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Companies

Double Your Profit Margins by Aligning Culture and Strategy

The first step in coordinating culture with business objectives is deciding what type of environment a company wants to build

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Companies today are seeking to find a good balance between employee engagement and organizational strategies that work together to achieve smart goals and objectives.

A significant factor for success is a company culture that aligns with business strategies.

Culture, in this sense, is not just about congenial work environments, but also an organizational structure which incorporates the right harmony between employees and company mindset.

Recent studies have shown that company leadership that feels its culture and business goals are aligned also has higher profit margins.

Reporting participants indicated profit margins more than double, from 4.8% to 11.5%, when culture lines up with strategy.

Organizational Structure Takes A Variety of Forms

The first step in coordinating culture with business objectives is deciding what type of environment a company wants to build. Depending on the goal, companies can then put strategies into place that support the cultural ideal. Each type attracts its own adherents among leadership and staff, and a company can certainly have overlaps.

Innovation

Business, Paper, Office, Laptop, Computer, Achievement

An company striving for a culture of innovation needs to include a business strategy that uses new ideas to keep ahead of the competition.

Meanwhile, the overall culture should aim to encourage diversity in approach and support risk-taking. Leadership should keep its eye on future priorities and encourage its staff to explore.

Efficiency

The business strategy for a brand focused on efficiency should strive to be a well-oiled business machine that focuses on delivering quality services and products. It’s often data-driven, with clear lines of responsibilities.

The culture aspirations should be to make staff training a priority. Workload and assignments are optimized for definitive performance measurement.

Custom Service

  • Business Strategy: A customer-focused firm that produces high levels of satisfaction in products, services, and customer response among clients.
  • Culture: Team building and information sharing to achieve satisfied customers. Provide deep understanding of products and services to address client desires and goals.

Quality

  • Business Strategy: A company that centers on best practices, services, and materials to produce in-demand products and services.
  • Culture: Localized decision-making that improves products and processes. Keen attention to data-driven analytics in order to refine and deliver best products and services to clients.

Branding

  • Business Strategy: A firm that has a strong brand identity and takes that into consideration with all its strategies.
  • Culture: Reputational awareness that drives pride in products and services. How the company is perceived is as important as the products and services it delivers in keeping with industry leadership goals.

No company needs to make strict choices among culture identity options. Depending on the size of the company, multiple cultures can come into play. Retailers, for instance, can have strong brand-identity and customer service in its customer-facing divisions while a quality-focus might be more in tune with its research and development teams.

Another key to success is guiding employee performance to align with the corporate goals. Free-thinkers thrive in innovation, while data analysts might prefer efficiency-driven settings. Regardless of the culture, providing the proper tools and support for staff to achieve within their job roles, the company hierarchy, and personal and professional goals is critical.

 

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Rae is a graduate of Tufts University with a combined International Relations and Chinese degree. After spending time living and working abroad in China, she returned to NYC to pursue her career and continue curating quality content.

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Companies

Regulation can hinder not help Asia’s social enterprises, analysts say

Thailand last week passed a new act that gives tax breaks for social entreprises

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As more Asian nations consider laws to promote social enterprises, analysts on Thursday warned that legislation could hold back, not help the growing number of ethical businesses.

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Business

French MRO Revima to build landing gear facility in Chonburi

The French landing gear MRO provider has started construction of a new facility in Chonburi, Thailand

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The facility will focus on Airbus A320, Boeing 737 and ATR family landing gears. It will be equipped with the latest state-of-the-art machines and will include all necessary special processes for full in-house repair & overhaul of landing gears.

The French landing gear MRO provider has started construction of a new facility in Chonburi, Thailand.

The 12000 m2 facility will employ up to 300 employees, and represents an investment of over 30 MUSD.

