What Is Analog Devices Strategy In The Second Half Of The 1980's
Q1: What was Analog Devices strategy in the second half of the 1980’s? Analog Devices experienced a dip in their profit by 38 percent in between 984 to 1986. The sales of the company had grown only by 6.7 per cent compared to 46 per cent in the year 1984. This had become serious concern to the management. The main reason for the decline in sales were, late product delivery to the customers, increase in number of process defects and decrease customer satisfaction. The company had adopted Total quality management as a strategy in the year 1983 to improve quality issues and witnessed a significant rise in revenue. Though TQM had helped the company to achieve profits there was acceptance from management for TQM was very less.
However
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Hoshin ensures the focus is on the most important objectives.
Key success factors along with scorecards to monitor critical plans of ADI’s strategy.
10 step planning methodology was adopted to understand wealth creation in a way TQM had not addressed
Planning was done by the teams rather than planning done centrally
Q6 : Do you agree with the compensation philosophy of Analog Devices?
• No, the compensation philosophy of Analog Devies does not encourage the individual performance.
• This could act as a demotivating factor for the productive employee as he may feel he is not compensated for his good work.
• The year company does not earn good revenue it means lesser compensation for senior management and employees’
• This could lead to decrease productivity and increased attrition rate.
Q7: Describe Analog Devices ' strategy as of 1996. How should the corporate scorecard and other management systems change in 1996 to best fit the strategic needs of the company?
The main strategy as of 1996 was to
• Expansion of traditional SLIC business
• Increase market share in the DSP IC market
• Use technology to develop innovative products
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