Komatsu Ltd. And Project G Case Analysis Report Harvard Case Solution & Analysis

Komatsu Ltd. And Project G Case Analysis Report Case Solution

Emergence and Expansion: The Kawai Era (1964-1982)

Ryoichi Kawai was the new president of Komatsu. He got the presidency from his father in 1964. His main focus was the innovation of the company. In order to accomplish that purpose, he introduced the total quality control as the main model of the company to follow. His optimistic approach also led the company to a new path. The company was also awarded with a Deming prize (Sallis, 1993).

He introduced the Project A which focused on improving the quality of middle-sized bulldozers to the competitors’ level. In order to achieve innovativeness and project A, he further introduced new system for the control. The new system was PDCA cycle which included P-Plan, D-Do, C-Check and A-Act.

The high enthusiasm from Kawai Era shows an increase in the sales as well as an increase in the market share of Komatsu Ltd from 50% to 65% which shows the efficiency of Komatsu in construction equipment industry. His practices became very famous in many subsidiaries overseas. Moreover, many overseas companies were adapting his management style.  (Yang, 3rd Qtr., 1994)

Struggle and Turmoil: The Nogawa Era (1982-1987)

Riyochi Kawai shifted his operating leadership to Shoji Nogawa, who was an engineer from the construction equipment division. The era is highlighted for the start of the downfall of Komatsu Ltd. Shoji Nogama is more focused towards aggressive sales tactics and mechanism for the reducing the cost.

In his era, the company faced continuous decline in demand and the sub effects of the increasing yen. He lacks the skills to target the major problem rather than he is interested in changing Komatsu’s traditional policies. He also expanded Komatsu Ltd into a different segment, which was a completely new business of Industrial Machinery for the Non-construction usage.

The Research and development sector was heavily invested since it was the a decision to utilize assets efficiently in order to expand the product line of Komatsu. He was less concerned about the need for shifting the production overseas. The policies resulted from the growth in losing the share of trade sales to other companies.

Steadying the Ship: The Tanaka Transition (1987-1989)

After five years of crisis, Ryoichi Kawai replaced Nogawa by choosing Masao Tanaka as the new president of Komatsu Ltd. Moreover, Kawai saw potential in Masao Tanaka, therefore he considered establishing the company there. Masao Tanaka reduced the high pressures of aggressive sales target defined by the ex-president Shoji Nagawa

He also introduced the reduction in production in case of worsening of the demand in the market. He also depletds the price war in the industry by eliminating the discounted price strategy. The fast action and quick response to domestic market led Komatsu Ltd into a stable condition which seemed critical in the previous leadership.

New Leadership: Tetsuya Katada (1900s)

A graduate of the Kyoto University of Law and the vice president of corporate planning of Komatsu Ltd came up as the president of Komatsu Ltd. In June 1989, after Masao Tanaka, Tetsuya Katada was selected as the new president of Komatsu Ltd. The staff and the workers of the company recognizd his strategy as a new culture, and a new direction...............

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