skilled labor force with cheap wages. then Sharp has to invest large quantity of money. Sharp is working towards full automation of its production using a wide variety of automated equipment and robots. Refrigerators. Sharp consists of large collection of electrical devices.Sharp-2 Group-B Management M A NM A GG M E MM ME NM T In many of Sharp‟s production division. full automation can cause unrest to the employees of Sharp as many of production workers will lose jobs. China. Who will implement it? The president has to be mainly responsible for such strategic movement with the collaboration of HR dept. inexpensive management and technological employees and also can use local suppliers that provide quality raw materials with minimal cost. Also. Air Conditioners and many more. Malaysia. China. Sharp is suffering from high competition. In Asian countries. such as China. VCRs. Where to implement it? Implementation by outsourcing has to be done in the developing countries where the labor is cheap. and Taiwan).S. Sharp can transfer its production plants in Asian countries (India. they have cheap labor. Malaysia and Taiwan. and European nations.

Sharp-2 Group-B Management M A NM A GG M E MM ME NM T Appendix The Power-Point slide is included in the appendix. the soft copy of the report is already sent to instructor’s email address. Moreover. 40 | P a g e .