Nummi Case Questions

In: Business and Management

Submitted By higgins
Words 514
Pages 3
(1.) The article states that the lack of trust between management and workers at the GM plant most significantly contributed to the loss of GM’s competitive edge. NUMMI’s philosophy was to treat workers like partners and empower them with decision making capability and control over certain aspects of production. How workers should be treated was according to the article, directly responsible for the quality problems that lessened GM’s competitive advantage. The attitude of GM’s management and GM’s labor’s mistrust of management created an adversarial relationship that hampered production and reduced quality and efficiency of the facility. NUMMI’s attitude and culture with respect to workers created an environment where problems could get solved, workers were free to provide input into production and were free to stop the line or make changes where necessary. NUMMI workers felt accountable to their peers not to a perceived oppressive management. Workers depended upon one another to be on time and do the job right. Performance as a result was higher. Additionally, NUMMI understood that in addition to the concept of the way people were organized and managed, a good design and production system were vital.
(2.) (a.) NUMMI’s philosophies created an environment where both workers and management strived for the same results of Kaizen and Kanban. NUMMI built an organization based on mutual trust, stressed team performance and treated every employee as a manager. Communication and team work was strongly encouraged. (b.) NUMMI effectively reduced GM’s prevailing culture of mutual mistrust of management and labor. As a result according to the article “The Japanese system itself, with its constant follow-up on details, and ongoing improvements, helped create an environment where problems could get solved without confrontations.” (c.) NUMMI effectively did this…...

Similar Documents


...NUMMI became a learning organization and therefore more competitive than the GM plant it replaced by having the willingness to experiment, trusting and encouraging feedback from its workers, implementing an integrated system in its work process, and installing leadership that showed the necessary commitment and patience. First, NUMMI was not afraid to experiment. They were willing to work exclusively with previous GM workers from the Fremont plant, even though the plant was famous for being considered unmanageable. Also, they were not afraid to negotiate with the UAW by giving the union a strong job security clause and greater say in plant operations. Second, NUMMI put complete trust in its workers by putting an emphasis in human development NOT technological development and implemented a team production assembly. They felt workers had the desire and motivation to do each job well and encouraged them to create ways of improving the products or processes. NUMMI’s ‘team assembly” was given autonomy to run its own line and rewarded each worker for improvement ideas. Third, NUMMI implemented a complete integrated system in its work process that paid attention to detail. From the outset, it set up the plant properly, did not complicate the work force with brand new technology, selected suppliers, developed transportation systems to coordinate shipments, focused on effective quality controls from each division, and established credibility and trust with the UAW early...

Words: 519 - Pages: 3

Case Questions

... CASE 01 - MYSTIC MONK COFFEE 1. Has Father Daniel Mary established a future direction for the Carmelite Monks of Wyoming? What is his vision for the monastery? What is his vision for Mystic Monk Coffee? What is the mission of the Carmelite Monks of Wyoming? 2. Does it appear that Father Daniel Mary has set definite objectives and performance targets for achieving his vision? 3. What is Father Prior’s strategy for achieving his vision? What competitive advantage might Mystic Monk Coffee’s strategy produce? 4. Is Mystic Monk Coffee’s strategy a money-maker? What is MMC’s business model? What is your assessment of Mystic Monk Coffee’s customer value proposition? its profit formula? its resources that enable it to create and deliver value to customers? 5. Does the strategy qualify as a winning strategy? Why or why not? 6. What recommendations would you make to Father Daniel Mary in terms of crafting and executing strategy for the monastery’s coffee operations? Are changed needed in its long-term direction? its objectives? its strategy? its approach to strategy execution? Explain. CASE 02 - COMPETITION AMONG THE NORTH AMERICAN WAREHOUSE CLUBS: COSTCO WHOLESALE VERSUS SAM’S CLUB VERSUS BJ’S WHOLESALE 1. What is competition like in the North American wholesale club industry? Which of the five competitive forces is strongest and why? Use the information in Figures 3.3, 3.4, 3.5, 3.6, and 3.7 (and the related chapter discussions on pp. 41-53) to do a complete five-forces......

