The Strategy of "Adopting Minimum to Gain Maximum"-A Minus-managerial Case Study of CO-ACTION CORP

• Main Authors: TIEN-LAI CHU, 朱天來
• Other Authors: Hsi-Peng Lu
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/x46ud5

碩士 === 國立臺灣科技大學 === 管理研究所 === 102 === Most of the cases discussed in Harvard are large corporate business and strategy, although a lot of decision-making has reference value, but for beginning entrepreneurs, is still out of reach. This case we discussed is a small and medium sized plastic material distributor how to break through by subtraction operation in the competitive market which is full of many large distributors, and even cooperate with other small and medium companies to achieve the strength for the decisive battle with large distributors. This article describes the most commonly operational difficulties which SMEs will face, and describes that using different strategies, from personal-run to the Red Ocean Strategy and then next step to the more profitable Blue Ocean Strategy. Only establish one company’s own characteristics, so that it can survive in this industry. This article also describes the problems in detail that will be usually happened when running a business, such as fundraising, bad debt prevention, Inventory preparation, turnover enhancing, changes in the market and crisis management. Hope can provide the friends would like to start a business for reference. The main character in the article was graduated from fiber and polymer engineering technology department of National Taiwan Industrial Technology Institute (NTUST predecessor). In listed company he has experienced various departments, factory quality control, construction, manufacturing, after-sales service, research and development and advisor of chairman’s office. At the age of 29, he took in charge of the factory which has three plants (total 600 people). Finally, he transferred to be an engineering plastics distributor. The previous practical experience of factory management and operation is helpful for the following business. In marketing technical support, with previous experiences, he can offer customers complete information and also develop product with customers. Besides, he can provide suppliers much confidence, customer complaints is almost 0 when being an agent. This article mentioned the business model of “subtraction operation” is to use the minimal resources to do the maximum application in a company. The theory of " subtraction operations" is to concentrate all resources in one familiar product item, the patterns are like the specialty store and to lower the price and profits, so that besides the original orders from small factory, we also can contact medium-sized factories and get more and bigger orders and quantity, then we can bargain with supplier to reduce the cost. After the cost was lowered, next step is to develop large factories to get more orders. Repeat this kind of operation again and again to increase competitiveness. In addition, employee is downsizing, non-core part, such as warehousing, transportation, customs clearance , simple processing, instead of hiring employees, but find others companies to cooperate, so that we do not need to lay off employees when the economy is in a slump, it is flexibility . The salary is using the system of hard-working bonus system. The bonus is according to the workload of each unit employee. When employee is not enough, the workload will be increased, unit employees also have more bonuses. It can enhance the employees’ engagement. Employee is downsizing, so we do not need to lay off our employees when the economic is in a slump. Transfer small order customers to dealers, although the numbers of customer was reduced, but we can concentrate on servicing major customers and it is easy for operation. By establish the pre-order system with customers to purchasing. After the goods importing, these goods are delivered to customers directly, it can reduce warehouse rent and transportation charge, reduce inventory, and cost savings will be feedback to customers. The profits seem to be less, but turnover rate is increased, so the total profit was improved. Financial Strategy we take is self-liquidating, each payment recovered prior to maturity of bank loans, there will not have excessive operation so that we can avoid the situation of Rob Peter to pay Paul. Currency Exchange rage strategy we take is natural hedge, that is, when purchasing goods by USD then receiving customers’ payment by USD, when purchasing by NTD and then receiving NTD. If we pay USD when purchasing (through bank), and receive the payment from customer by NTD. When goods arrive, we will change the loan from USD to NTD, so that the cost will be fixed, funds can be self-liquidating, there will not be much risk of currency, after all, operate rate is not our expertise.