Strategy and Organization
Strategy and Organization
BIC manufactures and sells 21million stationery products every day around the world. BIC is the world number one manufacturer of ballpoint pens and a leader in stationery products.
From the case, we can know BIC corporation has developed very traditional organization over the years. Manufacturing had emphasized the development over the years of a totally integrated, highly automated production process capable of mass producing high quality units at a very low cost. The production process consisted of manufacture of parts, assembly of parts and packaging. I think the processes were efficient. The management also felt that production costs were substantially controlled by the strict enforcement of a quality control system. Meanwhile, they had a very stable employee system.
As with writing instruments, BIc’s management believed that industry success was heavily dependent on the strength of a firm’s advertising program and distribution network. In contrast to its major competitors, BIc planned to act as a distributor of panty hoses rather than as a manufacture and to establish a specialized sales.
First I think for a pen corporation, it is not easy to manufacture panty hoses, because they need to produce a highly automated production line of panty hoses and it will cost lots of money. So I think BIc planned to entry the panty hoses market not by manufacturing is a right decision. Compare to the similar decision they made to sell