hetbahn case technology management and strategy. hetbahn case presented by kihoon kim, toikye cho,...

HETBAHN Case

Technology Management and Strategy

HETBAHN Case

Presented byKihoon Kim, Toikye Cho, Younghwan Jeon

HETBAHN Case

HETBAHN Case

PART Ⅰ PART Ⅱ PART Ⅲ

HETBAHN Case

PART I


Introduction

1. Company Overview2. Industry Overview3. Product Overview

Introduction

“CJ creates a Healthy, Happy and Convenient Lifestyle”

VisionTo become a Global Enterprise that

Creates a Healthy, Happy and Convenient Lifestyle

MissionTo Create Premium Value for Customers,

Shareholders and Employees by Supplying the Best Products and Services through the "Only

One" Spirit

1. Company Overview *Vision & Mission

Introduction

CJ’s business areas include food, bio, processed food, animal feed, pharmaceuticals and entertainment

Food

LogisticsEntertainme

ntIT Infrastructure

Bio Technology

1. Company Overview *Business Area

Introduction

CJ’s is one of the biggest companies in food industry in Korea

1. Company Overview *Business Performance

(April, 2010)

Introduction

1. Company Overview *History before HETBAHN

(1953~)

1953~1970Foundation and Take off

1973~1980 Growing into Composite Food Company

1980~1990 Advanced Technology Development and Overseas Market Entry

1991~1995 Diversifying Independent Business Fields

Launching Life and Culture Group 1996~

Introduction


(1953~1997)

1953. 8. Founded Cheil Jedang Co., Ltd. (the first manufacturing business of Samsung Group) 11. Commenced sugar manufacturing (first sugar- producing facility of Korea)1973. 11. Commenced animal feed manufacturing 1975. 11. Commenced production of ‘Dashida’1987. 2. Founded Cheil Frozen Food 1991. 11. Commenced life science business 1994. 2. Entered food service business1996. 2. Established CGV, the multiplex theater 1997.4. Completed official and legal separation from Samsung Group1997.12.

Introduction


(1953~1997)

1953. 8. Founded Cheil Jedang Co., Ltd. (the first manufacturing business of Samsung Group) 11. Commenced sugar manufacturing (first sugar- producing facility of Korea)1973. 11. Commenced animal feed manufacturing 1975. 11. Commenced production of ‘Dashida’1987. 2. Founded Cheil Frozen Food 1991. 11. Commenced life science business 1994. 2. Entered food service business1996. 2. Established CGV, the multiplex theater 1997.4. Completed official and legal separation from Samsung Group1997.12.

HETBAHN selected as hit product in the field of ready-to-eat processed foods at the Korea Consumer Festival 1997CJ General Research Center won a prize of 1st Technology Research Center Award from the Ministry of Science and Technology for outstanding research performance

Introduction

Food businesses gave constant effort to develop ready-to-eat processed rice product to meet the market taste

The market was attracting businesses with great potential demand

Frozen Rice (1993~)•Food businesses adopted frozen fried-rice, frozen rice-

ball manufacturing facilities from Japan•Market penetration was unsuccessful due to bad taste

2. Industry Overview *Ready-to-eat Processed Rice

Retort Rice (1995~)•Market penetration was unsuccessful due to bad taste

Introduction

Food businesses gave constant effort to develop ready-to-eat processed rice product to meet the market taste

The market was attracting businesses with great potential demand

Frozen Rice (1993~)•Food businesses adopted frozen fried-rice, frozen rice-

ball manufacturing facilities from Japan•Market penetration was unsuccessful due to bad taste

2. Industry Overview *Ready-to-eat Processed Rice

Retort Rice (1995~)•Market penetration was unsuccessful due to bad taste

Aseptic Rice (1997~)•Aseptic packaged rice introduced to the market by CJ

Introduction

HETBAHN had bean launched in 1996 and became a bestselling ready-to-eat processed food in 1997

3. Product Overview *Brief History of HETBAHN

1996. 12. CJ developed Aseptic Packaging System and launched brand new aseptic packaged ready-to-eat processed rice, HETBAHN.

