Today on Wednesday June 3, the
class visited GE Global Research and KUKA Robotics. Each of the business visits expanded our
global business knowledge as well as the adaptations of the cultural aspects.
We were surprised that out of all
the industries GE participates in, oil and gas is the fastest growing
financially. When we think of GE, we associated appliances with the brand, and
we were very intrigued to learn that they have sold the appliance sector because
of the small business to consumer market.
The previous CEO, Jack Welch had an aim for large growth and experienced
rapid changes with the changes in the internet, and his goal was to be as ”lean”
as possible. With a variety of specialists, either possessing a master’s degree
or a P.H.D., it seems obtainable and reasonable that they have achieved all of
the success and goals that the company has. The speaker was very honest and
direct and challenged our knowledge throughout the presentation. Two things which were a surprise, was that he
mentioned which we highly respected, was that energy saving lights are a myth
and that the current marketing at GE “sucks” and needs improvement.
Our visit at GE taught us
comparisons with other businesses success and faults. We learned that sometimes it can be difficult
to adapt and understand all aspects of cultural needs. The example of Ford
portrayed a huge mistake that was not considered in the production process
which plummeted sales. Ford developed a car for the India market and did not
take into deliberation the impact of not having power windows in the back seat
of the vehicles. Reflecting on the situation, we learned that culture should be
the first aspect when developing a global product, and a simple mistake could
ruin a potentially profitable product. Another
example that stood out to us when considering cultural essentials is the
differentiating needs themselves. Not
all products are applicable in all environments and cultures. It does not seem logical to place a wind
turbine in an environment without heavy winds or the impact which dust can have
on the turbines and the effect can become negative and unprofitable.
KUKA Robotics' mission is to excel in innovation and variety to become a strong and reliable partner in the business to business market. Their enthusiasm for technology is to inspire tradition with a future using robot based automation. Most would have the belief (ourselves included) that this particular industry would eliminate jobs, however the speaker enunciated that jobs will be created by the advanced technology. KUKA’s vision is to know today what people will need tomorrow. In this particular industry, the globalization expansion seems endless. We believe that their biggest obstacle is the determination of how each culture or country can benefit from this advanced technology.
During
the tour the speaker proved the need for individuals in an automated
technological business. One aspect we found very interesting and challenging was
the high inventory of essentiality replacement parts KUKA has in their
warehouse. They were very strategic in
their location of their facilities, located close to the airport, so they have
the ability to deliver in a timely and effectively manner to their consumers.
They are willing to increase their costs to improve safety and time
efficiency when considering the importance of high customer satisfaction.
KUKA’s
branding is very consistent with their orange color, however they understand demand and competition.
They will produce their robots in custom colors based on special
requests for a higher price to ensure returning customers and prevent
competitive obstacles. Although colors seem like a minor detail in our everyday
life and culture, being that it is a global brand with intentions to grow, it
was very intriguing to learn their marketing strategy and willingness to adapt.
Consistency in marketing and branding is key and this demonstrated an exception
in the rule. “We talk your language” is KUKA’s motto, and this particular
situation fully demonstrates the cultural satisfaction needs.
GE Global Research and KUKA
Robotics were very different companies, however very insightful when
considering cultural and business related aspects. Both of these company visits
relate to our global business studies and it was inspirational to experience
the opportunities first hand.
