The Issue In Vishay Intertechnology Asia Ltd Business Essay

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Alternatives can be explained as another more ways of achieving the same desired end or goal for Vishay. The alternatives for Vishay in order to fulfil customer demand are by focusing on training for current employee instead of hiring new workers. Other than that, Vishay should focus and understand clearly about the ethical which contains of idealism and relativism. However, by there are pros n cons for choosing the alternative way.

Solution is the way to resolve by choosing those decision and alternatives. Moreover, the issue in part 1 was how Vishay manage every division in order to meet customer demand with limited number of employees. Well, first solution is the leader should guide their employees in a right direction. Next, Vishay should value their stakeholders as it is important to sustain business in a long term. Third is sustaining their competitive advantage especially in product innovation. Product innovation for Vishay must be environmental friendly in order to show this company practise CSR in business. Last solution is Vishay should adapt 5 porter forces strategy.

Implication for the solution above are the leader knows better culture dimension in Asia and knowing better on how to resolve the problem. Next is product innovation has create more productivity for the organization.

Decision criteria for Vishay in order to make a better decision are based on the evaluation and rating according to their performance and socio culture knowledge. Based on the issue, Vishay performance are not that great as they had limited numbers of employees while they need to provide services to thousands of customer especially in China. This has cause of limited number of production which also leads decrease in net profit while the demand keeps increasing in the market. The manager should come out with better decision based on the evaluation. To deal with low performance, the manager should show and focus in leadership skills. This will increase the motivation so that they can perform better in future. There are three criteria to improve motivation which are setting of performance goals, provision of performance support and performance feedback (Dealing with Poor Performance, 1996-2013)

Next is based on socio culture knowledge. As a manager in Vishay Intertechnology, knowing of culture sensitivity is the most essential in order to penetrate market worldwide. Different country has different culture and according to Hofstede's cultural dimension, Asia especially in China can be classified as the region with high power distance, uncertainly avoidance and more collectivism compare to the western. (Yau, 1986) stated that by learning Chinese cultural can create a value which can be used for market segmentation. It will clarify whether theories of consumer behaviour, which were used by Western, can be applied to Eastern. However, (Hofstede, 1980) proved the cultural characterises of employee has in impacts towards the organization culture. Furthermore, decision based on cultural dimension will generate better feedback as Vishay clearly understand before promote their product worldwide.


Other alternative for a leader to make better decision is by focusing on training to the current employees. Based on the video, it was stated by Mr.Goh helping the trainees with giving examples and guiding them in a right direction. This will leads them with a good work and increase their encouragement. However, there are pros and cons by choosing alternative way. For instance, provide training require costs which increase the expenses of the company. Furthermore, in order to improve trainee to be more independent Vishay Company should train them in term of presentation. During the presentation, the leader will critique and creativity should be included. From this action will lead them to learn from mistakes. In order to success, learning from mistakes or past experience are the most important.

Second alternative is ethical idealism and relativism. Cultures differ widely in term of moral practise. Due to cultural differences has become the obstacle for international transactions. First is idealism, highly idealistic individuals have a considerable concern for the welfare of others (Barnett, Bass, & Brown, 1996). (Davis, et al., 2001) state that from moral appropriate actions, it will create better outcome. Instead of knowing culture dimension, it is important for them to be ethical especially in business as it has a large impact in the organization. "The second factor relativism, individual with highly relativistic in their moral beliefs be likely to reject the applicability of inflexible moral standards in the determination as to whether an act is ethical or unethical (Barnett, et al., 1996)."Vishay should focus more by exploratory the relationship between ethical ideology and actual choices on real-life workplace scenarios that involve the making of ethically-based choices.


In order to know the production team are more efficient and effectively, the leader should keep up or catch up with other department such as marketing division, HR division, Finance division and etc. Organized meetings with those divisions will increase the productivity of the employee as well. Ironically, the manager and other departments know better which one they need to improve and also maintain the relationship between employees.

Next solution is the most significant which is Vishay Intertechnology Asia Ltd should value the stakeholders. By valuing stakeholders will makes them loyal and of invest more to the company. More important is to maintain and sustained groove with good margin." Its objective is to contribute to the development of the community from which it draws its resources and sustenance, maximize this value by following policies that minimize cost and waste while improving the quality of its products and enhance the skills and satisfaction of its employees, and (stakeholder value approach, 2012)."

Well, of course Vishay Intertechnology Asia Ltd should manage their competitive advantage would be better than other competitors. The most important is Vishay focus on technology and that makes them sustain their success in long haul. Pricing strategy has an impact towards the product. Low prices will attract more customers due to increase in customer awareness. This will result in higher market share as well. To promote this product in the marketplace successfully, Vishay should organize effective marketing campaign. This will makes Vishay's product to be well known worldwide. Other than that, invest in R&D also will increase profit in long term decision. Product innovations which maintain environmental friendly would be a better solution for Vishay.

Next, Vishay should adapt the 5 porter forces strategy. The bargaining power of buyers and suppliers affect a small Vishay's ability to increase prices and manage costs, respectively. Plus, low-entry barriers attract new competition, while high-entry barriers discourage it. Vishay competition is likely to be higher when several companies are vying for the same customers, and intense rivalry leads to lower prices and profits.


The implication based on the action taken by leader are every organization must understand clearly the culture dimension before penetrate the market worldwide. Vishay should understand and apply cultural comparison grid. This theory gives a better understanding of every culture in the world. Different culture will act different ways but in business, Vishay should understand the expression of culture as it has an impact toward the organization. Second implication is the leader must know how to resolve a problem. Due to higher demand in the market, every division manager must arrange and manage their division perfectly. It is important for booming industry to get the information on how to resolve the problem as knowledge is the main source of value and power. The impact is every division can help each other when they having difficulty.

Third implication is innovation of the product with proper branding without neglect the sensitive issue. This is to ensure that the product gets to anticipated buyers in a pleasing form (Fletcher and Crawford 2011, 470). Marketer should note that different county can't accept some of brand names. There are 3 types of strategies such as marketer can use same brand name worldwide, modify the brand name or use different names in different market (Fletcher and Crawford 2011, 468-469). Theoretically, manager should be strict in time management so that the workers will be more productivity and punctual over time. The impact will be Vishay can maximise their production.


In a nutshell, managers act in accordance to the belief that strategic decisions must be intentional acts and the result of a well-designed rational process. This report has provided all the decision, alternative, solution and implication for the issue in Vishay Intertechnology Asia Ltd.

Reference lists

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