1997. 7. CJ supplied HETBAHN to KOREANAIR. HETBAHN began to be served as airline food.

1997. 12. HETBAHN recognized as the best-hit- product from 12 newspapers.

Motivation of

Innovation1. Demographic Changes2. New Knowledge

Motivation of Innovation

1. Demographic Changes

2. New Knowledge

*”The Discipline of Innovation”, HBR, Peter F. Drucker

(Unexpected Occurrence, Incongruities, Process Needs, Industry & Market Change, Demographic Change, Changes in Perception,

New Knowledge)

Structure of food market had been changed as the number of nuclear family increased the number of double-income family increased

Life style / Eating habits had been changed

The new structure of food market had created massive opportunities for ready-to-eat processed food providers

CJ developed new technology“Aseptic Packaging System”

(Details follow)

New Knowledge of Aseptic Packaging System brought

Changes in Perception of ready-to-eat food product (Details follow)

68% of households owned at least one microwave in 1996.

Microwave became a one of the most popular equipment.

Motivation of Innovation

1. Demographic Changes(cont.)

5-day-work-week Increasing female employment Microwave

5-day-work-week changed the life style of the customers.

Customers started to enjoy sports and leisure activities on weekends.

The number of female employment kept increasing.

Females’ role changed from housewife to career women.

1980 1985 1990 1997

(x10,000)

68%

32%

(Number of female

employment)

(Proportion of microwave ownership)

The changes implies that the customers’ potential demand for convenient food increased significantly.

Statistics Korea Statistics Korea

Technology

Management 1. Key Success Factors

2. Aseptic Packaging System (Core Technology of HETBAHN)

Technology Management

Both Brand Image and R&D are KSFs for CJ’s ready-to-eat rice product

1. Key Success Factors

Customer-DrivenCustomer-Driven Knowledge-DrivenKnowledge-Driven

Brands or Customer Relations are relatively

important


important

R&D is relatively important


Capacity-DrivenCapacity-Driven

Physical capital is relatively important


*KSFs for ready-to-eat rice product


Both Brand Image and R&D are KSFs for CJ’s ready-to-eat rice product

1. Key Success Factors

Customer-DrivenCustomer-Driven Knowledge-DrivenKnowledge-Driven


important


important



Food products industry is Customer-Driven Industry in general

The taste of ready-to-eat rice must be upgraded through New Knowledge to meet the mass market

Capacity-DrivenCapacity-Driven



*KSFs for ready-to-eat rice product



Potential customer demand for Ready-to-Eat Rice

Frozen Rice and Retort Ricecould meet only small portion of

the enormous demand because of BAD TASTE

CJ could meet the massive marketwith the new product

which provides outstanding taste

Aseptic Packaged Ready-to-Eat Ricewhich tastes just like home-made rice



*Innovative Packaging Process: Aseptic Packaging




1. Clean Room

*HETBAHN factory is managed as clean as semiconductor factories

*Number of particles of dust:100/ft^2 (Normally there exist 20,000 particles of dust/ft^2 in the air)

2. Inspection

*3-hour-cleaning must be conducted everyday

*If any problem occurs:All the processes must be stop immediately until the problem gets identified and removed

3. UV Sterilization

*All the packages must be sterilized with UV

1. Clean Room

*HETBAHN factory is managed as clean as semiconductor factories

*Number of particles of dust:100/ft^2 (Normally there exist 20,000 particles of dust/ft^2 in the air)




2. Inspection

*3-hour-cleaning must be conducted everyday

*If any problem occurs:All the processes must be stop immediately until the problem gets identified and removed

3. UV Sterilization

*All the packages must be sterilized with UV

4. Vacuum-packing

*Packaged rice gets cooled in cold water for 15minutes*No preservative is needed because the rice is vacuum-packed



No PreservativeNo Extreme

HeatingNo Freezing

No DehydrationHETBAHN can be stored in room temperature for 6 month,

doesn’t have to be kept in freezer,and delivers the Great Taste just like home-made rice!