Words: 1695 - Pages: 7

Case Question

...This is an outline of the three-step writing process to apply to cases. Answer all questions directly on this form. Then add a page break, and write your message in response to the case on the following page. For the three-step process questions, you may use short phrases and sentences for your answers. Student name? Javier Pita Case number and short name for case? Case number 12. Short name: Email privacy policy. I. Plan A. Analyze the Situation 1. What is your general purpose? The general purpose is to communicate the new email privacy policy of the Los Angeles Times. 2. What is your specific purpose? The specific purpose is to inform the bureau managers about the new email privacy policy and the penalties for the offenses. 3. Exactly what do you want your audience to think, feel or believe after receiving your message? I want my audience to feel and believe the importance of applying the new privacy policy about emails and to make sure that the penalties are implemented. 4. Who is your primary audience? My primary audience is the bureau managers. I need to inform them about the new policies and to let them know that there will be a more detailed memo in the future that will explain with more details the new policies. 5. What is their background? The primary audience has a very good background in the subject. They......

Words: 1215 - Pages: 5

Costco Case Questions

...Costco Case Questions 09/26/2013 Question 1: Competition in the North American wholesale club industry is high, with Costco being its leader at 56% of the market share. Main ways to compete are lower prices, more efficient operations, and reduced labor and overhead costs as well. Some of the clubs do the bare minimum in advertising while others, like BJ’s, spend more money on it (special Christmas radio advertisement and such). Out of the five competitive forces, the strongest is the rivalry between the competitors, because all of the players in this market attempt to offer high-quality products at lower prices. According to Figure 3.3, one of the reasons for rivalry amongst competitors to be strong is a relatively low cost to buyers to switch brands, and also if buyer demand is growing slowly, both of which are true in this case. All competitors in this industry are focusing on low margins on the products and high volumes of sales. Suppliers do have some power and influence on the wholesale club members, especially in the case with Costco, which buys some of its goods on the gray market and is known to sell some big-ticket items, but with globalization happening and more and more of suppliers being available around the world, they do not present a reason for concern as high as the rivalry between market players. Customers are always looking for lower prices and higher quality of merchandise, which Costco has been excellent at providing. BJ’s strategy is to give a better...

Words: 1292 - Pages: 6

Questions for Case

...Case: Dell Inc. in 2008 Questions for the Presenting Group 1. What is your evaluation of Michael Dell’s performance in his roles as Dell’s CEO and Chairman? How well has he performed the five tasks of crafting and executing strategy that were discussed in Chapter 2? 2. What are the elements of Dell’s strategy? Which one of the five generic competitive strategies is Dell employing? How well do the different pieces of Dell’s strategy fit together? In what ways is Dell’s strategy evolving? 3. Does Dell’s expansion into other IT products and services make good strategic sense? Why or why not? 4. Is Dell’s strategy working? What is your assessment of the financial performance that Dell’s strategy has delivered during fiscal years 2000-2008? Use the financial ratios presented in the Appendix of the text (pages 240-241) as a basis for doing your calculations and drawing conclusions about Dell’s performance. 5. What does a SWOT analysis reveal about the attractiveness of Dell’s situation in 2008? 6. Which company is competitively stronger—Dell or Hewlett-Packard? Use the weighted competitive strength assessment methodology shown in Table 4.2 of Chapter 4 to support your answer. 7. In what respects, if any, is Hewlett-Packard’s strategy in PCs more appealing or better than Dell’s strategy? 8. What issues and problems does Michael Dell need to address? 9. What actions and strategy changes would you recommend to Michael Dell to boost the company’s performance and its prospects...

Words: 254 - Pages: 2

Case Questions

...Case Questions. A. Williams, 2002. 1. Evaluate the terms of the proposed $900 million financing from the perspective of both parties. How would you calculate the return to investors in this transaction? If you need more information, what information do you need? 2. What is the purpose of each of the terms of the proposed financing? 3. Conduct an analysis of Williams’ sources and uses of funds during the first half of 2002. How do you expect these numbers to evolve over the second half of 2002? What is the problem facing Williams? How did it get into this situation? How has it tried to address the problem it is facing? 4. Some might describe Williams as “financially distressed”. What evidence is there that Williams’ business may be compromised as a result of its previous financial decisions? 5. As the CEO of Williams, would you recommend accepting the proposed $900 million financing offer? If not, what alternatives would you pursue? B. Dividend Policy at Linear Technology. 1. Describe Linear Technology payout policy. 2. What are Linear’s financing needs? Should Linear return cash to its shareholders? What are the tax consequences of keeping cash inside the firm? 3. If Linear were to pay out its entire cash balance as a special dividend, what would be the effect on value? On the share price? On earnings? On earnings per share? What if Linear repurchased shares instead? Assume a 3% rate of interest. 4. What......

