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Calsonic Corporation Plc - company overview

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CALSONIC LLANELLI RADIATORS PLC Calsonic Corporation Plc is a leading specialist in design, development and manufacture of heat exchangers, engine cooling systems and air conditioner systems and catalytic converters. It is based in Japan but has spread over many other areas of the world, including Llanelli in Wales. The Llanelli plant is one of many other company's which has belonged to the Calsonic Corporation for the past 13 years. The Japanese organisation is a Public Limited Company, which is where the company can offer their shares to the public, often through the Japanese stock exchange. Calsonic Corporation find that there are many Constraints and benefits from this type of ownership. These are: ADVANTAGES ? Being a larger company, Calsonic Llanelli now gain more finance and because of this finance, they can benefit for economies of scale. This is where the larger companies can buy in bulk for much, much cheaper. This brings down the costs of basic components and raw materials. Very often the larger the company, the cheaper the costs. ? While the company has this money permanently, the individual owners can recoup their money by selling shares to others. ? The company can sell share to any member of the public. And the sale of these shares enables larger sums of money to be raised. ? Directors may be brought in as experts in certain fields of the business. DISADVANTAGES ? There are many legal requirements to fulfil in setting up a public limited company ? Regulations mean that a company has to raise at least fifty thousand pounds share capital before they can set themselves up as a Plc, although some companies that are already registered can be bought 'off peg' ? The accounting of a company is less than private than for other forms of organisations, as audited accounts must be sent to company's house. ? Directors must report back to shareholders at the annual general meeting (AGM) ...read more.


(Rover radiators are different to Ford radiators) Price - The price of Calsonic's radiators, vary immensely for the different customers. They will do special pricing for special customer's e.g. - if Vauxhall buy 1000 radiators, they will produce them at a lower price than usual. They do these pricing strategies to keep their customers happy and to gain customer loyalty, also if new potential customers are in sight, Calsonic may offer them a discount on their first order. Place - Calsonic use once stage distribution, straight from the producer to the customer, this is because they use personal selling. This is easier for the customer as there is no middleman (wholesaler) and therefore, orders are received more quickly. Promotion - Calsonic use personal selling as their selling point. They rely on the word and mouth of there customers. This is their only promotion strategy and attracts customers by giving them discounts in pricing and quality produce. RESEARCH AND DEVELOPMENT The research and development team is a large and important part of a business, it enables the organisation to compete successfully and achieve a permanently sustainable edge over its competitors by becoming more efficient and profitable and giving customer's added value. In order to achieve the above the research and development section includes: ? Development of new products, materials and processes. ? Improving existing products. ? Finding new uses for products. ? Testing products for strength, quality, safety, etc. The Research and Development team helps Calsonic meet objective number 4. They do this by asking customers what they want from a radiator, then with the new ideas, they research them to check they are viable and than develop them and test them for problems. This department keeps new ideas running to the production department, and is working well to meet Calsonic's objectives. PRODUCTION DEPARTMENT The production department assembles the radiators and other components - producing the goods that are bought by the customer. ...read more.


Accredited to ISO 9001 Calsonic regards quality as the foundation of its continuing success. "We are committed to deliver excellent products and services to all our customers, both internal and external, on time, every time". Some years later, in 1998, all divisions of Calsonic then achieved the certificate of QS900, again adding more value to their products. All of the quality control systems described above will help add value to Calsonic's products, with these accreditation's, Calsonic can achieve a higher place on a competitive market and will help to attract more customers and increase their profits. It is difficult to find an alternative type of quality assurance as Calsonic use all the most up to date and effective methods. They could bring back the old quality assurance technique of an inspector at the end of the production line who will thoroughly check each radiator for faults. Although this will increase the costs for Calsonic as they will have to train and pay the new inspectors which will reduce profits, it may help Calsonic in the long run by making sure there are no faults with the radiators. Another drawback of this is that it may increase scrap and increases costs as if the a problem occurs with the radiator at the beginning of the production line but isn't noticed till the end of the line, the radiator will have to be scrapped which will decrease profits. A quality inspector will mean extra work for the Human Resources department who will have to recruit and train them, and it may demoralise the other workers, so they will have to look at other ways to motivate them. The Production department will also have to get use to having an inspector at the end of the line. I think Calsonic are better off using TQM, it is obvious that it is working for them because they are ranked 9th in the industry, they must be making good quality radiators otherwise they would lose their customers. 1 1 ...read more.

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