Contrary to the typical practice of cutting operating expenses by compromising on employees’ benefits, the chairman of Zentaku Kogyo Company Ltd. (Zentaku), David Wu Chongrang, aimed to improve the standard of living of his staff by steadily raising their salaries and benefits. In fact, the key performance indicator David had set for himself was to raise his employees’ salaries regularly to a preset target benchmark. Contrary to conventional approaches, over the past sixteen years (2006–2022) David had reduced Zentaku’s revenue by 28 per cent and the number of employees by two-thirds, while raising the annual gross profit per employee to 239 per cent. Zentaku had achieved more with less by transforming itself through the rigorous implementation of lean production, inspired by the famed Toyota Production System, but Zentaku’s future leadership now faced challenges in sustaining the success Zentaku had achieved. Were the management methods adopted in the past applicable to the younger generation of workers? How could the current management pass the enterprise to the younger generation while ensuring employees remained fulfilled in the workplace?
Contrary to the typical practice of cutting operating expenses by compromising on employees’ benefits, the chairman of Zentaku Kogyo Company Ltd. (Zentaku), David Wu Chongrang, aimed to improve the standard of living of his staff by steadily raising their salaries and benefits. In fact, the key performance indicator David had set for himself was to raise his employees’ salaries regularly to a preset target benchmark. Contrary to conventional approaches, over the past sixteen years (2006–2022) David had reduced Zentaku’s revenue by 28 per cent and the number of employees by two-thirds, while raising the annual gross profit per employee to 239 per cent. Zentaku had achieved more with less by transforming itself through the rigorous implementation of lean production, inspired by the famed Toyota Production System, but Zentaku’s future leadership now faced challenges in sustaining the success Zentaku had achieved. Were the management methods adopted in the past applicable to the younger generation of workers? How could the current management pass the enterprise to the younger generation while ensuring employees remained fulfilled in the workplace?
Guangzhou KingMed Diagnostics was the leading third-party independent clinical laboratory in China. On the eve of the Lunar New Year in 2020, the chairman and CEO of Guangzhou KingMed Diagnostics mobilized the whole group to respond to the outbreak of the new coronavirus from Wuhan. With the group’s tremendous growth in both business and size since its initial public offering, there were growing concerns about the provision of quality customer service and the group’s profitability. While the chairman and CEO was proud to see how swiftly his team had responded to the COVID-19 pandemic, he had many questions about the efficiency of the entire group's resource deployment and the consistency of performance across subsidiaries. Post COVID-19, how should Guangzhou KingMed Diagnostics adjust its transformation strategy?
<p style="color: rgb(197, 183, 131);"><strong> AWARD WINNER - Best Teaching Case Studies Award at the Decision Sciences Institute (DSI)</strong></p><br>In 2014, as one of the most well-known Taiwanese cuisine brands, Din Tai Fung operated more than 100 restaurants around the world. Attracted by its signature xialongbao (soup dumpling), long queues of customers at Din Tai Fung’s storefront were a common sight. Requests for partnerships for global expansion were constantly arriving. Customer feedback from overseas, however, suggested a notable gap in service quality between the overseas and Taiwanese branches. The demand for support by overseas branches had also surged significantly due to the fast pace of growth in recent years. The company’s chief executive officer had deferred his plan to open the 10th branch in Taiwan. Nevertheless, plans to open new branches in overseas markets were enthusiastically evaluated by existing partners. Two new potential partnership offers from Dubai and the Philippines were being aggressively pursued. What was the best way to cope with the increasing number of requests for support from overseas branches and to ensure high quality? Should Din Tai Fung approve the two overseas offers for partnership that seemed promising? What was the best overseas expansion strategy?
<p style="color: rgb(197, 183, 131);"><strong> AWARD WINNER - Best Teaching Case Studies Award at the Decision Sciences Institute (DSI)</strong></p><br>In 2014, as one of the most well-known Taiwanese cuisine brands, Din Tai Fung operated more than 100 restaurants around the world. Attracted by its signature xialongbao (soup dumpling), long queues of customers at Din Tai Fung’s storefront were a common sight. Requests for partnerships for global expansion were constantly arriving. Customer feedback from overseas, however, suggested a notable gap in service quality between the overseas and Taiwanese branches. The demand for support by overseas branches had also surged significantly due to the fast pace of growth in recent years. The company’s chief executive officer had deferred his plan to open the 10th branch in Taiwan. Nevertheless, plans to open new branches in overseas markets were enthusiastically evaluated by existing partners. Two new potential partnership offers from Dubai and the Philippines were being aggressively pursued. What was the best way to cope with the increasing number of requests for support from overseas branches and to ensure high quality? Should Din Tai Fung approve the two overseas offers for partnership that seemed promising? What was the best overseas expansion strategy?
The president of a Chinese auto parts manufacturer is facing a crisis. For nearly 10 years the company's production lines have not been able to keep up with the orders. Deliveries are due, but the in-house stock is in short supply despite the production lines operating under extended hours. Quality issues have resulted in recent recalls in the United States, making the company's prospects worrisome. Faced with worsening international trade conditions and mounting problems, the chair and president decide to expedite the initiative of transforming their company into a lean manufacturer based on the Toyota Production System. However, the company has no in-house expertise or experience in lean production. The case presents a challenging situation faced by many companies as they move up the ladder of production competence and operational excellence. The major learning focuses on the adoption of Japanese production practices in an emerging Chinese company as it implements lean production.