Words: 1021 - Pages: 5


...RUDE AWAKENING Chapter 6 A Tale of Two Plants: NUMMI Teamwork Versus GM Bureaucracy One might not recognize Rick Madrid as the same man who carried, by his own admission, "a pen and a punch" as an inspector (wo years ago. Oh, the outward appearance hasn't changed much—tattoos and mirrored shades continue to be his trademarks. But the "Iron Maiden" T-shirt is now cleverly concealed beneath his sharply pressed shop coat provided by the company. He's a team leader now, qualified and sanctioned by his peers. He prefers to be called a team motivator, however. "I'm part of the team; I don't have a team. Let people maintain their own personality." —CM Today publication 41 workers. There is a pervading attitude that "if you give them an inch, they'll take a mile," because they don't really want to work. The idea, for example, that a worker in the plant would have the power to stop the line in order to eliminate a problem was heresy. Wouldn't such permission lead to widespread line-stoppage for every whim? Not, according to Toyota, if you instituted a system of worker responsibility and accountability. American companies might think they had a tight rein on employees, but with little responsibility resting directly in the workers' laps, there was also little accountability. And what were the workers being held responsible for? In the first instance, quality. In Japanese companies, quality was part of the process, not something added on in the inspection phase. American...

Words: 7944 - Pages: 32

Case Questions

...Spring 2003 Professor Kose John The Super Project Case – Questions and Hints I have digested the data in Exhibit 6 to produce Modified-Exhibit#6, in the Excel Spreadsheet on my website.The management analysis in Exhibit 6 does not deduct depreciation from the project’s taxable income. I have done that in Modified-Exhibit#6. - In Exhibit 6, the first change in Net Working Capital occurs in period 1. I have kept that assumption in Modified-Exhibit#6. It is ok to move all changes in NWC back one period, if you prefer to do so. - The depreciation calculation uses an old formula that is no longer used in practice. I have explained the formula and derived depreciation and book values in Modified-Exhibit#6. Suppose you are responsible for making the final decision about the Super Project, on March 1967, and you have read all the data and the analysis in “The Super Project”. Should you go ahead with the project or not? I will help you out by asking a few specific questions, the type of questions you would have to ask yourself in a real world situations. Specific questions 1) Are the cash flows in Exhibit 6 or Modified-Exhibit#6 correct? Notice that the reason for including the cash flows in Exhibit 6 is explained in detail in the “The Super Project”. In particular, should General Foods include the following or not? Discuss briefly. a) Test market expenses; b) Charges for the use of Jell-O agglomerator capacity; c) Charges for erosion of Jell-O......

Words: 614 - Pages: 3

Case Questions

...Case #1: Butler Lumber Company Questions 1. Why does Mr. Butler have to borrow so much money to support this profitable business? 2. Do you agree with his estimate of the company’s loan requirements? How much will he need to borrow to finance his expected expansion in sales (assume a 1991 sales volume of $3.6 million)? 3. As Mr. Butler’s financial advisor, would you urge him to go ahead with, or to reconsider, his anticipated expansion and his plans for additional debt financing? As the banker, would you approve Mr. Butler’s loan request, and, if so, what conditions would you put on the loan? 4. Has Butler Lumber Company created value for shareholders? Hint: It might help you to analyze the case if you conduct the following analyses: 1. 2. 3. 4. Construct a common-size (percentage) income statement. Construct a common-size (percentage) B/S Using information from 1&2 to find out the operating efficiency Assuming the same operating efficiency in 1990, forecast cash needs for the target growth Case #2: Ocean Carriers Questions Ocean Carriers uses a 9% discount rate. 1. Do you expect daily spot hire rates to increase or decrease next year? 2. What factors drive daily hire rates? 3. How would you characterize the long-term prospects of the capesize dry bulk industry? 4. Should Ms Linn purchase the $39M capesize? Make 2 different assumptions. First, assume that Ocean Carriers in a U.S. firm subject to 35% taxation. Second, assume that Ocean Carriers is located in Hong Kong,......

