2. Background
2
Company : HPS (Hanover Public Systems), American
manufacturer of industrial electrical equipment
Where and When ? Taiwan, in 1998
Characters : Howard Wolff, James Fukuda, employees
of the company
Situation : Problems with Fukuda’s management
Crisis as Opportunity
03/02/2014
3. Situation
3
Taiwan company lose money at precipitous rate since
1996
Director’s decision : Yang Hsiao-shih was fired and
replaced by James Fukuda who used to work in California
Crisis as Opportunity
03/02/2014
4. Fukuda’s policies
4
First action (before arriving in Taiwan) : dispose of a part of the
assets and inventory in order to offset liabilities
Second action(just after one week in Taiwan) : shut down the
manufacturing of heating and cooling equipment
Third action (after one month) : introduce a radically new
management organization
Consequences : layoff of 18 workers and reassignment of 12
more
Crisis as Opportunity
03/02/2014
5. Letter from Lo to Wolff
5
Fukuda’s actions :
- Half production of the heating and cooling systems
Japanese have all the market due to lower prices
Depressed ‘s employees
- Reorganization plan
-
Only one sale division
No naming for the new reorganization
Did without consulting employees
Crisis as Opportunity
03/02/2014
6. Heating and Cooling systems
6
Actions
Decline in sales due to
artificially low prices set
by competitor.
Ignoring the hardship
placed on laid-off and
reassigned workers
Crisis as Opportunity
Consequences
Drive the company out
of market and smaller
profit margin
Employees suffer from
depression
03/02/2014
7. Reorganization plan
7
Actions
Consequences
Consolidated sales in
More cost effective
one division
Not designated who will
be in charge of which
division
Did without consulting
employees
immediately but affect
the sales on the long
term
Creates anxiety and
stress in the company
Crisis as Opportunity
03/02/2014
8. Source of the problems
8
Cultural issues
Chinese / Japanese
Differences in team’s management
American's style / Chinese’s style
Maturity
Crisis as Opportunity
03/02/2014
9. Solutions
9
First solution : Status quo
Second solution : Fire Fukuda and replaced him by a Taiwan's
manager
Third solution : Ask Hu and Lee to come back in the company
Fourth solution : To lower prices to get back in the price war with
Japanese manufacturers.
Fifth solution : Organize election by the employee to designate
who will be in charge of what division.
Crisis as Opportunity
03/02/2014
10. Solutions
10
Sixth Solution : Proposed a new organizational Charts with all
managers
Seventh solution : Give a management training course for Mr.
Fukuda
Eight solution : Shut down the company and recreated a new
one
Crisis as Opportunity
03/02/2014
