OPERATIONS STRATEGY AT GALANZ
CASE STUDY
MBA 729
1|Page
, TABLE OF CONTENTS
I. Company Background ……………………………………………….. 3
II. Case Background ……………………………………………………….. 4
III. Statement of the Problem ……………………………………………….. 6
IV. Assumptions ……………………………………………………………….. 7
V. Areas of Consideration ……………………………………………….. 8-10
A. Marketing
B. Operations/ Manufacturing
C. Finance
D. HR
E. MIS/ IT/ R&D/ Bus Development
VI. SWOT Analysis ……………………………………………………….. 10-12
VII. Alternative Courses of Actions ……………………………………….. 13-17
VIII. Action Plans ……………………………………………………………….. 17-18
IX. Conclusion/Recommendations ……………………………………….. 18-20
2|Page
, I. COMPANY BACKGROUND
Guangdong Galanz Group Co.,Ltd. is a Chinese manufacturer of electronic home appliances
which is headquartered in Shunde, Guangdong province. It was founded in 1978 by Liang
Qingde, the former deputy chairman of the Industrial and Transportation Office of Shunde
Country (1973-1978).
The company’s original name was GuizhouDown Product Factory. Before, it produced down
feather products for overseas clients to earn foreign exchange. The company continued to be
profitable despite increasing competition and was also one of the best performers in Shunde.
However, the global garment industry faced dramatic infrastructural changes that posed
potential risks to its business in the late 1980s. Also, the profit growth of the company had
become stagnant which made Liang Qingde realized that his business could not go any further
because of its projected weak future. Thus, in 1991, Liang Senior made a strategic decision to
search for new business opportunities with greater potential for growth. After analyzing the
Chinese consumer market for a year, he made the decision to enter the electrical appliance
market with the introduction of microwave oven. It took the company about a decade (1993-
2003) to enter the global home appliance market. Then, it became the dominant player in the
world microwave oven market.
3|Page
CASE STUDY
MBA 729
1|Page
, TABLE OF CONTENTS
I. Company Background ……………………………………………….. 3
II. Case Background ……………………………………………………….. 4
III. Statement of the Problem ……………………………………………….. 6
IV. Assumptions ……………………………………………………………….. 7
V. Areas of Consideration ……………………………………………….. 8-10
A. Marketing
B. Operations/ Manufacturing
C. Finance
D. HR
E. MIS/ IT/ R&D/ Bus Development
VI. SWOT Analysis ……………………………………………………….. 10-12
VII. Alternative Courses of Actions ……………………………………….. 13-17
VIII. Action Plans ……………………………………………………………….. 17-18
IX. Conclusion/Recommendations ……………………………………….. 18-20
2|Page
, I. COMPANY BACKGROUND
Guangdong Galanz Group Co.,Ltd. is a Chinese manufacturer of electronic home appliances
which is headquartered in Shunde, Guangdong province. It was founded in 1978 by Liang
Qingde, the former deputy chairman of the Industrial and Transportation Office of Shunde
Country (1973-1978).
The company’s original name was GuizhouDown Product Factory. Before, it produced down
feather products for overseas clients to earn foreign exchange. The company continued to be
profitable despite increasing competition and was also one of the best performers in Shunde.
However, the global garment industry faced dramatic infrastructural changes that posed
potential risks to its business in the late 1980s. Also, the profit growth of the company had
become stagnant which made Liang Qingde realized that his business could not go any further
because of its projected weak future. Thus, in 1991, Liang Senior made a strategic decision to
search for new business opportunities with greater potential for growth. After analyzing the
Chinese consumer market for a year, he made the decision to enter the electrical appliance
market with the introduction of microwave oven. It took the company about a decade (1993-
2003) to enter the global home appliance market. Then, it became the dominant player in the
world microwave oven market.
3|Page
