Transworld Case...
• Ellen Bright o CEO of transworld auto parts (TAP) o She was a veteran in the auto and aerospace industries
• TAP o 2 divisions:
1. luxury división : strong financial results
2. economy divisions: reported disappointing financial performance but good progress in achieving the targets for its non-financial goals o a $6.6 billion subsidiary of a U.S diversified manufacturing company o was a tier 1 manufacturer of original and after-market parts for automobile producers in the United States and abroad o they were affected by the global recession o radical changes were needed in strategy o ➢ SUPPLIERS: are still facing challenges of higher costs, price and volume pressure, and, at times, erratic production schedules from their auto-producing customers
➢ Rising automible production in asia and other emerging markets presents an opportunitu fo the larger multinational supplier to increase sales and profits
➢ China, for example, is important both as a source of low-cost parts to ship abroad, as well as for local market vehicle demand
Defining a strategy: o She announced a dramatic restructuring o TAP manufactured two core product lines—electronics and interiors—in four customer-centered divisions: luxury, economy, midpriced, and truck. o TAP served three geographic markets: North America, Europe, and Asia. o Strategy: go after the segements that give us the potential for the most profit : luxury car makers (in europe) , and economy car makers o Most of the plants affected will be in the US o They will have to differentiate in the economy división, by producing high quality car parts with the lowest lifetime Price o Want to be known for durability and low maintenance cost o Communicate our value position to auto makers o In the luxury division, our strategy will be to produce the most innovative, quality parts on the
• TAP o 2 divisions:
1. luxury división : strong financial results
2. economy divisions: reported disappointing financial performance but good progress in achieving the targets for its non-financial goals o a $6.6 billion subsidiary of a U.S diversified manufacturing company o was a tier 1 manufacturer of original and after-market parts for automobile producers in the United States and abroad o they were affected by the global recession o radical changes were needed in strategy o ➢ SUPPLIERS: are still facing challenges of higher costs, price and volume pressure, and, at times, erratic production schedules from their auto-producing customers
➢ Rising automible production in asia and other emerging markets presents an opportunitu fo the larger multinational supplier to increase sales and profits
➢ China, for example, is important both as a source of low-cost parts to ship abroad, as well as for local market vehicle demand
Defining a strategy: o She announced a dramatic restructuring o TAP manufactured two core product lines—electronics and interiors—in four customer-centered divisions: luxury, economy, midpriced, and truck. o TAP served three geographic markets: North America, Europe, and Asia. o Strategy: go after the segements that give us the potential for the most profit : luxury car makers (in europe) , and economy car makers o Most of the plants affected will be in the US o They will have to differentiate in the economy división, by producing high quality car parts with the lowest lifetime Price o Want to be known for durability and low maintenance cost o Communicate our value position to auto makers o In the luxury division, our strategy will be to produce the most innovative, quality parts on the