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Kami Corporation

Kami Corporation. Stephanie Bussiere Adolfo Lopez Jorge Delgado Whit Leverett. Mega Corporation. Owned by the Lee family 40 Subsidiaries (1994) Consumer Electronics (includes Kami Corporation) Automobiles Real Estate Agriculture Aquaculture. Mega Corporation History.

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Kami Corporation

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  1. Kami Corporation Stephanie Bussiere Adolfo Lopez Jorge Delgado Whit Leverett

  2. Mega Corporation • Owned by the Lee family • 40 Subsidiaries (1994) • Consumer Electronics (includes Kami Corporation) • Automobiles • Real Estate • Agriculture • Aquaculture

  3. Mega Corporation History • Consumer Electronic Relationships • Sony • Samsung • Sumida • Murata • Aiwa • Mega’s Reputation

  4. Philippines • Governmental environment • Import-substituting development strategy • Trade barriers • Tariffs • Foreign Investment restrictions • Effects on business • Increased investments • Export/Import consequences

  5. Aiwa • Subsidiary of Sony • Technology leader • World Production • Audio • TV • Goals and strategy

  6. Clark Special Economic Zone (CSEZ) • U.S. Military Bases • Clark Air Force Base • Impact on economy • Termination of agreement - 1991 • Subic Naval Base • Mt. Pinatubo explosion • Consequences

  7. Mrs. Lee, Kami & the CSEZ • Need for new site for Aiwa plant • Mrs. Lee tours area • Ash, sand & dust • Warehouse • Electricity and water supplies • Meeting with Aiwa managers • Decision to invest in CSEZ

  8. The birth of Kami Corporation • Agreement with Aiwa • May 1994 • 80,000 units per month at full capacity • $10,000,000 investment • Exclusive relationship • 2 models • Sales to Japan, Middle East, Europe, South America • Incompatible with Philippine reception

  9. Kami Corporation • Initial Production Start-Up • Production numbers • SKD and CKD kits • Sourcing components • Developing supplier relationships • For the future • Eventually open sales to local markets • Five additional models

  10. Kami Corporation • Kami’s head start • Construction • Production workers hired & trained • Customs difficulties hinder 1st deadline • Problems begin • Staffing conflicts • Production issues

  11. Kami Corporation - Staffing Conflicts • The Players • Mr. Uy – acting General Manager • Handles Mega’s Sony operations • Temporary assignment • Mr. Kee – Production Operations Manager • One of seven • Resentment • Mr. Olano – incoming General Manager • Accounting background • Joined Mega Corp. in 1987 • Concerns for future

  12. Kami Corporation – Production Issues • Inability to meet numbers • Production lines • Output capacity • Supply issues • Red tape • Warehousing issues • Poor planning • Lack of coordination

  13. Our Recommendations

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