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Temsa as a global corporation is well known in the Middle East region and in parts of the European market. The company core business is focused on manufacturing high end and utility based buses. To some extent the company and its product have been noted to be very innovative in terms of their designs, user-ability. Starting its operation since the early 1980s, Temsa Global today has come a long way to mark a place of itself in the international market. A study of the company and its analysis shows that the company product strategies during the 1980s and 2009 are totally different from one another.
As the case it is, during the early part of 1980s that is to say precisely since 1984 the company first made its entry in the market as licensor to Mitsubishi Motors, a global auto manufacturing giants based in Japan. However it was only after 2009 that the company took its step forward towards its global operation management that also brought its foothold in the market in the Middle East region and in parts of the European market. (Temsa Global , 2009 )
Speaking of the company from the strategic point of view, it is observed that innovation and design capabilities have been the benchmark for the company to progress. Being a global automotive manufacturing company it requires high-end manufacturing capabilities and innovation to make its mark in the market felt Temsa and its management. Further analysis of the report available with the company shows that it was part of Temsa futuristic outlook towards its operational expertise. The company since 2009 has been in the right course of strategic formulation to make its presence on a global arena. (Temsa Global , 2009 )
This is true given that competitions in the market are ripe enough. For that reason Temsa launches its new brand identity through its hybrid buses that run on CNG in 2009 that changed the course for the company and its operations globally. (Global, 2009) What we learnt is that Temsa produces mainly light trucks, buses and mini-buses from its manufacturing units and factories based in Turkey. However, a gradual shift to the company operation process and manufacturing capabilities was following the year 2009, when the company acquired development design capabilities which given the shift in its product strategy.
2. What organizational changes are required to support the shift in strategy at Temsa Global?
Operation management and its strategy are important to organization in great many ways. It should also be understood that strategic decision are most important given its long-term approach. Most importantly, it is noted by scholars that strategic decision making involves the use of many resources in its strategic formulation to get desired results. (C. Donald J. Waters, 1999 , p. 11)
The above statement is true from a theoretical point of view. Hence, when it matters to Temsa organizational changes that are required the same case also can be seen in the company since 2009 onwards, when Temsa began its restructuring of the organizational makeup and overall operational process. Firstly its name was changed from Temsa to Temsa Global. This is followed by the brandishing process, which are some aspects of organizational change taking place. To top it all, marketing and overall emphasis on branding and its strategy was to ride on the new force if their innovation that paid dividends in 40 years of their R&D initiatives. (Temsa Global , 2009 ) Above all, change should be constant, that is what Temsa Global also have been restructuring, where innovation have been the benchmark of the company to support the shift in strategy.
3. What are the possible advantages of investing in the R&D center for advanced technologies? Discuss the implications considering the changing perceptions and demands of consumers.
Research and development, which is often commonly referred to as R&D is very crucial for manufacturing companies for many reasons known and unknown. As the case is many corporation that have given emphasis to Research and Development or those which have went global give huge emphasis on their Research and Development process within the company or by initiating programs of knowledge sharing.
Research and Development process as a matter of fact can take longer time frame, however; the long term benefits of it cannot be misrepresented. Take for example the case of L’Oreal that hugely gives emphasis to its research and development. The company today is not only a manufacturing giant in cosmetics and allied products, but it is also a global leader with a fair share of the global market across sector of the industry. This shows that Research and Development have long-term benefits which are crucial for operational expertise, especially when it matter to manufacturing companies. According to scholars it is believed and speculated that “the longevity of benefits derived as a result on expenditure on Research and Development is incapable of measurement at the time the expenditure is incurred. (Thuronyi, 1998 , p. 645) That is to say, benefit when measured is incapable, since the tremendous level that Research and Development offers.
Taking this point in consideration, we feel that Temsa Global and its emphasis on Research and Development or let say R&D is a good thing to have come by since the company was established. Most importantly, Temsa Global and its Research and Development process also have been well received, where innovation have been the end results that lead the way for the company to come up with advanced hybrid and CNG design for its buses since 2009.
This shows that 40 years of integrative R&D by the company was successful, given the ability of the company to compete in the technological race as well as manufacturing its products that are high-end as well as out of the box. The ability of Temsa to meet the demand of the market and especially the ability of the company to introduce Temsa Avenue Hybrid, a hybrid bus and buses that run on CNG and green fuel is one example of the company innovation in the current schemes of things, which defines the capability of the company not only in meeting market demands for their products, but also contributing to the environment cause, as well as attending to consumer perceptions and the trends. (Temsa Global , 2009 )
4. What should be the focus of Temsa Global in supporting its market – driven product strategy and customized designs?
As a global corporation, Temsa manufacture high-end CNG and hybrid buses which are a huge demand in the market. For that reason when considering the case of Temsa Global from a strategic point of view as a means to support their operation, it is believed that the focus strategy for competitive advantage in the market should be one important point to note or to be considered. Such instance is also what we can observe with Temsa Global. Fact of the matter is that by pursuing global operations they have many benefits for corporation.
Hence, it is felt further that the Temsa Global also should explore the domains of ‘focus strategy’ and its approach in the most effective ways to drive their products in the international market known for innovation, customized design and most importantly product design, which started to take roots in the company since 2008. (Temsa Global , 2009 ) What we can understand is that the feasibility of ‘focus strategy’ in terms of management practices are numerous, given that its theoretical and practical approach present a huge dimensional background that can be worked out perfectly in a competitive global market today as the case, especially when it matter to Temsa Global and its operational strategy for instance.
Moreover, it also should be understood that the factor encompassing focus strategy and the implication can be derived from varied grounds. Let say for example implication to be derived can directly be nurtured in context of economic volatility and its befitting end results. Besides, focus strategy also give importance to cost factor analysis in the market. To top it all, overcoming industry thresholds also is very much possible through focus strategy. Finally, the feasibility of focus strategy in most instances can be looked in respect of overcoming scale economic, which we feel can be ample for corporation with their operation in international market. (Porter, 1998, p. 266)
Thus, what we can conclude finally considering the case of Temsa Global is that initiating management approach towards ‘focus strategy’ can be ample enough and has many befitting end results for corporations that hugely take course through its market-driven capabilities, which is the case with Temsa Global.
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