Words: 947 - Pages: 4

Case Questions

...Questions to be discussed in class Case 18: Worldwide Paper Company 1. What are the yearly cash flows that are relevant for this investment decision? Do not forget the effect of taxes and the initial investment amount. 2. What discount rate should Worldwide Paper Company (WPC) use to analyze those cash flows? Be prepared to justify your recommended rate and the assumptions that you used to estimate it. 3. What is the net present value (NPV) and internal rate of return (IRR) for the investment? Case 24: Euroland Foods S.A. 1. Why does the company face the capital rationing? 2. Why do different types of projects have different hurdle rate (required rate of return) and maximum acceptable payback years? 3. Prepare to discuss the strengths and weaknesses of the various measures of investment attractiveness as used by Euroland Foods. Will all of the measures rank the projects identically? Why or why not? 4. Please rank the 11 proposals on the basis of purely economic considerations. Then rank them a second time based on any other considerations that you believe are important. Are the rankings identical? Why or why not? 5. Which set of projects should Wilhelmina Verdin recommend to the board of Euroland Foods for the capital budget for 2001? Role play Accompanying this assignment are the case and supplemental information on a role that you will be asked to represent. Please study the case and the role carefully, and prepare a preliminary...

Words: 501 - Pages: 3

Case Questions

...52:620:530 D6 (Summer 2015) Arun Kumaraswamy Case preparation questions KTM – Ready to race (for general discussion in class) 1. Size up KTM (its strategy, resources/capabilities, organization and management) and its environment. How is it performing? 2. What growth options does it have? How does each growth option fit with its environment, strategy/resources/capabilities? How well can KTM deliver on each of these options? 3. What growth options should KTM pursue? Should it pursue organic growth (i.e., through internal development), merge/acquire (if yes, who) or use alliances? Newell Co: Corporate strategy (for general discussion in class) 1. Is Newell’s corporate strategy successful? Does the company add value to the businesses within its portfolio? 2. What are Newell’s distinctive resources and competencies? 3. What challenges does Newell face in the late 1990s? 4. Given this context, does the Calphalon acquisition make sense? Rubbermaid acquisition? Why (or why not)? Antitrust regulation in a global setting: The EU investigation of GE/Honeywell merger (for general discussion in class) 1. What markets are affected by the proposed GE/Honeywell merger? Who are the main competitors in these markets and how are these markets related to each other? 2. What would the combined market share of GE and Honeywell be in each of the markets you identified in Q1? How would these estimates change depending on how broad or narrowly you define these markets? 3.......

Words: 1027 - Pages: 5

Question for Case Memo

...Strategic Management Case Analysis & Presentation Questions for the case memos: Case 1: The Chinese Fireworks Industry Discussion Questions: 1. If you were Jerry Yu, would you invest in a Liuyang fireworks factory? Why? 2. Is the fireworks industry a ‘sunset’ industry or an industry still worth being in for the long run? 3. If you were Jerry Yu, and you decided to make the investment, what would you do to win out in the competition? 4. If you were asked to provide advice to Liuyang Firecrackers and Fireworks Industry Department, as Jerry Yu, what would you say? Case 2: The Global Casino Industry Discussion Questions: 1. Examine the structure of the casino industry by using Porter’s five forces model. 2. What has been the effect of the changing industry structure on U.S. casinos? 3. What are the strategic groups in the casino industry? 4. Assuming your group as consultancy for the Macau government, provide some recommendations for the gaining industry in Macau. Case 3: McDonald’s Discussion Questions: 1. What situation did Easterbrook inherit when he became CEO? What are the current forces in the external environment that might affect the new CEO? 2. What source of competitive advantage does McDonald’s have, and is that position supported by its value chain and other internal resources? 3. What steps could Easterbrook take to fix the problems McDonald’s faced? 4. What other strategies did McDonald’s formulate to achieve a competitive advantage? Case 4: Apple......

