Essay Keda Case Study

5955 Words Apr 16th, 2013 24 Pages

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op yo Terrance Fung and Professors Yulin Fang, Huaiqing Wang and Derrick Neufeld wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality.

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Each of these areas functioned autonomously, giving rise to a freewheeling corporate culture where non-standardized processes were adapted on the fly, and problems were resolved in an ad hoc manner. This high degree of autonomy and flexible culture enabled Keda to achieve its “pursuit of perfection” through “endless innovation” in the global market. Indeed, innovation had been essential to the firm’s success in the market. In 1999, Keda had rolled out the first 3,200-ton pressing machine in China. In 2005, Keda had introduced three of the 10 most innovative new machinery products in the world. Perhaps more remarkable, in addition to its product innovation, was Keda’s commitment to business innovation. In 2003, the company set up a
Chinese national enterprise post-doctoral workstation and invited post-doctoral scholars to work on research projects on such topics as supply chain management and human resource management. Keda also invested more than CNY45 million (US$5.4 million) to set up a state-of-the-art ceramic engineering
R&D testing center. Keda thus established itself not only as a leader in market share and revenue but also as a product and management innovator.



Things, however, were not all positive. Keda’s silo-based model, while encouraging decentralized decision-making and a free wheeling entrepreneurial culture, was clearly taking a toll on Keda’s business

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