Essay about Corning Glass Works

Decent Essays
OBH Day4 “Corning Glass Works(CGW): The Electronic Products Divisions (A)”

1 Conduct a situational analysis of EPD using the information presented in the case. Why has there been such a strong tension among functional department?

1-1 Summery
EPD is struggling to face a transformation of business model. They should change their business from product oriented to customer oriented because the key success factor of the component market is not technological advantage anymore. In the instable component market, it is needed to have market-oriented people and built a close communication among teams in order to introduce new product into market quickly. They also don’t have enough marketing staff and their evaluation
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In the component market, integrated circuit technology is threat of new entrants. The growth of integrated circuit technology makes existing component market shrink. EPD has taken aggressive moves to protect its market share from competitors and new entrants. Therefore, in existing market, EPD needs a cost reduction effort more and change their business model into low-margin high-volume business. It means that they should change their evaluation system; the plant should maintain 40% of gross margin. Additionally, they need to introduce new products into market to acquire new source of revenue. EPD has not built the clear strategies and shared them with employees.

Structure and HRM system
From the view point of the structure and HRM system, EPD has several problems. For example, EPD had used be a kind of divisional structure. They were only two divisions who were not located in Corning, NY. After Don Rogers became a division manager of EPD, he moved many sections to Corning. It causes miscommunication between sections. In addition, they have luck of appropriate talent for marketing. EPD is a product oriented company as well as CGW. In EPD, including CGW, Marketing and Sales have treated less important than R&D and Plants. In fact, many company’s top executives had been promoted from manufacturing,
The evaluation system is another problem .Each section is evaluated by
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