Words: 379 - Pages: 2

Case Questions

...Case Questions for April 10, 2010 Discussion Questions for Birch Paper Company Answer each of the following questions independently. 1. Which bid should Norhern Division accept? 2. Should Thompson Division lower its price? If so, to what? 3. What should the Commercial V.P. do? Case 23-5, Berkshire Industries 1. Were Berkshire’s motivations for a new incentive system reasonable? If so, what were their main options for a new system? Was an economic profit-focused system a reasonable choice? 2. Use the data pertaining to the Snack Food Division, as shown in Exhibit TN- 1, to calculate: a. Economic profit for the division for 2000 and 2001. b. The economic profit target for the division for 2001. c. The division manager’s bonus payout (% of salary) for 2000 and 2001. (Assume that the slope of the payoff line for 2000 was arbitrarily set by Berskshire management to equal 1.0). 3. Assume the base salary of the manager of the Snack Foods Division was ₤120,000 in both 2000 and 2001. How much cash would the manager receive from his bonus payouts in 2000 and 2001? 4. Evaluate the Berkshire Industries’ new incentive plan. What changes would you recommend, if any? 5. Should Mr. Embleton make special adjustments of the economic profit figures or the bonus payouts for personnel in the Spirits Division in 2000 and 2001? Why or why not? Sub-Micron Devices (take-home graded case, not due on April 10) Anwer the questions provided in the case...

Words: 253 - Pages: 2

Nummi Audio Case

...NUMMI Joint Venture GM entered the NUMMI joint venture because it needed to build smaller cars that met the United States government's new emissions guidelines. GM had tried to build these cars on its own, but had always lost money on these smaller cars in the process. GM's quality control was, at the very least, extremely questionable, and they knew it. Toyota entered the NUMMI joint venture in order to begin building in the United States. There had been talk of the United States restricting car imports, and Toyota was at risk of losing a huge chunk of its business. Toyota had a lot of trepidation about entering the US market. It did not know how to incorporate its system into North America. So partnering with GM on NUMMI would assist them in this regard. GM's sincerity regarding smaller, more fuel efficient vehicles was overshadowed by overconfidence that their way was the better way. GM's management had a superior attitude approach to NUMMI. Not enough of GM's senior management was humble enough to accept the fact that they could learn from a competitor. However, even GM recognized how poor their factory efficiency was. They knew that their workforce was the worst in the industry. They also knew that the Fremont plant was the worst of the worst. Freemont Plant GM's Fremont plant conditions were horrendous, which led to horrendous errors on the production line. Sex, drugs, and alcohol were rampant during working hours. Employees came to work drunk or......

Words: 2095 - Pages: 9

Cases Questions

...2006 CASE QUESTIONS DR. KISS Please allow these questions to serve as a guide when you prepare your case write-up in accordance with the syllabus or other instructions. Table of Contents Page Case: Name and Number, Bruner 5e Note Number I. C12- Best Practices—WACC No Questions II. C2- Bill Miller & Value Trust 2 III. C5- Financial Detective, 2005 Contained in Case IV. C7- Body Shop Intl* Contained in Case, but see page 3 V. C6- Krispy Kreme Doughnuts, Inc. 4 VI. C17- The Investment Detective* Contained in Case VII. C28- Intro. to Debt Policy & Value* No Questions, but review M & M Theory on debt and value of the firm. VIII. HBS Case- “Leveraged Betas and the Cost of Equity No Questions IX. C16- The Boeing 7E 7* 5 X. C26- Jet Blue Airways, IPO Valuation* 6 XI.a C35- Merton Electronics 7 XI.b C36- Carefour S. A.* 8 XI.c C44- Palamon Capital Partners* 9 XII. GM Dividend Policy Negotiation (Information to be provided by Dr. Kiss) * Note: Excel Spreadsheets containing some of the exhibits from the case are available for this case at FIN 620, CASE QUESTIONS DR. KISS Please allow these questions to serve as a guide when you prepare your case write-up in accordance with the syllabus or other instructions Case 2- Bill Miller & Value Trust Suggested Questions for Your Preparation of the Case. ...

Words: 1437 - Pages: 6

Fale Conosco | Samsung (2731) | El desentierro yify torrent