Chapter 4. Result Analysis
4.2 Case Analysis of Company B
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4. Each order that comes in must be double checked with the customer, where only one lady was doing the work.
Comparing observation with the interview there are couple of conclusions that one can derive. As the General Manager said that the core culture of the company is based on quality standards, the (1) scenario must be what the manager sees as poor quality. With a new department as the General Manager said is the information department as he has now working knowledge of that field, but by inspection of the information manager desk (2), it seems he/she, too, has no deep knowledge of that field. Whereas (3) in the office by referring to someone first name represents a close friendship or are able to feel free around one another, where even when the general manager walked pass they smiled and greeted, this refers to a non-hostile working environment. As mentioned above, it requires a lot of man power to just get the order right for the company’s business to customer sector (4).Further observation; there was only one person who was on the phone consistently while checking the orders. The process was long and problems tend to arise as the customers may think this is a prank call. There are also a few customers whom they cannot get in touch with, therefore to them personal orders are a hassle compare to just supplying them to stores and having the customers choose themselves. The reason they started personal orders was due to the rise of the internet, but due such eruptive decision to start virtual stores they are in short of information, technicians, as the current manager for the online store was the general manager’s daughter who does not have the knowledge to manage the virtual stores.
4.2 Case Analysis of Company B
4.2.1 Innovation
Company B in Taiwan, are considered to be pioneers, doing something that has not being done. They have innovated a new way for SMEs to have a branding chance along with the big brands out there today. According to Chapter 2.1, Porter (2003) stated that innovation is to do things in a new way and able to commercialize it.
Thus for Company B, its “new way” is to provide a service that allows their client to be competitive in return their service is commercialized.
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In order to bring this innovative service to their client, Company B relies heavily on human resource, as their innovative service is based on the need of communication and on-site analysis;
“…now we have a set of SOP that allows our consultants to go to a client and execute a cycle, comes back to the company, fill in a form and from there we are able to aid the clients...”
The company provides a team of consultants to their customers and by web research it is found they have outsource experts for each customers need, since not all consultants can be food experts, café experts, music experts and etc.. Below Table 7 is the degree of innovation.
Table 7. Company B Innovation Dimension
Dimension of Innovation Company B
Type of novelty of the innovation Service (Consulting firm) Degree of novelty of the innovation Incremental
Type of the organization in which the innovation project took place
Private Company Size of the organization in which the
innovation project took place
Small < 50
Environment/sector Constantly in having to think of new ideas for their client
The reason behind the degree of novelty is incremental due to how it
transformed from a magazine publisher to a consulting firm. The transformation was planned as there were dismissed staff members and rehires to fit the business model.
Also it can derive from publishing about startup companies to serving as consultant to startup companies.
4.2.2 Human Resource Practices
Due to the company initial goal was not to be a consulting company; there are drastic changes and replacement made during the transformation;
“We started out as a magazine publisher, and from there we transformed to a consulting team. Back in the days when the team included writer, photographer and reporter, now the team has changed to consultant, writer and designer. So I would say it is due to different company
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development stage that has changed our team structure.”
From a failed enterprise the company discovered innovation from within, before the company was writing articles for the start-up companies, now they are aiding the start-up company, from here the team that aids which store will have to be selected carefully, cause as the vice general manager said that communication is the utter most important for the company’s clients;
“Communication is one of the utter most importance of the business, our whole value creation is based upon teamwork, from consultant coming back to giving the analysis to our designer or writer, there are bound to be communication gap due to expertise problems.”
From internally and externally is the gap of expert knowledge that will hinder the company, which is why as a leader, they have to keep an iron fist to ensure that they all have the working knowledge, which also ensures that no details are lost in creating value for their customers.
“I have not changed yet, due to leading a team to unknown territory, it is important to know every detail so that I may construct value from the tiniest of detail.”
As the vice general manager explained that the company is based upon people, as customer value cannot be extracted with just a simple SOP, it also requires
individual observation and later discussed with the group.
“Yes they do, this company is based upon people, to be able to give advice to our clients we need individual creativity input. From on-site analysis to design advices is all base on observation of an individual team member.”
There are different people all over the place, so conflicts cannot be avoided, that is why the vice general manager said that the most important culture that the newly recruited needs is sympathy, as conflict raises may cause a foul taste in the mouth
“The most important culture is to be able to work with different people and to be able to forgive and forget…”
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Below table 8 summarizes Company B’s human resource practices
Table 8. Company B’s Human Resource Practice
Human Resource Practice Company B
Recruitment & Selection Base on the need of the team.
Transformation from publisher to consultant, there was a change hiring new members base on skill
Performance Appraisal Unclear
Compensation (Award System) Unclear
Training and Development Learning sympathy, on-site training, and communication.
4.2.3 Human Intelligence
From the above the vice general manager considered Human Intelligence (HI) to be in team members interaction with business culture. This may be due to the fact that the company provides a service base around their clients’ value; this in return implies that they own business value and culture will reflect upon some of their customers’ value, so it is important for this company to have a clear, clean and able to show sympathy with one another.
“…the dynamic of a team in correlation with a business culture.”
4.2.4 On-site Observation
This company is situated within Taipei City, near the Taipei 101 on the 12th floor. Each building floor has different companies. Upon arrival visitor pass are issued on the 1st floor and an elevator takes visitors right to the front door of the company they desire to reach. Upon arrival to company B couple scenarios are as followed.
1. Each office has 3 desks, where there is each owner’s personal taste of style decorated.
2. There is no closed conference room; all conferences and meeting are done in the public area where the interview was held too.
3. When an employee needs a word with the VGM, they call her by first name.
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4. There are clear labels to each office as to what they are, such as human resource, information manager and etc.
5. Each employee has a clear title, such as designer, writer or sales.
This company by observation can derive that each team member has their private quarter, as refer to (1), since the vice general manager did say that each team consists of 3 different experts. With an open conference room (2) there must be a deep trust between each team or they are all not competitive with one another. Where (3) first name bases inclines that each member feels secure and free with one another.
Again with connection to (1), (4)(5) tells that there is a clear boundary of who is where, where a field team will not be able to social with an information team except on task needs, which can be the reason for the formal approach.