*Innovative Packaging Process:

Aseptic Packaging


Aseptic Packaging System provides outstanding taste


Frozen Rice Retort Rice Aseptic Rice




*Freeze cooked rice from 40℃ to below 0 ℃

*Can be stored for an year in a freezer

*Heat cooked rice to over 100 ℃ for sterilization

*Can be stored in room temperature for an year

*Seal the cooked like in room temperature

Can be stored in room temperature for 6 months





*Freeze cooked rice from 40℃ to below 0 ℃

*Can be stored for an year in a freezer

*Heat cooked rice to over 100 ℃ for sterilization

*Can be stored in room temperature for an year

*Seal the cooked rice in room temperature

Can be stored in room temperature for 6 months


Timing of Entry

1. First-Mover Disadvantages2. Overcoming Disadvantages3. First-Mover Advantages

Timing of Entry

CJ was the first mover of the Aseptic Packaged Ready-to-Eat Rice market and had to face first-mover disadvantages

1. First-Mover Disadvantages

Uncertainty of Customer Requirements

Uncertainty of Customer Requirements High Development ExpensesHigh Development Expenses

Timing of Entry

CJ was the first mover of the Aseptic Packaged Ready-to-Eat Rice market and had to face first-mover disadvantages

1. First-Mover Disadvantages

Uncertainty of Customer Requirements

Uncertainty of Customer Requirements High Development ExpensesHigh Development Expenses

Previous Ready-to-Eat Rice products failed to penetrate the market due to the bad taste.

The failure of the frozen rice and retort rice established negative customer perception of Ready-to-Eat rice product.

Previous Ready-to-Eat Rice products failed to penetrate the market due to the bad taste.

The failure of the frozen rice and retort rice established negative customer perception of Ready-to-Eat rice product.

Aseptic Packaging System required huge amount of initial cost for establishing the facility.

The new process required high cost of maintenance for keeping the cleanness.

R&D for Aseptic Packaging system took 2 years

Aseptic Packaging System required huge amount of initial cost for establishing the facility.

The new process required high cost of maintenance for keeping the cleanness.

R&D for Aseptic Packaging system took 2 years

Timing of Entry

2. Overcoming Disadvantages

Product Price

Promote

Place

*Marketing 4P

CJ overcame first-mover disadvantages through Marketing 4P

Outstanding tasteConvenient storage

TV advertisementsOffering free samples

Competitive price(1050won) compare to a bowl of rice served in restaurants (around 1000won)

Concentrated displays in convenience stores in urban area

Timing of Entry

3. First-Mover Advantages

Brand LoyaltyBrand Loyalty Reaping Increasing Returns

Reaping Increasing Returns

CJ was the first mover of the Aseptic Packaged Ready-to-Eat Rice market

and enjoyed the first-mover advantages

Timing of Entry

3. First-Mover Advantages

Brand LoyaltyBrand Loyalty Reaping Increasing Returns

Reaping Increasing Returns

Achieved 91% brand awareness in only 1 year from the launching

“HETBAHN” became a BYWORD for ready-to-eat rice

Achieved 91% brand awareness in only 1 year from the launching

“HETBAHN” became a BYWORD for ready-to-eat rice

Attained 15,000,000,000won annual revenue in 3 years from the launching

Attained 15,000,000,000won annual revenue in 3 years from the launching

91%

9%

HETBAHN report, 2000

0

100

200

300

400

500

600

700

800

900

1997 1999 2001 2003 2005

SERI, 2005

CJ was the first mover of the Aseptic Packaged Ready-to-Eat Rice market

and enjoyed the first-mover advantages

(Brand awareness: Ready-to-eat rice)

(Market sales of HETBAHN)

