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MOLDING SYSTEMS
1 By: Team Baldwin
Sarah Hsiao, Jaehee Lee, Al Li,
Amanda Sorrentino and Meg Burke
AGENDA
1. Purpose
Non-economic
Economic
2. Scope and Emphasis
3. Resources and Competencies
2
4. Organization and Tradition
HUSKY
Produce molds and injection molding machines
Add value to the plastics industry
3
ECONOMIC PURPOSES OF HUSKY
6
RESOURCE AND COMPETENCES
Policies about Resource and Competences develop
a second set of means to achieve corporate
purpose.
B. Resources
A. Principal Policies Important for
Sustainability
C. Sustainable
Competitive
Advantage 7
A. PRINCIPAL POLICIES
Value Chain Policies of Supporting Activities
Firm Ownership
Infrastructure Finance: Maintain modest debt 15% of total asset and
have interest coverage ratio under control
Human Focus on values (Schads) and employ according to it
Resources
Research and Establish Quick Series of Innovations
Development Track the production methods and products of rivals
closely
Outspend rivals and introduce newer model through
the Advanced Manufacturing Center (AMC)
Procurement Achieve economies of scale by utilizing suppliers in
Bolton campus
8
Operations Sophisticated machines: Design and assemble
customized machines
A. PRINCIPAL POLICIES
Value Chain Policies of Primary Activities
Sales & Pricing: Charge higher premium 20%
Marketing ($200K) more than the rivals
Maintain current reputation for quality
service by servicing through in-house
employees
Provide services to existing customers and
consultation to the potential customers
utilizing offices in different geographical
region
Sell through in-house sales representatives
9
Integrate sales and service: Have sales and
service people report to regional manager
A. PRINCIPAL POLICIES:
RESOURCES & COMPETENCES
1. Financial Asset
Ownership: Husky was a privately held.
Co retained 65% of stock
Key employees(Sr.Mgr): only non-voting stock: 25%
Komatsu Japanese equip maker: 10%
Financials:
Long term debt: 15% of total asset
Interest coverage ratio: 10-20%.
2. Physical Asset
Bolton Campus
Advanced Manufacturing Center(AMC)- built with $25 million investment
24 Regional offices in 17 different countries for customer service
Technical Centers for local technical support and training (ATL, LA, LUX, JP, etc)
Distribution Center (Buffalo, NY)
3. Intangible Assets
Value, Know-hows, Reputation
B. SUSTAINABLE RESOURCES
Machine Business Molds Business
Nestal
Other Boutique 11
Makers
B. SUSTAINABLE RESOURCES:
STRENGTHS AND WEAKNESSES
COMPARED TO THE COMPETITORS
Strong The
Moderate
Mannes Cincinn R&D
mann ati Tool
Weak
Group Milacro Electra Enginee
Nestal n Engel Husky Form ring
Needs +
Positioning Variety base Needs Base Needs Base Access Needs Base Variety Base
Financial
Resources
Swiss Austrian Less
Technology Engineering High Tech Refurbish Automozted
Pricing (Cost
Adv) 12
Service &
C. SUSTAINABLE COMPETITIVE
ADVANTAGE
Fit
Sustainability
Competitive
Huskys Purpose: Differentiator Advantage
Intangible: Reputation
Optimization Effort
TRADITION OF HUSKY IN THE EARLY 1990S
Values
Concern for environment
perfectionism
Management & Employee Characteristics
14
TRADITION OF HUSKY IN THE EARLY 1990S
Mold Maker: Mold Manufacturer:
Competitors Mom & Husky
Pop Artisans
Small, owner operated Latest tools and
machine shops less technology automated
automated process
Longer mold production Science of design and
times assembly
Thicker product walls Speed and flexibility
Sales people dont give Recruit knowledgeable
the best customer service sales/service people
15
& consultation Best performance Price
premium
ORGANIZATION OF HUSKY IN
1990S
Description
Organization: Products
Husky Production
Technology Development &
Commercialization
Sales &Service
Ownership & Finance
16