Toshiba Essay

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Courtney Jones September 4, 2014 MNGT 520 Case: Toshiba: OME Works (HBS, 9-696-059) Case Preparation Questions: 1). What are the key elements of Toshiba’s business strategy in notebook computers? In what way do OME’s operations support this strategy? Vigilance was the key to smooth operation of the three notebook assembly lines. With every new model introduced, management felt that the assembly lines had to increase productivity and lower costs, usually resulting in changes to the assembly production of existing models. Some of Toshiba’s key elements are product quality, continuous improvement, innovation, availability, competitive pricing, and superior product and process design. Toshiba had built its strength in the notebook PC market by beating its competitors to the market with aggressively priced, technologically superior products. Competition in the notebook PC market was fierce, and Toshiba could retain its position as market leader only by relentlessly improving its manufacturing processes and lowering cost. In addition, by forming partnerships and joint ventures with other industry giants, Toshiba could share the risk of developing expensive new technologies. The importance of the manufacturing process was emphasized at Ome: every new professional employee spent one month on the assembly line before assuming his or her regular duties. The management at Ome reacted in one of three ways when demand dictated an increase in the production volume of notebook computers: 1) Obtain the help of affiliated companies, which could either increase their own production of notebook computers or sent workers to Ome to increase production. 2) Hiring temporary or part-time workers, or asking the regular workers to work additional overtime. 3) Re-evaluate the work load of the entire plant, shift workers into the PC assembly area from areas of the

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