“We found Thailand to be a great choice due to its central location in Asia, its infrastructure, ease of doing business and workforce quality. Thailand will become our regional customer support hub for Asia-Pacific. Our objective is to deliver quality and customer service of the highest standards in the region to support our customers’ operations. We aim to have our facility fully certified and ready to ship to our customers by the first quarter of 2020.”


Olivier Legrand, President & CEO of Revima

Digitally connected from its machines to its technical documentation, warehouses, monitoring and customer communication systems, it will also be environmentally friendly, with zero rejection waste water management systems and advanced fire detection and suppression technology.

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Hino To establish a development and production base in Thailand

Once the factory begins operation in 2021, Hino will first start off by producing vehicles for the domestic Thai market

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Japanese motor Company to push forward with locally led manufacturing of best-fit products to quickly respond to customer needs in close proximity

Under this new setup, Hino will be constructing a new center in Bang Bo, Samutprakarn Province to consolidate and strengthen our product planning, development, and production functions for best-fit products in ASEAN.

The site has an area of roughly 400,000 sqm. Construction is scheduled to begin in July 2019 with operations to begin in 2021.

The new center will consist of the new plant’s production area, and a development area centered around a test track. The total investment amount is expected to be roughly 11.5 billion yen.

Operations to begin in 2021

Once the factory begins operation in 2021, we will first start off by producing vehicles for the domestic Thai market, and expect to begin supplying ASEAN best-fit vehicles to other emerging markets by roughly 2024.

Hino Motors, Ltd. (HQ: Hino City, Tokyo, President & CEO: Yoshio Shimo; hereafter “Hino,”) and Hino Motors Manufacturing Thailand, Ltd. (HQ: Samrong, Samutprakarn Province, President: Somchai Pleankaew; hereafter “HMMT”), our manufacturing company in Thailand, in order to achieve our vision of “Corporate strategy 2025” and enable us to respond to customer needs in close proximity, will be taking steps in Thailand, one of our key centers of operation, to accelerate our efforts to strengthen our business foundation in ASEAN.

By newly appointed Mr. Somchai Pleankaew, who has an exceptional career background with Hino, to president of HMMT, we will be creating an organizational setup that will enable us to drive our business in a locally led manner.

Mr. Somchai Pleankaew, who assumed the office of president of HMMT as of Feb 1 has this to say:
HMMT will put all of our effort to make this project successful in order to enable the growth of our company. Our aim is to serve all customers to their greatest satisfaction by providing the best-fit products and total support customized for each vehicle.

In addition, as a center of Monozukuri, including product planning, development, and production, as well as Total Support in ASEAN, Hino Thailand will collaborate and go forward with Hino in ASEAN in order to grow and strengthen together to support the growth of our customers’ businesses in the ASEAN region.

The Hino Group will be reforming its business structure to achieve sustainable growth leading up to 2025. We position Thailand as one of our key markets for sales in the ASEAN region, our second pillar after the Japanese market. The country is also one of our key business centers and a driver of Monozukuri and Total Support within the region.

The new center to be constructed will consolidate and strengthen our product planning, development, and production functions in Thailand.

New center overview

NameSuvarnabhumi Monozukuri Center
LocationBang Bo, Samutprakarn Province
Site area400,000 sqm
FunctionsProduct planning, development, and production of Hino vehicles
Products producedLight- and medium-duty trucks and buses
Operation startup dateScheduled for 2021
EmployeesApprox. 1,300 (at the time of operation startup)

As a “Monozukuri Center” it will be designed with the capability to commercialize and supply ASEAN best-fit products locally and consistently. In addition to increased coordination between different functions, we will be taking steps in product development to push forward with localization of product development by upgrading organizational setups and constructing a new test track so that we will be able to respond to customer needs quickly and accurately at close customer proximity. In the area of production, the production functions that are currently distributed across existing plants in Thailand will be consolidated at the new center to improve production efficiency.

Furthermore, know-how from the Koga Plant―our global mother plant―will be actively incorporated into the plant to create a system that will enable us to deliver competitive products to our customers in a timely fashion.

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