Types of Innovation

1. Types of Innovation

Types of Innovation

Convenience

Taste

*Product & Process Innovation

PRODUCT

CJ produced new product which could bring

outstanding taste to the customers

PROCESS

CJ implemented new process which could produce ready-

to-eat rice in room temperature

HETBAHN: Product Innovation & Process Innovation

Types of Innovation

*Radical & Competence Destroying Innovation

RADICAL

HETBAHN was the first product which was manufactured

through aseptic packaging system

HETBAHN: Radical Innovation & Competence Destroying Innovation

COMPETENCE DESTROYING

Aseptic packaging system made previous CJ’s ready-to-eat

rice packaging system obsolete.

It was entirely new technology.

Stakeholder Model

1. Stakeholder Analysis

Stakeholder Model


Stakeholders who are better off with HETBAN:Stockholders, Suppliers, Government, Customers

*Benefits of HETBAHN

Stakeholder Model


Stockholders(More Earning

per Share)

Suppliers(Increasing Demand)

Government(Reducing Cost of

Government-stock rice)

Customers(Tasty

Ready-to-Eat Rice)

Stakeholders who are better off with HETBAN:Stockholders, Suppliers, Government, Customers

*Benefits of HETBAHN

HETBAHN Case

PART II


Analysis of

Technology Diffusion 1. Market Growth & Brand Image

2. Technology S-Curve

Analysis of Technology Diffusion

Market sales of HETBAHN increased consistently with high growth rateThe brand image of HETBHAN was the best in the market

7.6%17.1%

94%

0

10

20

30

40

50

60

70

80

90

100

CJ 햇반 농심 햅쌀밥 오뚜기 맛있는밥0

100

200

300

400

500

600

700

800

900

1997 1999 2001 2003 2005

Market Sales of CJ HETBHAN

- 2005 seri, CJ

Perceived Brand Image Rate

The sales increased 30 ~ 40% every year Brand image of CJ HETBHAN was overwhelming

- 2005 seri, CJ

1. Market Growth & Brand Image

*HOWEVER!(cont.)


The market of aseptic packaged rice became saturated

Sales of Aseptic Packaged Rice Market

- CJ survey

0

200

400

600

800

1000

1200

1400

1997 1999 2001 2003 2005

S-curve ofdiffusion

1. Adoption is initially slow because the

product is unfamiliar

2. Adoption accelerates as the product becomes

well understood

3. Eventually market is saturated and the rate of new adoptions declines


The market growth rate DECREASED


The market share of HETBHAN constantly decreased

The market share of HETBAHN DECREASED

72%80.8%86.8%

100%

19.1%19.2%13.2% 8.9%

0%10%20%30%40%50%60%70%80%90%

100%

2002년이전 2002년 2003년 2004년

CJ 햇반 농심햅쌀밥 오뚜기맛있는밥

Market Share in Aseptic Packaged Rice

- 2005 YTN news- CJ survey

0

200

400

600

800

1000

1200

1400

1997 1999 2001 2003 2005

S-curve ofdiffusion


Sales of Aseptic Packaged Rice Market

The market growth rate DECREASED


CJ had to deal with the threat of competitors and decreasing market growth rate

Entering

The productBecomesperceived

Growing

Power of brand image

becomes strong

Saturation

The growthof market’

almost finish

time



CJ had to deal with the threat of competitors and decreasing market growth rate

Market growth rate decreased

Entering

The productBecomesperceived

Growing

Power of brand image

becomes strong

Saturation

The growthof market’

almost finish

time

Threat of competitors


*Threat of competitors*Decreasing market growth

rate

?

