Essay About Low Cost Objective And Low Cost

The Swatch Group
Essay title: The Swatch Group
1. INTERNAL ANALYSIS 1.1 Mission, Vision, Goals and Performance Mission and Vision: The explicit mission statement has not been announced, Swatch’s mission is likely to be “to offer low cost, high quality, and accurate watch with synthetic material”, targeting to young people who are most likely to buy low-priced watches. According to the low cost objective, the operation has been separately managed in global manner in Switzerland, Brazil, China, and India where the labor cost is low enough to compete with Japan and Hong Kong. Moreover, in order to keep reaching the efficiency and effectiveness, the fully automated assembly line is implemented without the human intervention. In addition, to keep Swatch competing with low cost manufacturers, the capital-investment is applied as a result of decreasing in costs. The lean and flat hierarchies help enhancing the innovativeness and creativity throughout the company. The hybrids of centralization and decentralization management allow Swatch to yield the benefit from the local knowledge while maintaining the control over the distribution and management. Goals: The quantifiable objective has not been stated explicitly, it is obvious that Swatch’s general objective is “to become the creative and innovative leading brand in global market and establish strong brand image in the mind of consumers”. This objective is obvious since the flat hierarchy management style of the company follows this objective in order to enhance the creativity and innovativeness. Furthermore, the company’s culture, the controlled chaos support the creative and innovative thoughts