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2) Case Study - Hunter SEA

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Case Study -

Hunter SEA Problems SWOT


Story -
Immediate - Amicable Strength - Expertise. Solutions to problems.

Bitter exchange between Aman and relationship with CEO. Weakness - Communication. Data
Eric regarding the performance of management. Control over GMs. Regular
the subsidary. Short Term - Turn around inspection and audits.
key metrics and end
Opportunity -
Problems from the start. Tried to misreporting.
rectify. Threat - Small sample size can lead to
Long Term - Ensuring the distorted results.

Hunter Group PLC - World Leader in sustainable growth and


weeding out

DATA
manufacturing and distribution of
threads, rubber and glue for shoes. misinformation.

Worked at Hunter for 20 years. Key


Players In 2018 its revenue was USD 1415 million
relative to USD 1356 million in 2017, and
Plant had been reporting incorrect
operating profit in 2018 was USD 195 million
figures about On Time Delivery due AMAN BHATIA
relative to USD 161 million in 2017. The group
to pressure from GM. CEO of Hunter South East had a workforce of about 18000 in over 50
Asia countries across six continents.
GM manipulated the MIS to ensure
Hunter South East Asia (Hunter SEA) was an
bonus for staff.
Eric Finn unlisted subsidiary of the Hunter group. It had
plants in Indonesia, Thailand, Vietnam and
Either Hunter was cost competitive Head, Asia Pacific Region Malaysia
or competitors service was bad.
Hunter SEA
Warehouse Data Analysis - MTS also B2B.
shipped late.

Production and Business process to


be improved.
Challenges
Huge pile of unusable stock listed as regular
which if written off would reduce profit by 50%.

Right First Time Reports were 95% and hence

Solutions
investigation was launched.

RFT Figures inflated - 50% rejected. Mature Market.


Entire database had to be scrapped.
Operational excellence was key.
Approached superiors for advice.
1) Spokesperson. Guidance.
20% of SKU's accounted for 50%
Perfomance and Performance targets are Setting of vision and mission.
different. of sales - Predictable.
Delegation of responsibility.
Hunter achieving cost and quality but not OTD. Realistic goal setting. Empathy.
Others Manufactured to Order -
Company had invested in Hunter for 30% and 80% of SKU.
hence not right time to change reports. 2) Managing all stakeholders.
Try to reprocess unsaleable goods. 2 Days for MTS and 5-7 Days for
3) Regular reporting.
Advised to fire GM. MTO products.
Transparency. Data based
Suggestion impractical. analysis. Proper records of
Deliberate Misreporting.
communication. Early warning
EBIT targets not achieved. emails. Keeping everyone in the
External factors like terrorism.
Finn becomes COO and distanced himself from loop.
SEA issues and led to arguments in 2016.

After 100% buyout Finn wanted to be CEO which


was the reason for him to suggest not writing off
stock.
Questions 4) Structured report on situation
should have been shared. Should
have taken stronger action
What is the role of the CEO of an
Finn stated that the HR though Bhatias
organization in managing against misreporting. Replied to
performance was bad.
performance? (ii) Whose expectation the goal setting email.
Bhatia offered smaller role. does s/he need to meet (or exceed) to
achieve sustainable excellence for the
organization? (iii) How should a
subsidiary CEO cope with pressures
from superiors in Regional HQ or
Corporate HQ? What should he have
done differently to avoid the
showdown at the conference

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