Implemented

Strategies1. Protecting Innovation2. Changing the Rule of Competition3. Individualized Strategies for

Competitors

CJ protected the right to use the name, “HETBHAN” Patents registered: Korean Intellectual Property Office

•“HETBHAN” became a BYWORD for aseptic processed rice•The name, “HETBHAN”, distinguished the product from the others

Implemented Strategies

1. Protecting Innovation*Trade Mark

CJ protected the right to use the name, “HETBHAN” Patents registered: Korean Intellectual Property Office

•“HETBHAN” became a BYWORD for aseptic processed rice•The name, “HETBHAN”, distinguished the product from the others

PATENT Patents registered in KIPO

CJ registered 16 patents to protect the name “HETBHAN”


1. Protecting Innovation*Trade Mark

TRADE MARK

TASTE- As the technology of “Aseptic processed rice” spread out, the taste of

competitors ready-to-eat rice became almost the same

BRAND IMAGE- Consumers bought HETBAHN based on brand image at the first. However,

the brand image slowly became less influential.

Previous rule of competition


2. Changing the Rule of Competition

TASTE- As the technology of “Aseptic processed rice” spread out, the taste of

competitors ready-to-eat rice became almost the same

BRAND IMAGE- Consumers bought HETBAHN based on brand image at the first. However,

the brand image slowly became less influential.

VARIETY in CUSTOMER OPTION- CJ expanded the product line and started to provide derivative products of

HETBAHN

Previous rule of competition

New rule of competition

To survive in the fierce competition,

CJ changed the rule of competition!



By providing variety in customer option, CJ tried to capture more customers

Different size Rice soupRice with sauce Rice with soup

People who eat more or less than 200g

People who want to eat rice soup

10s and 20s 30s and 40s

200g is too much or too small

For breakfast For lunch or dinner For breakfast or dinner

880~1880 won

target

situation

price 2430 won 2430 won 2540 won



CJ tried to expand the market of ready-to-eat rice

- CJ survey (N=211)

When does customer want ready-to-eat rice?

How often does customer buy ready-to-eat rice?

- CJ survey (N=211)



provideVARIETY in CUSTOMER OPTION

The individualized strategies implemented to deal with the threats

Threat 1NONGSIM`s low price products

Threat 2DONWON F&B`s High quality rice

Providelow-price-package of HETBAHN

Alliancewith Joennam rice association


3. Individualized Strategies for Competitors

Analysis of the

company1. SWOT analysis2. Five forces analysis3. Value Chain analysis4. BCG analysis

SWOT

Strength Weakness

ThreatsOpportunities

Analysis of the Company

1. SWOT Analysis

SWOT

Strength Weakness


•Accumulated knowledge & knowhow

•Powerful brand image

•Rice is essential food

• Price of rice varies

•Negative perception of instant food


1. SWOT Analysis

SWOT

Strength Weakness


•Accumulated knowledge & knowhow

•Powerful brand image

•Rice is essential food

• Price of rice varies

•Negative perception of instant food

•Microwave is available everywhere

•Increasing female employment

•Modern life style: too busy to cook

•Increasing export

•Competitors

•Economic recession

•Regulations (Plastic Package)


1. SWOT Analysis

2. Five Forces Analysis

Existing Rivalry

Potential Entrance

Threats of substitutes

Bargaining power of suppliers

Bargaining power of buyers

High

Low



Existing Rivalry

• Many companies were already involved

in the market of “aseptic processed

rice”

Potential Entrance

• Korean food companies

• Foreign companies




•Fast foods(such as hamburger, sandwich, kimbab, instant noodle

etc)

High

Low



Existing Rivalry

• Many companies were already involved

in the market of “aseptic processed

rice”

Potential Entrance

• Korean food companies

• Foreign companies




• Plenty of farms were available for supply

•Fast foods(such as hamburger, sandwich, kimbab, instant noodle

etc)

