Analog Devices Inc

Let's go. Analog Devices Inc...I have no idea about it... 2 samples


1. Conduct a SWOT analysis (Cases 11.1 and 11.2)

Strength

Quick to recognize that there is a problem and that the competitors are better than the ADI in the key aspects of the business. They were quick to react and they hired the TQS to help them to improve and be more efficient.

They use the concept of total quality management and their products are at the heart of many internet devices.

E-commerce has an important role for the company because of the success in the internet sales.

Using the Executive Information System(EIS) managers at all levels could break down performance result by region, product, customer or channel.

Weaknesses

Poor quality control had caused a extensive amount of waste during those 3 years was wasted, such as front-to-back IC yields of less than 15%.

Didn't mention about the value chain, so there competitors such as Motorola has more efficient value chain.

Due to poor quality control management, the cost and quality has continued to be a concern for ADI.

They find difficult imposing goal for various scorecard metrics on other supply chain players, as everyone wanted to be the “supply chain masters”.

Only focusing on existing customers and not inviting new customers to their innovation and product design.

Opportunities

Management is focusing on diversifying the business by moving into areas such as processing and data conversion to develop DSP ICs. They were trying to break through in the market because they saw a potential to generate future profits.

The company should have grater focus on R&D.

To better their outsourcing strategy so that they gain competitive advantage in order to attract business and commercial customers and to reduce their costs.

The company should provide a reward systems and incentive policy.

Threats

ADI’s competitors had on-time delivery records and yields well above ADI’s level.

The dominance of digital circuitry created new competition

The supply chains that ADI participated in were de-integrating

The traditional distinct separation between digital and analog markets had dissolved.


2. What was Analog Devices Inc strategy prior to 1991? (Case 11.1)

Focused on growing the business.

Use of Plan-Do-Check-Act strategy for the improvement of the quality of the product.

Five year planning.

Implementation of scorecard to measure how well ADI was moving towards its goals.

3. What was Analog Devices Inc strategy after 1991? (Case 11.1)

In 1996 Analog Devices’ strategy was technological leadership. The company wanted to be first-to-market with new products that had superior performance features. It was pursuing the following strategies in 1996:

Expand traditional SLIC business.

Become a major supplier of general purpose DSP ICs.

Pursue growth opportunities for system-level signal processing ICs.

Leverage core technologies to develop innovative products.

4. How did Analog Devices Inc industry change between 1996 and 2001?

(Case 11.2)

In the Exhibit 1 of the Case 11.2, comparing the data of 1996 and 2000, it shows that in the aspects of Sales, Sales Growth and Profit Margins, the industry is grow well. In 1996, the sales of the industry are 132,000 million, but it grows to 204,000 million in 2000. Also, the Sales Growth is increased form -8% to 37%, the Profit Margins is rose from 35% to 41%. But the data of Return on Assets is decreased, in 1996 is 30%, but in 2000 is 23%. Other change in this industry is that more and more companies are entering this industry.

5. How are targets set for the metrics on the scorecard? (Case 11.2)

The targets set for the metrics are revenue growth, new product introduction, and general management.

6. Evaluate the evolution of the corporate scorecard and related management planning and control systems of Analog Devices Inc

In early years, the scorecard is used to communicate strategy to drive quality impartment and to emphasize cost reduction initiatives. By the 1990s, ADI was focusing on adapting scorecard in order to increase emphasis on revenue growth. By late nineties, it was used in a faster paced more dynamic and more complex market environment. ADI considered the scorecard to be a breakthrough because it considered pages of reports into a simple, single report. It measured each critical success factor as well as financial performance. By 1991 the company scorecard was being used aggressively on a daily basis throughout the organization.

7. After having checked out Analog Devices Inc website, is there any other information that is relevant to strategy?

In the website: http://phx.corporate-ir.net/phoenix.zhtml?c=95455&p=irol-newsArticle&ID=1095305&highlight=strategy , we can see that the company has some plans about the wireless handset.

SAMPLE 2
1. SWOT analysis.


Strengths:

ADI has operated prominently in an industry segment: design, manufacture and marketing of a broad line of high-performance linear and digital ICs that address a wide range of real-world signal processing applications. They use the concept of total quality management and their products are at the heart of many internet devices.

Weaknesses:

However, ADI has problem with the quality of its production. Its on time delivery was under 60%. Its process yields were as low as 10%. The factory was missing over 40% of its committed delivery date.

Opportunities:

ADI pay more attention on profit but ignore the quality.

Threats:

ADI’s competitors had on-time delivery records and yields well above ADI’s level. ADI’s affected by the malaise in the US electronics industry and by the strong dollar.

2. What was Analog Devices Inc strategy prior to 1991? (Case 11.1)

ADI is nice president of quality and productivity impartment. Then ADI use the scorecard. They pay more attention on the strategy of product. Before such differentiations for new product, it focuses on their good quality. However now they focus on existing customers.

3. What was Analog Devices Inc strategy after 1991? (Case 11.1)

Become a major supplier of general purpose despise: they can target the growth opportunities for system-level signal processing is: to develop the high quality products by technology.


4. How did Analog Devices Inc industry change between 1996 and 2001? (Case 11.2)

IN 2000, ADI posed an explosive top-time growth rate of 78% growing from $1.5 billion to 2.6 billion. ADI’s new markets have very different demand characteristics supply chain were de-integrality, the traditional distinct separation between digital and analogy markets had dissolved. The product design process required greater collaboration.

