DESCRIPTION

British technology company

Founded in 1992 by Sir James Dyson

Designs and manufactures vacuum cleaners,

hand dryers, bladeless fans and heaters.

OBJECTIVES

Increase net profit by reducing operating and

manufacturing costs.

Broaden the market for Dyson’s products.

Maintain product quality standard.

Start production in the new plant in schedule.

SWOT

Strengths

• Lower expenses on suppliers.

• Ease and Increase in

distribution.

• Malaysia is the third largest

economy in Southeast Asia.

• Best selling vacuum cleaner

in Australia and New Zealand.

Opportunities

• Reductions in up to 10% in

manufacturing cost.

• Low cost and essay access to

neighboring developing

markets.

• Increase the amount spent on

R&D

Weaknesses

• High employee layoff

• Low people expertise

Threats

• Ability to adapt

• Difficulty with licenses due to

government bureaucracy.

• Competition

• Copying of the design

WORK BREAKDOWN STRUCTURE AND GANTT

FINANCIAL ADVANTAGES

UK MALAYSIA

Worker £9 per hour £3 per hour

Source: Economist Intligence and BBC

FINANCIAL

• The project will be financed with 40% by own resources

and 60% loan, granted by Bank Negara Malaysia.

The rates are fixed from 1.70% to 3.35% dependent on the loan

type. The term of the loan is 5 to 15 years.

• To purchase the new plant

Using own funds

• To make the whole building

Financing, in the form of low-interest loans, for up to 80% of total

eligible project costs

• To purchase the new machinery or equipment

Loans up to £750,000; loan guarantees up to £1.5 million.

Tax-exempt bond financing, starting at £750,000.

FINANCIAL

• Services with relocation

The expenses will be funded by own resources

• Recruitment and Training

Training Incentive granted by Malaysian Government - Training

expenses incurred by companies prior to the commencement

of business are eligible for a single deduction.

• Contracts terminations

Agreement between company and trade union

FINANCIAL

RESOURCES

• Acquisition of the new site

For the new plant is necessary 13,000m2 and it will be set to grow a further 45% in the next 6 years.

• Build the new plant

Local companies will be required during the process.

• New machinery

Bidding to acquire the equipment

• Relocation from UK to Malaysia

Air freight and ocean shipping will be used, always checking time and cost.

RESOURCES

• Recruitment

The jobs remaining are in research and development

total

employees UK

employees

transferred

employees

dismissed

employees

remained

employees

contracted

1150 25 565 560 450

CURRENT STRUCTURE OF

DYSON

BOARD OF DIRECTORS

CEO

HRM FINANCE R&D FINANCE MARKETINGLOGISTICS

PRODUCTION

STUCTURE

BOARD OF DIRECTORS

CEO

LIAISONR & D PRODUCTION

ASIA AMERICAEUROPE AUS & NZ

RISKS

CROSS CULTURAL RISKS

- May interfere with business

associates way of work and

communication breakdown.

- Training of corporate personnel

creating awareness of this

differences in culture.

- Finding new approaches and

combining both cultural perspectives.

LANGUAGE

- Language barrier could cause

conflict in doing business

- Contract services of excellent

translators to avoid language failures

causing business transaction failures.

POLITICAL

- Government corruption is quite

common in emerging economies

- Changes in taxation

-Involve creative and ingenious

personnel to get the company around

the legalities of the act.

- Include flexibility in the financial

plan

ECONOMICAL

-Rises in project costs

- Exchange rates

- Careful planning, risk fund

- Contingency funding

Technical Team

Leader

Steering

committee

-Process

Owners

-Project

Sponsors

Project

Director

Project

Manager

Project

Office

Change

Facilitators

Operations Team

Leader

Human Resource

Team Leader

Technical team

-Testing and standardizing

the product.

-Production deployment

phases.

-Technical training/coaching

-Technical procedures

-Documentation

Operations Team

-Provide right set of tools

& services for high

quality product

deliverance.

-Ensure smooth and

seamless integration and

a continued relationship

between teams

Human Resource Team

-Recruitment of new employees,

coaching and training

-Building strong relationships at all

levels of business

-Reinforce insights unique culture

-Attract, motivate and reward best

people for the organisation