• CJ already had good brand image and customer royalty

High

Low


3. Value Chain Analysis

Technological Development

Human Resource Management

Firm Infrastructure

Procurement

Inb

ou

nd

Log

isti

cs

Op

era

tion

s

Ou

tbou

nd

Log

isti

cs

Mark

eti

ng

&

Sale

s

Serv

ice

adva

ntag

e

competitve

SupportActivities

Primary Activities





Firm Infrastructure

Procurement

Inb

ou

nd

Log

isti

cs

Op

era

tion

s

Ou

tbou

nd

Log

isti

cs

Mark

eti

ng

&

Sale

s

Serv

ice

adva

ntag

e

competitve

SupportActivities

Primary Activities

Procurement, technological

development and marketing & sales mostly contributed for

the HETBHAN`S competitive advantage





Firm Infrastructure

Procurement

Inb

ou

nd

Log

isti

cs

Op

era

tion

s

Ou

tbou

nd

Log

isti

cs

Mark

eti

ng

&

Sale

s

Serv

ice

adva

ntag

e

competitve

SupportActivities

Primary Activities

Technological development- The “Aseptic packaging” technology made the product delicious

Marketing & Sales- The active marketing strategy increased the sales and raised the brand image

Primary activities

Procurement-The self rice-polishing facility of CJ improved the quality of HETBHAN.

Support activities

Procurement, technological

development and marketing & sales mostly contributed for

the HETBHAN`S competitive advantage


The aseptic technology improved the taste of ready-to-eat rice radicallyThe multi-layer technology extended the expiration date significantly

3. Value Chain Analysis – Technological Development

Aseptic packaging technologyAseptic packaging technology Multi-layer plastic package technologyMulti-layer plastic package technology


Various marketing activities enhanced the brand image and increased the sales

3. Value Chain Analysis – Marketing & Sales

Online Event Off Line Event

TV Advertisement


The procurement system of CJ contributed for outstanding taste of HETBHAN

3. Value Chain Analysis - Procurement

- 2008.03.17 아시아 경제


The procurement system of CJ contributed for outstanding taste of HETBHAN

3. Value Chain Analysis - Procurement

The taste of rice starts to go bad right after get polished

- 2008.03.17 아시아 경제

CJ was the only one (ready-to-eat rice manufacturing) company in Korea

which had a self polishing system to polish raw rice. CJ could use fresh rice

to manufacture HETBAHN.


Star Question Mark

Cash Cow Dog

High

Low

Mark

et G

row

th

High Middle Low

Market Share

Position of HETBAHN on BCG Matrix: Star

NONGSIM

HAPSSALBAB

OTTUGI

DELICIOUS RICE

DONGWON

SANCOOK

4. BCG Analysis


Star Question Mark

Cash Cow Dog

High

Low

Mark

et G

row

th

High Middle Low

Market Share

Position of HETBAHN on BCG Matrix: Star

NONGSIM

HAPSSALBAB

OTTUGI

DELICIOUS RICE

DONGWON

SANCOOK

4. BCG Analysis

It had largest market share and its market had great potential to grow

HETBHAN


HETBAHN Case

PART III


Suggestion

1. Five Forces Analysis2. SWOT Analysis3. TOWS Analysis4. 3-Phase Future Strategy5. Balanced Scorecard

Suggestion

External Analysis

1. Five Force AnalysisPorter’s Five Force model: 2010

Suggestion

External Analysis

1. Five Force AnalysisPorter’s Five Force model: 2010

High

Middle

Low

Degree

Suggestion

2. SWOT Analysis

Internal Analysis

SWOT Analysis: 2010

Suggestion

• Powerful brand image

• Diversified distribution channel

• First mover advantages

•Both B2B sales and B2C sales

•Expensive price

• Negative perspective for instant food

2. SWOT Analysis

Internal Analysis

SWOT Analysis: 2010

Suggestion

• Powerful brand image

• Diversified distribution channel

• First mover advantages

•Both B2B sales and B2C sales

•Expensive price

• Negative perspective for instant food

•Overseas demand

• Increasing employment rate of women

• Decreasing brand power

• Increasing bargaining power of suppliers and buyers

2. SWOT Analysis

Internal Analysis

SWOT Analysis: 2010

Suggestion

Suggested Strategies

3. TOWS Analysis

TOWS Analysis: 2010

TOWS

S-O (Offensive) (Risk Aversion) S-T

(Turn-around) W-TW-O (Defensive)