5. How are targets set for the metrics on the scorecard? (Case 11.2)

Revenue growth, new product introduction, general management

6. Evaluate the evolution of the corporate scorecard and related management planning and control systems of Analog Devices Inc

In early years, the scorecard is used to communicate strategy to drive quality impartment and to emphasize cost reduction initiatives. By the 1990s, ADI was focusing on adapting scorecard in order to increase emphasis on revenue growth. By late nineties, it was used in a faster paced more dynamic and more complex market environment.

7. After having checked out Analog Devices Inc website, is there any other information that is relevant to strategy?

It will continue to build upon ADI’s traditions of innovation, performance and excellence to forge a head and to conger new technical Tran titers.

Sorry, I missed one, there is SAMPLE 3


1. Conduct a SWOT analysis (Cases 11.1 and 11.2)


Strength

 To build upon its position as a leader in real-world signal processing ,ADI was pursuing a series of strategies in 1996 such as expand traditional SLIC business etc.

 State charged the human resources division with establishing a TQM program at ADI.

 5-year strategy was introduced.

 Improvement teams identify the root causes of defects, rank them in order of importance, then propose, design, test and implement solutions.

 Goals for a series of quality measures was introduced corresponded to ADI’s critical success factors.

 The company use single-page scorecard was used to measure within these categories indicated the level toward the goals.

 Sorts of tools were used coordinated to provide a link between short-term results and long-term results of ADI.

 Using new tools and new planning systems such as teams rather than a centralized planning group.

 ADI perceived greatest strength in innovation and product design.

 It planned to invest in better e-commerce applications and increase resources available to the sales force.

 ADI operated in a complex web of partners and suppliers.

Weakness

 The defect level of product that reached the customer was higher than competitors.

 The poor quality caused a substantial amount of waste at ADI, such as front-to-back IC yields of less than 15%.

 Analog had a product orientation rather than a customer orientation.

 TQM works well at stopping wealth-reducing activities, but wealth creation doesn’t naturally come from TQM.

 ADI did not link incentive compensation to performance on the scorecard measures.

 There were too much information which may make confusion

 Management’s efforts may be wasted arguing about the appropriate goal instead of trying to improve the business.

Opportunities

 The analog circuitry portion used to manipulate real-world signals is still in analog form while the digital portions is used to further process analog signals after they have been converted to digital form.

 The company should provide a reward systems and incentive policy.

 The company was increasingly trying to include external metrics in the EIS.

Threats

 The company was affected by the malaise in the US electronics industry and by the strong dollar.

 It is harder to get numbers that are meaningful in analysis.

 The market is keep changing dramatically with different demand characteristics while it is difficult for company to meet the requirements.

 The supply chains that ADI participated in were de-integrating.

 The traditional distinct separation between digital and analog markets had dissolved.

 The product design process required grater collaboration.



2. What was Analog Devices Inc strategy prior to 1991? (Case 11.1)

 On-time delivery

 Total quality management.

 5-year plan was done each year.

 Total quality program became a way of life at ADI in the quality improvement process such as half-life.

 Plan-Do-Check-Act cycle was used for improvement.

 A single-page scorecard was introduced.

ADI shifted its strategy of focusing predominantly on the SLIC business to emphasizing the growth areas of SPLICs and DSPICs.

3. What was Analog Devices Inc strategy after 1991? (Case 11.1)

 Technological leadership. The company wanted to be first-to-market with new products with superior performance features.

 Expand traditional SLIC business.

 Become a major supplier of general purpose DSPICs.

 Pursue growth opportunities for system-level signal processing ICs.

 Leverage core technologies to develop innovative products.

 Hoshi kanri, a technique, was part of the center for Quality Management.

 Key Success Factors differentiated vary from scorecard was introduced.

 New tools were brought in such as the 10-step panning methodology.

 Divided the critical measures into four business drivers.

 Executive information system was introduced.

4. How did Analog Devices Inc industry change between 1996 and 2001?

(Case 11.2)

In 1996, ADI operated a wide range of real-world signal processing applications. On the other hand, however, recently the company products were components that typically were incorporated by original equipment manufacturers (OEMs) of equipment and systems focusing on communication and some kind of customers. Moreover, the company concentrated its attention on production rather than customer orientation before. In addition, in the early years of scorecard development, their focus was on using scorecards to communicate strategy, drive quality improvement and emphasize cost reduction initiatives. On contract, ADI was focusing on adapting the scorecard on revenue growth to quality and efficiency initiatives.

5. How are targets set for the metrics on the scorecard? (Case 11.2)

Executive Information System was installed which supported the use of divisional, departmental, individual scorecards and three distinct planning horizons. Since the company operated in a multifaceted web of partners and suppliers, ADI was gradually more trying to include external metrics in the EIS. Meanwhile, ADI kept the system as flexible as possible. Managers have been aware of that scorecard results were meant to inspire action rather than provoke endless analysis.

6. Evaluate the evolution of the corporate scorecard and related management planning and control systems of Analog Devices Inc

A single-page scorecard was introduced initially for measures within the categories indicated how well ADI was moving toward the goals. As well, it measured each critical success factor and financial performance. Half-life and target were provided as complementary linking between short-term results and long-term plans. Besides, 5-year planning was done every year. Latter, balanced scorecard was rolled out to the entire company. It became a communication tool and coordinated with various methodology methods such as EIS. Consequently, scorecard has become natural and diversity.

7. After having checked out Analog Devices Inc website, is there any other information that is relevant to strategy?

The ADI Supplier Awards are based on an exacting supplier rating program and recognize those suppliers who differentiate themselves through consistent outstanding performance, continuous improvement, strategic contribution to ADI’s technology and market leadership, anticipation and delivery of cost reduction initiatives and exemplary commitment to manufacturing and quality.