1. Describe the nature of operations management at Galanz by identifying the purpose and products of the organization and the
important operations decisions (using the four decision types outlined in Schroeder).
Galanz had an business strategy to continue to grow and remain relevant in the microwave market. Galanz came up with a business
plan to venture into producing local microwave oven and sell it at aordable price. Galanz uses the market advantage in
understanding the market. In business, it is vital to be able to learn about the market and the opportunity. By understanding the
market, Galanz was able to oer beer products hence, beer growth opportunities and to remain relevant in its market.
Galanz initially had to focus on three operations objectives: cost leadership: through mass production (Operations Strategy at
Galanz 442) , Innovation: through production of magnetrons and establishment of R & D department ( Operations Strategy at Galanz
440), and Delivery: Galanz needed to strengthen its delivery, Galanz began to face shortages of magnetrons because of the
retrenchment by its suppliers ( Operations Strategy at Galanz 440). These operations objectives changed once Galanz ventured into
the OBM business.
Galanz’s Competitive Advantage in the Market was initially two strategies:
1 ) Pricing Strategy: Galanz had its own technology and was able to reduce the total cost of manufacturing. Galanz integrated its
production that enabled the company to be take a big portion of the market share though its cost leadership strategy that Galanz
had implemented.( Operations Strategy at Galanz 437). Through this Galanz was able to reduce its prices up to eight times in the
coming years and blow competitors out of the market.
2) Production Capacity: Galanz could expand its production scale and raise the product quality quickly by achieving OEM agreement
with Fillony and through other strategic partnerships, where Galanz gained excess production capacity, which enhanced
its sales volume by cu6ng its price and reducing its operation cost (Operations Strategy 441).
2. What were the order winners/order quali9ers for Galanz in the microwave oven business during the early stage of its
development?
ORDER QUALIFYING FACTORS
1) Familiarity with Chinese market
In 1991, Liang Senior analyzed the Chinese consumer market for a year and sensed that the rapid growth of the Chinese economy
will encourage the demand and purchasing power for a wider range of modern products where the competitors could not see the
market potential yet.
2) Less risky to invest in the technology side
The microwave oven was invented by Americans in 1950s, so that Galanz could take the advantage of having less risky to invest in the
microwave oven market due to its stable and mature technology.
ORDER WINNING FACTORS:
1) Abundant supply of cheap land and labour (low-price strategy) enabled:
Increase its production capacity
