Please find enclosed a link to the video on the decline of Sharp, its huge losses incurred in the latter years and its acquisition by Foxconn a Taiwanese subcontractor.
Lessons that I learned: (How about you)
1. It does not mean that if you are 40 years old, or 100 years old as Sharp, you can not fail. You can still fail.
2. It debunks the superiority of Japanese management. We can be superior too. Or at least strive to be good. Our bad maintenance of the park, and not 100% interment brings us closer to losing our business. We are not asking people to manufacture high tech products, only regular cleaning and grass cutting, and we can not do this well
3. The cost reduction alternative:
1. Buy or make decision
2. Offshoring outsourcing
Making your own products does not mean its cheaper. If it is made cheaper in Taiwan or
or Chna go for it. Sellers of carbon wheels and bike frame have it done in Taiwan which the charge only for $200 per; whereas it would cost them $500 if they make it Europe or US.
One such manufacturer American Classic could not compete and had to close shop
because they were uncompetitive.
Sharp continued to pursue its plans of local manufacturing despite the fact that land
and materials is expensive in Japan Labor which costs about P100,000 in Japan per month
can be had for a max of say P14,000 in PHL. Rather than building a plant, Sharp should
have opted for this course of action. Trouble is they built another plant
4. Innovation is temporary
You gain leadership by innovating only temporarily. It has to be defended and protected.
You cant win a war or a game, you have to have a high winning average. If innovation is
the name of the game, it has to be continuous process. Kaizen
You must work hard on basics too: 5s tpm, (maintenance)
You must keep watch too on the pace of innovation of competitors. They are not sleeping
Complacency is the enemy of innovation. Sharp could have been complacent because of
their past successes in: mechanical pencil, dyneradio, calculator, TV sets, LCD display
5. Financial management:
1. No huge cap ex for a single product. It has to be portfolio approach. Let a hundred
flowers bloom. You are not sure of outcome of how you grow you flowers. Set limits
as we have seen in our own General Policies No huge bet do not bet the farm
on single product.
2. If it rains open an umbrella. If you fail to make it in a quarter, ACT, DO SOMETHING
Solve the problem. Do it now. Not later Not tomorrow. Do it now
6. Role of top management
It is the duty of those who lead to learn good management practices. The new president
and chairman are partially responsible for the decline for the wrong decision. We strive to
stay on the business, "Give capable and intelligent direction in the management of the
business because you cant afford to make such huge mistake that could mean the
downfall of the company
Thus:
1. Study the history of the past practices especially those that are documented on
how the past managers navigated the difficulties.
2. Study the current mistakes of contemporary mistakes of modern managers and how
you can steer clear of their mistakes
3. Sharpen your critical thinking and improve your problem solving skills They can
never be taught
7. Purpose driven organization;
1. The vision and mission statements define the purpose of the company. We have out-
lined this as part of memorialization business.
Without a purpose, life is motion without meaning, activity without direction and events without reason. Without a purpose life is trivial, petty, and pointless.”
― Rick Warren, The Purpose Driven Life: What on Earth Am I Here for?
2. We have determined that:
1. We used to sell plots for cheap so that we can offer our more gp services.
(Are we achieving this??)
2 Businesses that are supposed to supplement our revenues and that are supposed
to boost our sales and collection are not being sold and offered. Something is
very wrong. This is the height of mismanagement