Suggestion


3. TOWS Analysis

TOWS Analysis: 2010

TOWS



• Penetrate Chinese market with “Korea #1” brand image

• Contact actively with many institutes and companies to increase B2B sales

• Diversify the product distribution channel

• Focus on securing its “high quality and luxurious” brand image through various promotions

• Strategic collaboration with the competitors

Suggestion


3. TOWS Analysis

TOWS Analysis: 2010

TOWS








• Providing various types of products: Glocalization for overseas market

• Strategic collaboration with substitutes such as” Triangular gimbab with HETBAHN”

• Conduct promotion to reduce negative perception of instant food

Suggestion


Priorities

we give priorities to the strategies in TOWS analysis

3. TOWS Analysis

TOWS











Suggestion


Priorities

we give priorities to the strategies in TOWS analysis

3. TOWS Analysis

TOWS











#1

#2

#3

Suggestion

Future Strategy: Glocalization

Overseas market has great potential:China, Japan, India etc.

3. TOWS AnalysisFuture Strategy

Suggestion


Future Strategy 3. TOWS Analysis

CJ should become glocalized and provide localized products to global

customers

For glocalization, decentralized R&D will be helpful for better performance.

Decentralized R&D can better understand local consumers’ needs and culture.

Suggestion

For glocalization, decentralized R&D will be helpful for better performance.

Decentralized R&D can better understand local consumers’ needs and culture.

3. TOWS Analysis

CJ should become glocalized and provide localized products to global

customers

Future Strategy


Suggestion

4. 3-Phase Future Strategy

Phase 1: Crisis management

Financial Stability

• Decentralized R&D for new product and focus on

glocalization

• Contact actively with many institutes and companies to

increase B2B sales

• Attain price competitiveness through B2B sales strategy

Suggestion

Phase 1: Crisis management Phase 2: Brand Management

Financial Stability Preparation for a jump

• Focus on securing its “high quality and luxurious” brand

image through various promotions




glocalization


increase B2B sales


Suggestion

Phase 1: Crisis management Phase 2: Brand Management Phase 3: Expansion Strategy

Financial Stability Preparation for a jump

Leap by using saving power





glocalization


increase B2B sales


• Focus on securing its “high quality and luxurious” brand

image through various promotions


Suggestion

Balanced Scorecard

How

Mission Create premium value by supplying the best products and services

Products Customer Service

Strategic Collaboration

Innovation & Learning

5. Balanced Scorecard

Suggestion

Balanced Scorecard

110

Measurements

Objectives

How

Mission Create premium value by supplying the best products and services

Products

• Diversification of product line

• Diversification of distribution

channel

• Innovative product

• # of products

• # of distribution channel

• # of innovative products

Customer Service

• Create customer loyalty

• High brand loyalty

• Customer service

• Customer Satisfaction rate

• Brand awareness rate

Strategic Collaboration

• Reduce cost

• Attain advantages from

collaborations

• Win-win strategy with competitors

• Annual cost reduction rate

• # of alliance

Innovation & Learning

• Innovation based on customer

demand

• Industry leading employee

satisfaction

• Superior R&D

• Employee satisfaction rate

• Number of new innovations

5. Balanced Scorecard

Reference

“Strategic Management of Technological Innovation 3rd Edition”, Melissa SchillingHBR casestudies for Technology Management , POSMIT Pub, 2010

Food News www.foodnews.co.kr CJ cooperation www.cj.net

Hetbahn Homepage www.hetbahn.co.krSamsung Economic Research Institute www.seri.org

Statistics Korea www.kostat.go.kr

http://www.foodnews.co.kr/

http://www.cj.net/

http://www.hetbahn.co.kr/

http://www.seri.org/

http://www.kostat.go.kr/

EOD

THANK YOU

hetbahn case technology management and strategy. hetbahn case presented by kihoon kim, toikye cho,...

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